Document:

exv10w1

Exhibit 10.1

Execution Version

 

TRANSACTION AGREEMENT

BY AND AMONG

SOLUTIA INC.,

NYCO LLC,

SK CAPITAL PARTNERS II, L.P.

AND

SK TITAN HOLDINGS LLC

MARCH 31, 2009

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	Article I Definitions
	 	 	2	 
	Section 1.1 Definitions
	 	 	2	 
	Section 1.2 Interpretations
	 	 	21	 
	 
	 	 	 	 
	Article II Formation of Holdings
	 	 	22	 
	Section 2.1 Contribution of Assets to Newco
	 	 	22	 
	Section 2.2 Assumed Liabilities
	 	 	22	 
	Section 2.3 Treatment of Intercompany Accounts
	 	 	22	 
	Section 2.4 Newco Formation Contribution Consideration
	 	 	22	 
	Section 2.5 Contribution of Newco Units and Cash to Holdings
	 	 	23	 
	Section 2.6 Holdings Formation Contribution Consideration
	 	 	23	 
	Section 2.7 Closing
	 	 	23	 
	Section 2.8 Deliveries at Closing
	 	 	24	 
	Section 2.9 Working Capital Payments
	 	 	27	 
	Section 2.10 Non-Transferability
	 	 	30	 
	Section 2.11 Intellectual Property License
	 	 	31	 
	Section 2.12 Contribution to Newco Subsidiaries
	 	 	31	 
	Section 2.13 Excluded Liabilities
	 	 	31	 
	Section 2.14 Additional Consideration Payable After the Closing
	 	 	32	 
	 
	 	 	 	 
	Article III Seller’s Representations and Warranties
	 	 	32	 
	Section 3.1 Organization of Sellers and Newco; Good Standing
	 	 	32	 
	Section 3.2 Authorization of Transaction
	 	 	33	 
	Section 3.3 Noncontravention
	 	 	33	 
	Section 3.4 Title to Contributed Assets
	 	 	33	 
	Section 3.5 Sufficiency of Assets
	 	 	34	 
	Section 3.6 Financial Statements
	 	 	34	 
	Section 3.7 Events Subsequent to Most Recent Fiscal Quarter End
	 	 	34	 
	Section 3.8 Real Property
	 	 	35	 
	Section 3.9 Furnishings and Equipment
	 	 	36	 
	Section 3.10 Inventory and Current Assets and Current Liabilities
	 	 	36	 
	Section 3.11 Material Contracts
	 	 	37	 
	Section 3.12 Intellectual Property
	 	 	38	 
	Section 3.13 Tax Matters
	 	 	39	 
	Section 3.14 Legal Compliance
	 	 	40	 
	Section 3.15 Litigation
	 	 	41	 
	Section 3.16 Product Warranty
	 	 	41	 
	Section 3.17 Product Liability
	 	 	41	 
	Section 3.18 Affiliate Transactions
	 	 	41	 
	Section 3.19 Customers and Suppliers
	 	 	41	 
	Section 3.20 Insurance
	 	 	41	 
	Section 3.21 Environmental, Health or Safety Matters
	 	 	42	 
	Section 3.22 Labor Relations
	 	 	43	 
	Section 3.23 Employee Benefit Plans and Employees
	 	 	44	 

i 

 

	 	 	 	 	 
	 	 	Page
	Section 3.24 Brokers’ Fees
	 	 	45	 
	Section 3.25 Newco
	 	 	45	 
	Section 3.26 Title to Newco Units
	 	 	45	 
	Section 3.27 Newco Capitalization
	 	 	45	 
	Section 3.28 Solvency
	 	 	46	 
	Section 3.29 No Undisclosed Liabilities
	 	 	46	 
	Section 3.30 Seller Information
	 	 	46	 
	Section 3.31 Disclaimer of Other Representations and Warranties
	 	 	46	 
	 
	 	 	 	 
	Article IV Buyer’s and SK’s Representations and Warranties
	 	 	47	 
	Section 4.1 Organization of Buyer and SK; Good Standing
	 	 	47	 
	Section 4.2 Authorization of Transaction
	 	 	47	 
	Section 4.3 Noncontravention
	 	 	47	 
	Section 4.4 Legal Compliance
	 	 	48	 
	Section 4.5 Litigation
	 	 	48	 
	Section 4.6 Brokers’ Fees
	 	 	48	 
	Section 4.7 Financing; Sufficient Funds
	 	 	48	 
	Section 4.8 SK Information
	 	 	49	 
	Section 4.9 Acquiring Person; HSR Act
	 	 	49	 
	Section 4.10 Disclaimer of Other Representations and Warranties
	 	 	49	 
	 
	 	 	 	 
	Article V Pre-Closing Covenants
	 	 	49	 
	Section 5.1 Reasonable Best Efforts; Cooperation
	 	 	49	 
	Section 5.2 Regulatory Approvals
	 	 	49	 
	Section 5.3 Notices and Consents
	 	 	50	 
	Section 5.4 Cooperation Regarding Holdings and Newco Formation
	 	 	51	 
	Section 5.5 Preservation of Business
	 	 	53	 
	Section 5.6 Notice of Developments
	 	 	53	 
	Section 5.7 Notice of Supplemental Disclosure
	 	 	53	 
	Section 5.8 Access; No Contact; Confidentiality
	 	 	53	 
	Section 5.9 Press Releases and Public Announcements
	 	 	54	 
	Section 5.10 Bulk Transfer Laws
	 	 	54	 
	Section 5.11 Buyer Financing
	 	 	54	 
	Section 5.12 SK Guarantee
	 	 	56	 
	Section 5.13 Seller Guarantee
	 	 	56	 
	Section 5.14 Newco Capitalization and Organizational Documents
	 	 	56	 
	Section 5.15 Investment Acknowledgements
	 	 	56	 
	Section 5.16 Solicitation of Alternative Transactions
	 	 	57	 
	 
	 	 	 	 
	Article VI Other Covenants
	 	 	58	 
	Section 6.1 Cooperation
	 	 	58	 
	Section 6.2 Further Assurances; Inadvertent Transfers of Assets
	 	 	58	 
	Section 6.3 Litigation Support
	 	 	59	 
	Section 6.4 Run-Off
	 	 	59	 
	Section 6.5 Access; Enforcement; Record Retention
	 	 	60	 
	Section 6.6 Non-Competition
	 	 	60	 
	Section 6.7 Non-Solicitation of Employees
	 	 	61	 
	Section 6.8 Covered Employees
	 	 	62	 

ii 

 

	 	 	 	 	 
	 	 	Page
	Section 6.9 Recording of Intellectual Property Assignments
	 	 	68	 
	Section 6.10 Transfer Taxes
	 	 	69	 
	Section 6.11 Insurance Matters
	 	 	69	 
	Section 6.12 Business Pension Plan Arrangements
	 	 	69	 
	Section 6.13 Replacement Bonding Requirements
	 	 	72	 
	Section 6.14 Equistar Arrangements
	 	 	72	 
	Section 6.15 Tax Matters
	 	 	74	 
	Section 6.16 Implementation by Holdings
	 	 	75	 
	Section 6.17 Acknowledgements
	 	 	75	 
	 
	 	 	 	 
	Article VII Conditions to Obligation to Close
	 	 	76	 
	Section 7.1 Conditions to Buyer’s Obligations
	 	 	76	 
	Section 7.2 Conditions to Seller’s Obligation
	 	 	77	 
	Section 7.3 No Frustration of Closing Conditions
	 	 	78	 
	 
	 	 	 	 
	Article VIII Indemnification
	 	 	78	 
	Section 8.1 No Survival of Representations and Warranties
	 	 	78	 
	Section 8.2 Indemnification Provisions for Buyer’s Benefit
	 	 	79	 
	Section 8.3 Indemnification Provisions for Seller’s Benefit
	 	 	79	 
	Section 8.4 Limitations on Indemnification; Calculation of Damages
	 	 	80	 
	Section 8.5 Matters Involving Third Parties
	 	 	82	 
	Section 8.6 Claims and Payment; Treatment of Payments
	 	 	83	 
	Section 8.7 Guest Operations
	 	 	83	 
	Section 8.8 Exclusive Remedy
	 	 	85	 
	 
	 	 	 	 
	Article IX Termination
	 	 	85	 
	Section 9.1 Termination of Agreement
	 	 	85	 
	Section 9.2 Termination Fees
	 	 	86	 
	Section 9.3 Effect of Termination
	 	 	87	 
	Section 9.4 Maximum Recovery
	 	 	87	 
	 
	 	 	 	 
	Article X Miscellaneous
	 	 	88	 
	Section 10.1 Expenses
	 	 	88	 
	Section 10.2 Entire Agreement
	 	 	88	 
	Section 10.3 Incorporation of Annexes, Exhibits and Disclosure Schedule
	 	 	88	 
	Section 10.4 Amendments and Waivers
	 	 	88	 
	Section 10.5 Succession and Assignment
	 	 	89	 
	Section 10.6 Notices
	 	 	89	 
	Section 10.7 Governing Law; Governing Language
	 	 	90	 
	Section 10.8 Submission to Jurisdiction; Service of Process
	 	 	90	 
	Section 10.9 Waivers of Jury Trial
	 	 	91	 
	Section 10.10 Specific Performance
	 	 	91	 
	Section 10.11 Severability
	 	 	91	 
	Section 10.12 No Third Party Beneficiaries
	 	 	91	 
	Section 10.13 Mutual Drafting
	 	 	92	 
	Section 10.14 Disclosure Schedule
	 	 	92	 
	Section 10.15 Headings; Table of Contents
	 	 	92	 
	Section 10.16 Counterparts; Facsimile and Electronic Signatures
	 	 	92	 

iii 

 

Exhibit A — {Intentionally Omitted}

Exhibit B — Form of Bill of Sale

Exhibit C — Form of Assignment and Assumption Agreement

Exhibit D — Form of Transition Services Agreement

Exhibit E — Form of Intellectual Property Assignments

Exhibit F — Form of DPO Operating Agreement

Exhibit G — Form of DME Supply Agreement

Exhibit H — Form of China Asset Transfer Agreement

Exhibit I — Form of Equistar Lease and Subcontract Agreement

Exhibit J — Form of Louvain-La-Neuve Lease

Exhibit K — Form of Securityholders Agreement

Exhibit L — Form of Holdings Certificate of Incorporation

Exhibit M — Form of Holdings Bylaws

Annex A — Select Transferred Contracts

Annex B — Select Contributed Assets

Annex C — Select Covered Employees

Annex D — Select Excluded Assets

Annex E — Illustrative Net Working Capital Determination

Annex F — Select Products

Annex G — Business Financial Statements

Annex H — Debt Letter of Interest

Annex I — Equity Commitment Letter

Disclosure Schedule

iv 

 

TRANSACTION AGREEMENT

     This TRANSACTION AGREEMENT (this “Agreement”) is entered into as of March 31, 2009 by
and among Solutia Inc., a corporation formed under the laws of the State of Delaware
(“Solutia” or “Seller” and together with the Other Sellers (as defined below),
“Sellers”), NyCo LLC, a limited liability company formed under the laws of the State of
Delaware and a direct, wholly-owned subsidiary of Solutia (“Newco”), SK Capital Partners
II, L.P., a limited partnership formed under the laws of Delaware (“SK”), and SK Titan
Holdings LLC, a limited liability company formed under the laws of the State of Delaware and a
direct, wholly-owned subsidiary of SK (“Buyer”). Seller, Newco, SK and Buyer are referred
to collectively herein as the “Parties”.

WITNESSETH

     WHEREAS, Solutia, through an unincorporated division thereof and through the Other Sellers,
engages in a business operation that manufactures and markets nylon intermediate chemicals and
nylon products, including the Products (as defined below) (the “Business”), as well as
other business operations unrelated to the Business;

     WHEREAS, Solutia wishes to transfer, and Buyer wishes to acquire, a majority interest in the
Business, on the terms and subject to the conditions set forth herein;

     WHEREAS, the transfer of the majority interest in the Business will be effected through
(i) the contribution by Solutia and the Other Sellers to Newco or a designated Newco Subsidiary of
certain assets held by Sellers and used primarily in the operation of the Business in exchange for
equity interests of Newco and, (ii) thereafter, (x) the contribution by Solutia to a corporation
formed under the laws of the State of Delaware to be formed by the Parties and named “NyCo
Holdings, Inc.” or any other name as mutually agreed upon by Buyer and Seller (“Holdings”)
of all of the then-outstanding equity interests of Newco for cash and shares of the capital stock
of Holdings as specified herein, and (y) the contribution by Buyer to Holdings of the cash amount
specified herein for the shares of the capital stock of Holdings specified herein so that, after
giving effect to the transactions contemplated hereby, Buyer shall hold a majority of the
outstanding capital stock of Holdings, in each case on the terms and subject to the conditions set
forth herein; and

     WHEREAS, it is the intention of the Parties that the contributions to Holdings by Solutia of
all of the equity interests of Newco in exchange for cash and shares of the capital stock of
Holdings, on the one hand, and by Buyer of cash in exchange for shares of the capital stock of
Holdings, on the other hand, together be treated as a tax-free contribution pursuant to Section 351
of the IRC (as defined below).

     NOW, THEREFORE, in consideration of the mutual promises herein made, and in consideration of
the representations, warranties and covenants herein contained, the Parties agree as follows.

 

 

ARTICLE I

DEFINITIONS

     Section 1.1 Definitions. For purposes of this Agreement:

     “ABL” means an asset backed loan facility providing available borrowing to Holdings on
commercially reasonable terms and conditions.

     “Accounts Receivable” means all accounts receivable of the Business outstanding on the
Closing Date and all claims, refunds and credits with respect thereto.

     “Acquisition Proposal” means any inquiry regarding, or a proposal or offer to enter
into, a Covered Transaction from any Person or group of Persons other than SK, Buyer or any of
their Affiliates.

     “Adjustment Determination Effective Time” has the meaning set forth in Section
2.9(a).

     “Affiliate” has the meaning set forth in Rule 12b-2 promulgated under the Exchange
Act.

     “Aggregate Reserved Capacity” means the total Committed Reserved Capacity for all
existing Users.

     “Agreement” has the meaning set forth in the preamble.

     “Antitrust Law” means the Sherman Act, the Clayton Act, the HSR Act, the Federal Trade
Commission Act, and all other laws and orders that are designed or intended to prohibit, restrict
or regulate actions having the purpose or effect of monopolization or restraint of trade or
lessening of competition through merger or acquisition, whether in the United States or elsewhere.

     “Applicable Guest Agreement” has the meaning set forth in Section 8.7.

     “Assignment and Assumption Agreement” has the meaning set forth in Section
2.8(a)(ii).

     “Assumed Liabilities” means all Liabilities of any Seller related to the Business as
of the Closing Date or arising from and after the date thereof, including:

     (a) all Liabilities reflected on the Conclusive Net Working Capital Statement;

     (b) all Liabilities relating to or arising out of the Transferred Contracts;

     (c) to the extent not assumed pursuant to any other clause of this definition, (i) all
Liabilities set forth on the Most Recent Balance Sheet to the extent not reduced, discharged
or released prior to Closing, but not including any Excluded Liabilities set forth thereon,
and (ii) all Liabilities of Sellers that are of the same type and nature of the Liabilities
identified on the Most Recent Balance Sheet relating to the Business which have arisen after
the date of the Most Recent Balance Sheet Date in the ordinary course

2

 

of business which would appear on a balance sheet prepared in accordance with GAAP
consistently applied with the Most Recent Balance Sheet, but not including any Excluded
Liabilities which would appear thereon;

     (d) all Liabilities for product returns or replacements or relating to or arising under
any product warranties, claims of product liability, obligations to indemnify or similar
claims related to the Business at any time;

     (e) other than the Excluded Environmental Liabilities, all Liabilities relating to or
arising out of the ownership or operation of the Facilities or otherwise relating to or
arising out of the past, current or future conduct of the Business with respect to
environmental, health or safety matters, including all such Liabilities arising pursuant to
Environmental, Health or Safety Requirements;

     (f) all Liabilities of the Business for unpaid Taxes with respect to taxable periods or
portions thereof ending on or prior to the Closing Date (other than Liabilities for Income
Taxes of any Seller);

     (g) any Liability relating to or arising out of any claim or threatened claim that the
use of the Intellectual Property acquired hereunder infringed, misappropriated or otherwise
violated the Intellectual Property or any right of any Person;

     (h) all Liabilities related to or arising out of any claims, causes of action,
lawsuits, or any other legal proceedings, whether in tort, contract or otherwise, relating
to or arising out of the Business or any Contributed Asset at any time (other than the
Retained Litigation Matters);

     (i) for the avoidance of doubt, all Liabilities relating to or arising out of the
ownership or operation of the Business or any Contributed Asset from and after the Closing
Date;

     (j) all Liabilities to be assumed by Holdings, Newco or Buyer (or any of their
respective Subsidiaries) in accordance with the provisions of Section 6.8; and

     (k) all Liabilities to be assumed by Holdings, Newco or Buyer (or any of their
respective Subsidiaries) in accordance with the provisions of Section 6.12.

provided, however, that, notwithstanding the above, the Assumed Liabilities shall
not include (i) any Liability of any Other Seller organized under the laws of China related to the
Business as of the Closing Date; or (ii) any other Excluded Liabilities.

     “Basket” has the meaning set forth in Section 8.4(g).

     “Bill of Sale” has the meaning set forth in Section 2.8(a)(i).

     “Bonding Requirements” means standby letters of credit, guarantees, indemnity bonds
and other financial commitment credit support instruments issued by third parties on behalf of any
Seller or any of its respective Subsidiaries regarding the Business.

3

 

     “Business” has the meaning set forth in the recitals.

     “Business Day” means any day other than a Saturday, a Sunday or a day on which banks
located in New York, New York shall be authorized or required by law to close.

     “Buyer” has the meaning set forth in the preamble.

     “Buyer Counterparty” has the meaning set forth in Section 8.7(a).

     “Buyer Indemnified Party” has the meaning set forth in Section 8.2.

     “Buyer Termination Fee” has the meaning set forth in Section 9.2(a).

     “Cap” has the meaning set forth in Section 8.4(i).

     “Cash” means cash, cash equivalents and liquid investments.

     “Cash Amount” means Fifty Million Dollars ($50,000,000).

     “China” means the People’s Republic of China, but excluding the Special Administrative
Region of Hong Kong, the Special Administrative Region of Macao, and Taiwan Province.

     “China Asset Transfer Agreement” has the meaning set forth in Section
2.8(a)(vii).

     “China Asset Transfer Closing” means the closing of the transactions contemplated by
the China Asset Transfer Agreement.

     “China Assumed Liabilities” means any Liability of any Other Seller organized under
the laws of China that (a) would be an Assumed Liability but for clause (i) of the proviso to the
definition of Assumed Liabilities or (b) is otherwise to be assumed by Newco or any Newco
Subsidiary pursuant to the China Asset Transfer Agreement.

     “China Business Assets” means any asset of any Other Seller organized under the laws
of China, including any rights of any such Other Seller under any Contracts, that would be a
Contributed Asset but for clause (i) of the proviso to the definition of Contributed Assets.

     “Chocolate Bayou Plant” means Seller’s Chocolate Bayou plant located in Alvin, Texas.

     “Closing” has the meaning set forth in Section 2.7.

     “Closing Date” has the meaning set forth in Section 2.7.

     “COBRA” has the meaning set forth in Section 6.8(g).

     “Committed Reserved Capacity” means, with respect to each User, the Reserved Capacity
that is reserved for, and committed to by, such User as of the date hereof.

     “Conclusive Net Working Capital Statement” has the meaning set forth in Section
2.9(c).

4

 

     “Conclusive Quarterly Statement” has the meaning set forth in Section
6.14(b)(iii).

     “Confidentiality Agreement” means the letter agreement, dated as of July 30, 2008, by
and between Solutia and Valence Group, regarding the terms and conditions on which Solutia would
make available to Valence Group and its Representatives (solely for such purposes, as defined
therein) certain information relating to the Business.

     “Contract” means any agreement, contract, lease, sublease, indenture, mortgage,
instrument, guaranty, loan or credit agreement, note, bond, customer order, purchase order,
franchise, dealer and distributorship agreement, supply agreement, development agreement, joint
venture agreement, license agreement, promotion agreement, partnership agreement or other binding
arrangement, understanding, permission or commitment, whether written or oral and including any
right or obligation under any of the foregoing.

     “Contract Rejection Effective Date” means the effective date of Equistar’s rejection,
pursuant to 11 U.S.C. s. 365, of the Equistar U&S Agreement and the Equistar Land Lease, as such
effective date is established by the Order Authorizing the (i) Long-Term Idling of the Chocolate
Bayou Olefins Facility; (ii) Reduction of the Workforce at the Facility; and (iii) Rejection of
Certain Executory Contracts and Unexpired Leases Related to the Facility, entered in the Equistar
Chapter 11 Case on March 13, 2009, as such order or the effective date set forth therein for
rejection of the Equistar U&S Agreement and the Equistar Land Lease may be modified by any later
order entered in the Equistar Chapter 11 Case.

     “Contributed Assets” means all of Sellers’ right, title, and interest in and to all of
the following assets of Sellers used or held for use primarily in the operation of the Business as
of the Closing Date:

     (a) Inventory;

     (b) Furnishings and Equipment;

     (c) Records;

     (d) Intellectual Property (subject to the license set forth in Section 2.11);

     (e) Owned Real Property;

     (f) all rights under Contracts primarily relating to (x) the Business or (y) any asset
included in the definition of Contributed Assets, including those Contracts listed on
Annex A hereto other than those that expire or that are terminated prior to the
Closing, but, in each case, excluding this Agreement, any Related Agreement or any Contracts
primarily related to any Excluded Asset and any Seller’s rights under any such excluded
Contracts (all Contracts contemplated by this clause (f), the “Transferred
Contracts”);

     (g) all Current Assets, including Accounts Receivable (excluding the Equistar Accounts
Receivable), reflected on the Conclusive Net Working Capital Statement;

5

 

     (h) all claims, deposits, pre-payments, refunds, causes of action, rights of set-off
and rights of recoupment (including any such item relating to the payment of Taxes (other
than such items relating to Income Taxes of Sellers)) primarily related to any Contributed
Asset (and in no event related to or arising out of any Excluded Equistar Asset);

     (i) all transferable Permits primarily relating to the Business, but excluding Permits
primarily related to any Excluded Asset (all Permits contemplated by this clause (i), the
“Transferred Permits”);

     (j) all assets to be acquired by Holdings or Newco in accordance with the provisions of
Section 6.8;

     (k) all assets to be acquired by Holdings or Newco in accordance with the provisions of
Section 6.12; and

     (l) all other assets used primarily in the ordinary course of business of the Business,
including all long term assets reflected on the balance sheet for the Most Recent Fiscal
Year End other than those assets used, disposed of, consumed or transferred, to the extent
contemplated by Section 3.7 or in the ordinary course of business from and after the
date hereof;

provided, however, notwithstanding anything to the contrary set forth in this
definition, the Contributed Assets shall not include (i) any asset of any Other Seller organized
under the laws of China, including any rights of any such Subsidiary under any Contracts, or (ii)
any other Excluded Assets. For the avoidance of doubt, the Contributed Assets shall include all of
Sellers’ right, title, and interest in and to all the assets of Sellers set forth on Annex
B hereto.

     “Conversion Rate” means, as of any date and for any currency conversion, the exchange
rate for the conversion of such currencies as reported as of the last Business Day prior to such
date in The Wall Street Journal or if not available, any other internationally recognized financial
publication.

     “Covered China Employee” means any Covered Employee who is based in China.

     “Covered Employee” means an employee of Solutia or any of its Subsidiaries who is
either (i) named on Annex C hereto or (ii) hired from and after the date hereof or, if the
date of preparation of Annex C hereto is indicated thereon, the date of preparation
thereof, in either case contemplated by this clause (ii), whose duties relate primarily to the
operations of the Business, and in the case of either of clause (i) or (ii), if such employee is
still actively employed by Solutia or any of its Subsidiaries as of immediately prior to the
Closing regardless of the company payroll on which such individuals are listed.

     “Covered EU Employee” means any Covered Employee who is based in the European Union.

     “Covered Foreign Employee” means any Covered Employee who is not a Covered U.S.
Employee.

6

 

     “Covered Period” has the meaning set forth in Section 6.14(b).

     “Covered Transaction” means a transaction for the sale of any of the Facilities that
are Owned Real Property or all of, or a majority interest in, the Business through (i) the issuance
or sale of capital stock or other securities of any Subsidiary of Seller holding assets of the
Business (but in no event including capital stock or securities of Seller itself) or (ii) the sale
of the assets of the Business other than any sale of (x) assets typically sold in the ordinary
course of business (including inventory) or (y) assets of the Business together with all or
substantially all of Seller’s other assets.

     “Covered U.S. Employee” means any Covered Employee who is based in the United States
of America.

     “Current Assets” has the meaning set forth in the definition of Net Working Capital.

     “Current Liabilities” has the meaning set forth in the definition of Net Working
Capital.

     “Damages” has the meaning set forth in Section 8.2.

     “Debt Financing” has the meaning set forth in Section 4.7(a).

     “Debt Letter of Interest” has the meaning set forth in Section 4.7(a).

     “Decree” means any judgment, decree, ruling, injunction, assessment, attachment,
undertaking, award, charge, writ, executive order, administrative order, consent order or any other
order of any Governmental Authority.

     “Disclosure Schedule” has the meaning set forth in Article III.

     “Disclosure Supplement” has the meaning set forth in Section 5.7.

     “Disputed Items” has the meaning set forth in Section 2.9(c).

     “DME Supply Agreement” has the meaning set forth in Section 2.8(a)(vi).

     “DPO Operating Agreement” has the meaning set forth in Section 2.8(a)(v).

     “Employee Benefit Plan” means any “employee benefit plan” (as such term is defined in
Section 3(3) of ERISA) covered by ERISA and any other material employee benefit plan, program or
arrangement of any kind established, maintained, sponsored or contributed to (or with respect to
which an obligation to contribute has been undertaken) by any Seller on behalf of any Covered
Employee or any similar employee benefit plan governed by the laws of any foreign jurisdiction.

     “Environmental, Health or Safety Requirements” means all federal, state, local and
foreign statutes, regulations, rules, common law, codes, and all legally binding judicial and
administrative orders, Decrees, and determinations, in each case, concerning worker health and
safety, pollution or protection of the environment, or the handling, use, generation, treatment,

7

 

storage, transportation, disposal, manufacture, distribution, formulation, packaging,
labeling, or Release of, threatened Release of, or exposure, to Hazardous Materials, including but
not limited to: the Clean Air Act, 42 U.S.C. § 7401 et seq.; the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, 42 U.S.C. § 9601 et seq.; the Federal Water
Pollution Control Act, 33 U.S.C. § 1251 et seq.; the Hazardous Material Transportation Act 49
U.S.C. § 1801 et seq.; the Federal Insecticide, Fungicide and Rodenticide Act 7 U.S.C. § 136 et
seq.; the Resource Conservation and Recovery Act of 1976, 42 U.S.C. § 6901 et seq.; the Toxic
Substances Control Act, 15 U.S.C. § 2601 et seq.; the Occupational Safety & Health Act of 1970, 29
U.S.C. § 651 et seq.; the Oil Pollution Act of 1990, 33 U.S.C. § 2701 et seq.; the European Union
Registration, Evaluation, Authorization and Restriction of Chemical Substances Act, EC 1907/2006 et
seq.; and the state analogies thereto, all as amended or superseded from time to time.

     “Environmental Permits” has the meaning set forth in Section 3.21(a).

     “Equistar” means Equistar Chemicals, L.P.

     “Equistar Accounts Payable” means all accounts payable of the Business to Equistar
outstanding on the Closing Date.

     “Equistar Accounts Receivable” means all accounts receivable of the Business from
Equistar outstanding on the Closing Date and all claims, refunds and credits with respect thereto.

     “Equistar Chapter 11 Case” means the case commenced under chapter 11 of title 11 of
the United States Code for Equistar Chemicals, L.P. on January 6, 2009 in the United States
Bankruptcy Court for the Southern District of New York, which case has been consolidated for
procedural purposes with that of Lyondell Chemical Company and is being jointly administered
therewith under docket number 09-10023 (REG), together with all adversary proceedings, appeals and
other ancillary proceedings to which Equistar Chemicals, L.P. is a party.

     “Equistar Land Lease” means the Sublease Agreement dated June 9, 1987, between Seller
(as successor in interest thereto to E. I. du Pont de Nemours and Company) and Equistar (as
successor in interest thereto to Cain Chemical Inc.).

     “Equistar Lease and Subcontract Agreement” has the meaning set forth in Section
2.8(a)(viii).

     “Equistar Residual Costs” means, with respect to each calendar quarter (prorated for
any partial calendar quarter) during the Covered Period, the amount, if any, by which the amount of
Newco’s User Cost Allocation for such calendar quarter exceeds the amount that Newco’s User Cost
Allocation would have been for such calendar quarter without giving effect to the contract
rejection contemplated to occur at the Contract Rejection Effective Date.

     “Equistar Resolution Period” has the meaning set forth in Section
6.14(b)(iii).

     “Equistar U&S Agreement” means the Amended and Restated Utilities and Services
Agreement, dated as of September 30, 1999, as amended by Amendment No.1 dated September 30, 1999,
by and between Seller and Equistar.

8

 

     “Equity Commitment Letter” has the meaning set forth in Section 4.7(a).

     “Equity Financing” has the meaning set forth in Section 4.7(a).

     “ERISA” means the Employee Retirement Income Security Act of 1974.

     “ERISA Affiliate” means any entity that would be deemed a “single employer” with
Sellers under Section 414(b), (c), (m) or (o) of the IRC or Section 4001 of ERISA.

     “Estimated Net Working Capital Amount” has the meaning set forth in Section
2.9(a).

     “Estimated Net Working Capital Statement” has the meaning set forth in Section
2.9(a).

     “Estimated Tax Basis Balance Sheets” has the meaning set forth in Section
3.13(g).

     “EU” means the European Union.

     “EU Employer’s Obligations” means all obligations or requirements related to the
employment of personnel that an employer needs to comply with in its relation with employees,
former employees, employee representatives, trade unions, public authorities, pension funds and
insurance companies), whether statutory, regulatory, contractual or otherwise, including any
obligation to discharge remuneration, benefits, bonus and incentive payments, holiday pay,
termination indemnities, insurance premiums, pension fund contributions, tax and social security
contributions.

     “EU Transfer Regulations” means the legislation, regulation, enactment, agreement or
other instrument implementing the provisions of EC Directive No. 2001/23 dated March 12, 2001,
which for Belgium means, in particular Collective Bargaining Agreement nr. 32bis, as amended, and
Collective Bargaining Agreement nr. 9, as amended.

     “Exchange Act” means the Securities Exchange Act of 1934.

     “Excluded Assets” means all assets of any Seller as of the Closing that are not
Contributed Assets, including:

     (a) any asset of any Seller that is (x) not used primarily in the Business or (y) used
primarily in the Business but inseparable from any other business of Solutia or any of its
Affiliates and, in the case of (y), set forth on Section 1.1(a)(i) of the Disclosure
Schedule, in each case, including: (i) certificates of incorporation or organizational
documents, qualifications to conduct business as a foreign corporation, arrangements with
registered agents relating to foreign qualifications, taxpayer and other identification
numbers, seals, minute books, stock transfer books, stock certificates and other documents
relating to the organization, maintenance and existence of such Seller as a corporation or
any other entity (other than Newco or any Newco Subsidiary); (ii) Records related to Taxes
paid or payable by any Seller; (iii) any Income Tax asset of or with respect to any Seller;
(iv) any assets not customarily based or located at the Facilities or at the homes of
Covered Employees who work out of their homes and are not assigned a permanent office at a
Facility; and (v) the name “Solutia” and any name or trademark,

9

 

service mark, trade name, logo, trade dress, Internet domain name or other indicia of
origin that includes or relates to such name, or any related derivatives, abbreviations,
acronyms or other formatives based on such name, whether alone or in combination with any
other words, phrases, or designs, and all registrations, applications and renewals thereof
and all rights and goodwill associated therewith and any name or trademark, service mark,
trade name, logo, Internet domain name or other indicia of origin that is confusingly
similar thereto or derived therefrom, including the marks set forth on Section
1.1(a)(ii) of the Disclosure Schedule (collectively, the “Solutia Marks”);

     (b) capital stock of any of Solutia’s Subsidiaries (other than capital stock of any of
Newco’s Subsidiaries), including any Newco Units;

     (c) Cash or securities;

     (d) all Excluded Equistar Assets;

     (e) except as provided in Section 6.8, all rights and assets under or related
to any Employee Benefit Plan;

     (f) all Permits other than Transferred Permits;

     (g) all insurance policies and binders and all claims, refunds and credits from
insurance policies or binders due or to become due with respect to such policies or binders;

     (h) all rights, claims and counterclaims with respect to the Retained Litigation
Matters;

     (i) any Seller’s rights under this Agreement or any Related Agreement;

     (j) any Seller’s rights under any Contracts primarily related to any Excluded Asset;

     (k) the China Business Assets; and

     (l) without limiting the generality of the foregoing, all assets listed on Annex
D hereto.

     “Excluded Environmental Liabilities” means any and all Liabilities relating to
environmental, health or safety matters, including all such Liabilities relating to or
arising pursuant to Environmental, Health or Safety Requirements, in each case to the extent
relating to or arising from: (a) any and all facilities and real property, other than the
Facilities, currently or formerly owned, operated, leased or occupied by the Business,
Sellers or their respective Affiliates or predecessors prior to the Closing Date (including
any Releases of Hazardous Materials therefrom); or (b) the transportation, treatment,
storage or disposal of Hazardous Materials or the arrangement for such activities prior to
the Closing Date, by, on behalf of, or in connection with: (i) Sellers, (ii) the Business,
(iii) any predecessors or Affiliates of Sellers or (iv) any entities previously owned by

10

 

Sellers, in each case, at or to any off-site location (for the avoidance of doubt
excluding any such disposal or arrangement for disposal at or beneath the Facilities but
including any such Hazardous Materials produced or generated for off-site treatment, storage
or disposal on or prior to the Closing Date in connection with operations at the
Facilities).

     “Excluded Equistar Assets” means (i) all Equistar Accounts Receivable; (ii) all
rights of any Seller under Contracts with Equistar and any Seller’s rights under any such
Contracts (“Excluded Equistar Contracts”); and (iii) claims, deposits, pre-payments,
refunds, causes of action, rights of set-off and rights of recoupment primarily related to
any other Excluded Equistar Asset.

     “Excluded Equistar Contracts” has the meaning set forth in the definition of
Excluded Equistar Assets.

     “Excluded Equistar Liabilities” means (i) all Equistar Accounts Payable; (ii)
all Liabilities related to or arising out of the Excluded Equistar Contracts; (iii) claims,
deposits, pre payments, refunds, causes of action, rights of set-off and rights of
recoupment primarily related to any other Excluded Equistar Asset; and (iv) all portions of
the working fund liability relating to Equistar.

     “Excluded Liabilities” means the following Liabilities of Sellers:

     (a) any Liability not relating to or arising out of the Business, including any
Liability primarily relating to or primarily arising out of the Excluded Assets or Seller
corporate overhead or administrative and operational functions associated with operating the
Business historically provided by Seller (except as provided for in the Transition Services
Agreement);

     (b) any Liability for the Retained Litigation Matters;

     (c) any Liability of Sellers for Income Taxes with respect to the Business or
otherwise;

     (d) except for such Liabilities to be assumed by Holdings, Newco or Buyer (or any of
their respective Subsidiaries) in accordance with Section 6.8 or Section
6.12, all Liabilities relating to employees of Sellers in connection with withheld
payroll Taxes, payroll, workman’s compensation benefits and accounts payable employee
withholding, in each case, accrued prior to the Closing (other than any such Liabilities set
forth on the Conclusive Net Working Capital Statement);

     (e) all Liabilities of Sellers or, for obligations to be performed prior to the
Closing, Newco under this Agreement or any Related Agreement and the transactions
contemplated hereby or thereby;

     (f) except for such Liabilities to be assumed by Holdings, Newco or Buyer (or any of
their respective Subsidiaries) in accordance with Section 6.8 or Section
6.12, all Liabilities of Sellers or any ERISA Affiliate with respect to any Employee
Benefit Plan;

11

 

     (g) the China Assumed Liabilities (to the extent relating to clause (a) of the
definition thereof);

     (h) all Excluded Equistar Liabilities;

     (i) all Liabilities of Sellers to HSBC Securities (USA) Inc. in connection with its
engagement by Solutia as a financial advisor in connection with the transactions
contemplated hereby;

     (j) all Excluded Environmental Liabilities;

     (k) any indebtedness for borrowed money (for the avoidance of doubt, other than any
Liabilities included under Bonding Requirements);

     (l) the payable obligations pursuant to the prepayment letter, dated March 4, 2009, by
and between Seller and Monsanto Company, relating to the Chocolate Bayou agreements with
Solutia; and

     (m) any Liability for severance, compensation or benefits for any employee who is not a
Covered Employee;

provided, however, that, notwithstanding the above, the Excluded Liabilities shall
not include any Liability reflected on the Conclusive Net Working Capital Statement.

     “Existing Grandfathered Business” has the meaning set forth in Section 6.6.

     “Expense Reimbursement Letter Agreement” has the meaning set forth in Section
10.2.

     “Facilities” means the Owned Real Property and the Leased Real Property.

     “Factory Indirect Expense” or “FIE” has the meaning set forth in the Equistar
U&S Agreement, computed in compliance with the Equistar U&S Agreement and otherwise on a basis that
is consistent with the methodologies used to calculate FIE prior to Closing.

     “FIE Allocation” means, with respect to each User, the allocated share of FIE for FIE
Services received by such User, computed in compliance with the Equistar U&S Agreement and
otherwise on a basis that is consistent with the methodologies used to calculate the FIE Allocation
prior to Closing.

     “FIE Services” means those services for which an FIE account is established.

     “Financial Statements” has the meaning set forth in Section 3.6.

     “Financing” has the meaning set forth in Section 4.7(a).

     “Financing Agreements” has the meaning set forth in Section 5.11(a).

     “Financing Commitments” has the meaning set forth in Section 4.7(a).

12

 

     “Fixed Costs” means the Fixed Costs (as defined in the Equistar U&S Agreement)
actually incurred to provide Utilities and Services, computed in compliance with the Equistar U&S
Agreement and otherwise on a basis that is consistent with the methodologies used to calculate
Fixed Costs prior to Closing.

     “Fixed Costs Allocation” means, with respect to a User, an amount equal to such User’s
Fixed Costs Percentage multiplied by the total Fixed Costs for the Chocolate Bayou Plant.

     “Fixed Costs Percentage” means, with respect to each User, the ratio of such User’s
Committed Reserved Capacity to the Aggregate Reserved Capacity, stated as a percentage.

     “Foreign Benefit Plan” means any Employee Benefit Plan maintained primarily for the
benefit of Covered Foreign Employees except plans, programs or arrangements that Sellers are
required to maintain or contribute to in order to be in compliance with non-United States laws.

     “Furnishings and Equipment” means tangible personal property (other than Inventory and
Intellectual Property), including machinery, equipment, computers, furniture, automobiles, trucks,
railcars, tractors and trailers.

     “GAAP” means United States generally accepted accounting principles consistently
applied.

     “Governmental Authority” means any federal, state, local or foreign governmental or
regulatory authority, agency, commission, court, body or other governmental entity.

     “Guest Agreement” has the meaning set forth in Section 3.11(a)(i).

     “Guest Occurrence” has the meaning set forth in Section 8.7(a).

     “Hazardous Material” means petroleum, petroleum hydrocarbons or petroleum products,
petroleum by-products, radioactive materials, asbestos or asbestos-containing materials, gasoline,
diesel fuel, pesticides, radon, urea formaldehyde, mold, lead or lead-containing materials,
polychlorinated biphenyls; and any other chemicals, materials, substances or wastes in any amount
or concentration which are regulated under or for which liability can be imposed under any
Environmental, Health or Safety Requirements.

     “Holdings” has the meaning set forth in the recitals.

     “Holdings Common Stock” means common stock, par value $0.01 per share, of Holdings.

     “Holdings Contribution Shares” has the meaning set forth in Section 2.6.

     “Holdings Formation Contribution” means the contribution of the assets to Holdings in
exchange for the Holdings Contribution Shares as contemplated by Section 2.5 and
Section 2.6.

     “Holdings Pension Plan” has the meaning set forth in Section 6.12(b)(i).

13

 

     “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

     “Income Taxes” means any Tax based on or measured by reference to net income,
including any interest, penalty or addition thereto, whether disputed or not.

     “Indemnified Party” means any Buyer Indemnified Party or Seller Indemnified Party, as
appropriate.

     “Indemnifying Party” has the meaning set forth in Section 8.4(c).

     “Intellectual Property” means (a) all issued patents and patent applications, together
with all reissuances, continuations, continuations-in-part, divisionals, extensions and
reexaminations thereof; (b) all trademarks, service marks, trade dress, logos, trade names and
Internet domain names, together with all goodwill associated therewith, and all applications,
registrations, and renewals in connection therewith; (c) all copyright registrations and
applications for registration therefor and renewals in connection therewith and copyrightable
materials; (d) all trade secrets, know-how, technology, improvements and inventions; and (e) all
computer software (including data and databases).

     “Intellectual Property Assignments” has the meaning set forth in Section
2.8(a)(iv).

     “Inventory” means inventories of raw materials and supplies, manufactured and
purchased parts, goods in process and finished goods.

     “IRC” means the Internal Revenue Code of 1986.

     “Knowledge” of a Person (and other words of similar import) means the actual knowledge
of (i) with respect to Seller, Merlin Belnap, Dale Borths, Robert T. DeBolt, James T. Strehl, James
R. Voss, Angela Wilson, Nadim Qureshi, Gary Lanser, James Sullivan, D. John Srivisal and Tim
Spihlman, or (ii) with respect to Buyer or SK, Barry Siadat, Jamshid Keynejad, Mark N. Delevie,
Fred Poses, Brad Cerepak, Peter D’Aloia and Gene Kenyon.

     “Leased Real Property” means any land, buildings, structures, improvements, fixtures
or other interest in real property leased by a Seller pursuant to any of the Leases used
exclusively in the Business.

     “Leases” means all leases, subleases, licenses, concessions and other agreements
(written or oral) pursuant to which any Seller holds any leasehold or subleasehold estates and
other rights to use or occupy any Leased Real Property.

     “Liability” means any liability or obligation of whatever kind or nature (whether
known or unknown, whether asserted or unasserted, whether absolute or contingent, whether accrued
or unaccrued, whether liquidated or unliquidated and whether due or to become due) regardless of
when arising, including any liability for Taxes.

     “Lien” means any mortgage, pledge, lien, charge, security interest, option, right of
first refusal, easement, security agreement or other encumbrance or restriction on the use or
transfer

14

 

of any property; provided, however, that “Lien” shall not be deemed to include
any license of Intellectual Property.

     “Litigation” means any action, suit, claim, investigation, audit, demand, hearing or
proceeding, whether civil, criminal, administrative or arbitral, whether at law or in equity and
whether before any Governmental Authority.

     “Louvain-La-Neuve Lease” has the meaning set forth in Section 2.8(a)(ix).

     “Maintenance Costs” has the meaning set forth in Section 2.10.

     “Material Adverse Effect” means, when used with respect to a Person or the Business,
any effect or change that (i) would be materially adverse to the business, assets, financial
condition, operating results or operations of the Person and its Subsidiaries (taken as a whole) or
the Business as presently conducted, as applicable; provided, however, that no
effects or changes arising from or related to any of the following shall be deemed to constitute a
Material Adverse Effect: (a) general business or economic conditions in North America, Europe, the
Middle East, Africa or Asia; (b) general business or economic conditions affecting the industry in
which such Person or the Business, as applicable, operates; (c) national or international political
or social conditions, including the engagement by any country in North America, Europe, the Middle
East, Africa or Asia in hostilities, whether or not pursuant to the declaration of a national
emergency or war, or the occurrence of any military or terrorist attack upon any country in North
America, Europe, the Middle East, Africa or Asia, or any of its territories, possessions or
diplomatic or consular offices or upon any military installation, equipment or personnel of any
country in North America, Europe, the Middle East, Africa or Asia; (d) financial, banking or
securities markets (including any disruption thereof or any decline in the price of securities
generally or any market or index); (e) commodities prices; (f) changes in law or changes in
generally accepted accounting principles applicable to the financial statements of such Person or
the Business; (g) the taking of any action contemplated by this Agreement or any Related Agreement;
(h) changes as a result of the announcement or pendency of this Agreement or any Related Agreement;
or (i) the failure of the Business to meet any full or partial 2009 projections of earnings,
revenues or any other financial measure (regardless of whether such projections were made by Seller
or independent third parties); provided, however, that the underlying causes for
such failure may, except as otherwise provided herein, be considered for purposes of determining
the occurrence of a Material Adverse Effect or (ii) would materially adversely affect the ability
of such Person or its Affiliates to consummate the transactions contemplated by this Agreement or
the Related Agreements on a timely basis, in the case of either clause (i) or (ii), excluding any
effects or changes arising from or related to the breach of the Agreement by Buyer or SK.

     “Material Contract” has the meaning set forth in Section 3.11(a).

     “Maximum Net Contribution” has the meaning set forth in Section 2.9(e).

     “Minimum Claim Amount” has the meaning set forth in Section 8.4(h).

     “Mitigation Actions” has the meaning set forth in Section 6.14(b)(i).

15

 

     “Most Recent Balance Sheet” means the balance sheet for the Most Recent Fiscal Quarter
End.

     “Most Recent Financial Statements” has the meaning set forth in Section 3.6.

     “Most Recent Fiscal Quarter End” has the meaning set forth in Section 3.6.

     “Most Recent Fiscal Year” means the fiscal year ending on the Most Recent Fiscal Year
End.

     “Most Recent Fiscal Year End” has the meaning set forth in Section 3.6.

     “Multiemployer Plans” has the meaning set forth in Sections 3(37) and 4001(a)(3) of
ERISA.

     “Multiple Employer Plan” means a “Single Employer Plan” as defined in Section
4001(a)(15) of ERISA that is subject to Title IV of ERISA and that is maintained for Covered
Employees and employees of at least one person other than Seller and its ERISA Affiliates.

     “Net Working Capital” means the (A) current assets of the Business (excluding Cash and
all Equistar Accounts Receivables) (the “Current Assets”) less (B) current liabilities of
the Business (excluding all Equistar Accounts Payables) (the “Current Liabilities”), in
either case as determined in accordance with GAAP and the other methods used in preparing the
illustrative determination of the Net Working Capital attached as Annex E hereto (including
as indicated thereon) and assuming solely for such purposes that the China Business Assets were
Contributed Assets and the China Assumed Liabilities (other than those Liabilities contemplated by
clause (b) of the definition thereof arising from and after the Closing) were Assumed Liabilities;
provided, however, that all intercompany accounts receivable and intercompany
accounts payable (or, in either case, credits therefor) shall be disregarded for purposes of
determining the Net Working Capital. Any amount of resin inventory in excess of Ninety Million
(90,000,000) pounds shall be excluded from the valuation of Inventory included in Current Assets if
the Closing occurs at or following April 30, 2009.

     “Neutral Arbitrator” has the meaning set forth in Section 2.9(c).

     “New Pension Plan” has the meaning set forth in Section 6.8(l)(v)(A).

     “Newco” has the meaning set forth in the preamble.

     “Newco’s Flex Plan” has the meaning set forth in Section 6.8(h).

     “Newco Formation Contribution” means the contribution of the Contributed Assets by
Seller to Newco contemplated by Section 2.1 and the assumption of the Assumed Liabilities
by Newco contemplated by Section 2.2, in exchange for the Newco Formation Contribution
Units.

     “Newco Formation Contribution Units” has the meaning set forth in Section 2.4.

     “Newco Subsidiary” means any Subsidiary of Newco.

16

 

     “Newco Units” means all capital stock of Newco, which shall be comprised as of the
Closing of (x) all equity units of Newco owned by Solutia as of the date hereof and (y) the Newco
Formation Contribution Units.

     “Objectionable Items” has the meaning set forth in Section 6.14(b)(iii).

     “Objection Notice” has the meaning set forth in Section 6.14(b)(iii).

     “Only Representative” has the meaning set forth in Section 5.4(c).

     “Other Sellers” means each of those Subsidiaries of Solutia that as of the Closing or,
as applicable solely to the China Business Assets, the China Asset Transfer Closing (A) holds or
held any asset primarily related to the Business, (B) is or has been party to any Contract
primarily related to the Business, (C) conducts or has conducted any activity primarily related to
the Business, or (D) is or has been subject to any Liability primarily related to the Business;
provided, however, that neither Newco nor any Newco Subsidiary shall be deemed to
be an Other Seller.

     “Outside Date” has the meaning set forth in Section 9.1(b)(i).

     “Owned Real Property” means all land owned by Sellers used primarily with respect to
the Business, together with any and all buildings, fixtures, structures and improvements located
thereon and all rights, privileges, easements, licenses, hereditaments and other appurtenances
relating thereto.

     “Party” has the meaning set forth in the preamble.

     “Pension Target Amount” has the meaning set forth in Section 6.12(c).

     “Permit” means any franchise, approval, permit, license, order, registration,
certificate, variance or similar right obtained from any government or governmental agency.

     “Permitted Lien” means (a) Liens for Taxes or mechanic’s, workmen’s, repairmen’s,
warehousemen’s, carrier’s or other similar Liens, including all statutory liens, arising or
incurred in the ordinary course of business, in each case that are not yet delinquent, due or
payable, or which are being contested in good faith by appropriate proceedings; (b) with respect to
leased or licensed personal property, the terms and conditions of the lease or license applicable
thereto; (c) with respect to real property, zoning, building codes and other land use laws
regulating the use or occupancy of such real property or the activities conducted thereon which are
imposed by any Governmental Authority having jurisdiction over such real property which are not
violated by the current use or occupancy of such real property or the operation of the Business,
except where any such violation would not reasonably be expected to individually or in the
aggregate materially impair the use or operation of the affected property or the conduct of the
Business thereon as it is currently being conducted; (d) Liens for any financing secured by an
asset, where the financing obligation is an Assumed Liability and such asset is a Contributed
Asset; (e) easements, covenants, conditions, restrictions, leases and other similar matters
affecting title to real property and other encroachments and title and survey defects that do not
or would not, individually or in the aggregate, materially impair the use or occupancy of such real
property in

17

 

the operation of the Business taken as a whole as it is currently conducted; (f) matters set
forth on the disclosed survey of the real property; (g) other Liens set forth on Section 3.8 of
the Disclosure Schedule; and (h) other Liens that, individually or in the aggregate, do not
materially impair the use or operations of the affected property or the conduct of the Business
therewith as it is currently being used and conducted.

     “Person” means an individual, a partnership, a corporation, a limited liability
company, an association, a joint stock company, a trust, a joint venture, an unincorporated
organization or any other entity, including any Governmental Authority or any group of any of the
foregoing.

     “Post-Closing Net Working Capital Statement” has the meaning set forth in Section
2.9(b).

     “Products” means the products manufactured and/or marketed by the Business listed on
Annex F hereto.

     “Quarterly Invoice” has the meaning set forth in Section 6.14(b)(ii).

     “Quarterly Statement” has the meaning set forth in Section 6.14(b)(ii).

     “Records” means the books, records, ledgers, invoices, documents, correspondence,
lists (including customer lists and supplier lists), plans, drawings, designs, specifications,
advertising and promotional materials, reports, data and other printed materials.

     “REACH” means Regulation (EC) No 1907/2006 of the European Parliament and of the
Council of December 18, 2006 concerning the Registration, Evaluation, Authorization and Restriction
of Chemicals.

     “Related Agreements” means the Bill of Sale, the Assignment and Assumption Agreement,
the Transition Services Agreement, the Intellectual Property Assignments, the DPO Operating
Agreement, the DME Supply Agreement, the China Asset Transfer Agreement, the Louvain-La-Neuve
Lease, the Securityholders Agreement, the Equistar Lease and Subcontract Agreement, and all other
Contracts, schedules, certificates or other documents being delivered pursuant to or in connection
with this Agreement, the Bill of Sale, the Assignment and Assumption Agreement, the Transition
Services Agreement, the Intellectual Property Assignments, the DPO Operating Agreement, the DME
Supply Agreement, the China Asset Transfer Agreement, the Louvain-La-Neuve Lease, the
Securityholders Agreement or the Equistar Lease and Subcontract Agreement.

     “Representative” means, when used with respect to a Person, the Person’s controlled
Affiliates (including Subsidiaries) and such Person’s and any of the foregoing Persons’ respective
officers, directors, managers, members, shareholders, partners, employees, agents, representatives,
advisors (including financial advisors, bankers, consultants, legal counsel and accountants) and
financing sources.

     “Reserved Capacity” means, with respect to each User, the total capacity for each U&S
cost center that is required to support the User’s operation based on usage at capacity rates, plus
any additional U&S capacity reserved by such User for future use.

18

 

     “Resolution Period” has the meaning set forth in Section 2.9(c).

     “Retained Litigation Matters” means the Litigation matters listed on Section
1.1(b) of the Disclosure Schedule.

     “Scheduled Intellectual Property” has the meaning set forth in Section 3.12.

     “Securities Act” means the Securities Act of 1933.

     “Securityholders Agreement” has the meaning set forth in Section 2.8(c)(i).

     “Seller” has the meaning set forth in the preamble.

     “Seller Advanced Expenses” has the meaning set forth in Section 10.1.

     “Seller Indemnified Party” has the meaning set forth in Section 8.3.

     “Seller Pension Plan” has the meaning set forth in Section 6.12(b).

     “Seller Termination Fee” has the meaning set forth in Section 9.2(b).

     “Seller’s Cafeteria Plan” has the meaning set forth in Section 6.8(h).

     “Sellers” has the meaning set forth in the preamble.

     “SK” has the meaning set forth in the preamble.

     “Solicited Acquisition Proposal” means any Acquisition Proposal other than an
Unsolicited Acquisition Proposal.

     “Solutia” has the meaning set forth in the preamble.

     “Solutia Marks” has the meaning set forth in the definition of Excluded Assets.

     “Spun Off Plan” has the meaning set forth in Section 6.12(b).

     “Subject Securities” has the meaning set forth in Section 5.15(a).

     “Subsidiary” means, with respect to any Person, any corporation, limited liability
company, partnership, association or other business entity of which, directly or indirectly, (i) if
a corporation, a majority of the total voting power of shares of stock entitled (without regard to
the occurrence of any contingency) to vote in the election of directors, managers or trustees
thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more
of the other Subsidiaries of that Person or a combination thereof, or (ii) if a limited liability
company, partnership, association or other business entity (other than a corporation), a majority
of partnership or other similar ownership interest thereof is at the time owned or controlled,
directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination
thereof and for this purpose, a Person or Persons owns a majority ownership interest in such a
business entity (other than a corporation) if such Person or Persons shall be allocated a majority
of such

19

 

business entity’s gains or losses or shall be or control any managing director or general
partner of such business entity (other than a corporation).

     “Target Net Working Capital Amount” has the meaning set forth in Section
2.9(a).

     “Tax” or “Taxes” means any United States federal, state, local or foreign
income, gross receipts, license, payroll, employment, excise, stamp, occupation, premium, windfall
profits, environmental (including taxes under Section 59A of the IRC), customs duties, capital
stock, franchise, profits, withholding, social security (or similar), unemployment, disability,
real property, personal property, sales, use, transfer, registration, value added, alternative or
add-on minimum, estimated or other tax of any kind whatsoever, whether computed on a separate or
consolidated, unitary or combined basis or in any other manner, including any interest, penalty or
addition thereto, whether disputed or not.

     “Tax Return” means any return, declaration, report, claim for refund or information
return or statement relating to Taxes, including any schedule or attachment thereto, and including
any amendment thereof.

     “Third Party Claim” has the meaning set forth in Section 8.5(a).

     “Termination Fee” means either the Buyer Termination Fee or the Seller Termination
Fee, as appropriate.

     “Transfer Tax” has the meaning set forth in Section 6.10.

     “Transferred Contracts” has the meaning set forth in the definition of Contributed
Assets.

     “Transferred Participant” means each Covered U.S. Employee with an accrued benefit
under the Seller Pension Plan.

     “Transferred Permits” has the meaning set forth in the definition of Contributed
Assets.

     “Transition Services Agreement” has the meaning set forth in Section
2.8(a)(iii).

     “Treasury Regulations” means the treasury regulations promulgated under the IRC.

     “Underfunded Amount” has the meaning set forth in Section 6.12(c).

     “Underfunded Dispute Notice” has the meaning set forth in Section 6.12(c)(i).

     “Unsolicited Acquisition Proposal” means any Acquisition Proposal made other than as a
result of a material breach of Section 5.16(a)(i) by Seller.

     “User” means any user of Utilities and Services including Newco and any third parties
that have entered into a Guest Agreement.

     “User Cost Allocation” means, with respect to each User, the sum of the Fixed Costs
Allocation and the FIE Allocation which are charged to such User.

20

 

     “User Costs” means, collectively, Fixed Costs and FIE.

     “Utilities and Services” or “U&S” means the utilities and services used by
Newco and other third parties at the Chocolate Bayou Plant, including the Utilities and Services
(as defined in the Equistar U&S Agreement) which Equistar is entitled to under the Equistar U&S
Agreement.

     “Valence Group” means The Valence Group, LLC, a party of which SK is a Representative
(solely for such purposes, as defined in the Confidentiality Agreement).

     “WARN Act” means the Worker Adjustment and Retraining Notification Act of 1988.

     “Working Capital Allocation Amount” has the meaning set forth in Section 2.9(e).

     “4044 Allocation” has the meaning set forth in Section 6.12(b)(i).

     Section 1.2 Interpretations. Unless otherwise indicated herein to the contrary:

          (a) When a reference is made in this Agreement to an Article, Section, Annex, Exhibit,
Schedule, clause or subclause, such reference shall be to an Article, Section, Annex, Exhibit,
Schedule, clause or subclause of this Agreement.

          (b) The words “include,” “includes” or “including” and other words or phrases of similar
import, when used in this Agreement, shall be deemed to be followed by the words “without
limitation.”

          (c) The words “hereof,” “herein” and “hereunder” and words of similar import, when used in
this Agreement, refer to this Agreement as a whole and not to any particular provision of this
Agreement.

          (d) The word “if” and other words of similar import shall be deemed, in each case, to be
followed by the phrase “and only if.”

          (e) The use of “or” or “any” herein is not intended to be exclusive.

          (f) The definitions contained in this Agreement are applicable to the singular as well as the
plural forms of such terms. Whenever the context may require, any pronouns used herein shall
include the corresponding masculine, feminine or neuter forms, and the singular form of names and
pronouns shall include the plural and vice versa.

          (g) All terms defined in this Agreement have their defined meanings when used in any
certificate or other document made or delivered pursuant hereto, unless otherwise defined therein.

          (h) Any reference herein to law or to a legal requirement (or, with respect to any statute,
ordinance, code, rule or regulation, any provision thereof) shall be deemed to include

21

 

reference to all laws and or to such legal requirement and any legal requirement promulgated
thereunder (or provision thereof, as applicable), including any successor thereto, respectively, in
each case, as may be amended.

          (i) References herein to a Person are also deemed to include its permitted successors and
assigns. Any reference herein to a Governmental Authority shall be deemed to include reference to
any successor thereto.

          (j) Any reference herein to “Dollars” or “$”means United States dollars.

          (k) A reference to a Contract includes supplements and amendments.

          (l) All amounts payable hereunder shall be paid in Dollars. Any amount to be paid or computed
hereunder expressed in any currency other than Dollars shall be paid and/or computed in Dollars by
using the Conversion Rate as of the Business Day immediately prior to any such payment or
computation.

ARTICLE II

FORMATION OF HOLDINGS

     Section 2.1 Contribution of Assets to Newco. At or prior to the Closing, but in any
event prior to the Holdings Formation Contribution, subject to the operation of Section
2.10, and on the terms and subject to the conditions set forth in this Agreement, Seller shall,
and shall cause the Other Sellers to, contribute, sell, transfer, assign, convey and deliver to
Newco or, as contemplated by Section 2.12 or Section 5.4(d), a designated Newco
Subsidiary, and Newco and such Newco Subsidiaries, as applicable, will accept and purchase from
Sellers, all of the Contributed Assets in exchange for the consideration specified in Section
2.4.

     Section 2.2 Assumed Liabilities. At or prior to the Closing, but in any event prior
to the Holdings Formation Contribution, on the terms and subject to the conditions set forth in
this Agreement, Newco will assume and become responsible for the Assumed Liabilities. Newco shall
pay, perform, honor and discharge, or cause to be paid, performed, honored and discharged, all
Assumed Liabilities in a timely manner in accordance with the terms thereof from and after the
Closing.

     Section 2.3 Treatment of Intercompany Accounts. Other than as expressly contemplated
by any Related Agreement or Annex E hereof, all intercompany accounts receivable,
intercompany accounts payable and other obligations due and owing between any Seller and any of its
Affiliates shall be disregarded for purposes of the transactions contemplated hereby and shall not
be treated as Assumed Liabilities, Contributed Assets, Excluded Assets or Excluded Liabilities.

     Section 2.4 Newco Formation Contribution Consideration. On or prior to the Closing, as consideration for the Newco Formation Contribution, in
addition to the other representations, warranties, covenants and agreements of the Parties
hereunder, Newco shall issue to Seller, or such Other Seller as Seller shall direct, One Thousand
(1,000) newly issued, duly authorized, validly issued, fully paid and non-assessable common units
of Newco upon consummation of the Newco Formation Contribution (the “Newco Formation
Contribution Units”).

22

 

     Section 2.5 Contribution of Newco Units and Cash to Holdings. At the Closing,
immediately following the Newco Formation Contribution, on the terms and subject to the conditions
of this Agreement:

          (a) Seller shall, or shall cause any Other Seller holding any Newco Units to, contribute,
sell, transfer, assign, convey and deliver to Holdings all of the Newco Units;

          (b) Buyer shall contribute, transfer, assign, convey and deliver to Holdings an amount of cash
equal to the Cash Amount by wire transfer or other immediately available funds to an account or
accounts of Holdings; and

          (c) the Parties shall cause Holdings to accept and purchase from Seller and Buyer, at the
Closing, all of the assets to be contributed pursuant to Section 2.5(a) and Section
2.5(b) for the consideration specified in Section 2.6 and Section 2.14.

     Section 2.6 Holdings Formation Contribution Consideration. At the Closing, as
consideration for the Holdings Formation Contribution, in addition to the other representations,
warranties, covenants and agreements of the Parties hereunder, the Parties shall cause Holdings to
(a) issue Two Hundred Thousand (200,000) newly issued, duly authorized, validly issued, fully paid
and non-assessable shares of Holdings Common Stock to Seller; (b) pay to Seller cash in an amount
equal to the Cash Amount, paid by wire transfer or other immediately available funds to an account
or accounts designated by Seller; and (c) issue Nine Million Eight Hundred Thousand (9,800,000)
newly issued, duly authorized, validly issued, fully paid and non-assessable shares of Holdings
Common Stock to Buyer (the shares to be issued pursuant to clause (a) and clause (c) collectively,
the “Holdings Contribution Shares”), in each case upon consummation of the Holdings
Formation Contribution. Buyer and Seller acknowledge their intent to establish an employee equity
compensation plan following the Closing authorizing issuance of shares of Holdings Common Stock up
to twelve percent (12%) of the aggregate fully diluted outstanding shares of Holdings Common Stock.

     Section 2.7 Closing. The closing of the transactions contemplated by this Agreement
(the “Closing”) shall take place in the order set forth in this Article II at the
offices of Kirkland & Ellis LLP located at 153 East 53rd Street, New York, New York (or such other
location as shall be mutually agreed upon by Seller and Buyer) commencing at 10:00 a.m. local time
on a date (the “Closing Date”) that is the later of (a) April 30, 2009 or (b) if all of
the conditions to the obligations of Seller and Buyer to consummate the transactions contemplated
hereby set forth in Article VII (other than conditions with respect to actions the Parties
will take at the Closing itself) are not satisfied or
waived as of such date, the tenth (10th) calendar day following the first date upon which all
of the conditions to the obligations of Seller and Buyer to consummate the transactions
contemplated hereby set forth in Article VII (other than conditions with respect to actions
the Parties will take at the Closing itself, but subject to the satisfaction or waiver of those
conditions) have been satisfied or waived (or, in the event such calendar day is not a Business
Day, on the next Business Day thereafter), or on such other date as shall be mutually agreed upon
by Seller and Buyer prior thereto.

23

 

     Section 2.8 Deliveries at Closing.

          (a) At or prior to the Closing, in connection with the Newco Formation Contribution and in any
event prior to the issuance of the Holdings Contribution Shares contemplated by Section
2.6, Seller shall, or shall cause the Other Sellers to, deliver to Newco or any Newco
Subsidiary, as appropriate, the following duly executed documents and other items:

               (i) a Bill of Sale substantially in the form of Exhibit B hereto (the “Bill of
Sale”);

               (ii) an Assignment and Assumption Agreement substantially in the form of Exhibit C
hereto (the “Assignment and Assumption Agreement”);

               (iii) a Transition Services Agreement substantially in the form of Exhibit D hereto
(the “Transition Services Agreement”);

               (iv) instruments of assignment substantially in the form of Exhibit E hereto for each
issued patent, registered trademark, and registered copyright, and for each pending application
therefore, that is included in the Contributed Assets (collectively, the “Intellectual Property
Assignments”);

               (v) a DPO Operating Agreement substantially in the form of Exhibit F hereto (the
“DPO Operating Agreement”);

               (vi) a DME Supply Agreement substantially in the form of Exhibit G hereto (the
“DME Supply Agreement”);

               (vii) a China Asset Transfer Agreement substantially in the form of Exhibit H hereto
providing for, among other things, payment by Newco or a Newco Subsidiary to a Subsidiary of Seller
of an amount of cash expected to be equal to Three Hundred Thousand Dollars ($300,000) at the China
Asset Transfer Closing (the “China Asset Transfer Agreement”);

               (viii) a Lease and Subcontract Agreement substantially in the form of Exhibit I hereto
(the “Equistar Lease and Subcontract Agreement”);

               (ix) a Louvain-La-Neuve Lease substantially in the form of Exhibit J hereto (the
“Louvain-La-Neuve Lease”); and

               (x) a special or limited warranty deed, as customary in the applicable jurisdiction, with
respect to each parcel of Owned Real Property.

          (b) At or prior to the Closing, in connection with the Newco Formation Contribution and in any
event prior to the issuance of the Holdings Contribution Shares contemplated by Section
2.6, Newco shall, or shall cause an applicable Newco Subsidiary to, deliver to Seller and the
Other Sellers (as applicable) the following duly executed documents and other items:

               (i) the Bill of Sale;

24

 

               (ii) the Assignment and Assumption Agreement;

               (iii) the Transition Services Agreement;

               (iv) the Intellectual Property Assignments;

               (v) the DPO Operating Agreement;

               (vi) the DME Supply Agreement;

               (vii) the China Asset Transfer Agreement;

               (viii) the Equistar Lease and Subcontract Agreement;

               (ix) the Louvain-La-Neuve Lease; and

               (x) certificates representing all of the Newco Formation Contribution Units, if such Newco
Formation Contribution Units are in certificated form.

          (c) At the Closing, in connection with the Holdings Formation Contribution, Seller shall
deliver to Holdings and, in the case of clauses (i), (ii) and (iv) below, to Buyer, the following
duly executed documents and other items:

               (i) a Securityholders Agreement substantially in the form of Exhibit K hereto, with
such changes thereto as requested by equity co-investors of Buyer that are reasonably acceptable to
Seller, consent to which shall not be unreasonably withheld (the “Securityholders
Agreement”);

               (ii) an officer’s certificate to the effect that (A) each of the conditions specified in
Section 7.1(a) and Section 7.1(b) is satisfied; (B) the resolutions adopted by the
board of directors of Seller (or a duly authorized committee thereof) authorizing the execution,
delivery and performance of this Agreement and the Related Agreements, as attached to the
certificate, were duly adopted at a duly convened meeting of such board or committee, at which a
quorum was present and acting throughout or by unanimous written consent, remain in full force and
effect, and have not been amended, rescinded or modified, except to the extent attached thereto;
and (C) each of Seller’s officers executing this Agreement, each of the Related Agreements and each
of the other documents necessary for consummation of the transactions
contemplated herein, is an incumbent officer, and each specimen signature on such certificate
is a genuine signature;

               (iii) a non-foreign affidavit for Seller, dated as of the Closing Date, sworn under penalty of
perjury and in form and substance required under Treasury Regulations issued pursuant to Section
1445 of the IRC stating that Seller is not a “foreign person” as defined in Section 1445 of the
IRC;

               (iv) evidence of the receipt of all third party consents or sublicenses from third parties and
notices to or from third parties that are required to be delivered or obtained pursuant to
Section 7.1(c) and delivered by Seller;

25

 

               (v) certificates representing all of the Newco Units, duly endorsed or accompanied by stock
transfer powers, if such Newco Units in certificated form;

               (vi) duly executed letters of resignation from each member of the board of managers of Newco
and any Newco Subsidiary as well as duly executed letters of resignation from each branch manager
of any foreign Newco Subsidiary (with the exception of the branch managers in Korea);

               (vii) a good standing certificate in respect of Newco certified by the Secretary of State of
the State of Delaware, dated as of a date not more than ten (10) calendar days prior to the Closing
Date; and

               (viii) an acknowledgement of the receipt of the Cash Amount in cash.

          (d) At the Closing, in connection with the Holdings Formation Contribution, Buyer shall
deliver to Holdings and, in the case of clauses (i), (ii) and (iii) below, to Seller, the following
duly executed documents and other items:

               (i) the Securityholders Agreement;

               (ii) an officer’s certificate to the effect that: (A) each of the conditions specified in
Section 7.2(a) and Section 7.2(b) are satisfied; (B) the resolutions adopted by the
board of managers of Buyer (or a duly authorized committee thereof) authorizing the execution,
delivery and performance of this Agreement and the Related Agreements, as attached to the
certificate, were duly adopted at a duly convened meeting of such board or committee, at which a
quorum was present and acting throughout or by unanimous written consent, remain in full force and
effect, and have not been amended, rescinded or modified, except to the extent attached thereto;
and (C) each of Buyer’s officers executing this Agreement, each of the Related Agreements and each
of the other documents necessary for consummation of the transactions contemplated herein, is an
incumbent officer, and each specimen signature on such certificate is a genuine signature;

               (iii) evidence of the receipt of all third party consents or sublicenses from third parties
and notices to or from third parties that are required to be delivered or obtained pursuant to
Section 7.2(c) and delivered by Buyer; and

               (iv) cash in the amount contemplated by Section 2.5(b).

          (e) At the Closing, in connection with the Holdings Formation Contribution, the Parties shall
cause Holdings to deliver to Seller the following duly executed documents and other items:

               (i) the Securityholders Agreement;

               (ii) an acknowledgement of the receipt of the Newco Units;

26

 

               (iii) (A) certificates representing all of the Holdings Contribution Shares to be issued to
Seller pursuant to Section 2.6(a); and (B) cash in an amount equal to the Cash Amount; and

               (iv) a good standing certificate in respect of Holdings certified by the Secretary of State of
the State of Delaware, dated as of a date not more than ten (10) calendar days prior to the Closing
Date.

          (f) At the Closing, in connection with the Holdings Formation Contribution, the Parties shall
cause Holdings to deliver to Buyer the following duly executed documents and other items:

               (i) the Securityholders Agreement;

               (ii) an acknowledgement of the receipt of cash in the amount of the Cash Amount;

               (iii) certificates representing all of the Holdings Contribution Shares to be issued to Buyer
pursuant to Section 2.6(c); and

               (iv) a good standing certificate in respect of Holdings certified by the Secretary of State of
the State of Delaware, dated as of a date not more than ten (10) calendar days prior to the Closing
Date.

     Section 2.9 Working Capital Payments.

          (a) Pre-Closing Payment. No less than five (5) Business Days prior to the Closing
Date, Seller shall cause to be prepared and delivered to Buyer a statement setting forth an
estimate of the Net Working Capital as of 12:01 a.m. (Greenwich mean time) on the Closing Date (the
“Adjustment Determination Effective Time”) after giving effect to the transactions
contemplated hereby (the “Estimated Net Working Capital Amount”) and the components and
calculation thereof (the “Estimated Net Working Capital Statement”). The Estimated Net
Working Capital Statement shall be subject to the review of Buyer, and Buyer and Seller shall
cooperate and negotiate in good faith to resolve any dispute regarding the Estimated Net Working
Capital Statement prior to the Closing (the results of any such resolution to be reflected on a new
Estimated Net Working Capital Statement, which shall be considered the Estimated
Net Working Capital Statement for all further purposes); provided, however,
that if any item of dispute regarding the Estimated Net Working Capital Statement is not resolved
by agreement in writing between Buyer and Seller not less than two (2) Business Days prior to the
Closing, then for purposes of the Closing, the Estimated Net Working Capital Amount shall be deemed
to be equal to the Target Net Working Capital Amount. To the extent that the Estimated Net Working
Capital Amount set forth on the Estimated Net Working Capital Statement exceeds Two Hundred
Forty-Two Million Two Hundred Thousand Dollars ($242,200,000) (the “Target Net Working Capital
Amount”), at the Closing, Newco shall, and Buyer shall cause Holdings to cause Newco to, pay to
Seller the amount of the excess. To the extent that the Target Net Working Capital Amount exceeds
the Estimated Net Working Capital Amount set forth on the Estimated Net Working Capital Statement,
at the Closing, Seller shall pay to Newco the amount of the excess; provided,
however, that if the Estimated Net Working Capital Amount as

27

 

otherwise determined in
accordance with this Section 2.9(a) is not less than Two Hundred Thirty-Seven Million Two
Hundred Thousand Dollars ($237,200,000) nor more than Two Hundred Forty-Seven Million Two Hundred
Thousand Dollars ($247,200,000), for purposes of this Section 2.9(a) the Estimated Net
Working Capital Amount shall be deemed to be equal to the Target Net Working Capital Amount.

          (b) Post-Closing Net Working Capital Statement. Within thirty (30) calendar days
after the Closing Date, Seller shall cause to be prepared and delivered to Newco a statement
setting forth the Net Working Capital, after giving effect to the transactions contemplated hereby,
as of the Adjustment Determination Effective Time, and the components and calculation thereof (the
“Post-Closing Net Working Capital Statement”). During such time (and, if applicable,
during the Resolution Period), without limiting Section 6.5, Buyer shall cause Holdings and
Newco to give Seller and its Representatives access to all Records, facilities and personnel of
Buyer, Holdings, Newco and their respective Representatives as reasonably necessary to undertake
the preparation of the Post-Closing Net Working Capital Statement.

          (c) Determination of Conclusive Net Working Capital. Newco shall have forty-five (45)
calendar days following the receipt of the Post-Closing Net Working Capital Statement to review the
Post-Closing Net Working Capital Statement. During such time, Newco may dispute any items set
forth on the Post-Closing Net Working Capital Statement (or specific calculations or methods
contemplated thereby). Unless Newco delivers written notice to Seller of dispute thereof on or
prior to the forty-fifth (45th) calendar day after Newco’s receipt of the Post-Closing
Net Working Capital Statement, Newco shall be deemed to have accepted and agreed to the
Post-Closing Net Working Capital Statement and such statement (and the specific calculations or
methods contemplated thereby) shall be final, binding and conclusive. If Newco notifies Seller in
writing of disputed items contained in the Post-Closing Net Working Capital Statement (or specific
calculations or methods contemplated thereby) (the “Disputed Items”) within such forty-five
(45) calendar day period, for thirty (30) calendar days following delivery of such notice by Newco
to Seller (the “Resolution Period”), Newco and Seller shall attempt in good faith to
resolve their differences with respect to the Disputed Items. Upon delivery of any such notice of
Disputed Items by Newco, Newco shall be deemed to have accepted and agreed to all items on the
Post-Closing Net Working Capital Statement (and the specific calculations or methods contemplated
thereby) other than the Disputed Items, and such items (and the specific calculations or methods
contemplated thereby) other than the Disputed Items shall be final, binding and conclusive. Any
resolution by Newco and Seller during the Resolution Period as to
any Disputed Items shall be set forth in writing and will be final, binding and conclusive.
If Newco and Seller do not resolve all Disputed Items by the end of the Resolution Period, then all
Disputed Items remaining in dispute shall be submitted by either one of the Parties within thirty
(30) calendar days after the expiration of the Resolution Period to Ernst & Young or such other
national independent accounting firm mutually acceptable to Newco and Seller (the “Neutral
Arbitrator”). The Neutral Arbitrator shall act as an arbitrator to determine only those
Disputed Items remaining in dispute as of the end of the Resolution Period. In resolving such
Disputed Items, the Neutral Arbitrator may not assign a value to any Disputed Item greater than the
greatest value for such Disputed Item claimed by any Party or less than the lowest value for such
Disputed Item claimed by any Party. All fees and expenses relating to the work, if any, to be
performed by the Neutral Arbitrator shall be allocated and borne between Newco and Seller in the
same proportion that the aggregate amount of the Disputed Items so submitted to the Neutral

28

 

Arbitrator that is unsuccessfully disputed by each such Party (as finally determined by the Neutral
Arbitrator) bears to the total amount of such Disputed Items so submitted. In addition, without
limiting Section 6.5, Buyer shall, and shall cause Holdings and Newco to, and Seller shall
give the Neutral Arbitrator access to all Records, facilities and personnel of such Party and its
Affiliates and Representatives as is reasonably necessary to perform its function as arbitrator.
Newco and Seller shall use their commercially reasonable efforts to cause the Neutral Arbitrator to
deliver to Newco and Seller a written determination (such determination to include an explanation
in reasonable detail of the reasons for such determination and a work sheet setting forth all
material calculations and methods used in arriving at such determination) of the Disputed Items
submitted to the Neutral Arbitrator and the resulting effect thereof on the Post-Closing Net
Working Capital Statement within thirty (30) calendar days of receipt of such Disputed Items, which
determination will be final, binding and conclusive and upon which judgment may be entered. The
final, binding and conclusive Post-Closing Net Working Capital Statement based either upon
agreement or deemed agreement by Newco and Seller or the written determination delivered by the
Neutral Arbitrator in accordance with this Section 2.9(c) will be the “Conclusive Net
Working Capital Statement.”

          (d) Post-Closing Payment. If the amount of the Net Working Capital set forth on the
Conclusive Net Working Capital Statement exceeds the Estimated Net Working Capital Amount set forth
on the Estimated Net Working Capital Statement, Newco shall, and Buyer shall cause Holdings to
cause Newco to, pay to Seller the amount of the excess. If the Estimated Net Working Capital
Amount set forth on the Estimated Net Working Capital Statement exceeds the amount of the Net
Working Capital set forth on the Conclusive Net Working Capital Statement, Seller shall pay to
Newco the amount of the excess. All payments to be made pursuant to this Section 2.9(d)
shall be made in immediately available funds no later than the second (2nd) Business Day
following the date on which Newco and Seller agree, or are deemed to have agreed to, or the Neutral
Arbitrator delivers, the Conclusive Net Working Capital Statement.

          (e) Maximum Payment. Notwithstanding anything to the contrary set forth in this
Section 2.9, the maximum net amount that Seller or Newco shall be required to pay to Newco
or Seller, respectively, pursuant to this Section 2.9 when giving effect to the payments
contemplated by Section 2.9(a) and Section 2.9(d) shall be an amount equal to
Forty-Nine Million Dollars ($49,000,000) (the “Maximum Net Contribution”). If any amount
to be paid by Seller or Newco pursuant to this Section 2.9, when taken together with all
other such payments, shall exceed the Maximum Net Contribution, such payment obligation shall be
deemed satisfied
in full by the payment of the Maximum Net Contribution; provided, however,
that if any amount to be paid by Seller pursuant to this Section 2.9, net of (and when
taken together with) all other such payments, is greater than Thirty-Four Million Dollars
($34,000,000), (i) the Maximum Net Contribution for purposes of this Section 2.9(e) shall
be the sum of (x) Thirty-Four Million Dollars ($34,000,000) plus (y) the product of (x) 0.75
multiplied by (y) the amount by which the amount to be paid by Seller pursuant to this Section
2.9 as determined without giving effect to this proviso (but in no event greater than the
Maximum Net Contribution as determined without giving effect to this proviso) exceeds Thirty-Four
Million Dollars ($34,000,000) (such excess amount, “Working Capital Allocation Amount”)
(for avoidance of doubt, with the Maximum Net Contribution so calculated being Forty-Five Million
Two Hundred Fifty Thousand Dollars ($45,250,000)), and (ii) the aggregate payments contemplated by
Section 2.14, shall be reduced by an amount equal to the product of (x) 0.25 multiplied by
(y) the Working Capital Allocation

29

 

Amount (for avoidance of doubt, with the maximum amount of such
reduction being Three Million Seven Hundred Fifty Thousand Dollars ($3,750,000)), with the
reduction allocated to the first such scheduled payment (after giving effect to any reduction
thereof as contemplated by the proviso in Section 2.14, if applicable) up to the amount
thereof and thereafter to subsequent payments until the full reduction has been allocated.

     Section 2.10 Non-Transferability. Nothing contained herein shall be deemed by any
Seller, Newco or Buyer to constitute an agreement of any Seller to assign or transfer (including,
if applicable, solely for purposes of this Section 2.10, an assignment by operation of a
change of control or event giving rise to any successor liability of any Person, or purported
change of control or event giving rise to any successor liability of any Person) any Transferred
Contract or other Contributed Asset to Newco or any Newco Subsidiary or thereafter to Holdings in
connection with the transactions contemplated hereby if an attempted assignment or transfer thereof
without the consent of or notice to a third party thereto would constitute a breach or default
thereof, cause or permit the acceleration or termination thereof or in any way adversely affect the
rights of any Seller (as such rights would have existed prior to the attempted assignment or
transfer) or Buyer, Holdings, Newco or any Newco Subsidiary (as such rights would have existed
following the attempted assignment or transfer if this Section 2.10 did not apply to the
assignment or transfer) thereunder unless such consent has been delivered and/or such notice has
been properly made. In the event that any Transferred Contract or Contributed Asset that would
otherwise be or be deemed to have been assigned or transferred to Newco or any Newco Subsidiary
pursuant to Section 2.1 or to Holdings pursuant to Section 2.5(a) cannot be or
could not have been deemed to have been assigned or transferred or a third party shall not provide
or have provided its necessary consent to, or receive or have received its notice of, such
assignment or transfer, at the Closing, and without any changes to the amounts payable pursuant to
any other provision of this Article II, the applicable Seller party to the Transferred
Contract or owning such Contributed Asset, as appropriate, shall assign and transfer to Newco or
Holdings, as appropriate, to the extent legally possible and without causing any of the
consequences to assignment or transfer in the immediately preceding sentence to occur, all of such
Seller’s right and title to and interests in and to each such Transferred Contract or Contributed
Asset and, where necessary or appropriate, such Seller shall be deemed to be Newco’s or Holdings’
duly appointed agent for the purpose of completing, fulfilling and discharging all of Newco’s or
Holdings’ rights and Liabilities arising after the Closing Date with respect to each such
Transferred Contract or Contributed Asset. In
that event, subject to Section 5.3, Seller shall, and shall cause any applicable Other
Seller to, at Newco’s sole cost and expense: (i) provide Newco and Holdings with the benefit in all
material respects of each such Transferred Contract or Contributed Asset, including (A) enforcing
any rights with respect to any such Transferred Contract or Contributed Asset (including the right
to terminate in accordance with the terms thereof upon the request of Newco or Holdings), and (B)
permitting Newco or Holdings to enforce any rights as if such Transferred Contract or Contributed
Asset had been assigned or transferred to Newco or Holdings, and (ii) to the extent a Seller shall
have failed to obtain the consent of all parties or to deliver notice to all parties prior to the
Closing with respect to such Transferred Contract or other Contributed Asset necessary to permit
the assignment or transfer to Newco or Holdings of each such Transferred Contract or other
Contributed Asset without causing any of the consequences to assignment in the first sentence of
this Section 2.10 to occur, when all such consents shall have been obtained or notices have
been delivered, assign and transfer such Transferred Contract or Contributed Asset to Newco.
Subject to Section 5.3, any

30

 

Seller shall be entitled to retain from or set-off against
amounts due to, or otherwise charge and collect from, Newco or Holdings for all reasonable
incremental costs associated with the retention, maintenance and enforcement of rights of any
Transferred Contract or other Contributed Asset and all Liabilities arising thereunder to the
extent related to the ownership, use or operation thereof from and after the Closing Date
contemplated by this Section 2.10 (“Maintenance Costs”), and Buyer will, and will
cause Holdings and Newco to, indemnify each Seller Indemnified Party for any Damages resulting from
or arising out of any such activities. Notwithstanding anything to the contrary set forth in this
Section 2.10, no Seller shall have any obligation whatsoever to directly or indirectly
retain any portion of its assets or businesses other than any specific individual Transferred
Contract or other Contributed Asset contemplated by this Section 2.10 (but only until such
time as the transfer thereof may be effected in accordance with this Agreement) as a result of this
Section 2.10 in order to perform or maintain such Transferred Contract or other Contributed
Asset.

     Section 2.11 Intellectual Property License. Newco hereby grants to Solutia and to
each of Solutia’s Affiliates a worldwide, royalty-free, fully paid-up, non-exclusive, fully
transferable, irrevocable and perpetual right and license to use the Intellectual Property set
forth on Section 2.11 of the Disclosure Schedule and any other Intellectual Property,
excluding trademarks, which is included in the Contributed Assets and identified by Solutia or any
of its Affiliates in writing to Newco within nine (9) months after the Closing Date (without any
right to grant sublicenses other than in connection with products, processes or services, or other
Intellectual Property, owned or controlled by Solutia or any of its Affiliates) in connection with
the respective businesses of Solutia and its Affiliates as such businesses are currently conducted
and proposed to be conducted as of the Closing Date; provided, however, that (x)
such license shall be effective only upon the occurrence of the Closing Date, and (y) such license
shall be subject to Section 6.6.

     Section 2.12 Contribution to Newco Subsidiaries. The Parties hereto shall use
commercially reasonable efforts to cooperate with any other Party hereto to determine whether, in
lieu of any contribution of the Contributed Assets to Newco, certain Contributed Assets should be
contributed directly to certain Newco Subsidiaries. Seller shall, and shall cause the Other
Sellers, to transfer any such Contributed Assets to a
Newco Subsidiary as Buyer shall reasonably request promptly following the date hereof and in
any event, no later than April 7, 2009; provided, however, that in no event shall
any Seller be obligated to contribute any Contributed Assets to any Newco Subsidiary in lieu of to
Newco (except as contemplated by Section 5.4(d)) if doing so could reasonably be expected
to (i) prevent or delay the consummation of any transactions contemplated hereby; (ii) adversely
affect the rights or benefits of any Seller; or (iii) adversely affect the Tax treatment of any
Seller. Upon any such determination to so contribute Contributed Assets to any Newco Subsidiary,
if either Party shall request prior to the Closing, the Parties shall prepare an intercompany
agreement between Newco and any such Newco Subsidiaries and such other agreements reasonably
requested by a Party to effectuate such contributions, which shall, in each case, be in form and
substance reasonably acceptable to Seller.

     Section 2.13 Excluded Liabilities. Seller shall pay, perform, honor and discharge, or
cause to be paid, performed, honored and discharged, all Excluded Liabilities relating to, or

31

 

arising from, the Business in a timely manner in accordance with the terms thereof from and after
the Closing.

     Section 2.14 Additional Consideration Payable After the Closing. As additional
consideration for the Holdings Formation Contribution, except as the following payments shall be
reduced pursuant to Section 2.9(e), Buyer shall, or shall cause Holdings or Newco to, pay
to Seller cash in an amount equal to One Million Dollars ($1,000,000) on each of September 1, 2011,
September 1, 2012, September 1, 2013 and September 1, 2014 for aggregate additional payments under
this Section 2.14 of Four Million Dollars ($4,000,000); provided, however,
that the payment to be made on September 1, 2011 shall be reduced by the amount by which the
consideration actually paid to Solutia International Trading (Shanghai) Co., Ltd. pursuant to
Section 2.3(a)(i) of the China Asset Transfer Agreement, if applicable, exceeded Three Hundred
Thousand Dollars ($300,000). Such payments shall be paid by wire transfer or other immediately
available funds to an account or accounts designated by Seller. Such payments shall not be subject
to any right of set-off and shall not be conditioned upon any matter, including the occurrence of
any events or any results of operations of the Business.

ARTICLE III

SELLER’S REPRESENTATIONS AND WARRANTIES

     Solutia represents and warrants to Buyer that the statements contained in this Article III
are true and correct as of the date of this Agreement, except as set forth in the disclosure
schedule accompanying this Agreement (the “Disclosure Schedule”). The Disclosure Schedule
has been arranged in paragraphs corresponding to the numbered and lettered paragraphs contained in
this Agreement for the convenience of the Parties.

     Section 3.1 Organization of Sellers and Newco; Good Standing.

          (a) Solutia is a corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware and has all requisite corporate or similar power and authority to
own, lease and operate its assets and to carry on its business as now being conducted.

          (b) Newco is a limited liability company duly organized, validly existing and in good standing
under the laws of the State of Delaware and has all requisite power and authority to own, lease and
operate its assets and to carry on its business as now being conducted.

          (c) Each of the Other Sellers is duly formed or organized and validly existing under the laws
of the jurisdiction of its incorporation or formation and has all requisite corporate or similar
power and authority to own, lease and operate its assets and to carry on its business as now being
conducted.

          (d) Each of Solutia and Newco is qualified to do business in each jurisdiction in which the
nature of its business requires it to be so qualified with respect to the Business. Section
3.1 of the Disclosure Schedule sets forth a list of jurisdictions where Solutia or Newco is
registered to do business by reason of registration with the applicable Secretary of State with
respect to the Business.

32

 

     Section 3.2 Authorization of Transaction.

          (a) Each of Solutia and Newco has, and as of the Closing, each Other Seller will have, full
power and authority (including full corporate or other entity power and authority) to execute and
deliver (x) in the case of Solutia and Newco, this Agreement and (y) in the case of all Sellers and
Newco, all other agreements contemplated hereby to which it is a party (excluding those related to
the Financing) and to perform its respective obligations hereunder and thereunder.

          (b) The execution, delivery and performance of (x) in the case of Solutia and Newco, this
Agreement and (y) in the case of all Sellers and Newco, all other agreements contemplated hereby to
which a Seller or Newco is a party (excluding those related to the Financing), have been duly
authorized by such Seller and Newco, as the case may be.

          (c) This Agreement has been duly executed and delivered by Seller and Newco and constitutes,
and as of the Closing the Related Agreements (excluding those related to the Financing) will have
been duly executed and delivered by each Seller and/or Newco party thereto and will constitute, the
valid and legally binding obligation of such Seller and/or Newco, enforceable against such Seller
and/or Newco in accordance with its terms and conditions, subject to applicable bankruptcy,
insolvency, moratorium or other similar laws relating to creditors’ rights and general principles
of equity.

     Section 3.3 Noncontravention. Neither the execution and delivery of this Agreement, nor the consummation of the
transactions contemplated hereby (including the transactions referred to in Article II),
will: (i) conflict with or result in a breach of the certificate of incorporation or bylaws, or
other organizational documents, of any Seller or Newco; (ii) violate any law or Decree to which any
Seller or Newco is, or its respective assets or properties are, subject in respect of the Business;
or (iii) conflict with, result in a breach of, constitute a default under, result in the
acceleration of, create in any party the right to accelerate, terminate, modify or cancel, or
require any notice under any Material Contract to which a Seller is a party or by which it is bound
in respect of the Business or to which any of the Contributed Assets is subject, except, in the
case of either clause (ii) or (iii), for such conflicts, violations, breaches, defaults,
accelerations, rights or failures to give notice as would not, individually or in the aggregate,
have a Material Adverse Effect on the Business. Other than filings required under the Exchange Act
or applicable laws of China, neither Sellers nor Newco is required to give any notice to, make any
filing with, or obtain any authorization, consent or approval of any Governmental Authority in
order for the Parties to consummate the transactions contemplated by this Agreement or any Related
Agreement, except where the failure to give notice, file or obtain such authorization, consent or
approval would not, individually or in the aggregate, have a Material Adverse Effect on the
Business.

     Section 3.4 Title to Contributed Assets. At the Closing and prior to the Newco
Formation Contribution, Sellers will have good and valid title to, or the right to use, the
Contributed Assets, and Sellers will convey to Newco at the Closing in the Newco Formation
Contribution, subject to the operation of Section 2.10, good and valid title to, or
Sellers’ right to use, all of the Contributed Assets, free and clear of all Liens (other than
Permitted Liens and, with respect to Intellectual Property owned by the Sellers outside the United
States, to Seller’s

33

 

Knowledge; provided that it is understood and agreed that, if Newco or
Buyer notifies Seller in writing at any time after the Closing of any security interest or other
Lien filed or recorded with any Governmental Authority (including any patent or trademark office)
outside the United States as of the Closing with respect to Intellectual Property owned by Sellers
and included in the Contributed Assets, Seller shall use commercially reasonable efforts to obtain
a release of any such security interest or other Lien, at Seller’s sole cost and expense, and
provide Newco and Buyer a letter confirming that any such security interest or other Lien has been
released).

     Section 3.5 Sufficiency of Assets Except as contemplated by this Agreement or by any
Related Agreements and except for the China Business Assets, as of the Closing, the Contributed
Assets are all of the assets necessary for Newco to operate the Business in a manner substantially
equivalent in all material respects to the manner in which Sellers have operated the Business since
the Most Recent Fiscal Year End.

     Section 3.6 Financial Statements. Attached hereto as Annex G are the
following financial statements (collectively the “Financial Statements”): unaudited
consolidated balance sheets, statements of income and statements of cash flow for the Business (the
“Most Recent Financial Statements”) as of and for
the fiscal year ended December 31, 2008 (the “Most Recent Fiscal Year End” and the
“Most Recent Fiscal Quarter End”). The Financial Statements present fairly in all material
respects the financial condition of the Business as of such dates and the results of operations of
the Business for such periods, are correct and complete in all material respects and are consistent
in all material respects with the books and records of the Business and Sellers, except as adjusted
as disclosed thereon; provided, however, that the Most Recent Financial Statements
are subject to normal-year end adjustments and lack of footnotes and other presentation items; the
effect of which are not expected to have a Material Adverse Effect on the Business.

     Section 3.7 Events Subsequent to Most Recent Fiscal Quarter End. Except for actions
or events arising in connection with the transactions contemplated hereby, including contribution
of the Contributed Assets to, and assumption of the Assumed Liabilities by, Newco, and as set forth
on Section 3.7 of the Disclosure Schedule, since January 1, 2009:

          (a) Sellers have not sold, leased, transferred or assigned any material assets of the Business
outside the ordinary course of business;

          (b) other than with respect to Covered Employees (which matters are covered below), Sellers
have not entered into any Material Contract outside the ordinary course of business which will be a
Transferred Contract;

          (c) other than with respect to Covered Employees (which matters are covered below), Sellers
have not accelerated, terminated, modified or cancelled any Material Contract outside the ordinary
course of business which would otherwise have been a Transferred Contract;

          (d) Sellers have not experienced any material damage, destruction or loss outside the ordinary
course of business that is not covered by insurance to its property exclusively related to the
Business;

34

 

          (e) Sellers have not entered into any material agreement outside the ordinary course of
business assigning any material Intellectual Property exclusively related to the Business;

          (f) Sellers have not granted or agreed to grant any increase in any rate or rates of salaries
or compensation to any officer or employee of the Business for 2009, or made or agreed to any bonus
payment, fringe benefit, retention or severance arrangement with any such officer or employee for
2009; except for (x) raises of salary or wages upon promotions or progression increases made in the
ordinary course of business, (y) as required by law or (z) changes of de minimis amounts;

          (g) Sellers have not entered into any employment contract related to any of the Covered U.S.
Employees, written or oral, or modified the terms of any existing such contract (except for
modifications contemplated by clauses (x), (y) or (z) of Section 3.7(f));

          (h) Sellers have not entered into any collective bargaining agreement related to any of the
Covered U.S. Employees, written or oral, or modified the terms of any existing such agreement;

          (i) Sellers have not adopted any new Employee Benefit Plan or provided any material increases
in any material benefits under such Employee Benefit Plans with respect to such Covered Employees
except in accordance with the terms of such plans or as required under applicable law;

          (j) Sellers have not incurred, assumed or guaranteed any indebtedness for borrowed money with
respect to the Business other than in the ordinary course of business;

          (k) none of the Sellers has made any loan, advance or capital contribution to, or investment
in, any Person with respect to the Business other than expense advances in the ordinary course of
business consistent with past practice;

          (l) none of the Sellers has changed its policy or practice with respect to the methodology for
accounting, including with respect to the classification of its Inventory;

          (m) none of the Sellers has made any Tax election, changed its method of Tax accounting or
settled any claim for Taxes;

          (n) there has not been any event or occurrence that individually or in the aggregate has had a
Material Adverse Effect on the Business; and

          (o) Sellers have not agreed, whether in writing or otherwise, to do any of the foregoing.

     Section 3.8 Real Property.

          (a) Section 3.8(a) of the Disclosure Schedule sets forth a description of each Owned
Real Property. Seller has marketable fee simple title to all Owned Real Property, free and clear
of any Liens except for Permitted Liens.

35

 

          (b) Section 3.8(b) of the Disclosure Schedule sets forth the address of each Leased
Real Property, and a list of all Leases. Seller holds a valid leasehold interest in or a valid
right to use or occupy each of the Leased Real Property, in each case free and clear of any Liens
other than Permitted Liens.

          (c) Seller has not received any written notice from any Governmental Authority or Person of
any pending or threatened condemnations, planned public improvements, annexation, special
assessments, zoning, or subdivision changes directly affecting the Facilities.

          (d) Other than pursuant to the Guest Agreements and Permitted Liens, no third party is in
possession of any of the Facilities or any portion thereof and there are no leases,
subleases, licenses, concessions or other contracts granting to any third party the right of
use or occupancy of any portion of the Facilities.

          (e) Seller is not a party to any outstanding options or rights of first refusal or other
similar contracts or rights to purchase any real property or interest therein relating to, or
intended to be used in the operation of, the Business.

     Section 3.9 Furnishings and Equipment. The Furnishings and Equipment presently used
in connection with the conduct of the Business as presently conducted by Sellers are free from
material defects, have been maintained in accordance with normal industry practice, are in
operating condition and repair (subject to normal wear and tear) and are in an operating condition
sufficient to conduct the Business as presently conducted by Sellers.

     Section 3.10 Inventory and Current Assets and Current Liabilities. 

          (a) The Inventory of the Business is merchantable and fit for the purpose for which it was
procured or manufactured in all material respects, except as set forth or reflected in the
Conclusive Net Working Capital Statement. The Inventory of the Business does not include any
slow-moving, obsolete, damaged or defective items other than as carried on the books and records of
the Business in accordance with past custom and practice of the Business. Such Inventory is
accounted for under GAAP, consistently applied, and is valued on a FIFO basis, at the lower of cost
or market (as defined by GAAP).

          (b) The Sellers’ accounts payable for the purchase of goods and services appearing on the Most
Recent Balance Sheet and all accounts payable for the purchase of goods and services created since
the Most Recent Fiscal Quarter End represented valid obligations actually made in bona fide
arms’-length transactions entered into in the ordinary course of business and consistent with past
practices and policies, including with regard to the timing of payment.

          (c) The Sellers’ accounts receivable for the sale of Inventory appearing on the Most Recent
Balance Sheet and all accounts receivable for the sale of Inventory created since the Most Recent
Fiscal Quarter End represented valid obligations actually made in bona fide arms’-length
transactions entered into in the ordinary course of business and consistent with past practices and
policies, including with regard to the timing of payment.

36

 

     Section 3.11 Material Contracts.

          (a) Section 3.11 of the Disclosure Schedule lists the following Contracts to which a
Seller is a party as of the date hereof with respect to the Business that would constitute a
Transferred Contract as of the date hereof:

               (i) any utilities and services agreement or lease and operating agreement in either case
providing for a third party guest or host arrangement at the Owned Real Property (a “Guest
Agreement”);

               (ii) other than any Guest Agreement, any Contract for the lease of personal property to or
from any Person providing for lease payments to be unpaid as of the Closing Date in excess of One
Million Dollars ($1,000,000) per annum;

               (iii) other than any Guest Agreement, any Contract for the purchase by the Business of raw
materials, commodities or supplies with any supplier to whom the Business paid in excess of
Twenty-Six Million Dollars ($26,000,000) during the Most Recent Fiscal Year and for which the
performance of such Contract will extend over a period of more than one year after the Closing
Date, which, when taken together with all Contracts with such suppliers set forth on Section
3.11 of the Disclosure Schedule and all such suppliers for which no such Contract exists,
constitute the suppliers to whom the Business paid no less than sixty-six percent (66%) of the
aggregate payments to suppliers during such period;

               (iv) other than any Guest Agreement, any Contract for the sale by the Business of products
(for avoidance of doubt, not including purchase orders) to a customer from whom the Business
received consideration in excess of Seventeen Million Three Hundred Thirteen Thousand Dollars
($17,313,000) during the Most Recent Fiscal Year and for which the performance of such Contract
will extend over a period of more than one year after the Closing Date, which, when taken together
with all Contracts with such customers set forth on Section 3.11 of the Disclosure Schedule
and all such customers for which no such Contract exists, constitute the customers from which the
Business received no less than fifty-seven percent (57%) of the aggregate consideration from
customers during such period;

               (v) any Contract pursuant to which the Business sells any products providing for any “most
favored nation” pricing pursuant to which a Seller is obligated to sell Products to a customer from
whom the Business received consideration in excess of Two Million Dollars ($2,000,000) during the
Most Recent Fiscal Year at a price that is no less favorable than a price offered to any other
customer for such Product;

               (vi) any Contract providing for a partnership or joint venture;

               (vii) any Contract under which it has created, incurred, assumed or guaranteed any
indebtedness for borrowed money to be outstanding as of the Closing Date in excess of One Million
Dollars ($1,000,000);

               (viii) any Contract expressly restricting the ability of such Seller from competing in any
geographic region or with respect to any product;

37

 

               (ix) any material license relating to Intellectual Property used primarily in the operation of
the Business (other than, if applicable, off-the-shelf computer software with an annual license fee
of less than Fifty Thousand Dollars ($50,000));

               (x) any collective bargaining agreement covering the Covered U.S. Employees;

               (xi) any settlement, conciliation or similar agreement, the performance of which will involve
payment after the Closing Date by Buyer of consideration in excess of One Million Dollars
($1,000,000);

               (xii) any employment, severance or termination agreement with any Covered U.S. Employee or any
individual consultant of the Business pursuant to which Seller is required to make payment in
excess of Two Hundred Thousand Dollars ($200,000) in 2008 or any year thereafter (excluding the
standard severance policy of the Business) for which the Liability is an Assumed Liability;

               (xiii) any agreement that provides for the future disposition or acquisition of any product
line or business of the Business, other than dispositions or acquisitions in the ordinary or usual
course of business; or

               (xiv) any agreement that grants to any Person any right of first offer or right of first
refusal to purchase all or part of the Facilities.

The Contracts required to be listed on Section 3.11 of the Disclosure Schedule are referred
to as the “Material Contracts.”

          (b) With respect to each Material Contract: (i) such Contract constitutes the valid and
legally binding obligation of the Seller(s) party thereto and, to Seller’s Knowledge, the
counterparty thereto, enforceable against such Seller(s) and, to Seller’s Knowledge, the
counterparty thereto in accordance with its terms and conditions, subject to applicable bankruptcy,
insolvency, moratorium or other similar laws relating to creditors’ rights and general principles
of equity; and (ii) neither the Seller(s) party thereto nor, to Seller’s Knowledge, the
counterparty thereto is in material breach or default that presently would permit or give rise to a
right of termination, modification or acceleration thereunder or for which the counterparty thereto
has made a claim against such Seller for contract damages in excess of Five Hundred Thousand
Dollars ($500,000) as a result thereof.

     Section 3.12 Intellectual Property. Section 3.12 of the Disclosure Schedule
lists all issued patents and pending patent applications, and all registrations and pending
applications for registration of copyrights, trademarks and service marks, and all registrations of
Internet domain names, owned by Sellers that are exclusively used in or are necessary in all
material respects for the operation of the Business as currently conducted and included in the
Contributed Assets (“Scheduled Intellectual Property”). All of the Scheduled Intellectual
Property is valid, subsisting and, to Seller’s Knowledge, in full force and effect (except for any
Scheduled Intellectual Property that expires at the end of its statutory term or is unable to be
renewed or is not material to the Business). To Seller’s Knowledge, (a) no use of any Intellectual
Property included in the Contributed Assets in the conduct of the Business as currently conducted

38

 

infringes the Intellectual Property of any Person in any material respect, and (b) no third party
is infringing any material Intellectual Property included in the Contributed Assets. There are no
suits, actions or proceedings presently pending or, to Seller’s Knowledge, threatened in writing
against any Seller that asserts that the conduct of the Business infringes any third party’s
Intellectual Property rights, except as would
not have a Material Adverse Effect on the Business. To Seller’s Knowledge, all Material
Contracts relating to Intellectual Property primarily used in the Business under which any Seller
is a licensee are valid and enforceable against it and the other parties thereto in accordance with
their terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting the enforcement of creditors’ rights in general and
subject to general principles of equity (regardless of whether such enforceability is considered a
proceeding in equity or at law). Sellers have made reasonable efforts to protect and maintain the
proprietary nature of the Intellectual Property primarily related to the Business owned by Sellers.

     Section 3.13 Tax Matters.

          (a) Sellers have duly and timely filed all material Tax Returns that they were required to
file in connection with the ownership or operation of the Business. All such Tax Returns were
correct and complete with respect to the ownership or operation of the Business in all material
respects. All material Taxes owed by Sellers, whether or not shown on such Tax Returns, have been
paid to the extent due and payable. Sellers have withheld and paid all material Taxes required to
have been withheld with respect to the ownership or operation of the Business, and all Forms W-2
and 1099 required with respect thereto have been properly completed and timely filed.

          (b) There are no (i) agreements or consents currently in effect for the extension or waiver of
the time for assessment or collection of any Taxes of any Seller; (ii) there is no action, suit,
proceeding, investigation, audit or claim currently pending, or to Seller’s Knowledge, threatened,
regarding any Taxes relating to any Seller; (iii) during the last five (5) years or, to Seller’s
Knowledge, prior thereto, there has not been (w) any ruling expressly addressed to any Seller by
any Tax authority that relates to or was obtained in connection with the ownership or operation of
the Business, (x) any audit or other examination of the Taxes of any Seller by any Tax authority,
(y) any closing agreement entered into by any Seller pursuant to Section 7121 of the IRC or any
similar provision of any other applicable Tax law that was entered into in connection with or
relates to the ownership or operation of the Business, or (z) any approval received or agreed to or
pending with any Tax authority for a change in accounting method with respect to the Taxes of any
Seller that would require any form or specific notice in a Tax Return (and which, in the case of
any such change more than five (5) years previous to the date hereof is not reflected in the Tax
Returns of Seller during the last five (5) years); and (iv) Seller is not a party to any Tax
sharing or Tax reimbursement agreement or arrangement (other than property tax escalation clauses
in property leases) that relate to the ownership or operation of the Business.

          (c) The unpaid Taxes of Sellers related to the ownership or operation of the Business (i) did
not, as of the Most Recent Fiscal Quarter End, exceed by any material amount the reserves for Tax
liability (rather than any reserve for deferred Taxes established to reflect the timing difference
between book and tax income) set forth on the face of the Most Recent Balance

39

 

Sheet (rather than in
the notes thereto); and (ii) as of the Closing, will not exceed by any material amount the reserves
as adjusted for operations and transactions through the Closing Date in accordance with the past
custom and practice of Sellers.

          (d) Neither Newco nor Buyer will be required to include any item of income in, or exclude any
item of deduction from, taxable income for any taxable period (or portion thereof) ending after the
Closing Date as a result of any: (i) change in method of accounting for a taxable period ending on
or prior to the Closing Date; (ii) “closing agreement” as described in IRC Section 7121 (or any
corresponding or similar provision of state, local or foreign income Tax law) executed on or prior
to the Closing Date; (iii) intercompany transactions or any excess loss account described in
Treasury Regulations under IRC Section 1502 (or any corresponding or similar provision of state,
local or foreign Income Tax law); (iv) installment sale or open transaction disposition made on or
prior to the Closing Date; or (v) prepaid amount received on or prior to the Closing Date.

          (e) Newco has not elected to be treated as a corporation for U.S. federal Income Tax purposes.

          (f) Seller does not have any liability with respect to the Business or the Contributed Assets
under applicable abandoned property, escheat or similar Laws.

          (g) Section 3.13(g) of the Disclosure Schedule provides certain estimated Tax basis
information with respect to the Business as of December 31, 2008, including adjusted tax basis,
classification and remaining depreciable life (the “Estimated Tax Basis Balance Sheets”).
The Estimated Tax Basis Balance Sheets were compiled by Seller’s employees using the best
information available to Seller at the time such Estimated Tax Basis Balance Sheets were prepared.

          (h) Notwithstanding anything to the contrary set forth herein, all references to Taxes in this
Section 3.13 are limited to Taxes relating to the Business, or Taxes for which Buyer or
Newco could become liable as successor to or transferee of the Business or which could become a
charge against or Lien on any of the Contributed Assets, and all references to Tax Returns are
limited to returns of such Taxes. Notwithstanding anything to the contrary set forth herein, the
representations and warranties set forth in this Section 3.13 are the exclusive
representations and warranties of Seller regarding Tax matters. 

     Section 3.14 Legal Compliance. (a) Sellers are in compliance with all applicable laws
relating to the Business (other than Tax matters, environmental, health or safety matters, labor
matters and employee and Employee Benefit Plan matters, which are exclusively governed by
Section 3.13, Section 3.21, Section 3.22 and Section 3.23,
respectively), including, as applicable, laws with respect to approvals, permits and licenses
required by Sellers in connection with the conduct of the Business, except for such noncompliance
which would not result in any Material Adverse Effect on the Business, and (b) no Litigation has
been filed, commenced or, to Seller’s Knowledge, threatened in writing by any Governmental
Authority primarily relating to the Business during the two (2) years prior to the date hereof
against any of them alleging any failure so to comply which would be reasonably likely to result in
any Material Adverse Effect on the Business.

40

 

     Section 3.15 Litigation. Section 3.15 of the Disclosure Schedule sets forth each instance in which Sellers
(a) are subject to any outstanding Decree or (b) are a party or, to Seller’s Knowledge, are
threatened in writing to be made a party to any Litigation (other than any action filed, commenced
or threatened in writing by a Governmental Authority), except for such Decrees or Litigation that
are not expected to involve future payment of an amount greater than One Million Dollars
($1,000,000) individually or Two Million Five Hundred Thousand Dollars ($2,500,000) in the
aggregate.

     Section 3.16 Product Warranty. No Seller has received any claim in writing with
respect to the Business that remains pending from any customer (a) alleging that any of the
Products manufactured, sold, leased or delivered by the Business during the one (1) year prior to
the date hereof has not conformed in all material respects with applicable contractual commitments
or express and implied warranties, or (b) that would be reasonably likely to give rise to a
Liability for replacement or repair thereof or other damages in connection therewith, in either
case that would be a material Liability of the Business, other than the reserve for product
warranty claims set forth on the Most Recent Balance Sheet, as adjusted for operations and
transactions since the Most Recent Fiscal Quarter End in accordance with the past custom and
practice of the Business.

     Section 3.17 Product Liability. Sellers do not have any material Liability arising
out of any injury to individuals or property as a result of the ownership, possession or use of any
product manufactured, sold, leased or delivered by the Business during the three (3) years prior to
the date hereof not reflected on the Most Recent Balance Sheet.

     Section 3.18 Affiliate Transactions. Except for any transactions contemplated hereby
(including transactions involving Newco or any Newco Subsidiary), to Seller’s Knowledge, no officer
or director of Seller or any of its Subsidiaries (nor any ancestor, sibling, descendant or spouse
of any of such Person, or any trust, partnership or corporation in which any of such Persons has an
economic interest in excess of five percent (5%) of the ownership interests therein), (i) is or was
a party to any Contract, commitment or transaction with any of Sellers relating to the Business
since January 1, 2007 (other than in his or her capacity as an officer or director of Seller or any
of its Subsidiaries), or (ii) has any interest in any Contributed Asset, other than indirectly, as
a stockholder of Seller.

     Section 3.19 Customers and Suppliers. Section 3.19 of the Disclosure Schedule
lists (i) the ten (10) largest customers (by revenue) of the Business during the Most Recent Fiscal
Year and (ii) the ten (10) largest suppliers (by cost) of the Business during the Most Recent
Fiscal Year. No such supplier or customer has canceled or otherwise terminated, or, to Seller’s
Knowledge, threatened in writing to cancel or otherwise terminate, its relationship with Seller or
to decrease materially the quantity of products purchased from or sold to, respectively, the
Business outside of the ordinary course of business expressly as a result of the transactions
contemplated hereby or otherwise since the Most Recent Fiscal Year End.

     Section 3.20 Insurance. The insurance coverage provided by the insurance policies
maintained by Sellers with respect to the Business: (a) is on such terms, (b) covers such
categories of risk, (c) contains such deductibles and retentions, and (d) is in such amounts as,
with respect to each of the criteria set forth in the foregoing clauses (a) through (d), is
suitable

41

 

and customary for the Business in all material respects. Section 3.20 of the
Disclosure Schedule sets forth a list of all insurance policies of Seller in effect as of the
date hereof covering the Business or the Contributed Assets and the applicable deductible and
minimum limits on each such policy.

     Section 3.21 Environmental, Health or Safety Matters.

          (a) (i) Sellers have obtained, have held and hold all material Permits required pursuant to
Environmental, Health or Safety Requirements (“Environmental Permits”) required to be
obtained and held by them in connection with the ownership and operation of the Business, the
Facilities and the Contributed Assets; and (ii) each such Environmental Permit as of the date
hereof is identified on Section 3.21(a) of the Disclosure Schedule.

          (b) Sellers are and have been: (i) in material compliance with all required Environmental
Permits, and (ii) in material compliance with all Environmental, Health or Safety Requirements
presently or previously in effect, except for such noncompliance that has either (a) been fully and
finally resolved and for which no material Liability remains or (b) would not reasonably be
expected to result in any Material Adverse Effect on the Business.

          (c) There are no (i) Decrees which could reasonably be expected to have a Material Adverse
Effect on the Business, or (ii) material Litigations in each case issued, pending or, to Seller’s
Knowledge, threatened against Sellers or with respect to which Sellers have entered into or are
subject, that relate to the Facilities, the Business or the Contributed Assets, under or relating
to the Environmental, Health or Safety Requirements.

          (d) (i) No Release of Hazardous Materials has occurred and no Person has been exposed to any
Hazardous Materials at, from, in, to, on or under any of the Facilities; and (ii) no Hazardous
Materials are present in, on or migrating to or from any of the Facilities, in the case of either
clause (i) or (ii) hereof, that is reasonably likely to give rise to a Liability or Litigation
under Environmental, Health or Safety Requirements to Sellers or Newco except for any Liability or
Litigation that would not reasonably be expected to have a Material Adverse Effect on the Business.

          (e) None of the Facilities is listed or, to Seller’s Knowledge, proposed for listing on the
National Priorities List (as defined in Comprehensive Environmental Response, Compensation and
Liability Act of 1980) or on any similar list of sites requiring investigation or clean up under
any Environmental, Health or Safety Requirements, which listing would reasonably be expected to
have a Material Adverse Effect on the Business.

          (f) There is no (i) asbestos-containing materials, (ii) polychlorinated biphenyl-containing
equipment or materials, or (iii) underground storage tanks on or under any
of the Facilities, in any of cases (i) — (iii) above, that would reasonably be expected to
have a Material Adverse Effect on the Business.

          (g) Seller has made available to Buyer such material environmental reports, documents,
studies, analyses, investigations, audits and reviews in any Sellers’ (or their respective
representatives or advisors) possession or control as reasonably necessary to disclose material
environmental, health and safety liability issues to Seller’s Knowledge.

42

 

          (h) Neither the execution of this Agreement nor any of the Related Agreements nor the
consummation of the transactions contemplated hereby or thereby will require any notification to or
the consent of any Governmental Authority (other than such notifications as may be required in
connection with the transfer or reissuance of any Environmental Permits) or the undertaking of any
investigation or remedial actions pursuant to Environmental, Health or Safety Requirements other
than those which the failure to comply with would not reasonably be expected to have a Material
Adverse Effect on the Business.

          (i) Sellers have not contractually assumed responsibility for or agreed to indemnify or hold
harmless any Person for any Liability arising under or relating to any Environmental, Health or
Safety Requirements which Liability relating to the Contributed Assets, Facilities or the Business
that would reasonably be expected to have a Material Adverse Effect on the Business.

          (j) Notwithstanding anything to the contrary set forth herein, the representations and
warranties set forth in this Section 3.21 and Section 3.3, Section 3.6,
Section 3.7, Section 3.11, Section 3.20, and Section 3.28 are the
exclusive representations and warranties of Seller relating to environmental, health and safety
matters, including any matters arising under Environmental, Health or Safety Requirements.

     Section 3.22 Labor Relations.

          (a) Except as would not reasonably be likely to have a Material Adverse Effect on the
Business, each Seller is in material compliance with all laws relating to the employment of labor,
including those laws relating to wages and hours, collective bargaining, equal opportunity,
discrimination, affirmative action, workplace safety, layoffs, vacation, immigration, and the
withholding and payment of all employment-related Taxes and other withholdings.

          (b) No Seller is a party to or bound by any collective bargaining agreement covering the
Covered U.S. Employees, nor has any of them experienced any strike or material grievance, claim of
unfair labor practices or other material labor dispute with respect to the Business within the two
(2) years prior to the date hereof. No unfair labor practice charge or complaint of sex, race, or
other discrimination claim has been brought since January 1, 2004 against any Seller with respect
to the conduct of the Business before the National Labor Relations Board, the Equal Employment
Opportunity Commission or any other Governmental Authority that would reasonably be expected to
result in any material liability.

          (c) No Seller is a party to any Contract with its Covered Employees (or any Person on their
behalf) which prohibits Seller from relocating, closing or terminating any of its operations or
facilities or any portion thereof. Since the Most Recent Fiscal Quarter End, none of the Sellers
has effectuated any plant closings or other employee lay offs in violation of the WARN Act.

          (d) Notwithstanding anything to the contrary set forth herein, the representations and
warranties set forth in this Section 3.22 are the exclusive representations and warranties
of Seller relating to labor matters.

43

 

     Section 3.23 Employee Benefit Plans and Employees. 

          (a) Each of the employees listed on Annex C hereto (including all Covered EU Employees
and Covered Foreign Employees) has responsibilities as of the date hereof primarily related to the
Business except as indicated on Annex C.

          (b) Section 3.23(b) of the Disclosure Schedule lists each Employee Benefit Plan (with
specific notations for Foreign Benefit Plans). With respect to each such Employee Benefit Plan:

               (i) Such plan, if intended to meet the requirements of a “qualified plan” under Section 401(a)
of the IRC, has received a determination letter (or the prototype form plan document on which such
plan is based has received an opinion letter or advisory letter) from the Internal Revenue Service
regarding its qualified status under the IRC and, to Seller’s Knowledge, no circumstances exist
that would reasonably be expected to adversely affect such qualified status.

               (ii) Seller has made available to Buyer correct and complete copies of the plan documents and
summary plan descriptions, the associated Forms 5500 annual returns/reports and the most recent
determination letter received from the Internal Revenue Service, as applicable, for each Employee
Benefit Plan.

          (c) Each Employee Benefit Plan has been maintained and administered in accordance with its
terms and applicable law in all material respects.

          (d) Seller does not have, and does not expect to have, any obligation to make any contribution
to any Multiemployer Plans or any Multiple Employer Plans.

          (e) All contributions required by law to have been made under any of the Employee Benefit
Plans that are defined benefit plans or money purchase pension plans (without regard to any waivers
granted under Section 412 of the IRC) to any funds or trusts established thereunder or in
connection therewith have been made in all material respects by the due date thereof (including any
valid extension), except any of the Employee Benefit Plans that are defined benefit plans or money
purchase pension plans which are either fully funded or for which any estimated underfunding is set
forth on Section 3.23(e) of the Disclosure Schedule.

          (f) Neither Seller nor any ERISA Affiliate currently, or in the past six (6) years, has
sponsored, maintained, or contributed to an “employee pension benefit plan” (within the meaning of
Section 3(2) of ERISA) that is subject to Title IV of ERISA or to the minimum funding requirements
of Section 412 of the IRC or Part 3 of Subtitle B of Title I of ERISA. Neither Seller nor any ERISA
Affiliate has taken any action or failed to take any action, nor has any event occurred to Seller’s
Knowledge, with respect to a plan other than an Employee Benefit Plan, which has resulted or would
reasonably be expected to result in Seller becoming subject to liability under Title IV of ERISA or
the minimum funding requirements of Section 412 of the IRC or Part 3 of Subtitle B of Title I of
ERISA, or to any excise taxes under IRC Sections 4971, 4977 or 4980B.

44

 

          (g) There is no pending Litigation that has been asserted or instituted, or to Seller’s
Knowledge, threatened against any of the Employee Benefit Plans, the assets of any of the trusts
under such plans or the plan sponsor or the plan administrator, or against any fiduciary of any of
the Employee Benefit Plans with respect to the operation of such plans (other than routine benefit
claims) pursuant to which Buyer would have material liability.

          (h) None of the Employee Benefit Plans is a “welfare benefit plan” within the meaning of
Section 3(1) of ERISA that provides for continuing benefits or coverage after termination of
employment for any participant or any beneficiary of any participant, except as may be required
under COBRA and at the expense of the participant or the participant’s beneficiary.

          (i) Section 3.23(i) of the Disclosure Schedule lists all change of control or
retention plans or agreements that would be triggered by the transactions contemplated by this
Agreement.

          (j) Sellers have made all payments to Covered Employees under any employment, severance,
termination, bonus plan or other similar agreement or arrangement that are due and payable and
outstanding.

          (k) Notwithstanding anything to the contrary set forth herein, the representations and
warranties set forth in this Section 3.23 are the exclusive representations and warranties
of Seller regarding employee and Employee Benefit Plan matters.

     Section 3.24 Brokers’ Fees. Other than the fees and expenses payable to HSBC
Securities (USA) Inc. in connection with the transactions contemplated hereby, which shall be borne
by Solutia, no Seller has entered into any Contract to pay any fees or commissions to any broker,
finder or agent with respect to the transactions contemplated hereby for which Buyer could become
liable or obligated to pay.

     Section 3.25 Newco.

          (a) Newco was formed for the purpose of effecting the transactions contemplated hereby and has
not conducted any activities other than in connection with the Business and transactions
contemplated hereby.

          (b) Seller has heretofore furnished to Buyer a complete and correct copy of the limited
liability company agreement, as amended to date, of Newco.

     Section 3.26 Title to Newco Units. At the Closing, Seller will have good and valid
title to Newco Units, and Seller will convey at the Closing good and valid title to all of the
Newco Units, free and clear of all Liens (other than Permitted Liens) to Holdings pursuant to the
contribution of the Newco Units contemplated by Section 2.5(a).

     Section 3.27 Newco Capitalization.

          (a) As of the date hereof, there is one common unit of Newco issued and outstanding. Other
than as contemplated by this Agreement or any Related Agreement, there are

45

 

no existing preemptive
rights, outstanding subscriptions, options, rights, warrants, convertible or exchangeable
securities, calls, rights of exchange, plans or other agreements, commitments or claims or other
similar rights relating to any equity units or other equity security of Newco of any character
providing for the transfer, purchase, issuance or sale of any equity units of Newco, other than as
contemplated by this Agreement or any Related Agreement.

          (b) The equity units of Newco have been duly authorized and are validly issued, fully paid,
and non-assessable. Other than as contemplated by this Agreement or any Related Agreement, there
are no outstanding or authorized options, warrants, purchase rights, subscription rights,
conversion rights, exchange rights or other Contracts that would require Newco to issue, sell, or
otherwise cause to become outstanding any of its equity units. There are no outstanding or
authorized stock appreciation, phantom stock, profit participation, or similar rights with respect
to Newco.

     Section 3.28 Solvency. Immediately after giving effect to the consummation of the
transactions contemplated by this Agreement and the Related Agreements, at the Closing (a) each of
the Sellers will be able to pay its debts as they mature and have sufficient capital (and not
unreasonably small capital) to carry on its business consistent with its past practices, and (b)
the assets and properties of each of the Sellers at a fair valuation will be greater than its debts
and other liabilities.

     Section 3.29 No Undisclosed Liabilities. With respect to the Business, Solutia does not have any Liability that would be an Assumed
Liability that would be required by GAAP, as in effect on the date thereof, to be reflected on a
consolidated balance sheet of the Business except for: (i) liabilities as reflected or reserved for
in the Most Recent Financial Statements; (ii) liabilities incurred in the ordinary course of
business since the date of the Most Recent Financial Statements; (iii) liabilities to be reflected
on the Conclusive Net Working Capital Statement; (iv) liabilities that arose under, or were
incurred in connection with, the transactions contemplated by this Agreement or any Related
Agreement; (v) liabilities which have been discharged or paid in full; (vi) liabilities set forth
on Section 3.29 of the Disclosure Schedule; and (vii) any liability that is not material to
the Business.

     Section 3.30 Seller Information. As of the date hereof, Seller has provided to Buyer
true, correct and complete information relating to the businesses and sales of Seller and its
Subsidiaries and joint ventures upon which Buyer can reasonably determine whether any objections to
the transactions contemplated hereby may be credibly asserted under any Antitrust Law.

     Section 3.31 Disclaimer of Other Representations and Warranties. Except for the
representations and warranties contained in this Article III or expressly contained in any
Related Agreement, neither Seller nor any other Person shall be deemed to have made any
representation or warranty, express or implied, including as to the accuracy or completeness of any
information regarding any Seller, Newco, Holdings, the Business, any Contributed Assets, any
Assumed Liabilities, the Holdings Contribution Shares, the Newco Units or any other matter.

46

 

ARTICLE IV

BUYER’S AND SK’S REPRESENTATIONS AND WARRANTIES

     Buyer and SK, jointly and severally, represent and warrant to Seller that the statements
contained in this Article IV are true and correct as of the date of this Agreement.

     Section 4.1 Organization of Buyer and SK; Good Standing.

          (a) SK is a limited partnership duly organized, validly existing and in good standing under
the laws of the State of Delaware and has all requisite corporate or similar power and authority to
own, lease and operate its assets and to carry on its business as now being conducted.

          (b) Buyer is a limited liability company duly organized, validly existing and in good standing
under the laws of the State of Delaware and has all requisite corporate or similar power and
authority to own, lease and operate its assets and to carry on its business as now being conducted.

     Section 4.2 Authorization of Transaction.

          (a) Each of SK and Buyer has full power and authority (including full corporate or other
entity power and authority) to execute and deliver this Agreement and all other agreements
contemplated hereby to which it is a party, including pursuant to the Financing, and to perform its
obligations hereunder and thereunder.

          (b) The execution, delivery and performance of this Agreement and all other agreements
contemplated hereby to which SK or Buyer is a party, including pursuant to the Financing, have been
duly authorized by SK and Buyer, respectively.

          (c) This Agreement has been duly executed and delivered by SK and Buyer and constitutes the
valid and legally binding obligation of SK and Buyer, enforceable against SK and Buyer in
accordance with its terms and conditions, subject to applicable bankruptcy, insolvency, moratorium
or other similar laws relating to creditors’ rights and general principles of equity.

     Section 4.3 Noncontravention. Neither the execution and delivery of this Agreement,
nor the consummation of the transactions contemplated hereby (including the transactions referred
to in Article II), including pursuant to the Financing, will: (i) conflict with or result
in a breach of the certificate of incorporation or bylaws, or other organizational documents, of SK
or Buyer; (ii) violate any law or Decree to which SK or Buyer is, or its respective assets or
properties are, subject, or (iii) conflict with, result in a breach of, constitute a default under,
result in the acceleration of, create in any party the right to accelerate, terminate, modify or
cancel, or require any notice under any Contract to which SK or Buyer is a party or by which it is
bound, except, in the case of either clause (ii) or (iii), for such conflicts, breaches, defaults,
accelerations, rights or failures to give notice as would not, individually or in the aggregate,
have a Material Adverse Effect on Buyer. Other than the filings required under the applicable laws
of China, neither SK nor Buyer is required to give any notice to, make any filing with, or obtain
any authorization, consent or approval of any Governmental Authority in order for the Parties to

47

 

consummate the transactions contemplated by this Agreement or any Related Agreement, except where
the failure to give notice, file or obtain such authorization, consent or approval would not,
individually or in the aggregate, have a Material Adverse Effect on Buyer.

     Section 4.4 Legal Compliance. (a) SK and Buyer are in compliance with all applicable
laws, except for such noncompliance which would not result in any Material Adverse Effect on Buyer,
and (b) no Litigation has been filed, commenced or, to Buyer’s Knowledge, threatened in writing by
any Governmental Authority primarily relating to SK or Buyer against any of them alleging any
failure so to comply which would be reasonably likely to result in any Material Adverse Effect on
Buyer.

     Section 4.5 Litigation. Neither SK nor Buyer, nor any of their respective Subsidiaries, (a) is subject to any
outstanding Decree or (b) is a party or, to Buyer’s Knowledge, is threatened in writing to be made
a party to any Litigation (other than any action filed, commenced or threatened in writing by a
Governmental Authority), except for such Decrees or Litigation which would not have a Material
Adverse Effect on Buyer.

     Section 4.6 Brokers’ Fees. Neither SK nor Buyer has entered into any Contract to pay
any fees or commissions to any broker, finder or agent with respect to the transactions
contemplated by this Agreement for which Seller or any of its Affiliates could become liable or
obligated to pay.

     Section 4.7 Financing; Sufficient Funds.

          (a) SK and Buyer have delivered to Seller a true, accurate and complete copy of a letter of
interest from a senior lender (the “Debt Letter of Interest”), which Debt Letter of
Interest is attached hereto as Annex H hereto, pursuant to which, and subject to the terms
and conditions thereof, the lender parties thereto have indicated an interest to lend the amounts
set forth therein to Buyer for the purpose of funding the transactions contemplated by this
Agreement (the “Debt Financing”). SK and Buyer have delivered to Seller a true, accurate
and complete copy of an executed commitment letter from SK (the “Equity Commitment Letter”
and together with the Debt Letter of Interest, the “Financing Commitments”), pursuant to
which SK has committed to invest the amounts set forth therein (the “Equity Financing” and
together with the Debt Financing, the “Financing”), which Equity Commitment Letter is
attached hereto as Annex I hereto. The aggregate proceeds from the Financing constitute
all of the financing required to be provided to Buyer for the consummation of the transactions
contemplated hereby, and are sufficient for the satisfaction of all of SK’s and Buyer’s obligations
under this Agreement and the Related Agreements, including the payment of the Cash Amount. The
Equity Financing Commitment and the Debt Letter of Interest contain all of the conditions precedent
to the obligations of the parties thereunder to make the Financing available to SK or Buyer on the
terms therein. There are no other agreements, side letters or arrangements relating to the
Financing except as set forth in the Equity Commitment Letter.

          (b) The Equity Commitment Letter is in full force and effect and has not been withdrawn or
terminated or otherwise amended or modified in any respect. The Equity Commitment Letter, in the
form so delivered, is a legal, valid and binding obligation of SK and Buyer and the other parties
thereto. There are no other agreements, side letters or arrangements

48

 

relating to the Equity
Commitment Letter that could affect the availability of the Equity Financing. No event has
occurred which, with or without notice, lapse of time or both, would constitute a default or breach
on the part of SK or Buyer under any term or condition of the Equity Commitment Letter, and neither
SK nor Buyer has reason to believe that it will be unable to satisfy on a timely basis any term or
condition of closing to be satisfied by it contained in the Equity Commitment Letter. SK and/or
Buyer have fully paid any and all commitment fees or other fees required by the Equity Commitment
Letter to be paid on or before the date of this Agreement and the Deposit (as defined in the Debt
Letter of Interest).

     Section 4.8 SK Information. As of the date hereof, Buyer and SK have disclosed to
Seller any and all potential issues under any Antitrust Law that may be credibly raised about the
transactions contemplated hereby. As of the date hereof, Buyer and SK have provided to Seller
true, correct and complete information relating to the businesses and sales of SK and its
Subsidiaries and joint ventures upon which Seller can reasonably determine whether any objections
to the transactions contemplated hereby may be credibly asserted under any Antitrust Law.

     Section 4.9 Acquiring Person; HSR Act. None of SK, Buyer or any other Affiliate of
either of the foregoing who would be considered an acquiring person (as such term is used in the
HSR Act) satisfies the size-of-person test under the HSR Act.

     Section 4.10 Disclaimer of Other Representations and Warranties. Except for the
representations and warranties contained in this Article IV or expressly contained in any
Related Agreement, neither SK, Buyer or any other Person shall be deemed to have made any
representation or warranty, express or implied, including as to the accuracy or completeness of any
information regarding SK, Buyer, the Financing or any other matter.

ARTICLE V

PRE-CLOSING COVENANTS

     The Parties agree as follows with respect to the period between the execution of this
Agreement and the Closing (except as otherwise expressly stated to apply to a different period):

     Section 5.1 Reasonable Best Efforts; Cooperation. Upon the terms and subject to the
conditions set forth in this Agreement, each of the Parties shall use its reasonable best efforts
to take, or cause to be taken, all actions, and to do, or cause to be done, and to assist and
cooperate with the other Parties in doing, all things necessary, proper or advisable to consummate
and make effective, in the most expeditious manner practicable, the transactions contemplated
hereby. Without limiting the generality of the foregoing, (i) Seller shall use its reasonable best
efforts to cause the conditions set forth in Section 7.1 to be satisfied or fulfilled, and
(ii) SK and Buyer shall each use its reasonable best efforts to cause the conditions set forth in
Section 7.2 to be satisfied or fulfilled.

     Section 5.2 Regulatory Approvals. Without limiting the generality of Section
5.1:

          (a) Subject to the terms and conditions of this Agreement, each Party shall use its reasonable
best efforts to: (i) file any filing or notification required pursuant to any Antitrust Law with
respect to the transactions contemplated hereby within ten (10) Business Days after the

49

 

date
hereof; (ii) supply as promptly as practicable any additional information and documentary material
that may be requested or required pursuant to any Antitrust Law; and (iii) cause the
expiration or termination of the applicable waiting periods under any Antitrust Law as soon as
practicable.

          (b) In connection with the efforts referenced in Section 5.1 and this Section
5.2 to obtain all requisite approvals and authorizations for the transactions contemplated by
this Agreement under any Antitrust Law, or any state law, each of the Parties shall use reasonable
best efforts to: (i) cooperate with each other in connection with any filing or submission and in
connection with any investigation or other inquiry, including any proceeding initiated by a private
party; (ii) keep the other Parties informed in all material respects of any material communication
received by such Party from, or given by such Party to, any Governmental Authority and of any
material communication received or given in connection with any proceeding by a private party, in
each case, regarding any of the transactions contemplated hereby; and (iii) permit the other Party
to review any material communication given to it by, and consult with each other in advance of any
meeting or conference with any Governmental Authority, including in connection with any proceeding
by a private party. The foregoing obligations in this Section 5.2(b) shall be subject to
the Confidentiality Agreement and any attorney-client, work product or other privilege.

          (c) Without limiting the generality of Section 5.2(b), if any objections are asserted
with respect to the transactions contemplated hereby under any Antitrust Law or if any suit is
instituted by any Governmental Authority or any private party challenging any of the transactions
contemplated hereby as violative of any Antitrust Law or if a filing pursuant to Section
5.2(a) is reasonably likely to be rejected or conditioned by a Governmental Authority, each of
the Parties shall use reasonable best efforts to resolve such objections or challenges as such
Governmental Authority or private party may have to such transactions, including to vacate, lift,
reverse or overturn any order, whether temporary, preliminary or permanent, so as to permit
consummation of the transactions contemplated by this Agreement as soon as practicable and in any
event on or prior to the Outside Date.

          (d) Without limiting the generality of Section 5.2(c), if necessary to obtain any
regulatory actions or non-actions, orders, waivers, consents, clearances, extensions and approvals
necessary to consummate the transactions contemplated by this Agreement, or if any suit or other
action is threatened or instituted by any Person challenging the transactions contemplated by this
Agreement or any Related Agreement as violative of any applicable law, upon the request of Seller,
SK and Buyer shall, and shall cause their respective Subsidiaries (including, if applicable, from
and after the Closing, Newco) to, hold separate or dispose of any portion of their assets or
businesses or otherwise conduct their businesses or any portion of their businesses in a specified
manner as soon as practicable and in any event on or prior to the Outside Date or take any other
actions unless such actions, in the aggregate, would result in a Material Adverse Effect on SK
(after giving effect to the consummation of the transactions contemplated hereby).

     Section 5.3 Notices and Consents. Prior to the Closing and as necessary following the
Closing:

50

 

          (a) Seller will, or will cause the Other Sellers to, give any notices to third parties, and
each of the Parties will use its reasonable best efforts to obtain any third party consents or
sublicenses and transfer all Permits (or apply for new Permits in the name of Newco) with respect
to the Permits that are not transferable) as are necessary and appropriate to consummate the
transactions contemplated hereby, including in connection with the matters referred to in
Section 5.3(a) of the Disclosure Schedule; provided, however, that: (i)
Seller shall, in consultation with Buyer, control all correspondence and negotiations with third
parties regarding any such matters; provided, further, that Seller shall
periodically update Buyer, at Buyer’s request, on the status of such negotiation and, upon request,
provide Buyer copies of written requests delivered to such third parties; (ii) Buyer shall bear any
reasonable effects as a result of amendments or modifications to any Transferred Contract
(including granting reasonable security interests in related property or rights of entry or
easements to related Facilities), including any Maintenance Costs, as is necessary to obtain such
consent or sublicense; (iii) Seller and Buyer shall each pay one-half of the reasonable costs
incurred to obtain such consent or sublicense; and (iv) solely as to any Environmental Permit set
forth on Section 5.3(a) of the Disclosure Schedule which cannot be transferred or reissued
prior to Closing despite the Parties’ reasonable best efforts and mutual cooperation, in order to
satisfy the condition set forth in Section 7.1(c) and absent an objection by the relevant
Governmental Authority to the following arrangement, the Parties agree to enter into an arrangement
by which Newco may operate on an interim basis pursuant to Sellers’ Environmental Permit pending
transfer or re-issuance, and to apprise the relevant Governmental Authority of such arrangement.
Each Party, at the request of any other Party, shall, and shall cause any Subsidiary thereof to,
use reasonable best efforts to obtain, or to cause to be obtained, any consent, substitution, or
amendment required for any third party to novate any Transferred Contract or to obtain in writing
the unconditional release of such third party to such arrangements, so that, in any case, as
between Buyer, Newco and such third party, Newco will be solely responsible for performance under
such Contracts.

          (b) Without limiting Section 5.2, each of the Parties will give any notices to, make
any filings with, and use its best efforts to obtain any authorizations, consents, and approvals of
Governmental Authorities in connection with the matters referred to in Section 5.3(b) of the
Disclosure Schedule or as are otherwise necessary and appropriate to consummate the
transactions contemplated hereby.

     Section 5.4 Cooperation Regarding Holdings and Newco Formation. Without limiting the
generality of Section 5.1, Section 5.2 or Section 5.3:

          (a) Prior to the Closing, the Parties shall cooperate with each other Party regarding the
formation of Holdings, shall incorporate Holdings and shall cause Holdings to have the certificate
of incorporation of Holdings as of and immediately following the Closing be substantially in the
form of Exhibit L hereto and the bylaws of Holdings as of and immediately following the
Closing be substantially in the form of Exhibit M hereto. Each of the Parties will take
actions so that, as of the Closing, (i) Holdings has full power and authority (including full
corporate or other entity power and authority) to execute and deliver all agreements contemplated
hereby to which it is, or is to be, a party and to perform its respective obligations hereunder and
thereunder, (ii) the execution, delivery and performance of all agreements
contemplated hereby to which Holdings is to be a party have been duly authorized by Holdings,

51

 

and (iii) all agreements contemplated hereby to which Holdings is, or is to be, a party have been
duly executed and delivered by Holdings and will constitute the valid and legally binding
obligation of Holdings, enforceable against Holdings in accordance with its terms and conditions,
subject to applicable bankruptcy, insolvency, moratorium or other similar laws relating to
creditors’ rights and general principles of equity, and promptly following the Closing, the Parties
shall take all actions reasonably necessary to ratify all actions contemplated hereby to be taken
by Holdings in connection with the consummation of the transactions contemplated hereby at or prior
to such date of ratification, and (iv) to elect the Board of Directors of Holdings effective as of
Closing as set forth in the Securityholders Agreement. From the date hereof until the Closing,
except as expressly contemplated hereby, the Parties shall not permit or take any action to permit,
or enter into or permit Holdings to enter into any agreement to issue any capital stock of Holdings
or any security convertible or exchangeable into any such capital stock other than as contemplated
by this Agreement or any Related Agreement.

          (b) Prior to the Closing, each of the Parties shall cooperate with each other Party and shall
each use its reasonable best efforts to assist each other Party in the contribution by Solutia and
the Other Sellers to Newco or any Newco Subsidiary of the Contributed Assets and the assumption of
Newco of the Assumed Liabilities and the contribution by Seller of the Newco Units to Holdings so
that from and after the Closing, the Business will continue to operate without interruption,
including to seek to obtain all material permits and registrations which are not Contributed
Assets, to seek to form or obtain qualifications to conduct business of Holdings, Newco, or any
Newco Subsidiary, to seek to appoint new managers of any Newco Subsidiary to be appointed upon
proposal by Buyer with effect as from the Closing, to seek to register Holdings, Newco or any Newco
Subsidiary as a foreign branch office, including the appointment of branch managers to be appointed
upon proposal by Buyer with effect as from the Closing, and to make copies of, and obtain consent
to transfer, or obtain new licenses for, the software listed on Section 1.1(a)(i) of the
Disclosure Schedule as inseparable assets (it being understood that the process and costs of
such copies, consents or new licenses shall be treated in the same manner as contemplated by
Section 5.3(a)). Section 5.4(b) of the Disclosure Schedule sets forth a list of
the foreign branch office registrations that Seller intends to cause Newco or a Newco Subsidiary to
file prior to the Closing.

          (c) Prior to the Closing, each of the Parties shall cooperate with each other Party and shall
each use its reasonable best efforts to: (i) transfer the benefit of the previously filed
pre-registrations of chemical substances manufactured, imported or exported by the Business
pursuant to EU chemical regulations (including, the EU Registration, Evaluation, Authorization and
Restriction of Chemical Substances Act) to Newco or Holdings (as the case may be) or file new
pre-registrations to the extent necessary or appropriate; (ii) disengage the Belgian Limited
Liability Company Solutia Europe sprl/bvba as “Only Representative” (as such term is used or
defined in REACH); and (iii) cause Holdings or Newco to appoint an EU-based “Only Representative”
for complying with EU chemicals rules from and after the Closing and whereby Solutia Europe
sprl/bvba is released from any and all Liability in relation to its acting as such an Only
Representative.

          (d) Prior to the Closing, Solutia shall, or shall cause the Other Sellers, to take the actions
contemplated by Section 5.4(d) of the Disclosure Schedule to effect the transfer of

52

 

Contributed Assets (but in no event including the China Business Assets) located outside of
the United States of America.

          (e) Buyer and Solutia shall each pay one-half of the costs and expenses (excluding legal fees,
except to the extent covered by Section 10.1) incurred by Seller, Holdings, Newco or Buyer
in connection with the actions contemplated by this Section 5.4 promptly following request
therefor.

     Section 5.5 Preservation of Business. Except as otherwise contemplated hereby or as
required by law, Seller will, and will cause the Other Sellers to, use commercially reasonable
efforts to keep the Business as conducted as of the date hereof substantially intact in all
material respects, including maintaining its present operations, physical facilities, working
conditions and relationships with suppliers, customers and employees.

     Section 5.6 Notice of Developments. Each of Seller and Buyer will give prompt written
notice to the other Party of: (i) the existence of any fact or circumstance, or the occurrence of
any event, of which it has Knowledge which would reasonably be likely to cause a condition to a
Party’s obligations to consummate the transactions contemplated hereby set forth in Article
VII not to be satisfied as of a reasonably foreseeable Closing Date; or (ii) the receipt of any
notice or other communication from any Governmental Authority or any securities market or
securities regulator in connection with the transactions contemplated by this Agreement;
provided, however, that the delivery of any such notice pursuant to this
Section 5.6 shall not be deemed to amend or supplement this Agreement and the failure to
deliver any such notice shall not constitute a waiver of any right or condition to the consummation
of the transactions contemplated hereby by any Party.

     Section 5.7 Notice of Supplemental Disclosure. Without limiting the obligations of
Seller contemplated by Section 5.6, from and after the date hereof but prior to the fifth
(5th) Business Day prior to the Closing Date, Seller may inform Buyer pursuant to this
Section 5.7 that any representation or warranty of Seller was, may have been or may have
been deemed to have been inaccurate when made and provide a proposed supplement to the Disclosure
Schedule delivered as of the date hereof to correct such actual or potential inaccuracy as if set
forth on the Disclosure Statement as of the date hereof (a “Disclosure Supplement”). If
the inaccuracies contemplated by such Disclosure Supplement are sufficiently material to prevent,
after a reasonable period in which to cure such inaccuracy, the satisfaction of the condition set
forth in Section 7.1(a), Buyer may terminate this Agreement prior to the Closing and in no
event later than ten (10) Business Days after receipt by Buyer of such Disclosure Supplement. If
Buyer shall not have exercised such right of termination by such date, the Disclosure Schedule
shall be deemed to have been amended (effective as of the date of this Agreement) to add such
Disclosure Supplement. Prior to the Closing, Seller will deliver to Buyer financial statements for
the most recent fiscal quarter end prior to the Closing (if the Closing shall be within forty-five
(45) calendar days thereafter).

     Section 5.8 Access; No Contact; Confidentiality.

          (a) Upon the reasonable request of Buyer, Seller will, and will cause the Other Sellers to,
permit Buyer and its Representatives to have reasonable access during normal

53

 

business hours, and in
a manner so as not to interfere unreasonably with the normal business operations of Sellers, to all
premises, properties (including the Facilities for the purposes of conducting Phase I environmental
assessments or environmental compliance reviews (but not for the purposes of conducting intrusive
investigations of the sort generally referred to as “Phase II” assessments or investigations)),
personnel, Records and Contracts of or related to the Business; provided, however,
that, for the avoidance of doubt, the foregoing shall not require any Person to waive, or take any
action with the affect of waiving, its attorney-client privilege with respect thereto.

          (b) Except in response to a request contemplated by Section 5.8(a), during the period
from the date hereof and ending on the Closing Date, Buyer shall not, and shall cause its
Representatives not to, contact any employees, customers, suppliers or licensors of the Business in
connection with or pertaining to any subject matter of this Agreement except with the prior written
notice to and consent of Seller, which shall not be unreasonably withheld, conditioned or delayed.

          (c) All information obtained pursuant to Section 5.2 or this Section 5.8 shall
be Evaluation Material (as such term is defined in the Confidentiality Agreement) subject to the
terms and conditions of the Confidentiality Agreement.

     Section 5.9 Press Releases and Public Announcements. The Parties have agreed prior to
execution of this Agreement on the initial forms of press release. Hereafter, no Party shall issue
any press release or make any public announcement relating to the existence or subject matter of
this Agreement without the prior written approval of the other Party; provided,
however, that any Party may make any public disclosure it believes in good faith is
required by applicable law or any listing or trading agreement concerning its publicly-traded
securities (in which case the disclosing Party will use its reasonable best efforts to advise the
other Party prior to making the disclosure to the extent practicable and permissible under
applicable law); and provided further that each of the Parties may make internal
announcements to their respective employees that are not inconsistent in any material respects with
the Parties’ prior public disclosures regarding the transactions contemplated by this Agreement.

     Section 5.10 Bulk Transfer Laws. SK, Buyer and Newco acknowledge that none of
Sellers, Holdings, Newco or any Newco Subsidiary will comply with the provisions of any bulk
transfer laws or similar laws of any jurisdiction in connection with the transactions contemplated
by this Agreement, including the United Nations Convention on the Sale of Goods, and SK, Buyer and
Newco each hereby waive all claims related to the non-compliance therewith.

     Section 5.11 Buyer Financing.

          (a) SK and Buyer shall each use its reasonable best efforts to (i) arrange the Financing, (ii)
enter into definitive agreements with respect thereto, in accordance with the terms set forth in
the Financing Commitments, which agreements shall be in effect no later than the Closing, and (iii)
consummate the Financing at the Closing. In the event that any portion of the Financing becomes
unavailable, (x) Buyer shall notify Seller thereof promptly and in any event within one (1)
Business Day, and (y) SK and Buyer shall use their reasonable best efforts to arrange to obtain any
such portion from alternative sources, on terms that are no more adverse to

54

 

Seller or Newco, as
promptly as practicable following the occurrence of such event, including entering into definitive
agreements with respect thereto (such definitive agreements entered into pursuant to the first or
second sentence of this Section 5.11(a) being referred to as the “Financing
Agreements”). SK and Buyer shall, and shall cause their respective Representatives to, comply
with the terms, and satisfy on a timely basis the conditions, of the Equity Financing Letter, the
Debt Letter of Interest, any alternative financing commitments, and any related fee and engagement
letters. SK and Buyer shall not, and shall not permit any of their respective Affiliates to,
without the prior written consent of Seller, take or fail to take any action or enter into any
transaction, that could reasonably be expected to materially impair, delay or prevent consummation
of the Financings. Neither SK nor Buyer shall amend or alter, or agree to amend or alter, the
Equity Financing Commitment or any alternative equity financing commitments, without the prior
written consent of Seller. Any breach of the Equity Financing Commitment or any alternative
financing commitment by SK or Buyer shall be deemed a breach by Buyer of this Section 5.11.

          (b) SK and Buyer shall keep Seller informed with respect to all material activity concerning
the status of the Financing contemplated by the Financing Commitments or any alternative financing
and shall give Seller prompt notice of any material adverse change with respect thereto. Without
limiting the generality of the foregoing, SK and Buyer shall give Seller notice promptly (and in
any event no later than two (2) Business Days) following any of the following: (i) any breach by
any party of any of the Financing Commitments, any alternative financing commitment or the
Financing Agreements of which SK or Buyer becomes aware or any actual or purported expiration or
termination thereof; (ii) any notice to SK or Buyer from a financing source that is a party to a
Financing Commitment that such source no longer intends to provide financing to Buyer on the terms
set forth therein; or (iii) if for any reason SK or Buyer no longer believes in good faith that it
will be able to obtain all or any portion of the Financing contemplated by the Financing
Commitments on the terms described therein. Buyer shall furnish complete, correct and executed
copies of the Financing Agreements promptly upon their execution.

          (c) Seller shall, and shall cause its Subsidiaries and Newco to reasonably cooperate in
connection with the arrangement of the Financing as may be reasonably requested by Buyer
(provided that such requested cooperation does not unreasonably interfere with the ongoing
operations of Seller or its Subsidiaries and Buyer shall pay any out-of-pocket expenses in
connection with such cooperation), including, at the reasonable request of Buyer, entering into
such agreements to be effective as of the Closing, and to use reasonable best efforts to deliver
officer’s certificates as of the Closing, in each case as are customary in financings of such
type and as are, in the good faith determination of the Persons executing such officer’s
certificates, accurate. Furthermore, prior to the Closing, Seller shall use its commercially
reasonable efforts to obtain a written opinion from Seller’s counsel, in Seller’s counsel’s
customary form, as of the closing of the Debt Financing, with respect to the matters set forth on
Section 5.11(c) of the Disclosure Schedule. Notwithstanding anything to the contrary set
forth in this Agreement, neither Seller nor any of its Representatives (including Newco) shall be
required to pay any commitment or other similar fee or incur any other Liability in connection with
the Debt Financing or the Equity Financing.

55

 

          (d) SK and Buyer agree that none of Seller, any of its Subsidiaries or any of its or their
Representatives shall have any obligation under, or shall be bound by, the Debt Letter of Interest
(notwithstanding anything to the contrary set forth in the Debt Letter of Interest purporting to
obligate or bind any such Person) and shall not purport to obligate or bind any such Person without
such Person’s prior written consent.

     Section 5.12 SK Guarantee. SK hereby irrevocably and unconditionally guarantees to
Sellers the due and punctual observance and performance of each and every obligation of Buyer
contemplated by this Agreement or any the Related Agreement to be performed prior to the Closing,
including the payment of the amounts to be contributed pursuant to Section 2.5(b), all upon
the terms and subject to the conditions set forth herein and therein, provided that Seller’s sole
remedy with regard to SK’s guarantee is collection of the amount of the Buyer Termination Fee.

     Section 5.13 Seller Guarantee. Seller hereby irrevocably and unconditionally
guarantees to Buyer the due and punctual observance and performance of each and every obligation of
Newco contemplated by this Agreement or any Related Agreement to be performed prior to the Closing,
provided that Buyer’s sole remedy with regard to Seller’s guarantee is collection of the amount of
the Seller Termination Fee.

     Section 5.14 Newco Capitalization and Organizational Documents. From the date hereof
until the Closing, except as expressly contemplated hereby, Newco shall not, or enter into any
agreement to: (a) issue any membership interests or any security convertible or exchangeable into
any such membership interests other than as contemplated by this Agreement or any Related
Agreement; (b) cause any stock split, reverse stock split, stock dividend, reorganization,
recapitalization, reclassification, combination, exchange of shares or other like change with
respect to any of its outstanding membership interests; or (c) amend its limited liability company
agreement.

     Section 5.15 Investment Acknowledgements. Each of Seller and Buyer hereby
acknowledge, for the benefit of each other and Holdings, that:

          (a) Investment Intent. It is acquiring (x) in the case of Holdings, the Newco
Formation Contribution Units or (y) in the case of Seller and Buyer, the Holdings Contribution
Shares (as applicable, the “Subject Securities”), for investment and is not acquiring such
Subject Securities with a view to or for sale in connection with any distribution thereof within
the meaning of the Securities Act. It will not distribute its applicable Subject Securities in
violation of the Securities Act or the applicable securities laws of any state.

          (b) Subject Securities Not Registered. It understands that the applicable Subject
Securities that it will acquire hereunder have not been registered under the Securities Act or the
securities laws of any state and must be held indefinitely unless subsequently registered under the
Securities Act and any applicable state securities laws or unless an exemption from such
registration is or becomes available.

          (c) Independent Investment Decision. In formulating a decision to enter into this
Agreement, it has relied solely upon: (a) the provisions of this Agreement; (b) an

56

 

independent
investigation of the Business; and (c) consultations with its legal and financial advisors and
other advisors with respect to this Agreement and the nature of its investment; and that in
entering into this Agreement no reliance was placed by it upon any representations or warranties
other than those contained in this Agreement.

          (d) Ability to Hold Investment. It is financially able to hold the Subject Securities
it will acquire hereunder for long-term investment, believes that the nature and amount of the
Subject Securities it will acquire are consistent with its overall investment program and financial
position and recognizes that there are substantial risks involved in the acquisition of the Subject
Securities.

          (e) Knowledge and Experience in Financial Matters. It confirms that: (a) it is
familiar with the Business; (b) it has had the opportunity to ask questions of the officers,
directors and employees of Seller and Newco and to obtain (and that it has received to its
satisfaction) such information about the business and financial condition of the Business as it has
reasonably requested; and (c) it, either alone or with a representative (as defined in Rule 501(h)
promulgated under the Securities Act), has such knowledge and experience in financial and business
matters that it is capable of evaluating the merits and risks of the prospective investment in the
Subject Securities.

          (f) Accredited Investor. It is an “accredited investor” within the meaning of Rule
501(a) of Regulation D under the Securities Act.

     Section 5.16 Solicitation of Alternative Transactions.

          (a) Except as otherwise contemplated by this Section 5.16, from the date hereof until
the Closing, Seller agrees that it shall not, nor shall it direct or cause any of the Other
Sellers, any of its or their respective officers or directors or advisors to, directly or
indirectly:

               (i) initiate, solicit or knowingly and intentionally encourage or knowingly and intentionally
facilitate any inquiries with respect to, or the making of, an Acquisition Proposal;

               (ii) participate or engage in any discussions of a Solicited Acquisition Proposal or
negotiations with, or furnish or disclose any material non-public information relating to the
Business to, any Person in connection with a Solicited Acquisition Proposal;

               (iii) approve, endorse or recommend any Solicited Acquisition Proposal; or

               (iv) enter into any letter of intent, agreement in principle, merger agreement, acquisition
agreement, option agreement or other similar agreement relating to a Solicited Acquisition
Proposal.

          (b) Seller shall, and shall cause each of the Other Sellers and its and their respective
officers, directors and advisors to, immediately cease any existing solicitations, discussions or
negotiations with any Person (other than the Parties hereto) regarding any

57

 

Acquisition Proposal
that exists as of the date hereof except as may become permitted pursuant to Section
5.16(d).

          (c) In the event that Seller or any of its Subsidiaries or its or their respective
Representatives receives an Acquisition Proposal or request for non-public information relating to
the Business with respect to a Covered Transaction from the date hereof until the Closing
(including any renewal or revision of any Acquisition Proposal or request made prior to the date
hereof), Seller shall inform Buyer of such Acquisition Proposal or request within two (2) Business
Days following the date on which a senior executive of Seller becomes aware of the receipt thereof.

          (d) Notwithstanding anything to the contrary set forth in this Agreement (including
Section 5.16(a) or Section 5.16(c)), if Seller or any of its Subsidiaries or any of
its or their respective Representatives receives an Unsolicited Acquisition Proposal or request for
non-public information relating to the Business with respect to a Covered Transaction from the date
hereof until the Closing (including any renewal or revision of any Acquisition Proposal or request
made prior to the date hereof), any Seller or any of its respective Representatives may take any
action that might otherwise be restricted by clause (i) through (iv) of Section 5.16(a)
with respect thereto, including responding to such Acquisition Proposals or requests, furnishing
any non-public information relating to the Business to, engaging in negotiations or discussions
with, the Person making such Acquisition Proposal or request and/or terminating this Agreement as
and to the extent contemplated by Section 9.1(c)(iv).

ARTICLE VI

OTHER COVENANTS

     The Parties agree as follows with respect to the period from and after the Closing:

     Section 6.1 Cooperation.
The Parties shall cooperate with each other, and shall use their commercially reasonable
efforts to cause their respective Representatives to cooperate with each other, to provide an
orderly transition of the Business from Sellers to Newco and Holdings and to minimize the
disruption to the Business and Seller’s and its Subsidiaries’ other businesses resulting from the
transactions contemplated hereby as requested by any Party and at the requesting Party’s sole cost
and expense (and without liability of any kind to the other Party cooperating with such request in
providing such requested actions other than arising from the cooperating Party’s gross negligence,
willful misconduct or bad faith in connection therewith).

     Section 6.2 Further Assurances; Inadvertent Transfers of Assets.

          (a) In case at any time after the Closing any further action is necessary or desirable to
carry out the purposes of this Agreement or any Related Agreement, at any Party’s request and sole
cost and expense, each Party shall take such further action (including the execution and delivery
to any other Party of such other reasonable instruments of sale, transfer, conveyance, assignment,
assumption and confirmation, providing materials and information) as another Party may reasonably
request as shall be reasonably deemed necessary to transfer, convey and assign to Newco or a Newco
Subsidiary all of the Contributed Assets and the China

58

 

Business Assets and to confirm Newco’s or a
Newco Subsidiary’s assumption of the Assumed Liabilities and the China Assumed Liabilities.

          (b) Without limiting the provisions of Section 6.2(a), to the extent that either Buyer
or Seller discovers any additional assets or properties, including any Intellectual Property, which
should have been transferred or assigned to Newco as the Contributed Assets or the China Business
Assets but were not so transferred or assigned, Buyer, Seller and Newco shall cooperate and execute
and deliver any instruments of transfer or assignment reasonably necessary to transfer and assign
such asset or property to Newco or a Newco Subsidiary. Without limiting the provisions of
Section 6.2(a), to the extent that either Buyer, Seller or Newco discovers any assets or
properties, including any Intellectual Property, which is an Excluded Asset which was inadvertently
or otherwise mistakenly transferred or assigned to Newco or any Newco Subsidiary, Buyer, Seller and
Newco shall cooperate and execute and deliver any instruments of transfer or assignment reasonably
necessary to transfer and assign such asset or property back to the applicable Seller.

     Section 6.3 Litigation Support. In the event and for so long as any Party actively is
contesting or defending against any Litigation commenced by any third party with respect to (i) any
transaction contemplated by this Agreement or any Related Agreement or (ii) any fact, situation,
circumstance, status, condition, activity, practice, plan, occurrence, event, incident, action,
failure to act or transaction involving the Business, the other Party will cooperate with the
contesting or defending Party and its and its Subsidiaries’ counsel in the contest or defense, make
available its and its Subsidiaries’ personnel and provide such testimony and access to its and its
Subsidiaries’ books and records as shall be reasonably necessary in connection with the contest or
defense, all at the sole cost and expense of the contesting or defending Party (unless the
contesting or defending Party is entitled to
indemnification therefor pursuant to Article VIII); provided, however,
that, for the avoidance of doubt, the foregoing shall not require any Party to take any such action
if it (x) may result in a waiver or breach of any attorney/client privilege, (y) could reasonably
be expected to result in violation of applicable law, or (z) providing such access or information
would be reasonably expected to be unreasonably disruptive to its operations.

     Section 6.4 Run-Off.

          (a) Referrals. From and after the Closing Date and until one (1) year following the
date thereof, Seller shall, and shall cause the Other Sellers to, use commercially reasonable
efforts to refer all customer or supplier inquiries received by Sellers relating to the Business to
Holdings.

          (b) Use of Name. From and after the Closing Date, Buyer will, and will cause Holdings
to: (i) use its commercially reasonable efforts to remove any and all Solutia Marks from all
Contributed Assets, and (ii) cease all use of such Solutia Marks in each case as promptly as
commercially practicable after the Closing Date and in no event later than one hundred eighty (180)
calendar days following the date thereof. Notwithstanding the foregoing, from and after the
Closing Date, Buyer shall not, and Buyer shall ensure that none of Holdings, Newco or any Newco
Subsidiary shall use existing marketing and sales material bearing any Solutia Marks unless
appropriately stickered by Holdings, Newco or a Newco Subsidiary to reflect the

59

 

consummation of the
transactions contemplated hereby in a form reasonably satisfactory to Seller.

          (c) Websites. As soon as commercially practicable after the Closing Date, but in no
event more than one hundred eighty (180) calendar days thereafter, Buyer shall, or shall cause
Holdings, Newco or a Newco Subsidiary to, remove any content, images and links on any of their
Internet pages or websites to the extent related to any Seller or any of its respective businesses.

          (d) Affiliation. Buyer shall, and shall cause each of its Affiliates (including
Holdings, Newco and any Newco Subsidiary) to, cease to hold itself out as having any affiliation
with any Seller or any of its respective Affiliates.

          (e) Phone Numbers. From and after the Closing Date, Seller shall use its commercially
reasonable efforts to transfer Seller’s phone numbers at which customers or suppliers contact
employees primarily related to the Business to the account of Newco, but in no event including
Seller’s phone numbers currently in use at Solutia’s headquarters in St. Louis, Missouri.

     Section 6.5 Access; Enforcement; Record Retention. From and after the Closing, and
without limiting Section 5.11(c), upon request by any Party, each other Party will permit
the requesting Party and its Representatives to have reasonable access during normal business
hours, and in a manner so as not to interfere unreasonably with the normal business operations of
the other Party (and in the case of Buyer,
Holdings), to all premises, properties, personnel, Records and Contracts of or related to the
Business, the Contributed Assets, the China Business Assets, the Assumed Liabilities, the China
Assumed Liabilities, Holdings, Newco or any Newco Subsidiary; provided, however,
that, for the avoidance of doubt, the foregoing shall not require any Person to take any such
action if it (x) may result in a waiver or breach of any attorney/client privilege, (y) could
reasonably be expected to result in violation of applicable law, or (z) providing such access or
information would be reasonably expected to be unreasonably disruptive to its operations. Without
limiting the generality of the immediately preceding sentence, such reasonable access may be for
the purposes of (i) monitoring or enforcing rights or obligations of any Party under this Agreement
or any of the Related Agreements, or (ii) complying with the requirements of any Governmental
Authority. Each Party agrees to maintain, and cause its Subsidiaries to maintain, the files or
records which are contemplated by the first sentence of this Section 6.5 in a manner
consistent in all material respects with its document retention and destruction policies, as in
effect from time to time, for six (6) years following the Closing.

     Section 6.6 Non-Competition. For a period of three (3) years following the Closing,
Seller shall not, and shall ensure that none of its Subsidiaries will, directly or indirectly
(including as a stockholder, consultant, member or partner), engage in the Business as conducted
during the one (1) year prior to the Closing, including any development, design, manufacture, sale
or promotion for sale of any Product developed, designed, manufactured, sold or promoted for sale
by the Business during the one (1) year prior to the Closing in those countries in which the
Business has active operations as of the Closing; provided, however, that for
avoidance of doubt, the foregoing shall not restrict Seller or any of its Subsidiaries from in any
way

60

 

conducting any business or operation of any such Person other than the Business as of the date
hereof (any such business or operation, an “Existing Grandfathered Business”), including
Solutia’s plastic products business or any business that may consume, use, contain, depend upon,
any product developed, designed, manufactured, sold or promoted for sale by the Business; and
provided further that, for such purposes, (x) no owner of less than five percent
(5%) of the outstanding equity or voting interests of any Person and (y) no director (or other
equivalent position on an equivalent governing body) of any Person (other than those Persons listed
in the definition of Knowledge with respect to Seller who continues to be employed by Seller or any
of its Affiliates), and (z) without limiting clause (x) hereof, no pension plan, savings plan or
other similar employee benefit plan owning any equity or other interests in a Person for passive
investment purposes only, in any such case shall be deemed to be engaged in the business of such
Person solely as a result of ownership of such equity or voting interests or such directorship.
For the avoidance of doubt, nothing in this Section 6.6 shall (x) require Seller or any of
its Subsidiaries from taking or refraining to take any action with respect to Holdings or any of
its Subsidiaries incident or relating to Solutia’s equity interest in Holdings, (y) restrict Seller
or any of its Subsidiaries from taking any action required to be taken by it pursuant to any
Related Agreement, including the Securityholders Agreement or the Transition Services Agreement, or
(z) limit any rights of Seller granted pursuant to Section 8.7 or Section 6.14. If
a court of competent jurisdiction declares in a final judgment that any term or provision of this
Section 6.6 is invalid or unenforceable, the Parties agree that the court making the
determination of invalidity or unenforceability shall have the power to reduce the scope, duration
or area of the term or provision, to delete specific words or phrases or to replace any invalid or
unenforceable term or provision with a term or provision that is valid and
enforceable and that comes closest to expressing the intention of the invalid or unenforceable
term or provision, and this Agreement shall be enforceable as so modified after the expiration of
the time within which the judgment may be appealed.

     Section 6.7 Non-Solicitation of Employees. For a period of two (2) years following
the Closing, Seller shall not, and shall ensure that none of its Subsidiaries will, directly or
indirectly, solicit the employment of or employ any Covered Employee as of the Closing Date who is
offered employment in accordance with Section 6.8; provided, however, that
the foregoing provision shall not prevent Seller or any of its respective Subsidiaries from
(x) soliciting any such Covered Employee by a public advertisement placed by it or by a search firm
retained by it (provided that the search firm was not instructed or encouraged to target or
focus on such Covered Employees) or hiring any Covered Employee responding thereto or (y)
soliciting or hiring any Covered Employee whose employment with the Business has been terminated
for at least three (3) months. If a court of competent jurisdiction declares in a final judgment
that any term or provision of this Section 6.7 is invalid or unenforceable, the Parties
agree that the court making the determination of invalidity or unenforceability shall have the
power to reduce the scope, duration or area of the term or provision, to delete specific words or
phrases or to replace any invalid or unenforceable term or provision with a term or provision that
is valid and enforceable and that comes closest to expressing the intention of the invalid or
unenforceable term or provision, and this Agreement shall be enforceable as so modified after the
expiration of the time within which the judgment may be appealed.

61

 

     Section 6.8 Covered Employees.

          (a) Offer of Employment. Prior to the Closing Date, Newco shall make an offer of
employment, effective as of the Closing Date, to each of the Covered Employees (initially at the
same location and on the same terms and conditions of employment as in effect immediately prior to
the Closing); provided, however, that any offer of employment shall be contingent
upon the Closing actually occurring; and provided, further, that Newco shall, or
shall cause a Newco Subsidiary to, make an offer of employment, effective as of the China Asset
Transfer Closing, to each of the Covered China Employees (determined as of such time) in accordance
with the China Asset Transfer Agreement. Notwithstanding the foregoing, nothing herein shall be
construed as to prevent Newco from terminating the employment of any Covered Employee at any time
on or following the Closing Date for any reason (or no reason) provided that such termination is
permitted under applicable law and approved by Government Authorities, if applicable. Seller shall
not transfer any employee to Newco who is not a Covered Employee and Seller shall be solely
responsible for all severance or other compensation for any employee of the Business who is not a
Covered Employee.

          (b) Compensation and Benefits.

               (i) Commencing on the Closing Date and continuing until December 31, 2009, Newco or a Newco
Subsidiary shall provide or cause to be provided to the
Covered Employees (other than, until the China Asset Transfer Closing, any Covered China
Employees) compensation and employee benefits that are no less favorable in the aggregate than the
compensation, benefits, plans, programs, policies and arrangements (including base salary,
incentive bonus opportunities and incentive equity) and employee benefits provided by any Seller or
Newco to such Covered Employees immediately prior to the Closing. For clarity, no retiree health
benefits shall be required to be provided to Covered Employees.

               (ii) Seller shall pay all Liabilities with respect to the Covered Employees under the Seller’s
incentive bonus plans that relate to performance periods ending prior to the Closing Date, other
than those Liabilities set forth on the Conclusive Net Working Capital Statement. Seller has
represented to Buyer that there it has not established broad-based incentive plan to which the
Covered Employees participate for any period ending after the Closing Date. Newco shall, at the
times prescribed by, and in accordance with the terms of, the Seller’s employee agreements as in
effect as of the Closing Date, make payments to the Covered Employees with respect to achievement
of any performance goals therein. In addition, Newco shall provide each Covered Employee with the
severance, retention and transaction bonus benefits arising following the Closing that are set
forth on Section 6.8(b)(ii)(A) of the Disclosure Schedule applicable to each Covered
Employee (other than Covered Employees on furlough or temporary leave as of March 1, 2009, who are
set forth on Section 6.8(b)(ii)(B) of the Disclosure Schedule, who are not rehired,
returned to active status or otherwise re-employed by Newco in 2009) in accordance with the
applicable underlying plans or agreements as in effect immediately prior to the Closing Date.
Notwithstanding the preceding sentence, so long as Buyer, Newco or a Newco Subsidiary rehires,
returns to active service or otherwise re-employs or continues to employ the Covered Employees
specifically listed on Section 6.8(b)(ii)(C) of the Disclosure Schedule for a period of at
least sixty (60) calendar days following the Closing, Seller shall be responsible for all costs,
including severance benefits that may become payable to such specified

62

 

individuals in the event of
their subsequent termination of employment on or prior to December 31, 2009.

               (iii) Newco or a Newco Subsidiary shall honor and assume, and cause Newco’s Affiliates to
honor and assume, in accordance with their current terms, each employment, severance, termination
or other similar agreement or arrangement between Seller or any of its Affiliates (including
Newco), on the one hand, and any Covered Employee, on the other hand.

          (c) Service Credit. Each Covered Employee shall be given credit for all service with
any Seller or Newco or the Business and their respective predecessors (including Monsanto Company)
under any employee benefit plans or arrangements of Buyer and its Affiliates, including any such
plans providing vacation, sick pay, severance and retirement benefits maintained by Buyer, Holdings
or Newco or any of their respective Subsidiaries in which such Covered Employees participate for
purposes of eligibility, vesting and entitlement to benefits, including for severance benefits and
vacation entitlement (but not for accrual of pension benefits). Notwithstanding the foregoing,
nothing in this Section 6.8(c) shall be construed to require crediting of service that
would result in a duplication of benefits.

          (d) Waiver of Pre-Existing Conditions; Crediting of Deductibles. No later than the
Closing Date, Holdings or Newco or any of their respective Subsidiaries shall establish
or cause to be established, at such Person’s own expense, benefit plans that provide life
insurance, health care, dental care, accidental death and dismemberment insurance, disability and
other group welfare benefits for Covered Employees. Holdings or Newco or any of their respective
Subsidiaries shall cause (i) the waiver of all limitations as to pre-existing conditions,
exclusions and waiting periods with respect to participation and coverage requirements applicable
to the Covered Employees under any such welfare benefit plans to the extent that such conditions,
exclusions or waiting periods would not apply under the Employee Benefit Plans, and (ii) for the
plan year in which the Closing Date occurs (or, if later, in the calendar year in which Covered
Employees and their dependents commence participation in the applicable welfare plans), the
crediting of each Covered Employee with any co-payments and deductibles paid prior to participation
in such welfare plans in satisfying any applicable deductible or out-of-pocket requirements
thereunder.

          (e) 401(k) Plan Rollovers. Holdings or Newco or any of their respective Subsidiaries
shall cause Holdings’ or Newco’s 401(k) plan to accept a “direct rollover” to Holdings’ or Newco’s
401(k) plan of each Covered Employee’s account balances (including promissory notes evidencing all
outstanding loans) under the Sellers’ 401(k) plans if such rollover is elected in accordance with
applicable law by such Covered Employee. Buyer further agrees to cause Holdings or Newco to take
all actions as may be necessary to cause each Covered Employee that participates in Holdings’ or
Newco’s 401(k) plan following the Closing Date to receive full and immediate vesting of all
employer contributions made by Holdings or Newco or its Affiliates to the Holdings’ or Newco’s
401(k)
plan following the Closing Date. Seller shall take all actions as may be necessary to cause
each Covered Employee that participates in the Sellers’ 401(k)
plans prior to the Closing Date to
receive full and immediate vesting of all employer contributions made by Sellers or their
Affiliates to the Sellers’ 401(k)

63

 

plans prior to the Closing Date. Nothing herein shall require
any future employer contributions to be made by Holdings or Newco or its Affiliates to any
Holdings’ or Newco’s 401(k) plan.

          (f) Accrued Vacation. Buyer shall cause Holdings or Newco or any of their respective
Subsidiaries to provide each Covered Employee with credit for the same number of vacation and
sickness benefit days such Covered Employee has accrued but not used in the calendar year in which
the Closing Date occurs, provided that, to the extent required by applicable law, such
amount shall be paid by Buyer, Holdings or Newco in cash.

          (g) Welfare Benefit Claims; COBRA. Seller shall be responsible in accordance with its
applicable welfare plans (and the applicable welfare plans of its Affiliates) in effect prior to
the Closing Date for all reimbursement claims (such as medical and dental claims) for expenses
incurred, and for all non-reimbursement claims (such as life insurance claims) incurred, under such
plans prior to the Closing Date by the Covered Employees and their dependents. Holdings or Newco
shall be responsible in accordance with the applicable welfare plans of Holdings or Newco and its
Affiliates for all reimbursement claims (such as medical and dental claims) for expenses incurred,
and for all non-reimbursement claims (such as life insurance claims) incurred, on or after the
Closing Date (or the date of commencement of employment with Newco or a Newco Subsidiary, if later)
by Covered Employees and their dependents. For purposes of this Section 6.8(g), a claim
shall be deemed to have been incurred for all purposes on the date of rendition of the initial
service to which such claim relates (including the first day of any inpatient stay), except with
respect to life, disability or accidental
death and dismemberment and business travel accident insurance benefits, in which case the
claim is expressly incurred upon the death, disability or accident giving rise to such benefits.
Seller and its affiliates shall remain obligated under the Consolidated Omnibus Budget
Reconciliation Act of 1985 (“COBRA”) with respect to events occurring on or prior to the
Closing Date; provided, however, that to the extent that a dependent of an active
Covered Employee is receiving continuation coverage under COBRA as of the Closing Date, Holdings or
Newco or a Newco Subsidiary shall continue to provide COBRA continuation coverage to such dependent
on and following the Closing Date for the period required under applicable law.

          (h) Flexible Spending Accounts. Holdings’ or Newco’s or any of their respective
Subsidiaries’ flexible spending reimbursement account plan (“Newco’s Flex Plan”) shall
accept a spin-off of the flexible spending reimbursement accounts from the Seller’s flexible
spending reimbursement account plan (“Seller’s Cafeteria Plan”) and to honor and continue
through the end of the calendar year in which the Closing Date occurs the elections made by each
Covered Employee under the Seller’s Cafeteria Plan in respect of the flexible spending
reimbursement accounts that are in effect immediately prior to the Closing Date. As soon as
practicable following the Closing Date, Seller shall cause to be transferred from the Seller’s
Cafeteria Plan to Newco’s Flex Plan the excess of the aggregate accumulated contributions to the
flexible spending reimbursement accounts made prior to the Closing Date during the year in which
the Closing Date occurs by Covered Employees over the aggregate reimbursement payouts made prior to
the Closing Date for such year from such accounts prior to the Closing Date to the Covered
Employees. If the aggregate reimbursement payouts from the flexible spending reimbursement
accounts made prior to the Closing Date during the year in which the Closing Date occurs made to
Covered Employees exceed the aggregate accumulated contributions to such accounts prior to the
Closing Date for such year by the Covered

64

 

Employees, Holdings or Newco shall cause such excess to
be transferred to Seller as soon as practicable following the Closing Date. On and after the
Closing Date, Holdings or Newco shall assume and be solely responsible for all claims for
reimbursement by Covered Employees under the flexible spending reimbursement accounts of Seller’s
Cafeteria Plan, whether incurred prior to, on or after the Closing Date, that have not been paid in
full as of the Closing Date.

          (i) Liabilities. Buyer, Holdings and Newco shall be solely responsible for all
employment and employee benefits related Liabilities (including any severance payments) that are
incurred or arise as a result of events that occurred on or after the Closing Date and relate to
any Covered Employee (or any dependent or beneficiary of any Covered Employee) or in respect of any
Employee Benefit Plan and no Seller shall have any responsibility for any such Liability. Except
to the extent such Liability is an Assumed Liability (including any Liability set forth on the
Conclusive Net Working Capital Statement) or as otherwise provided in this Agreement (including
this Section 6.8 and Section 6.12), Seller shall be solely responsible for all
employment and employee benefits-related Liabilities that are incurred or arise as a result of
events that occurred prior to the Closing Date in respect of Covered Employees (or any dependent or
beneficiary thereof) or, to the extent such Liability is not an Assumed Liability, in respect of
any Employee Benefit Plan.

          (j) WARN Act. Provided that on or before the Closing Date Sellers have supplied Buyer
with a list of all employee layoffs, by date and location, implemented by Sellers or their
Affiliates in the ninety- (90-) calendar day period preceding the Closing Date, Buyer
shall indemnify and hold harmless Sellers and their respective Affiliates and Representatives
with respect to any Liability under the WARN Act with respect to Covered Employees or any employee
of any Seller or any of their respective Affiliates arising from the actions of Buyer from and
after the Closing Date. Provided that Buyer supplies Seller with a list of all employee layoffs
following the Closing, by date and location, implemented by Holdings or their Affiliates promptly
following any such layoffs, Seller shall indemnify and hold harmless Holdings and its Affiliates
and Representatives with respect to any Liability under the WARN Act with respect to Covered
Employees or any employee of any Seller or any of their respective Affiliates arising from the
actions of Seller from and after the Closing Date.

          (k) Tax Reporting. Newco shall adopt the “alternate procedure” for preparing and
filing Internal Revenue Service Forms W-2 (Wage and Tax Statements), as described in Revenue
Procedure 2004-53. Under this procedure, Newco as the successor employer shall provide Forms W-2
to Covered Employees reflecting all wages paid and taxes withheld with respect to such Covered
Employees for the calendar year in which the Closing Date occurs. Sellers as the predecessor
employers shall have no employment tax reporting responsibilities for the Covered Employees
following the Closing Date. Newco shall also adopt the “alternate procedure” of Revenue Procedure
2004-53 for purposes of Internal Revenue Service Forms W-4 (Employee’s Withholding Allowance
Certificate) and W-5 (Earned Income Credit Advance Payment Certificate).

65

 

          (l) Covered EU Employees.

               (i) Notwithstanding anything to the contrary in Section 6.8(a), each contract of
employment of each of the Covered EU Employees shall automatically transfer to Newco in accordance
with the EU Transfer Regulations with effect upon the Closing Date.

               (ii) The Parties agree that each Covered EU Employee shall be employed by the Affiliates of
Newco that have been organized or established in accordance with applicable local law in a manner
that will allow such Affiliates to be able to employ such Covered EU Employees in jurisdictions
where the relevant Covered EU Employees are currently employed without causing adverse tax
consequences to such Covered EU Employees as a result of such transfer.

               (iii) In the event that the employment of any Covered EU Employees does not transfer
automatically to Newco or its Affiliates with effect from the Closing in accordance with the
foregoing or any Covered EU Employees otherwise allege that that is the case, Buyer shall, or shall
cause one of Newco or one of Buyer’s other Affiliates to, within five (5) Business Days of
receiving a written request from Seller, offer to employ the applicable Covered EU Employees as of
the Closing on similar terms and conditions as per the above (and with continuity of service
preserved) and shall use all reasonable endeavors to encourage the individuals to accept such
offers.

               (iv) In all circumstances, Buyer shall be responsible for the Covered Employees as of the date
of Closing. Consequently, if a Covered EU Employee refuses to enter the employ of Newco or its
Affiliates and makes claims for employment and continued payment of his salary and other emoluments
at Seller, Buyer will indemnify Seller against all claims
submitted by or with regard to Covered EU Employees including any claims for severance
payments. Such indemnity shall extend to all damage and costs incurred by Seller relating to the
foregoing sentence, within the framework of legal action taken by the Covered EU Employees and
otherwise.

               (v) Notwithstanding anything to the contrary in Section 6.8(b)(i), Newco shall
recognize for any and all purposes full past service of the Covered EU Employees at any Seller or
its respective predecessors (including Monsanto Company) and shall observe and maintain similar
terms and conditions of employment that are no less favorable in the aggregate, including any
benefits and occupational pensions, and including the benefits provided for in any Employee Benefit
Plan, which the Covered EU Employees enjoy while employed by a Seller as of the Closing Date.

               (vi)

                    (A) With respect to Covered EU Employees employed in Belgium, Seller shall procure that these
employees will cease to participate as an active member in any occupational pension plan from
Seller with effect from the date of Closing. The Parties agree that, in any event and irrespective
of Buyer’s option selected as contemplated below, Seller shall bear no liability with regard to
such Covered EU Employees in excess of the accrued benefit obligations as calculated at the date of
Closing in accordance with applicable law for

66

 

each individual concerned (i.e. excluding the impact
of any future salary increase). Buyer will, or will cause Holdings or Newco to, at its option,
either (i) set up a new pension scheme as at the date of Closing that will provide benefits to the
Covered EU Employees employed in Belgium that are at least equivalent to the benefits provided
under the corresponding Seller occupational pension plan immediately before the date of Closing
(the “New Pension Plan”), or (ii) join the
existing multi-employer Seller pension plan.
Buyer will inform Seller of the option selected by Buyer no later than April 7, 2009. If these
employees request that their accrued benefits be transferred from the applicable pension plan of
which the Covered EU Employee was a member while employed with Seller or any of its Affiliates to a
pension plan of Buyer or any of its Affiliates (including Newco or Holdings or any of such Person’s
respective Affiliate) as applicable, such sums will be calculated on an accrued benefit obligation
basis in accordance with the applicable laws at the date of the Closing and Seller shall procure
that such benefits be transferred in accordance with the applicable law, with no further Liability
on the part of Seller or any of its Affiliates. In any event and irrespective of Buyer’s option
selected as contemplated above, and in addition to the above, Buyer will procure that a Newco,
either directly or through its Belgium Subsidiary, will bear any and all Liability related to
occupational pension schemes and will therefore hold any of the Sellers harmless without any
limitation (in time or otherwise) with regard to any liability related to any occupational pension
scheme as from the date of Closing.

                    (B) Buyer shall procure that a Belgian Newco Subsidiary will comply with its obligations under
the occupational pension scheme it will set up as from the date of Closing onwards. These
obligations include all obligations or requirement related to the employment of personnel that an
employer needs to comply with in its relation with employees, former employees, employee
representatives, trade unions, public authorities, pension funds and insurance companies, whether
statutory, regulatory, contractual or otherwise. Buyer shall cause
any costs or indemnity charged by the multi-employer Seller pension plan relating to the above
to be borne by Buyer, Newco or a Newco Subsidiary.

               (vii) With respect to Covered EU Employees employed in Germany, Buyer shall, or will cause
Holdings or Newco or any of such Person’s respective Affiliate to, take over and continue any
pension promise granted by Seller or its respective Affiliate, including pension expectancies
related to past service. Buyer shall indemnify Seller against all damages and costs in relation to
or arising from disputes with the Covered EU Employees that arise from both past and future pension
obligations.

               (viii) Except as otherwise set forth in this Section 6.8, (x) Seller shall perform and
discharge all of its EU Employer’s Obligations in respect of the Covered EU Employees in respect of
all periods up to the Closing Date, and (y) Buyer, Holdings or Newco shall be responsible for
performing and discharging all of its EU Employer’s Obligations in respect of the Covered EU
Employees in respect of all periods from and after the Closing Date.

               (ix) Any claims from Covered EU Employees made against any Seller, Buyer, Holdings or Newco or
any of such Person’s respective Affiliate against more than one of the foregoing from and after the
Closing Date or in

67

 

relation to the transfer shall be for the account and risk of Buyer, Holdings
and Newco or any of such Person’s respective Affiliate. Buyer shall, or will cause Holdings or
Newco to, assume all Liabilities, costs and expenses in relation to or arising from disputes with
the Covered EU Employees that arise from any employment agreement.

               (x) Nothing in this Section 6.8(l) shall limit in any way any obligations of Buyer
pursuant to any other provision of this Section 6.8 that may apply with respect to any
Covered EU Employee.

          (m) Covered Foreign Employees.

               (i) Without limiting the generality of any other provision of this Section 6.8, Buyer
shall, or shall cause Holdings or Newco or any of its respective Subsidiaries to, provide the
Covered Foreign Employees with compensation and employee benefits consistent with the provisions of
this Section 6.8, as applicable to Covered Foreign Employees (or such greater compensation
and employee benefits as may be required by applicable law) and to observe the employment terms and
conditions (including the benefits provided for in any Employee Benefit Plan) of the Covered
Foreign Employees as in effect immediately prior to the Closing Date or as otherwise enhanced by
applicable law.

               (ii) To the extent applicable and as the case may be, Buyer or an Affiliate of Buyer shall, at
its cost and in jurisdictions where the relevant Covered Foreign Employees are employed immediately
prior to the Closing, or the China Asset Transfer Closing with respect to the Covered China
Employees, ensure that it has an entity or affiliate, which are fully established and operational
in accordance with local law, capable of fully employing such Covered Foreign Employees in the
respective jurisdictions.

               (iii) With respect to Covered Foreign employees employed in Korea, Buyer or its respective
Affiliate shall take over and continue any retirement pension plan (i.e.
severance pay) granted by Seller or its respective Affiliate, including pension expectancies
for the period of employment with Seller. Buyer shall indemnify Seller against all damages and
costs in relation to or arising from disputes with the Covered Foreign Employees that arise from
both past and future pension obligations.

          (n) Covered China Employees. For purposes of this Section 6.8, with respect
to the Covered China Employees, the term “Closing” means “China Asset Transfer Closing” and the
terms “Closing Date” means “Completion” (as defined in the China Asset Transfer Agreement).

          (o) No Third Party Beneficiary Rights. The Parties agree that nothing in this
Section 6.8, whether express or implied, is intended to create any third party beneficiary
rights in any Covered Employee or to amend any employee benefit plan in any respect.

     Section 6.9 Recording of Intellectual Property Assignments. All of the Intellectual
Property Assignments shall be recorded and filed by Buyer, Holdings or Newco with the appropriate
Governmental Authorities as promptly as practicable following the Closing, with one-half of the
costs and expenses of such recording and filing to be borne by each of Buyer and Seller.

68

 

     Section 6.10 Transfer Taxes. Buyer and Seller shall each pay one-half of any stamp,
documentary, registration, use, transfer (including real estate transfer), value added (to the
extent not recoverable within one (1) year of the Closing Date) or other non-income Tax (a
“Transfer Tax”) imposed under applicable law in connection with the transactions
contemplated hereby. Seller, Buyer and Newco shall cooperate, and Buyer and Seller shall cause
Holdings to cooperate, to prepare and timely file any Tax Returns required to be filed in
connection with Transfer Taxes described in the immediately preceding sentence.

     Section 6.11 Insurance Matters. Buyer and Newco acknowledge that, upon Closing, all
insurance coverage provided in relation to Sellers, Newco and the Business that is maintained by
Seller or its Affiliates (whether such policies are maintained with third party insurers or with
Seller or its Affiliates) shall cease to provide any coverage to Holdings, Newco, Buyer or the
Business and no further coverage shall be available to Holdings, Newco, Buyer or the Business
following the Closing under any such policies. Notwithstanding the foregoing, from and after the
Closing, if Seller receives any insurance proceeds from a third party insurance policy maintained
by Seller prior to the Closing in respect of any Damages arising out of any pending Litigation (x)
set forth on Section 3.15 of the Disclosure Schedule (other than the Retained Litigation
Matters) or (y) required to have been set forth on Section 3.15 of the Disclosure Schedule
with respect to which notice of a claim for recovery of Damages in respect of such Litigation has
been made to Seller’s insurance carrier prior to the Closing, Seller will remit to Newco the
amount, if any, by which such third party insurance proceeds (net of any deductible or self insured
retention under such third party insurance policy) exceeds the amount of the Damages of any Seller
Indemnified Party incurred or reasonably expected to be incurred in respect of such pending
Litigation. Upon request of
Newco from and after the Closing but subject to the last sentence of this Section
6.11, Seller shall use commercially reasonable efforts to notify Seller’s insurance carrier of
any available claims for recovery of Damages in respect of pending Litigation required to be listed
on Section 3.15 of the Disclosure Schedule which was not so listed and for which notice of a claim
in respect of any Damages has not been made to Seller’s insurance carrier prior to the Closing, and
Seller will remit to Newco any insurance proceeds which Seller is required by the immediately
preceding sentence to remit with respect to such claims made pursuant to this sentence, on the
terms and subject to the conditions set forth in the immediately preceding sentence. Nothing
herein shall require any Seller to maintain any insurance policy or any part thereof at any time,
or to make any claim under any insurance policy not already made by Seller as of the Closing in
respect of Damages, or shall confer on any Buyer Indemnified Party any rights, interests or claims
under any third party insurance policy maintained by Seller.

     Section 6.12 Business Pension Plan Arrangements.

          (a) Except as provided in this Section 6.12, Seller shall retain all assets and
liabilities relating to the retirement plans of Seller.

          (b) Seller shall cause assets and liabilities associated with the Transferred Participants
under the defined benefit pension plan maintained by Seller (the “Seller Pension Plan”) to
be spun off from the Seller Pension Plan (the “Spun Off Plan”). Each person considered a
Transferred Participant for purposes of this Section 6.12 is set forth on Section

69

 

6.12(b)(i) of the Disclosure Schedule. On December 31, 2008, Seller filed Form 5310-A with the
Internal Revenue Service with respect to the proposed spin off from the Seller Pension Plan.

               (i) Effective as of February 28, 2009, Seller caused the assets and liabilities associated
with the Transferred Participants under the Seller Pension Plan to be spun off from the Seller
Pension Plan to the Spun Off Plan. The assets of the Spun Off Plan will be segregated into a
separate trust within thirty (30) calendar days following the Closing Date. The amount of assets
to be segregated will be determined on a termination basis using the applicable interest and
mortality assumptions prescribed by the Pension Benefit Guaranty Corporation (the “4044
Allocation”) as provided under Treas. Reg. Section. 1.414(1) 1(b)(5). As soon as practicable
after the segregation of assets as described in the preceding two sentences, Buyer shall either (i)
cause Holdings to assume the Spun Off Plan, (ii) cause the Spun Off Plan to be merged with and into
a defined benefit plan qualified under Section 401(a) of the IRC for the benefit of Transferred
Participants (the assumed Spun Off Plan or the new plan established by Holdings, as the case may
be, the “Holdings Pension Plan”), including credit for past service with Seller or the
Business and their respective predecessors (including Monsanto Company) for early retirement and
benefit accrual previously recognized under the Seller Pension Plan, or (iii) cause the Holdings
Pension Plan to be merged with and into the Spun Off Plan. If the Spun Off Plan is later merged
with a pension plan of Holdings instead of being assumed by Holdings, another Form 5310-A shall be
filed with respect to such merger at least thirty (30) calendar days prior to the merger. In the
case of such a merger as described herein, Buyer shall cause Holdings to, or Seller shall, as
appropriate, file a Form 5310-A with the Internal Revenue Service
describing the proposed merger of the Holding Pension Plan into the Spun Off Plan or the
proposed merger of the Spun Off Plan into the Holdings Pension Plan.

               (ii) All assets transferred under this Section 6.12 shall be in cash. From and after
the Closing Date until the assumption of the Spun Off Plan by Holdings or the merger of the Spun
Off Plan with and into the Holdings Pension Plan or the merger of the Holdings Pension Plan with
and into the Spun Off Plan, any benefits that would otherwise be payable to Transferred
Participants under the Holding Pension Plan shall be paid or continue to be paid out of the Seller
Pension Plan, and the amounts to be transferred to the Spun Off Plan shall be reduced by the amount
of such payments. After the assumption or merger of the Spun Off Plan, any pension benefits that
accrued under the Seller Pension Plan that would have otherwise been payable to the Transferred
Participants under the Seller Pension Plan shall instead be payable to such Transferred
Participants under the Holdings Pension Plan.

               (iii) The Holdings Pension Plan shall be liable for benefits with respect to service
recognized under the Seller Pension Plan prior to the Closing Date solely with respect to
Transferred Participants, contingent upon the spin off from the Seller Pension Plan and the
assumption by Holdings or the merger of the Spun Off Plan with the Holding Pension Plan as provided
in Section 6.12. Buyer, on its own behalf and on behalf of Holdings and Newco from and
after the Closing, agrees that neither Seller nor the Seller Pension Plan shall have any further
responsibility with respect to the assets and liabilities that are spun off from the Seller Pension
Plan to the Spun Off Plan following the assumption of the Spun Off Plan by Holdings or the merger
of the Spun Off Plan with the Holdings Pension Plan. Seller agrees that neither Buyer, Holdings or
Newco shall have any further responsibility with respect to the assets and liabilities of the
Seller Plan.

70

 

          (c) The Spun Off Plan was spun off from the Seller Pension Plan effective February 28, 2009.
The term “Underfunded Amount” means the amount by which the present value of the
liabilities of the Spun Off Plan determined as of February 28, 2009 exceed the pension assets to be
transferred from the Seller Pension Plan to the Spun Off Plan determined as of February 28, 2009,
with the assumption that an additional contribution of One Million Five Hundred Thousand Dollars
($1,500,000) will be made on April 15, 2009, thus reducing the Underfunded Amount by One Million
Five Hundred Thousand Dollars ($1,500,000), and otherwise determined in accordance with the
actuarial assumptions set forth on Section 6.12(c) of the Disclosure Schedule. Seller’s
actuary will determine the Underfunded Amount in accordance with its normal procedures and
practices in preparing Seller’s actuarial report and such determination will be reviewed by the
actuary for the Holdings Pension Plan. If the Underfunded Amount exceeds Eighty Million Dollars
($80,000,000) (“Pension Target Amount”), determined as of February 28, 2009, Seller will
pay to Holdings the difference between the Underfunded Amount and the Pension Target Amount, in
cash, within five (5) Business Days of the final determination of such excess amount.

               (i) If the difference between the Underfunded Amount determined by Seller’s actuary and the
Underfunded Amount determined by Buyer’s or Holdings’ actuary is less than two percent (2%) of the
Underfunded Amount determined by Seller’s actuary, then Seller’s determination of the Underfunded
Amount shall be conclusive; provided, however, that Seller shall provide Buyer and
Holdings with the material factors, methods and assumptions used
in its determination and, to the extent such factors, methods and assumptions are materially
incorrect or unreasonable and inconsistent with the assumptions and methods set forth on
Section 6.12(c) of the Disclosure Schedule, Seller and Holdings shall cooperate in good
faith to minimize the difference between the Underfunded Amount as determined by Seller’s actuary
and by Buyer’s or Holdings’ actuary. If such difference is greater than two percent (2%), then the
actuaries retained by Seller and Buyer or Holdings shall attempt in good faith to reach agreement
to resolve the difference. Unless Buyer or Holdings delivers written notice to Seller of dispute
hereunder on or prior to the forty-fifth (45th) calendar day after the delivery to Buyer’s or
Holdings’ actuary of Seller’ determination (the “Underfunded Dispute Notice”), Buyer and
Holdings shall be deemed to have accepted and agreed to the Underfunded Amount as determined by
Seller’ actuary and such determination shall be final, binding and conclusive. If Buyer or
Holdings notifies Seller in writing of disputed items contained in the determination of the
Seller’s actuary within such forty-five (45) calendar day period, for thirty (30) calendar days
following delivery of such notice by Buyer or Holdings to Seller, Buyer’s or Holdings’ actuary and
Seller’s actuary shall attempt in good faith to resolve their differences.

               (ii) If the actuaries retained by Seller and Buyer or Holdings cannot resolve all disputes
with respect to a determination within such period and the disputes involve more than two percent
(2%) of the Underfunded Amount as determined by Seller, Seller and Buyer or Holdings will appoint a
third actuary from a nationally recognized actuarial firm to resolve their differences (the costs
of the third actuary will be shared equally by Seller and Holdings). The third actuary’s
determination of any dispute will be final. In reaching such resolution, the third actuary will
consider only the issues of disagreement between the first two actuaries, it being understood that
the third actuary will not be retained to conduct its own independent review but rather will be
retained to resolve specific differences between Buyer’s or Holdings actuary and Seller’s actuary
as set forth in the Underfunded Dispute Notice. The

71

 

actuarial assumptions and methods used by
Seller’s actuary in determining the Underfunded Amount will not be subject to dispute unless such
assumptions and methods are materially incorrect or unreasonable and inconsistent with the
assumptions and methods set forth on Section 6.12(c) of the Disclosure Schedule.

     Section 6.13 Replacement Bonding Requirements. On or prior to the Closing Date, Buyer
shall, or shall cause Holdings to, use reasonable best efforts to provide replacement guarantees,
standby letters of credit or other assurances of payment with respect to all Bonding Requirements,
in form and substance satisfactory to Seller and any banks, financial institutions or other
counterparty thereto (including, if necessary, through posting cash collateral to obtain such
guarantees, letters of credit or other assurances), and to terminate the then existing Bonding
Requirements and obtain a release in form and substance reasonably satisfactory to Seller and any
bank or other financial institution issuing such Bonding Requirements. To the extent Buyer is
unable to make such arrangements with respect to any Bonding Requirements prior to the Closing,
with Seller’s consent in lieu thereof, Buyer shall, or shall cause Holdings to, deliver to Seller
(or, at Seller’s request, the bank or financial institution currently issuing the Bonding
Requirements) either, at Seller’s option, but in either case, in form and substance reasonably
satisfactory to such bank or financial institution: (x) an irrevocable, unconditional standby
letter of credit in favor of Seller (or such bank or financial institution) in an amount equal to
the amount of such Bonding Requirements, issued by
a bank rated “A” or better by Standard and Poor’s, in form and substance reasonably
satisfactory to Seller (or such bank or financial institution), or (y) cash collateral, in an
amount equal to the amount of such Bonding Requirements, and, in each case, enter into
reimbursement agreements, letter of credit agreements, cash collateral agreements, and any related
documentation with respect to all Bonding Requirements with such bank or financial institution, and
provide any such bank or financial institution with any required information in connection
therewith, until all such arrangements for replacements and termination can be made from and after
the Closing; provided, however, that Buyer shall, or shall cause Holdings to, use
reasonable best efforts to make such arrangements in order to terminate the Bonding Requirements
within one hundred eighty (180) calendar days after the Closing, but, in any event, no later than
December 31, 2009. Upon termination of each of the Bonding Requirements, the amount of any cash
collateral delivered in respect of such Bonding Requirement pursuant to the preceding sentence
shall be released pursuant to mechanics to be agreed upon by Seller and Buyer and such bank or
financial institution that have the effect of returning (x) the amount of cash collateral that may
have been provided by Seller in excess of the amount of such Bonding Requirement to Seller and (y)
the amount of cash collateral that has been provided by Buyer in respect of the amount of such
Bonding Requirement to Buyer. Seller shall be solely responsible for any fees charged by Seller’s
existing bank or financial institution and Holdings shall be solely responsible for any fees
charged by Buyer’s bank or financial institution, in either case, in connection with the Bonding
Requirements and the transition of the Bonding Requirements.

     Section 6.14 Equistar Arrangements.

          (a) At the Closing, Seller and Buyer will enter into the Equistar Lease and Subcontract
Agreement under which Buyer will lease back to Seller the Leased Premises (as defined in the
Equistar Land Lease) and will agree to continue providing, as a subcontractor of

72

 

Solutia, Utilities
and Services (as such term is defined in the Equistar U&S Agreement) to Equistar on the terms and
conditions set forth in the Equistar U&S Agreement.

          (b) On the terms and subject to the conditions set forth in this Section 6.14(b),
Seller agrees to reimburse Newco for any Equistar Residual Costs during the period commencing on
the Contract Rejection Effective Date and ending on December 31, 2010 (the “Covered
Period”).

               (i) Newco shall use its best efforts to reduce and minimize the amount of Equistar Residual
Costs, including taking the following actions (each, a “Mitigation Action”): (A) perform
all of its obligations under the Equistar Lease and Subcontract Agreement, (B) effective in the
first month of the Covered Period reallocate to the Users other than Equistar, the User Cost
Allocation that would have been charged to Equistar prior to the Covered Period, and (C) as soon as
reasonably practicable after the Contract Rejection Effective Date, implement headcount reductions
and related restructuring actions, including those actions described in Section 6.14(b) of the
Disclosure Schedule. The calculation of the User Costs that are eliminated by a Mitigation
Action will be exclusive of the costs and expenses incurred by Newco to complete such Mitigation
Action. Upon the request of Seller from time to time but no more frequently than monthly, Newco
shall provide a written progress report to Seller describing in
reasonable detail the status of the implementation of the Mitigation Actions including an
explanation of the steps that will be taken to overcome any actual or reasonably foreseeable
delays.

               (ii) Within ten (10) Business Days after the end of each calendar quarter during the Covered
Period in which Newco incurs any Equistar Residual Costs, Newco shall prepare and deliver to Seller
an invoice for the amount of Equistar Residual Costs incurred by Newco for the immediately
preceding calendar quarter, prorated for any partial calendar quarter (the “Quarterly
Invoice”), together with a written statement setting forth in good faith and in reasonable
detail the calculation of and the basis for such Equistar Residual Costs (the “Quarterly
Statement”). The payment terms for the Quarterly Invoice shall be net forty-five (45) days
receipt of invoice, except as may otherwise be provided for disputed invoices under Section
6.14(b)(iii). Newco shall maintain and furnish to Seller together with the Quarterly
Statement, information and documents sufficient to permit Seller to independently calculate and
verify the amount of and the basis for such Equistar Residual Costs, and Newco shall provide to
Seller and its representatives and accountants reasonable access to any additional information and
documents and to the facilities and personnel of Newco reasonably requested by Seller in connection
with its review of such Equistar Residual Costs.

               (iii) If Seller notifies Newco of its objection to any items (the “Objection Notice”)
contained in the Quarterly Statement (or specific calculations contained therein) within forty-five
(45) days following its receipt of the Quarterly Statement, Seller and Newco shall, within twenty
(20) days after Seller’s delivery of the Objection Notice (the “Equistar Resolution
Period”), attempt in good faith to resolve their differences with respect to the disputed items
(or calculations) specified in the Objection Notice (the “Objectionable Items”). Any
resolution by Seller and Newco during the Equistar Resolution Period as to any Objectionable Items
shall be final, binding and conclusive on Seller and Newco and shall be documented in a written
acknowledgment signed by both parties. If Seller and Newco do not

73

 

resolve all Objectionable Items
by the end of the Equistar Resolution Period, then all Objectionable Items remaining in dispute
will be submitted with twenty (20) calendar days after the expiration of the Equistar Resolution
Period to the Neutral Arbitrator. The Neutral Arbitrator shall act as an arbitrator to determine
only those Objectionable Items remaining in dispute, and shall request a statement from Seller and
Newco regarding such Objectionable Items. In resolving Objectionable Items, the Neutral Arbitrator
may not assign a value to any Objectionable Item greater than the greatest value for such
Objectionable Item claimed by any party or less than the lowest value for such Objectionable Item
claimed by any party. All fees and expenses relating to the work, if any, to be performed by the
Neutral Arbitrator will be allocated between Seller and Newco in the same proportion that the
aggregate amount of the Objectionable Items so submitted to the Neutral Arbitrator that is
unsuccessfully disputed by each such party (as finally determined by the Neutral Arbitrator) bears
to the total amount of such Objectionable Items so submitted. In addition, Seller and Newco shall
provide to the Neutral Arbitrator any and all information and documents in the possession and
control of such party reasonably necessary to enable the Neutral Arbitrator to perform its function
as arbitrator. If either Seller or Newco fails to submit a statement regarding any Objectionable
Item submitted to the Neutral Arbitrator or otherwise fails to provide to the Neutral Arbitrator
any information or documents referred to in the preceding sentence, in each case within the time
determined by the Neutral Arbitrator, then the Neutral Arbitrator shall render a decision based
solely on the
statement and other information and documents timely submitted. The Neutral Arbitrator will
deliver to Seller and Newco a written determination (such determination to include a work sheet
setting forth all material calculations used in arriving at such determination and to be based
solely on information timely provided to the Neutral Arbitrator by Seller and Newco) of the
Objectionable Items submitted to the Neutral Arbitrator within thirty (30) calendar days of receipt
of such Objectionable Items, which determination will be final, binding and conclusive and judgment
may be entered on the award. The final, binding and conclusive Quarterly Statement for any
quarter, based either upon agreement between Seller and Newco or the written determination
delivered by the Neutral Arbitrator in accordance with this Section, will be the “Conclusive
Quarterly Statement.” Seller shall pay the amount set forth in the Conclusive Quarterly
Statement within five (5) Business Days of such Quarterly Statement becoming final, binding and
conclusive.

     Section 6.15 Tax Matters.

          (a) Cooperation. Buyer, Seller and Newco shall cooperate fully, and Buyer and Seller
shall cause Holdings to cooperate fully, as and to the extent reasonably requested by any other
Party, in connection with the filing of any Tax Returns and any audit, litigation or other
proceeding with respect to Taxes. Such cooperation shall include the retention and (upon the other
Party’s request) the provision of records and information that are reasonably relevant to any such
audit, litigation or other proceeding and making employees available on a mutually convenient basis
to provide additional information and explanation of any materials provided hereunder. Seller,
Holdings and Newco agree to retain all books and records with respect to Tax matters pertinent to
Holdings, Newco and the Business relating to any taxable period beginning prior to the Closing Date
until the expiration of the applicable statute of limitations (and, if notified by Buyer, Seller,
Holdings or Newco, any extensions thereof), and to abide by all record retention agreements entered
into with any taxing authority. The Parties agree to give each other Party reasonable written
notice prior to transferring, destroying or discarding any such books and

74

 

records, and if another
Party so requests, to give such other Party possession of such books and records. In addition,
Seller agrees to provide to Buyer, Newco and Holdings information regarding the adjusted Tax basis,
classification and remaining depreciable life of the Contributed Assets as of the Closing Date.

          (b) Section 351 Contribution and Exchange. Each of the Parties intends that the
transactions contemplated by the Holdings Formation Contribution shall be treated for the United
States federal Income Tax purposes as part of an exchange of property for stock of Holdings
described in IRC Section 351(a), and that (i) the Holdings Contribution Shares issued to Seller and
Buyer pursuant to Section 2.6 constitute stock issued as part of such exchange; (ii) each
of Seller and Buyer is a transferor of property to Holdings in such exchange; and (iii) each of
Seller and Buyer is part of the group of holders of shares of Holdings Common Stock that “control”
(within the meaning of IRC Section 368(c)) Holdings immediately after the consummation of the
transactions contemplated by this Agreement. Each of the Parties shall, to the extent permitted by
applicable law, file all Tax Returns in a manner consistent with such treatment, and each such
Party shall provide the information required under Treasury Regulations Section 1.351-3 in such
Party’s United States federal income Tax Return for such
Party’s taxable year that includes the Closing Date. Each of Seller and Buyer represents and
warrants as to itself that, as of the date hereof and at all times from the date hereof through and
including the Closing Date, it has, and shall have, no plan or intention to sell, convey, assign,
transfer, or otherwise dispose of any of the shares of Holdings Common Stock. Each of Seller,
Buyer and Holdings shall make (i) an irrevocable election under IRC Section 362(e)(2) so that IRC
Section 362(e)(2)(A) does not apply to the property contributed pursuant to Section 2.5
and, if permitted by law, so that each of Seller and Buyer has an initial tax basis in the Holdings
Contribution Shares issued to it hereunder in an amount not exceeding the fair market value of such
Holdings Contribution Shares on the Closing Date; (ii) a protective election under Treasury
Regulations Section 1.1502-36(e)(5)(viii), made in the manner provided under Treasury Regulations
Section 1.1502-36(d)(6); and (iii) such other elections or filings as may be reasonably requested
by Buyer or Seller so as to achieve the tax characterization described in this Section
6.15(b).

     Section 6.16 Implementation by Holdings. From and after the Closing, Buyer shall take
all actions necessary to cause Holdings to comply with observance and performance of each and every
obligation of Holdings contemplated by this Agreement or any Related Agreement to be performed from
and after the Closing.

     Section 6.17 Acknowledgements.

          (a) Each of SK and Buyer acknowledges that it has received or may receive from Seller certain
projections, forecasts and prospective or third party information relating to Sellers, Newco,
Holdings, the Business, the Contributed Assets, the Assumed Liabilities, the Newco Units, the
Holdings Contribution Shares and/or other related topics. Without limiting the generality of
Section 3.31 each of SK and Buyer acknowledges that neither any Seller nor any other Person
makes any representations or warranties with respect to such projections, forecasts or information.

75

 

          (b) Without limiting any representation, warranty or covenant of Seller expressly set forth
herein, each of SK and Buyer acknowledges that it has waived and hereby waives as a condition to
the Closing any further due diligence reviews, inspections or examinations with respect to any
Seller, Newco, Holdings, the Business, the Contributed Assets, the Assumed Liabilities, the Newco
Units, the Holdings Contribution Shares or any other matter, including with respect to engineering,
environmental, title, survey, financial, operational, regulatory and legal compliance matters.

ARTICLE VII

CONDITIONS TO OBLIGATION TO CLOSE

     Section 7.1 Conditions to Buyer’s Obligations. Buyer’s obligation to consummate the
transactions contemplated hereby in connection with the Closing is subject to satisfaction or
waiver of the following conditions:

          (a) (i) the representations and warranties set forth in Section 3.2 (Authorization of
Transaction), Section 3.3 (Noncontravention), Section 3.5 (Sufficiency of Assets),
Section 3.6 (Financial Statements), Section 3.11(a) (Material Contracts),
Section 3.14 (Legal Compliance), Section 3.15 (Litigation) and Section 3.17
(Product Liability) shall have been true and correct on the date hereof and shall be true and
correct in all material respects at and as of the Closing Date as if made at and as of such time
(in either case except to the extent expressly made as of an earlier date, in which case as of such
date as if made at and as of such date); and (ii) the other representations and warranties set
forth in Article III shall have been true and correct on the date hereof and shall be true
and correct at and as of the Closing Date as if made at and as of such time (in either case except
to the extent expressly made as of an earlier date, in which case as of such date as if made at and
as of such date), in either case contemplated by this clause (ii) except where the failure of such
representations and warranties to be so true and correct (without giving effect to any limitation
as to “material” or “Material Adverse Effect” set forth therein) has not resulted in a Material
Adverse Effect on the Business;

          (b) Seller and Newco shall have performed and complied with their covenants hereunder through
the Closing in all material respects;

          (c) (i) all notices to third parties contemplated by Section 5.3(a) of the Disclosure
Schedule to have been delivered on or prior to the Closing shall have been delivered, and all
third party consents or sublicenses or permits contemplated by Section 5.3(a) of the Disclosure
Schedule to have been received on or prior to the Closing shall have been received, except
where the failure to deliver such notices or to receive such consents or sublicenses or permits
does not have a material adverse impact on the Business or result in a material liability to Buyer,
Newco or Holdings, and (ii) Buyer shall have received evidence of each of the foregoing reasonably
satisfactory to it;

          (d) (i) all applicable waiting periods (and any extensions thereof) under any Antitrust Law
shall have expired or otherwise been terminated and Sellers, Holdings, Newco and Buyer shall have
received all other authorizations, consents, clearances and approvals of Governmental Authorities
contemplated by Section 5.3(b) of the Disclosure Schedule to have been received on or prior
to the Closing, where the failure to have received such other

76

 

authorizations, consents, clearances
and approvals would have a Material Adverse Effect on the Business or Buyer, and (ii) Buyer shall
have received evidence of each of the foregoing reasonably satisfactory to it;

          (e) no Decree shall be in effect which (i) prohibits consummation of any of the transactions
contemplated by this Agreement, or (ii) would be reasonably expected to result in any of the
transactions contemplated by this Agreement being rescinded following consummation thereof;

          (f) each delivery contemplated by Section 2.8 to be delivered by Seller, Newco or
Holdings to Buyer, Newco or Holdings shall have been delivered;

          (g) Buyer shall have received the aggregate proceeds from the Equity Financing pursuant to the
terms of the Equity Financing Commitment and borrowing available
pursuant to the Debt Financing of at least Seventy-Five Million Dollars ($75,000,000) under
the ABL; and

          (h) Buyer shall have received evidence of the release of the Liens (i) under the security
documents contemplated by the credit agreements of Solutia and certain of its Subsidiaries, dated
February 28, 2008, with respect to any Contributed Assets or any Newco Units and (ii) under the
caption “Intellectual Property Liens” set forth in Section 3.4 of the Disclosure Schedules,
but only to the extent such Liens contemplated by this clause (ii) are material to the Business.

     Section 7.2 Conditions to Seller’s Obligation. Seller’s obligation to consummate the
transactions contemplated hereby in connection with the Closing are subject to satisfaction or
waiver of the following conditions:

          (a) the representations and warranties set forth in Article IV shall have been true
and correct on the date hereof and shall be true and correct at and as of the Closing Date as if
made at and as of such time in either case (in either case except to the extent expressly made as
of an earlier date, in which case as of such date as if made at and as of such date), in either
case except where the failure of such representations and warranties to be so true and correct
(without giving effect to any limitation as to “material” or “Material Adverse Effect” set forth
therein) has not resulted in a Material Adverse Effect on Buyer or diminution of the benefits of
Seller hereunder;

          (b) SK and Buyer shall have performed and complied with their covenants hereunder through the
Closing in all material respects;

          (c) (i) all notices to third parties contemplated by Section 5.3(a) of the Disclosure
Schedule to have been delivered on or prior to the Closing shall have been delivered, and all
third party consents or sublicenses or permits contemplated by Section 5.3(a) of the Disclosure
Schedule to have been received on or prior to the Closing shall have been received, except
where the failure to deliver such notices or to receive such consents or sublicenses or permits
does not have a material adverse impact on the Business or result in a material liability to
Sellers, and (ii) Seller shall have received evidence of each of the foregoing reasonably
satisfactory to it;

77

 

          (d) (i) all applicable waiting periods (and any extensions thereof) under any Antitrust Law
shall have expired or otherwise been terminated and Sellers, Holdings, Newco and Buyer shall have
received all other authorizations, consents, clearances and approvals of Governmental Authorities
contemplated by Section 5.3(b) of the Disclosure Schedule to have been received on or prior
to the Closing, where the failure to have received such other authorizations, consents, clearances
and approvals would have a Material Adverse Effect on the Business or Seller, and (ii) Seller shall
have received evidence of each of the foregoing reasonably satisfactory to it;

          (e) no Decree shall be in effect which (i) prohibits consummation of any of the transactions
contemplated by this Agreement, or (ii) would be reasonably expected to result
in any of the transactions contemplated by this Agreement being rescinded following
consummation thereof;

          (f) with respect to each Bonding Requirement, at the Closing, Buyer or Holdings shall have
delivered to Seller either (x) an irrevocable, unconditional standby letter of credit or (y) cash
collateral, in compliance with the requirements in Section 6.13, and, in each case, shall
have entered into reimbursement agreements with respect to all Bonding Requirements with such bank
or financial institution in accordance with Section 6.13;

          (g) Seller shall have received evidence of the release of the Liens under the security
documents contemplated by the credit agreements of Solutia and certain of its Subsidiaries, dated
February 28, 2008, with respect to any Contributed Assets or any Newco Units; and

          (h) each delivery contemplated by Section 2.8 to be delivered by Buyer, Newco or
Holdings to Seller, Newco or Holdings shall have been delivered.

     Section 7.3 No Frustration of Closing Conditions. Neither Buyer nor Seller may rely
on the failure of any condition to its obligation to consummate the transactions contemplated
hereby set forth in Section 7.1 or Section 7.2, as the case may be, to be satisfied
if such failure was caused by such Party’s or its Affiliates’ failure to use its reasonable best
efforts (or best efforts or commercially reasonable efforts, as applicable) to satisfy the
conditions to the consummation of the transactions contemplated hereby or by any other breach of a
representation, warranty or covenant hereunder.

ARTICLE VIII

INDEMNIFICATION

     Section 8.1 No Survival of Representations and Warranties. Except as otherwise
expressly set forth in any Related Agreement and except that the disclaimers set forth in
Section 3.31 and Section 4.10 shall survive the Closing, none of the
representations and warranties of the Parties set forth in, or deemed made pursuant to, this
Agreement or any Related Agreement (other than the Transition

78

 

Services Agreement, the DPO Operating
Agreement, the DME Supply Agreement, the Securityholders Agreement, the Louvain-La-Neuve Lease, the
Equistar Lease and Subcontract Agreement, the China Asset Transfer Agreement (but surviving only
through the China Asset Transfer Closing) or any other Related Agreement arising under the
Transition Services Agreement, the DPO Operating Agreement, the DME Supply Agreement, the
Securityholders Agreement, the Louvain-La-Neuve Lease, the Equistar Lease and Subcontract Agreement
or the China Asset Transfer Agreement) will survive the Closing, and from and after the Closing,
such representations and warranties shall be of no further force or effect and no claim for
indemnification or otherwise may be made with respect to breaches thereof. Each Party acknowledges
that it expressly intends to shorten the statute of limitations for claims or causes of action
based upon, directly or indirectly, any of such representations and warranties as provided in this
Section 8.1.

     Section 8.2 Indemnification Provisions for Buyer’s Benefit. Subject to the limitations set forth in this Article VIII, from and after the
Closing, Seller shall defend and hold Buyer, its Affiliates and its and their respective officers,
directors, stockholders, employees, agents and other Representatives (each, a “Buyer
Indemnified Party”) harmless from and against any and all actual losses, claims, liabilities,
debts, damages, fines, penalties, costs (in each case, including reasonable actual out-of-pocket
expenses (including reasonable actual fees and expenses of counsel) (collectively,
“Damages”) incurred by a Buyer Indemnified Party as a result of:

          (a) any failure to perform any covenant or agreement of Seller or, solely with respect to
covenants and agreements to be performed prior to the Closing, Newco set forth in this Agreement or
any Related Agreement (other than the Transition Services Agreement, the DPO Operating Agreement,
the DME Supply Agreement, the Securityholders Agreement, the Louvain-La-Neuve Lease or the Equistar
Lease and Subcontract Agreement or any other Related Agreement arising under the Transition
Services Agreement, the DPO Operating Agreement, the DME Supply Agreement, the Securityholders
Agreement, the Louvain-La-Neuve Lease or the Equistar Lease and Subcontract Agreement);

          (b) any of the Excluded Liabilities (other than, from and after the China Asset Transfer
Closing, any of the China Assumed Liabilities); or

          (c) any material Liability, whether or not required by GAAP to be reflected on a consolidated
balance sheet of the Business, (i) that is actually Known by any of the Seller Knowledge designees
as of the date hereof, (ii) that is required to be disclosed in the Disclosure Schedules based on
the representations and warranties of Seller made under Article III as of the date hereof,
(iii) that is not disclosed or described on any Disclosure Schedule or the Financial Statements,
and (iv) for which the existence thereof would not reasonably be inferred to exist from information
otherwise provided to Buyer.

     Section 8.3 Indemnification Provisions for Seller’s Benefit. Subject to the
limitations set forth in this Article VIII, from and after the Closing, Buyer shall defend
and hold each Seller, its respective Affiliates and its and their respective officers, directors,
stockholders, employees, agents and other Representatives (each, a “Seller Indemnified
Party”) harmless from and against any and all Damages incurred by a Seller Indemnified Party as
a result of:

          (a) any failure to perform any covenant or agreement of SK, Buyer or, solely with respect to
covenants and agreements to be performed at or following the Closing, Holdings or Newco set forth
in this Agreement or any Related Agreement (other than the Transition Services Agreement, the DPO
Operating Agreement, the DME Supply Agreement, the

79

 

Securityholders Agreement, the Louvain-La-Neuve
Lease or the Equistar Lease and Subcontract Agreement or any other Related Agreement arising under
the Transition Services Agreement, the DPO Operating Agreement, the DME Supply Agreement, the
Securityholders Agreement, the Louvain-La-Neuve Lease or the Equistar Lease and Subcontract
Agreement), including any failure to perform any Transferred Contract; or

          (b) any of the Assumed Liabilities and, from and after the China Asset Transfer Closing, any
of the China Assumed Liabilities.

     Section 8.4 Limitations on Indemnification; Calculation of Damages. Notwithstanding
anything to the contrary set forth in this Article VIII:

          (a) The Buyer Indemnified Parties and the Seller Indemnified Parties shall not be entitled to
recover from Seller or Buyer, respectively, Damages that are punitive Damages, Damages for lost
profits or diminution in value or consequential, exemplary or special Damages, other than
consequential damages that a third party is seeking to recover pursuant to any Third Party Claim.

          (b) The Buyer Indemnified Parties shall not be entitled to recover from Seller Damages to the
extent reflected as a Liability on the Conclusive Net Working Capital Statement.

          (c) The amount of any Damages for which indemnification is provided under this Article
VIII shall be computed net of any (x) net Tax benefit realized by the Indemnified Party and (y)
third party insurance proceeds and recoveries in respect of third party indemnification obligations
actually received by the Indemnified Party in connection with such Damages. Each Indemnified Party
agrees to use its commercially reasonable efforts to obtain recovery in respect of any Damages from
any third party insurance or third party indemnity which is available in respect of Damages. If an
Indemnified Party receives such insurance proceeds or indemnification recoveries in connection with
Damages for which it has been indemnified hereunder, the Indemnified Party shall notify the Seller
or Buyer who has provided or is providing such indemnification hereunder, as appropriate (the
“Indemnifying Party”), and refund to the Indemnifying Party the amount of such insurance
proceeds or indemnification recoveries when received, up to the amount for which indemnification
was paid hereunder.

          (d) Each Indemnified Party shall take all reasonable steps to mitigate any Damages in respect
of which a claim could be made under this Article VIII. The amount of any Damages pursuant
to which an Indemnified Party shall be entitled to seek indemnification hereunder shall be deemed
reduced by the amount of the Damages resulting from any failure to mitigate such Damages.

          (e) No Buyer Indemnified Party may seek indemnification pursuant to this Article VIII
with respect to any Damages of any Buyer Indemnified Party who is or was an officer or director of
Seller or any of its Subsidiaries resulting from any right of contribution, indemnification or
other similar right against Seller or such Subsidiary that such Buyer
Indemnified Party may have by
virtue of his or her status as an officer or director of Seller or such Subsidiary, whether arising
from any breach of any representation, warranty or covenant set forth in this Agreement or any
Related Agreement or otherwise. Buyer, on behalf of each Buyer

80

 

Indemnified Party, agrees that no
Buyer Indemnified Party shall make any such claim for contribution or indemnification or make a
claim for recovery against any directors’ and officers’ liability insurance policy of Seller or any
of its Affiliates with respect to matters covered by the foregoing matters.

          (f) For the avoidance of doubt, if Buyer or any other Buyer Indemnified Party other than
Holdings or Newco, any of their respective Subsidiaries or their or their respective officers,
directors, stockholders, employees, agents or other Representatives (in such capacity) seeks to be
indemnified pursuant to this Article VIII for any Damages of Holdings, Newco or any of
their respective Subsidiaries, Buyer or such other Buyer Indemnified Party shall only be entitled
to seek indemnification pursuant to this Article VIII for and recover Damages equal to the
product of (x) the amount of the Damage incurred by such Person multiplied by (y) a fraction, the
numerator of which is the number of shares of Holdings Common Stock owned by such Indemnified Party
immediately following the Closing and the denominator of which is the total number of shares of
Holdings Common Stock outstanding immediately following the Closing.

          (g) No Buyer Indemnified Party shall be entitled to recover from Seller for any claim for
indemnity in respect of Damages arising under Section 8.2(c) unless and until, and then
only to the extent that, the total of all such claims against Buyer in respect of such Damages
exceeds One Million Dollars ($1,000,000) (the “Basket”), and in such event only for the
amount of such excess.

          (h) No Buyer Indemnified Party shall be entitled to recover from Seller, or include for
purposes of determining if Damages have met or exceeded the Basket, any claim for indemnity under
Section 8.2(c) in respect of any individual Damage arising unless and until the indemnity
claim against Seller in respect of such Damage exceeds Two Hundred Thousand Dollars ($200,000) (the
“Minimum Claim Amount”).

          (i) The Buyer Indemnified Parties shall not be entitled to recover from Seller any Damages
based on indemnity claims under Section 8.2(c) in excess of Ten Million Dollars
($10,000,000) in the aggregate (the “Cap”).

          (j) The Buyer Indemnified Parties shall not be entitled to recover from Seller Damages arising
under Section 8.2(c) to the extent the breach of the representation or warranty, or the
fact giving rise to such breach, that is the basis for the indemnity claim was actually known by
Buyer or any of its officers as of the Closing Date or otherwise provided to Buyer or any of its
Representatives (including placement in the electronic data room to the extent such fact would
reasonably be inferred from such information).

          (k) No Buyer Indemnified Party shall be entitled to make a claim for indemnification under
Section 8.2(c) from and after December 31, 2010.

          (l) Notwithstanding anything herein to the contrary, the Buyer Indemnified Parties shall not
be entitled to recover from Seller any Damages arising under Section 8.2(c) to the extent
such Damages relate to or arise out of the ownership or operation of the Facilities or otherwise
relate to or arise out of the past, current or future conduct of the Business with respect

81

 

to
environmental, health or safety matters, including any Liabilities arising pursuant to
Environmental, Health or Safety Requirements.

     Section 8.5 Matters Involving Third Parties.

          (a) If any third party shall notify any Indemnified Party of any third party claim, demand,
assessment or the commencement of any Litigation (each, a “Third Party Claim”) which may
give rise to a claim for indemnification pursuant to this Article VIII, the Indemnified
Party shall promptly (and in any event within ten (10) Business Days after receiving notice of the
Third Party Claim or the commencement of Litigation with respect thereto) notify the Indemnifying
Party thereof in writing stating that the Third Party Claim may give rise to a claim for
indemnification against the Indemnifying Party and specifying the facts constituting the basis for
such claim and the amount, to the extent known, of the claim asserted; provided,
however, that no delay on the part of the Indemnified Party in notifying the Indemnifying
Party shall relieve the Indemnifying Party from any obligation hereunder unless (and then solely to
the extent) the Indemnifying Party thereby is prejudiced.

          (b) The Indemnifying Party will have the right at any time to assume the defense of the Third
Party Claim with counsel of its choice reasonably satisfactory to the Indemnified Party and control
the defense of such Third Party Claim so long as the Indemnifying Party conducts such defense in a
reasonably diligent manner.

          (c) From and after the date that the Indemnifying Party has assumed and is conducting the
defense of the Third Party Claim in accordance with Section 8.5(b), (i) the Indemnified
Party may retain separate co-counsel at its sole cost and expense and participate in, but not
control, the defense of the Third Party Claim; (ii) the Indemnifying Party and the Indemnified
Party shall cooperate fully with each other and their respective counsel in connection with the
defense, negotiation or settlement of any such Third Party Claim, including providing access to any
relevant books and records, properties, employees and Representatives; provided,
however, that, for the avoidance of doubt, the foregoing shall not require any Party to
waive, or take any action which has the affect of waiving, its attorney-client privilege with
respect thereto; (iii) the Indemnifying Party will not consent to the entry of, or intentionally
permit a default leading to, any judgment on or enter into any settlement with respect to the Third
Party Claim without the prior written consent of the Indemnified Party (which shall not be
unreasonably withheld, conditioned or delayed) unless the judgment or proposed settlement includes
as an unconditional term thereof the giving by the claimant or plaintiff to the Indemnified Party
of a release from all liability in respect of such claim or litigation; and (iv) the Indemnified
Party will not consent to the entry of, or intentionally permit a default leading to, any judgment
or enter into any settlement with respect to the Third Party Claim without the prior written
consent of the Indemnifying Party (which shall not be unreasonably withheld, conditioned or
delayed).

          (d) In the event that the Indemnifying Party has not assumed the defense of the Third Party
Claim after notice thereof, (i) the Indemnified Party may defend against the Third Party Claim in
any manner it reasonably may deem appropriate; (ii) the Indemnifying Party will reimburse the
Indemnified Party promptly and periodically for the costs of defending against the Third Party
Claim (including reasonable attorneys’ fees and expenses actually incurred) to the

82

 

extent such
costs are Damages for which the Indemnified Party is actually entitled to
indemnification hereunder; and (iii) the Indemnifying Party will remain responsible for any
costs the Indemnified Party may incur resulting from the Third Party Claim to the extent such costs
are Damages for which the Indemnified Party is actually entitled to indemnification hereunder.

          (e) Notwithstanding anything to the contrary in this Section 8.5, the Parties agree
that from and after Closing, (i) Seller shall assume and control the defense of the Retained
Litigation Matters without the need for any written notice to Buyer of such Third Party Claims; and
(ii) Newco shall assume and control the defense of the Litigation of the Business other than the
Retained Litigation Matters, without the need for any written notice to Seller of such Third Party
Claims.

     Section 8.6 Claims and Payment; Treatment of Payments. On each occasion that any
Indemnified Party shall be entitled to indemnification under this Article VIII, the
Indemnifying Party shall, at each such time, promptly pay the amount of such indemnification
following the receipt of notice of a claim therefor. All notices of claims for indemnification
hereunder by any Indemnified Party shall be made with reasonable particularity and shall state the
amount of Damages sought thereunder. Any indemnification payments made pursuant to this Agreement
shall be treated for tax purposes as an adjustment to the consideration contributed to Holdings in
the Holdings Formation Contribution pursuant to Section 2.5, unless otherwise required by
applicable law. At the time at which any payment pursuant to Section 2.14 is required to
be made, Seller has (x) received notice of a claim from a Buyer Indemnified Party, (y) at such
time, Seller has agreed with the Buyer Indemnified Party that amounts are due and payable by Seller
thereunder (and in no event including contingent obligations) for which neither the validity nor
amounts thereof are in dispute or at such time as such dispute has been decided by a court of
competent jurisdiction, and (z) Seller has failed to promptly pay such amounts, Buyer may withhold
payment of, and set-off such indemnification claims against, the payment required to be paid
pursuant to Section 2.14 upon notice to Seller for up to the undisputed amount due and
payable as of such time in lieu of payment for such unpaid indemnification claim.

     Section 8.7 Guest Operations. Notwithstanding anything to the contrary in the
Securityholders Agreement or in this Agreement, including under Section 8.4, Section
8.5, Section 6.6 or the proviso in the first sentence of Section 6.5, and in
addition to Seller’s rights under Section 6.5, Seller shall have the rights and remedies
set forth in this Section 8.7 with respect to any Guest Agreements for which a novation or
an unconditional release of Seller thereunder has not been obtained as contemplated by the last
sentence of Section 5.3(a) (each, an “Applicable Guest Agreement”).

          (a) At any time and from time to time, if Seller reasonably believes that (i) Holdings, Newco
or any Newco Subsidiary (or any of their respective successors) or any assignee or transferee
thereof under an Applicable Guest Agreement (each, a “Buyer Counterparty”) is failing or
refusing, or is reasonably likely to fail or refuse, to perform its obligations under any
Applicable Guest Agreement, and (ii) as a result thereof any Seller Indemnified Party has incurred,
is incurring, or is reasonably likely to incur, Damages with respect to such Applicable Guest
Agreement (the satisfaction of both of the conditions in clauses
(i) and (ii) hereinafter referred to as a “Guest Occurrence”), then Seller may deliver
written notice to Buyer of such Guest Occurrence. The Buyer Counterparty shall have five (5)
Business

83

 

Days following delivery of the foregoing notice to cure such Guest Occurrence to the
reasonable satisfaction of Seller, or if such Guest Occurrence cannot be cured within such time,
then such additional time as may be necessary if, within such five (5) Business Days, the Buyer
Counterparty has commenced and is diligently pursuing the remedies necessary to cure such Guest
Occurrence to the reasonable satisfaction of Seller.

          (b) In the event that, and for so long as, the Guest Occurrence continues beyond the
applicable cure period in Section 8.7(a), then (i) upon written notice to Buyer, Holdings
or Newco, without the execution of any further instruments on the part of Seller, Buyer or any
Buyer Counterparty, Seller shall have the right, but not the obligation, such right exercisable in
Seller’s sole and absolute discretion, and Buyer, Holdings and Newco each hereby expressly
authorizes Seller as attorney-in-fact for the applicable Buyer Counterparty, to take any and all
reasonable actions, in the name and on behalf of such Buyer Counterparty, as Seller may deem
appropriate in its reasonable discretion to avert or mitigate any Damages under Section
8.7(a)(ii), including enforcing any obligations and curing the nonperformance of such Buyer
Counterparty, inter alia, by contacting and meeting with the counterparty to the relevant
Applicable Guest Agreement, entering the applicable Facility, directing operations at all or a
portion of such Facility, and using Seller’s or the applicable Buyer Counterparty’s personnel to
inspect, maintain, repair or operate all or a portion of such Facility; and (ii) Buyer, Holdings
and Newco shall, and shall cause the applicable Buyer Counterparty and its employees to, permit
Seller to take any action contemplated by clause (i) and to comply with the instructions of Seller
in the exercise of its rights hereunder. If Seller shall exercise its rights contemplated by this
Section 8.7(b), Seller shall keep Buyer, Holdings and Newco reasonably informed of the
actions taken thereunder and upon request of Buyer, Holdings or Newco, consult with Buyer, Holdings
or Newco with respect to the applicable matter giving rise to such rights.

          (c) For the avoidance of doubt, Seller’s exercise of its rights under this Section 8.7
shall be without prejudice to its right to indemnification under Section 8.3, and all
Liabilities relating to or arising out of the Applicable Guest Agreements from and after the
Closing Date shall constitute Assumed Liabilities, and any and all losses, claims, liabilities,
debts, damages, fines, penalties, costs, in each case, including reasonable actual out-of-pocket
expenses (including reasonable attorneys’ fees and expenses) incurred by Seller in exercising its
rights under this Section 8.7 shall constitute Damages for which Seller is entitled to
indemnification from Buyer under Section 8.3. Seller shall be entitled to retain from or
set-off against amounts due to, or otherwise charge and collect from, Buyer, Newco or Holdings (or
any of their respective successors) all Damages incurred by Seller in the exercise of the rights
contemplated by this Section 8.7.

          (d) The Parties intend to create, and are hereby creating, an equitable remedy of Seller under
this Section 8.7. Buyer shall not, nor shall it permit any other Buyer Counterparty to,
enter into or amend any Contract or otherwise take any action that purports to restrict, limit or
impair the right of Seller to exercise its rights under this Section 8.7. The rights of
Seller under this Section 8.7 shall not be affected by any act, omission, matter or thing
which, but for this provision, might operate to modify, restrict, limit or otherwise impair
Seller’s rights and remedies hereunder.

84

 

     Section 8.8 Exclusive Remedy. From and after the Closing, the remedies set forth in
this Article VIII shall be the sole and exclusive remedy of the Indemnified Parties for
Damages relating to the subject matter hereof (other than the Transition Services Agreement, the
DPO Operating Agreement, the DME Supply Agreement, the Securityholders Agreement, the
Louvain-La-Neuve Lease or the Equistar Lease and Subcontract Agreement or any other Related
Agreement arising under the Transition Services Agreement, the DPO Operating Agreement, the DME
Supply Agreement, the Securityholders Agreement, the Louvain-La-Neuve Lease or the Equistar Lease
and Subcontract Agreement). Without limiting the generality of the foregoing, Buyer and Seller
hereby waive any statutory, equitable or common law rights or remedies relating to any
environmental, health or safety matters relating to the subject matter hereof, including any such
matters arising under the Comprehensive Environmental Response, Compensation and Liability Act or
any other Environmental, Health or Safety Requirements.

ARTICLE IX

TERMINATION

     Section 9.1 Termination of Agreement. The Parties may terminate this Agreement at any
time prior to the Closing as provided below:

          (a) Buyer and Seller may terminate this Agreement by mutual written consent;

          (b) Buyer may terminate this Agreement by giving written notice to Seller:

               (i) if the Closing shall not have occurred prior to June 30, 2009 (the “Outside
Date”);

               (ii) if any event, circumstance, condition, fact or effect has occurred or exists which (A)
would result in a failure of a condition to Buyer’s obligations to consummate the transactions
contemplated hereby set forth in Section 7.1 (unless the failure results primarily from SK
or Buyer itself breaching any representation, warranty or covenant set forth in this Agreement),
and (B) cannot reasonably be cured prior to the Outside Date; provided, however,
that Buyer shall have given Seller written notice, delivered at least ten (10) Business Days prior
to such termination stating its intention to terminate this Agreement pursuant to this Section
9.1(b)(ii) and the basis for such termination with reasonable particularity and provided the
opportunity to cure any breach giving rise to the effects set forth in clauses (A) and (B) above
during such time; or

               (iii) as and to the extent Buyer has a right of termination pursuant to Section 5.7;

          (c) Seller may terminate this Agreement by giving written notice to Buyer:

               (i) if the Closing shall not have occurred prior to the Outside Date;

               (ii) if any event, circumstance, condition, fact or effect has occurred or exists which (A)
would result in a failure of a condition to Seller’s obligations to consummate the transactions
contemplated hereby set forth in Section 7.2 (unless the failure results primarily

85

 

from
Seller itself breaching any representation, warranty or covenant set forth in this Agreement), and
(B) cannot reasonably be cured prior to the Outside Date; provided, however, that
Seller shall have given Buyer written notice thereof, delivered at least ten (10) Business Days
prior to such termination stating its intention to terminate this Agreement pursuant to this
Section 9.1(c)(ii) and the basis for such termination with reasonable particularity and
provided the opportunity to cure any breach giving rise to the effects set forth in clauses (A) and
(B) above during such time;

               (iii) without limiting the generality of Section 9.1(c)(i), if (A) the conditions to
Buyer’s obligations to consummate the transactions contemplated hereby set forth in Section
7.1 (other than those conditions that by their terms are to be satisfied at Closing or that
have been waived by Buyer) have been satisfied and Buyer has failed to consummate the transactions
contemplated hereby within five (5) Business Days after the date on which Seller notifies Buyer
that all such conditions have been satisfied, or (B) the Equity Commitment Letter is actually or is
purported to be terminated, modified or amended (whether or not permissible under the terms thereof
or this Agreement) without Seller’s prior written consent; or

               (iv) if the board of directors of Seller has determined to terminate this Agreement to enter
into a transaction contemplated by an Unsolicited Acquisition Proposal.

     Section 9.2 Termination Fees.

          (a) In the event that this Agreement is terminated (i) by Seller pursuant to Section
9.1(c)(ii) based on the failure of the condition to Seller’s obligations to consummate the
transactions contemplated hereby set forth in Section 7.2(a) (other than the failure of
such condition relating to any untruth or inaccuracy of any representation or warranty as of any
date deemed made other than the date hereof) or Section 7.2(b) to reasonably be cured prior
to the Outside Date or (ii) by Seller pursuant to Section 9.1(c)(iii), then in such event,
Buyer shall pay Seller a termination fee in an aggregate amount of Five Million Dollars
($5,000,000) (the “Buyer Termination Fee”). Upon any termination of this Agreement giving
rise to the payment of the Buyer Termination Fee, within one (1) Business Day following such
termination, Buyer shall pay the Buyer Termination Fee to Seller. Upon the payment of the Buyer
Termination Fee, neither SK nor Buyer shall have any further Liability relating to or arising out
of this Agreement, any other Contract contemplated hereby or the transactions contemplated hereby
or thereby, whether at law or equity, in contract, in tort or otherwise. For the avoidance of
doubt, in no event shall Buyer be obligated to pay, or cause to be paid, the Buyer Termination Fee
on more than one occasion.

          (b) In the event that this Agreement is terminated (i) by Buyer pursuant to Section
9.1(b)(ii) based on the failure of the condition to Buyer’s obligations to consummate the
transactions contemplated hereby set forth in Section 7.1(a) (other than the failure of
such condition relating to any untruth or inaccuracy of any representation or warranty as of any
date
deemed made other than the date hereof) or Section 7.1(b) to reasonably be cured prior
to the Outside Date, or (ii) by Seller pursuant to Section 9.1(c)(iv), then in such event,
Seller shall pay Buyer a termination fee in an aggregate amount of Five Million Dollars
($5,000,000) (the “Seller Termination Fee”). Upon any termination of this Agreement giving
rise to the payment of the Seller Termination Fee, within one (1) Business Day following such
termination (in the case of clause (i) above) or simultaneously with such termination (in the case
of

86

 

clause (ii) above), Seller shall pay the Seller Termination Fee to Buyer. Upon the payment of
the Seller Termination Fee, neither Seller nor any of its Subsidiaries (including Newco) shall have
any further Liability relating to or arising out of this Agreement, any other Contract contemplated
hereby or the transactions contemplated hereby or thereby, whether at law or equity, in contract,
in tort or otherwise. For the avoidance of doubt, in no event shall Seller be obligated to pay, or
cause to be paid, the Seller Termination Fee on more than one occasion.

     Section 9.3 Effect of Termination. If any Party terminates this Agreement pursuant to
Section 9.1, all rights and obligations of the Parties hereunder shall terminate upon such
termination and shall become null and void (except that Article I (Definitions),
Section 3.31 (Disclaimer of Other Representations and Warranties), Section 4.10
(Disclaimer of Other Representations and Warranties), Section 5.8(c) (Access; No Contact;
Confidentiality), Section 5.12 (SK Guarantee), Section 5.13 (Seller Guarantee),
Section 6.17 (Acknowledgements), Section 9.2 (Termination Fees), Section
9.4 (Maximum Recovery), Article X (Miscellaneous) and this Section 9.3 (Effect
of Termination) shall survive any such termination) and, for the avoidance of doubt, the
Confidentiality Agreement shall survive any such termination) and no Party shall have any Liability
to the other Party hereunder; provided, however, that, subject to the limitation of
remedies and liability set forth in Section 9.2 and Section 9.4, nothing in this
Section 9.3 shall relieve any Party from Liability for any breach occurring prior to any
such termination of any of the representations and warranties (but solely to the extent such breach
would result in a failure of the condition set forth in Section 7.1(a) or Section
7.2(a), as appropriate) or covenants (but solely to the extent such breach would result in a
failure of the condition set forth in Section 7.1(b), or Section 7.2(b), as
appropriate) set forth in this Agreement. The Parties hereby agree to cause the China Asset
Transfer Agreement to be terminated concurrently with the termination of this Agreement.

     Section 9.4 Maximum Recovery. Notwithstanding anything to the contrary in this
Agreement or any other Contract contemplated hereby:

          (a) prior to the Closing (including from and after the termination of this Agreement), the
aggregate Liability of Seller and its Subsidiaries (including Newco) to SK and Buyer and the
aggregate Liability of SK and Buyer to Seller and Newco, in either case relating to or arising out
of this Agreement, any other Contract contemplated hereby or the transactions contemplated hereby
(including any Liability to pay any Termination Fee), shall in each case be Five Million Dollars
($5,000,000); and no such Party shall have any further or other Liability to any other Parties
relating to or arising out of any such matter, whether at law or equity, in contract, in tort or
otherwise; and

          (b) other than Seller, Newco, SK and Buyer (and for such Parties, subject to Section
9.4(a)), none of such Party’s respective Affiliates, nor any former, current or future direct
or indirect equity holders, controlling persons, directors, officers, employees, agents, members,
managers, assignees, successors or other Representatives of such Parties shall have any Liability
relating to or arising out of this Agreement, any other Contract contemplated hereby, whether at
law or equity, in contract, in tort or otherwise.

87

 

ARTICLE X

MISCELLANEOUS

     Section 10.1 Expenses. Except as otherwise expressly set forth herein or in the
Securityholders Agreement, each Party will bear its own costs and expenses incurred in connection
with this Agreement and the transactions contemplated hereby, including all fees of law firms,
commercial banks, investment banks, accountants, public relations firms, experts and consultants.
Notwithstanding the foregoing, within five (5) Business Days following the presentment of
documentation thereof from and after the date hereof, Seller shall pay to SK the amount of the
reasonable, documented out-of pocket expenses incurred by SK from March 6, 2009 through and
including March 18, 2009 contemplated to be reimbursed pursuant to the Expense Reimbursement Letter
Agreement (the “Seller Advanced Expenses”); provided, however, that the
maximum amount of the Seller Advanced Expenses shall be Seven Hundred Thousand Dollars ($700,000);
and provided further that at the Closing, SK shall reimburse Seller for the amount
of the Seller Advanced Expenses paid to SK pursuant to this sentence, for which SK shall thereafter
be entitled to collect the Seller Advanced Expenses from Newco as and to the extent provided for in
the Securityholders Agreement.

     Section 10.2 Entire Agreement. This Agreement, the Related Agreements and the
Confidentiality Agreement constitute the entire agreement between the Parties and supersede any
prior understandings, agreements or representations (whether written or oral) by or between the
Parties, written or oral, to the extent they relate in any way to the subject matter hereof. For
the avoidance of doubt, except as provided in Section 10.1, none of (i) the letter
agreement dated as of December 5, 2008 by and between Seller and SK, (ii) the letter agreement
dated as of March 18, 2009 by and between Seller and SK (the “Expense Reimbursement Letter
Agreement”), and (iii) any agreement to reimburse expenses deemed to exist by virtue of the
term sheet exchanged between Seller and SK on March 5, 2009, in any such case shall be of any
further force and effect as of the execution and delivery of this Agreement, and the Parties agree
that no payment is or ever shall become due thereunder. To the extent there is any conflict
between this Agreement and the China Asset Transfer Agreement, this Agreement shall prevail.

     Section 10.3 Incorporation of Annexes, Exhibits and Disclosure Schedule. The Annexes
and Exhibits to this Agreement and the Disclosure Schedule are incorporated herein by reference and
made a part hereof.

     Section 10.4 Amendments and Waivers. No amendment of any provision of this Agreement shall be valid unless the same shall be in
writing and signed by each Party except as expressly provided herein. No waiver of any breach of
this Agreement shall be construed as an implied amendment or agreement to amend or modify any
provision of this Agreement. No waiver by any Party of any default, misrepresentation or breach of
warranty or covenant hereunder, whether intentional or not, shall be valid unless the same shall be
in writing and signed by the Party making such waiver, nor shall such waiver be deemed to extend to
any prior or subsequent default, misrepresentation or breach of warranty or covenant hereunder or
affect in any way any rights arising by virtue of any prior or subsequent default,
misrepresentation or breach of warranty or covenant. No conditions, course of dealing or
performance, understanding or agreement purporting to modify, vary, explain or supplement the terms
or conditions of this Agreement shall be binding unless this Agreement is amended or modified in
writing pursuant to

88

 

the first sentence of this Section 10.4 except as expressly provided
herein. Except where a specific period for action or inaction is provided herein, no delay on the
part of any Party in exercising any right, power or privilege hereunder shall operate as a waiver
thereof.

     Section 10.5 Succession and Assignment. This Agreement shall be binding upon and
inure to the benefit of the Parties and their respective successors and permitted assigns. No
Party may assign either this Agreement or any of its rights, interests or obligations hereunder
without the prior written consent of the other Parties.

     Section 10.6 Notices. All notices, requests, demands, claims and other communications
hereunder shall be in writing except as expressly provided herein. Any notice, request, demand,
claim or other communication hereunder shall be deemed duly given (i) when delivered personally to
the recipient; (ii) one (1) Business Day after being sent to the recipient by reputable overnight
courier service (charges prepaid); (iii) upon receipt of confirmation of receipt if sent by
facsimile transmission; or (iv) three (3) Business Days after being mailed to the recipient by
certified or registered mail, return receipt requested and postage prepaid, and addressed to the
intended recipient as set forth below:

	 	 	 	 	 
	 

	 	If to Seller:
	 	Solutia Inc.

575 Maryville Centre Drive

P.O. Box 66760

St. Louis, Missouri 63166

Attention: General Counsel

Facsimile: (314) 674-5469
	 
	 	 	 	 
	 

	 	 	 	With a copy (which shall not constitute notice to Seller) to:
	 
	 	 	 	 
	 

	 	 	 	Kirkland & Ellis LLP

Citigroup Center

153 East 53rd Street

New York, New York 10022

Attention: Frederick Tanne, P.C., Esq.

                 Andrew E. Nagel, Esq.

                 William B. Sorabella, Esq.

Facsimile: (212) 446-6460
	 
	 	 	 	 
	 	 	If to Newco prior to the Closing:
	 

	 	 	 	NyCo LLC

c/o Solutia Inc.

575 Maryville Centre Drive

P.O. Box 66760

St. Louis, Missouri 63166

Attention: General Counsel

Facsimile: (314) 674-5469

89

 

	 	 	 	 	 
	 

	 	 	 	With a copy (which shall not constitute notice to Newco) to:
	 
	 	 	 	 
	 

	 	 	 	Kirkland & Ellis LLP

Citigroup Center

153 East 53rd Street

New York, New York 10022

Attention: Frederick Tanne, P.C., Esq.

                  Andrew E. Nagel, Esq.

                 William B. Sorabella, Esq.

Facsimile: (212) 446-6460
	 
	 	 	 	 
	 	 	If to SK, Buyer or, following the Closing, Newco:
	 
	 	 	 	 
	 

	 	 	 	SK Capital Partners II, L.P.

400 Park Avenue, Suite 810

New York, New York 10022

Attention: General Counsel

Facsimile: (212) 867-4525
	 
	 	 	 	 
	 

	 	 	 	With a copy (which shall not constitute notice to SK,
Buyer or Newco) to:
	 
	 	 	 	 
	 

	 	 	 	Morgan, Lewis & Bockius LLP

502 Carnegie Center

Princeton, New Jersey 08540

Attention: Steven M. Cohen, Esq.

Facsimile: (609) 919-6701

Any Party may change the address to which notices, requests, demands, claims and other
communications hereunder are to be delivered by giving the other Parties notice in the manner set
forth in this Section 10.6.

     Section 10.7 Governing Law; Governing Language.

          (a) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE DOMESTIC LAWS OF
THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAW PROVISION OR RULE
(WHETHER OF THE STATE OF NEW YORK OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF
THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK.

          (b) Notwithstanding anything to the contrary herein or in any Related Agreement, the English
language version of any Related Agreement shall govern the interpretation of any Related Agreement.

     Section 10.8 Submission to Jurisdiction; Service of Process. Each of the Parties
irrevocably and unconditionally submits to the exclusive jurisdiction of any state or federal court

90

 

sitting in New York, New York in any Litigation arising out of or relating to this Agreement or any
Related Agreement and agrees that all claims in respect of such Litigation may be heard and
determined in any such court. Each Party also agrees not to bring any action or proceeding arising
out of or relating to this Agreement or any Related Agreement other than the China Asset Transfer
Agreement in any other court. Each of the Parties irrevocably and unconditionally waives any
objection to the laying of venue in, and any defense of inconvenient forum to the maintenance of,
any Litigation so brought and waives any bond, surety or other security that might be required of
any other Party with respect thereto. Any Party may make service on any other Party by sending or
delivering a copy of the process to the Party to be served at the address and in the manner
provided for the giving of notices in Section 10.6; provided, however, that
nothing in this Section 10.8 shall affect the right of any Party to serve legal process in
any other manner permitted by law or in equity. Each Party agrees that a final judgment in any
Litigation so brought shall be conclusive and may be enforced by Litigation or in any other manner
provided by law or in equity. The Parties intend that all foreign jurisdictions will enforce any
Decree of any state or federal court sitting in New York, New York in any
Litigation arising out of or relating to this Agreement or any Related Agreement other than
the China Asset Transfer Agreement.

     Section 10.9 Waivers of Jury Trial. EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY
ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     Section 10.10 Specific Performance. Each Party acknowledges and agrees that the other
Parties would be damaged irreparably in the event any provision of this Agreement is not performed
in accordance with its specific terms or otherwise breached, so that, in addition to any other
remedy that a Party may have under law or equity, a Party shall be entitled to injunctive relief to
prevent breaches of the provisions of this Agreement applicable to the Parties from and after
Closing or termination of this Agreement, including Section 9.2 and Section 9.4,
and to enforce specifically such provisions of this Agreement and the terms and provisions thereof.
No Party shall be entitled to injunctive relief to prevent breaches of the provisions of this
Agreement applicable to the Parties at or prior to the Closing or prior to the termination of this
Agreement or to enforce specifically such provisions of this Agreement or the terms and provisions
thereof.

     Section 10.11 Severability. The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other provisions of this
Agreement. In the event that any of the provisions of this Agreement shall be held by a court or
other tribunal of competent jurisdiction to be illegal, invalid or unenforceable, such provisions
shall be limited or eliminated only to the minimum extent necessary so that this Agreement shall
otherwise remain in full force and effect.

     Section 10.12 No Third Party Beneficiaries. This Agreement shall not confer any
rights or remedies upon any Person other than the Parties, the Other Sellers and the respective
successors and permitted assigns of the foregoing.

91

 

     Section 10.13 Mutual Drafting. The Parties have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and
no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the
authorship of any of the provisions of this Agreement.

     Section 10.14 Disclosure Schedule. All capitalized terms not defined in the Disclosure Schedule shall have the meanings ascribed to
them in this Agreement. Each representation and warranty of Seller in this Agreement is made and
given, and the covenants are agreed to, subject to the disclosures and exceptions set forth on the
Disclosure Schedule. The disclosure of any matter in any section of the Disclosure Schedule shall
be deemed to be a disclosure for all purposes of this Agreement and all other sections of the
Disclosure Schedule to which such disclosure reasonably would be inferred. The listing of any
matter shall expressly not be deemed to constitute an admission by any Seller, or to otherwise
imply, that any such matter is material, is required to be disclosed under this Agreement or falls
within relevant minimum thresholds or materiality standards set forth in this Agreement. No
disclosure in the Disclosure Schedule relating to any possible breach or violation of any Contract
or law shall be construed as an admission or indication that any such breach or violation exists or
has actually occurred. In no event shall the listing of any matter in the Disclosure Schedule be
deemed or interpreted to expand the scope of Seller’s representations, warranties and/or covenants
set forth in this Agreement. All attachments to the Disclosure Schedule are incorporated by
reference into the Disclosure Schedule in which they are directly or indirectly referenced. The
information contained in the Disclosure Schedule is in all events provided subject to the
Confidentiality Agreement.

     Section 10.15 Headings; Table of Contents. The section headings and the table of
contents contained in this Agreement and the Disclosure Schedule are inserted for convenience only
and shall not affect in any way the meaning or interpretation of this Agreement.

     Section 10.16 Counterparts; Facsimile and Electronic Signatures. This Agreement may
be executed in one or more counterparts, each of which shall be deemed an original but all of which
together will constitute one and the same instrument. This Agreement or any counterpart may be
executed and delivered by facsimile copies or delivered by electronic communications by portable
document format (.pdf), each of which shall be deemed an original.

{Remainder of page intentionally left blank.}

92

 

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

	 	 	 	 	 	 	 
	 	 	SOLUTIA INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jeffry N. Quinn
 

Name: Jeffry N. Quinn
	 	 
	 

	 	 	 	Title: President and CEO	 	 

	 	 	 	 	 	 	 
	 	 	NYCO LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Paul J. Berra, III
 

Name: Paul J. Berra, III
	 	 
	 

	 	 	 	Title: Senior Vice President, General Counsel
and Chief Administrative Officer	 	 

	 	 	 	 	 	 	 
	 	 	SK CAPITAL PARTNERS II, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	SK Capital Investment II, LLC

its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Barry B. Siadat
 

Name: Barry B. Siadat
	 	 
	 

	 	 	 	Title: President	 	 

	 	 	 	 	 	 	 
	 	 	SK TITAN HOLDINGS LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Barry B. Siadat
 

Name: Barry B. Siadat
	 	 
	 

	 	 	 	Title: President	 	 

{Signature Page to Transaction Agreement}

S-1EX-10(d)

EXHIBIT 10(D)

CREDIT AGREEMENT

among

CORE MOLDING TECHNOLOGIES, INC.

and

CORECOMPOSITES DE MEXICO, S. DE R.L. DE C.V.

as Borrowers

THE LENDERS NAMED HEREIN

as Lenders

and

KEYBANK NATIONAL ASSOCIATION

as Lead Arranger, Sole Book Runner and Administrative Agent

 

dated as of

December 9, 2008

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	Page	 
	ARTICLE I. DEFINITIONS
	 	 	1	 
	Section 1.1. Definitions
	 	 	1	 
	Section 1.2. Accounting Terms
	 	 	29	 
	Section 1.3. Terms Generally
	 	 	29	 
	 
	 	 	 	 
	ARTICLE II. AMOUNT AND TERMS OF CREDIT
	 	 	29	 
	Section 2.1. Amount and Nature of Credit
	 	 	29	 
	Section 2.2. Revolving Credit
	 	 	30	 
	Section 2.3. Term Loan
	 	 	34	 
	Section 2.4. Capex Commitment
	 	 	34	 
	Section 2.5. Mexican Loan Commitment
	 	 	35	 
	Section 2.6. IDRB Letter of Credit
	 	 	35	 
	Section 2.7. Interest
	 	 	37	 
	Section 2.8. Evidence of Indebtedness
	 	 	40	 
	Section 2.9. Notice of Credit Event; Funding of Loans
	 	 	41	 
	Section 2.10. Payment on Loans and Other Obligations
	 	 	43	 
	Section 2.11. Prepayment
	 	 	43	 
	Section 2.12. Commitment and Other Fees; Reduction of Revolving Credit Commitment
	 	 	44	 
	Section 2.13. Computation of Interest and Fees
	 	 	45	 
	Section 2.14. Mandatory Payments
	 	 	45	 
	Section 2.15. Liability of Borrowers
	 	 	48	 
	Section 2.16. Extension of Commitment
	 	 	49	 
	 
	 	 	 	 
	ARTICLE III. ADDITIONAL PROVISIONS RELATING TO EURODOLLAR LOANS; INCREASED CAPITAL; TAXES
	 	 	49	 
	Section 3.1. Requirements of Law
	 	 	49	 
	Section 3.2. Taxes
	 	 	50	 
	Section 3.3. Funding Losses
	 	 	52	 
	Section 3.4. Eurodollar Rate or Daily LIBOR Rate Lending Unlawful; Inability to Determine Rate
	 	 	52	 
	Section 3.5. Discretion of Lenders as to Manner of Funding
	 	 	53	 
	Section 3.6. Failure of Lender to Obtain Lower Withholding Tax Status
	 	 	53	 
	 
	 	 	 	 
	ARTICLE IV. CONDITIONS PRECEDENT
	 	 	54	 
	Section 4.1. Conditions to Each Credit Event
	 	 	54	 
	Section 4.2. Conditions to the First Credit Event
	 	 	54	 
	Section 4.3. Post-Closing Conditions
	 	 	58	 
	 
	 	 	 	 
	ARTICLE V. COVENANTS
	 	 	59	 
	Section 5.1. Insurance
	 	 	59	 
	Section 5.2. Money Obligations
	 	 	60	 
	Section 5.3. Financial Statements and Information
	 	 	60	 
	Section 5.4. Financial Records
	 	 	61	 
	Section 5.5. Franchises; Change in Business
	 	 	61	 
	Section 5.6. ERISA Pension and Benefit Plan Compliance
	 	 	61	 
	Section 5.7. Financial Covenants
	 	 	63	 
	Section 5.8. Borrowing
	 	 	63	 

i

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	Page	 
	Section 5.9. Liens
	 	 	64	 
	Section 5.10. Regulations T, U and X
	 	 	65	 
	Section 5.11. Investments, Loans and Guaranties
	 	 	65	 
	Section 5.12. Merger and Sale of Assets
	 	 	66	 
	Section 5.13. Acquisitions
	 	 	67	 
	Section 5.14. Notice
	 	 	67	 
	Section 5.15. Restricted Payments
	 	 	68	 
	Section 5.16. Environmental Compliance
	 	 	68	 
	Section 5.17. Affiliate Transactions
	 	 	68	 
	Section 5.18. Use of Proceeds
	 	 	68	 
	Section 5.19. Corporate Names and Locations of Collateral
	 	 	69	 
	Section 5.20. Lease Rentals
	 	 	69	 
	Section 5.21. Subsidiary Guaranties, Security Documents and Pledge of Stock or Other Ownership Interest
	 	 	69	 
	Section 5.22. Restrictive Agreements
	 	 	70	 
	Section 5.23. Other Covenants and Provisions
	 	 	70	 
	Section 5.24. Amendment of Organizational Documents
	 	 	71	 
	Section 5.25. Fiscal Year of Borrowers
	 	 	71	 
	Section 5.26. Banking Relationship
	 	 	71	 
	Section 5.27. Spanish Language Translation
	 	 	71	 
	Section 5.28. Other Covenants Relating to the Mexican Project
	 	 	71	 
	Section 5.29. Further Assurances
	 	 	74	 
	 
	 	 	 	 
	ARTICLE VI. REPRESENTATIONS AND WARRANTIES
	 	 	74	 
	Section 6.1. Corporate Existence; Subsidiaries; Foreign Qualification
	 	 	74	 
	Section 6.2. Corporate Authority
	 	 	75	 
	Section 6.3. Compliance with Laws and Contracts
	 	 	75	 
	Section 6.4. Litigation and Administrative Proceedings
	 	 	76	 
	Section 6.5. Title to Assets
	 	 	76	 
	Section 6.6. Liens and Security Interests
	 	 	76	 
	Section 6.7. Tax Returns
	 	 	76	 
	Section 6.8. Environmental Laws
	 	 	77	 
	Section 6.9. Locations
	 	 	77	 
	Section 6.10. Continued Business
	 	 	77	 
	Section 6.11. Employee Benefits Plans
	 	 	77	 
	Section 6.12. Consents or Approvals
	 	 	78	 
	Section 6.13. Solvency
	 	 	79	 
	Section 6.14. Financial Statements
	 	 	79	 
	Section 6.15. Regulations
	 	 	79	 
	Section 6.16. Material Agreements
	 	 	79	 
	Section 6.17. Intellectual Property
	 	 	80	 
	Section 6.18. Insurance
	 	 	80	 
	Section 6.19. Deposit Accounts
	 	 	80	 
	Section 6.20. Accurate and Complete Statements
	 	 	80	 
	Section 6.21. Investment Company; Other Restrictions
	 	 	80	 
	Section 6.22. Mexican Project
	 	 	80	 

ii

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	Page	 
	Section 6.23. Defaults
	 	 	82	 
	 
	 	 	 	 
	ARTICLE VII. EVENTS OF DEFAULT
	 	 	82	 
	Section 7.1. Payments
	 	 	82	 
	Section 7.2. Special Covenants
	 	 	82	 
	Section 7.3. Other Covenants
	 	 	82	 
	Section 7.4. Representations and Warranties
	 	 	82	 
	Section 7.5. Cross Default
	 	 	83	 
	Section 7.6. ERISA Default
	 	 	83	 
	Section 7.7. Change in Control
	 	 	83	 
	Section 7.8. Judgments
	 	 	83	 
	Section 7.9. Material Adverse Change
	 	 	83	 
	Section 7.10. Security
	 	 	83	 
	Section 7.11. Validity of Loan Documents
	 	 	84	 
	Section 7.12. Expropriation Default
	 	 	84	 
	Section 7.13. Defaults with Respect to the Mexican Project
	 	 	84	 
	Section 7.14. Solvency
	 	 	85	 
	 
	 	 	 	 
	ARTICLE VIII. REMEDIES UPON DEFAULT
	 	 	85	 
	Section 8.1. Optional Defaults
	 	 	85	 
	Section 8.2. Automatic Defaults
	 	 	86	 
	Section 8.3. Letters of Credit and IDRB Letter of Credit
	 	 	86	 
	Section 8.4. Mexican Project
	 	 	86	 
	Section 8.5. Offsets
	 	 	87	 
	Section 8.6. Equalization Provisions
	 	 	87	 
	Section 8.7. Other Remedies
	 	 	88	 
	Section 8.8. Application of Proceeds
	 	 	88	 
	 
	 	 	 	 
	ARTICLE IX. THE AGENT
	 	 	89	 
	Section 9.1. Appointment and Authorization
	 	 	89	 
	Section 9.2. Note Holders
	 	 	90	 
	Section 9.3. Consultation With Counsel
	 	 	90	 
	Section 9.4. Documents
	 	 	90	 
	Section 9.5. Agent and Affiliates
	 	 	90	 
	Section 9.6. Knowledge of Default
	 	 	91	 
	Section 9.7. Action by Agent
	 	 	91	 
	Section 9.8. Release of Collateral or Guarantor of Payment
	 	 	91	 
	Section 9.9. Delegation of Duties
	 	 	91	 
	Section 9.10. Indemnification of Agent
	 	 	92	 
	Section 9.11. Successor Agent
	 	 	92	 
	Section 9.12. Fronting Lender
	 	 	92	 
	Section 9.13. Swing Line Lender
	 	 	93	 
	Section 9.14. Agent May File Proofs of Claim
	 	 	93	 
	Section 9.15. No Reliance on Agent’s Customer Identification Program
	 	 	93	 
	Section 9.16. Other Agents
	 	 	94	 

iii

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	Page	 
	ARTICLE X. GUARANTY BY CORE MOLDING OF OBLIGATIONS OF CORE MEXICO
	 	 	94	 
	Section 10.1. The Guaranty
	 	 	94	 
	Section 10.2. Obligations Unconditional
	 	 	94	 
	Section 10.3. Reinstatement
	 	 	95	 
	Section 10.4. Subrogation
	 	 	95	 
	Section 10.5. Remedies
	 	 	95	 
	Section 10.6. Instrument for the Payment of Money
	 	 	96	 
	Section 10.7. Continuing Guaranty
	 	 	96	 
	Section 10.8. Payments
	 	 	96	 
	 
	 	 	 	 
	ARTICLE XI. MISCELLANEOUS
	 	 	96	 
	Section 11.1. Lenders’ Independent Investigation
	 	 	96	 
	Section 11.2. No Waiver; Cumulative Remedies
	 	 	96	 
	Section 11.3. Amendments, Waivers and Consents
	 	 	96	 
	Section 11.4. Notices
	 	 	97	 
	Section 11.5. Costs, Expenses and Taxes
	 	 	98	 
	Section 11.6. Indemnification
	 	 	98	 
	Section 11.7. Obligations Several; No Fiduciary Obligations
	 	 	98	 
	Section 11.8. Execution in Counterparts
	 	 	99	 
	Section 11.9. Binding Effect; Borrowers’ Assignment
	 	 	99	 
	Section 11.10. Lender Assignments
	 	 	99	 
	Section 11.11. Sale of Participations
	 	 	101	 
	Section 11.12. Patriot Act Notice
	 	 	102	 
	Section 11.13. Severability of Provisions; Captions; Attachments
	 	 	102	 
	Section 11.14. Investment Purpose
	 	 	102	 
	Section 11.15. Entire Agreement
	 	 	102	 
	Section 11.16. Additional Provisions Relating to the Mexican Note
	 	 	103	 
	Section 11.17. Confidentiality
	 	 	103	 
	Section 11.18. Legal Representation of Parties
	 	 	104	 
	Section 11.19. Currency
	 	 	104	 
	Section 11.20. Governing Law; Submission to Jurisdiction
	 	 	105	 
	 
	 	 	 	 
	ARTICLE XII. ADDITIONAL PROVISIONS RELATING TO THE MEXICAN PROJECT
	 	 	106	 
	Section 12.1. Delivery of Certain Documents Relating to the Construction
	 	 	106	 
	Section 12.2. Construction Payout Requirements
	 	 	107	 
	Section 12.3. Final Disbursement for Construction
	 	 	108	 
	Section 12.4. Budget Matters
	 	 	109	 
	Section 12.5. Loan-In-Balance
	 	 	110	 
	 
	 	 	 	 
	JURY TRIAL WAIVER
	Signature Page 1	 

	 	 	 
	Exhibit A

	 	Form of Revolving Credit Note
	Exhibit B

	 	Form of Swing Line Note
	Exhibit C

	 	Form of Term Note
	Exhibit D

	 	Form of Capex Note

iv

 

TABLE OF CONTENTS

	 	 	 
	 	 	Page  

	Exhibit E

	 	Form of Mexican Note
	Exhibit F

	 	Form of Notice of Loan
	Exhibit G

	 	Form of Mexican Project Draw Request
	Exhibit H

	 	Form of Compliance Certificate
	Exhibit I

	 	Form of Assignment and Acceptance Agreement
	Exhibit J

	 	Form of Request for Extension
	Exhibit K

	 	Initial Budget
	Exhibit L

	 	Soft and Hard Cost Requisition Form
	 
	 	 
	Schedule 1

	 	Commitments of Lenders
	Schedule 2

	 	Guarantors of Payment
	Schedule 2.2

	 	Existing Letters of Credit
	Schedule 3(a)

	 	Domestic Real Property
	Schedule 3(b)

	 	Mexican Real Property
	Schedule 5

	 	Pledged Securities
	Schedule 5.8

	 	Indebtedness
	Schedule 5.9

	 	Liens
	Schedule 5.11

	 	Permitted Foreign Subsidiary Loans and Investments
	Schedule 6.1

	 	Corporate Existence; Subsidiaries; Foreign Qualification
	Schedule 6.4

	 	Litigation and Administrative Proceedings
	Schedule 6.5

	 	Real Estate Owned by the Companies
	Schedule 6.9

	 	Locations
	Schedule 6.11

	 	Employee Benefits Plans
	Schedule 6.16

	 	Material Agreements
	Schedule 6.17

	 	Intellectual Property
	Schedule 6.18

	 	Insurance
	Schedule 6.19

	 	Deposit Accounts

v

 

     This CREDIT AGREEMENT (as the same may from time to time be amended, restated or otherwise
modified, this “Agreement”) is made effective as of the 9th day of December, 2008 among:

     (a) CORE MOLDING TECHNOLOGIES, INC., a Delaware corporation (“Core Molding”);

     (b) CORECOMPOSITES DE MEXICO, S. DE R.L. DE C.V., a sociedad de responsabilidad
limitada de capital variable organized under the laws of Mexico (“Core Mexico” and, together
with Core Molding, collectively, “Borrowers” and, individually, each a “Borrower”);

     (c) the lenders listed on Schedule 1 hereto and each other Eligible Transferee, as
hereinafter defined, that from time to time becomes a party hereto pursuant to Section 11.10
hereof (collectively, the “Lenders” and, individually, each a “Lender”); and

     (d) KEYBANK NATIONAL ASSOCIATION, as the lead arranger, sole book runner and
administrative agent for the Lenders under this Agreement (“Agent”).

WITNESSETH:

     WHEREAS, Borrowers, Agent and the Lenders desire to contract for the establishment of credits
in the aggregate principal amounts hereinafter set forth, to be made available to Borrowers upon
the terms and subject to the conditions hereinafter set forth;

     NOW, THEREFORE, it is mutually agreed as follows:

ARTICLE I. DEFINITIONS

     Section 1.1. Definitions. As used in this Agreement, the following terms shall have
the meanings set forth below:

     “Account” means all accounts, as defined in the U.C.C.

     “Acquisition” means any transaction or series of related transactions for the purpose of or
resulting, directly or indirectly, in (a) the acquisition of all or substantially all of the assets
of any Person (other than a Company), or any business or division of any Person (other than a
Company), (b) the acquisition of in excess of fifty percent (50%) of the outstanding capital stock
(or other equity interest) of any Person (other than a Company), or (c) the acquisition of another
Person (other than a Company) by a merger, amalgamation or consolidation or any other combination
with such Person.

     “Administrative Borrower” means Core Molding.

 

 

     “Advantage” means any payment (whether made voluntarily or involuntarily, by offset of any
deposit or other indebtedness or otherwise) received by any Lender in respect of the Obligations,
if such payment results in that Lender having less than its pro rata share (based upon its
Commitment Percentage) of the Obligations then outstanding.

     “Affiliate” means any Person, directly or indirectly, controlling, controlled by or under
common control with a Company and “control” (including the correlative meanings, the terms
“controlling”, “controlled by” and “under common control with”) means the power, directly or
indirectly, to direct or cause the direction of the management and policies of a Company, whether
through the ownership of voting securities, by contract or otherwise.

     “Agent” means that term as defined in the first paragraph hereof.

     “Agent Fee Letter” means the Agent Fee Letter between Core Molding and Agent, dated as of the
Closing Date, as the same may from time to time be amended, restated or otherwise modified.

     “Agreement” means that term as defined in the first paragraph hereof.

     “Applicable Commitment Fee Rate” means:

     (a) for the period from the Closing Date through March 31, 2009, seven and one-half
(7.50) basis points; and

     (b) commencing with the Consolidated financial statements of Core Molding for the
fiscal quarter ending December 31, 2008, the number of basis points set forth in the
following matrix, based upon the result of the computation of the Leverage Ratio as set
forth in the Compliance Certificate for such fiscal period, shall be used to establish the
number of basis points that will go into effect on April 1, 2009 and thereafter, as set
forth in each successive Compliance Certificate, as provided below:

	 	 	 
	Leverage Ratio	 	Applicable Commitment Fee Rate
	Greater than 1.75 to 1.00

	 	12.50 basis points
	Less than or equal to 1.75 to 1.00

	 	7.50 basis points

After April 1, 2009, changes to the Applicable Commitment Fee Rate shall be effective on the first
day of each fiscal quarter following the date upon which Agent should have received pursuant to
Section 5.3(a) hereof, the Consolidated financial statements of Core Molding (provided that, if the
internal financial statements required by Section 5.3(a) hereof are not consistent with the audited
financial statements required by Section 5.3(b) hereof, the Applicable Commitment Fee Rate shall be
retroactively adjusted upon receipt of the audited statements). The above matrix does not modify
or waive, in any respect, the requirements of Section 5.7 hereof, the rights of Agent and the
Lenders to charge the Default Rate, or the rights and remedies of Agent and the Lenders pursuant to
Articles VII and VIII hereof. Notwithstanding anything herein to the contrary, (i) during any
period when Borrowers shall have failed to timely deliver the Consolidated financial statements
pursuant to Section 5.3(a) or (b) hereof, or the Compliance

2

 

Certificate pursuant to Section 5.3(c) hereof, until such time as the appropriate Consolidated
financial statements and Compliance Certificate are delivered, the Applicable Commitment Fee Rate
shall be the highest rate per annum indicated in the above pricing grid regardless of the Leverage
Ratio at such time, and (ii) in the event that any financial information or certification provided
to Agent in the Compliance Certificate is shown to be inaccurate (regardless of whether this
Agreement or the Commitment is in effect when such inaccuracy is discovered), and such inaccuracy,
if corrected, would have led to the application of a higher Applicable Commitment Fee Rate for any
period (an “Applicable Commitment Fee Period”) than the Applicable Commitment Fee Rate applied for
such Applicable Commitment Fee Period, then (A) Borrowers shall immediately deliver to Agent a
corrected Compliance Certificate for such Applicable Commitment Fee Period, (B) the Applicable
Commitment Fee Rate shall be determined based on such corrected Compliance Certificate, and (C)
Borrowers shall immediately pay to Agent the accrued additional fees owing as a result of such
increased Applicable Commitment Fee Rate for such Applicable Commitment Fee Period.

     “Applicable Margin” means:

     (a) for the period from the Closing Date through March 31, 2009, (i) one hundred
seventy-five (175.00) basis points for Eurodollar Loans, (ii) one hundred seventy-five
(175.00) basis points for Daily LIBOR Loans, and (iii) zero (0.00) basis points for Base
Rate Loans; and

     (b) commencing with the Consolidated financial statements of Core Molding for the
fiscal quarter ending December 31, 2008, the number of basis points (depending upon whether
Loans are Eurodollar Loans, Daily LIBOR Loans or Base Rate Loans) set forth in the following
matrix, based upon the result of the computation of the Leverage Ratio as set forth in the
Compliance Certificate for such fiscal period, shall be used to establish the number of
basis points that will go into effect on April 1, 2009 and, thereafter, as set forth in each
successive Compliance Certificate, as provided below:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Applicable Basis	 	Applicable Basis	 	Applicable Basis
	 	 	Points for Daily	 	Points for	 	Points for
	Leverage Ratio	 	LIBOR Loans	 	Eurodollar Loans	 	Base Rate Loans
	Greater than 2.25 to 1.00
	 	 	200.00	 	 	 	200.00	 	 	 	0.00	 
	Less than or equal to
2.25 to 1.00
	 	 	175.00	 	 	 	175.00	 	 	 	0.00	 

After April 1, 2009, changes to the Applicable Margin shall be effective on the first day of each
fiscal quarter following the date upon which Agent should have received, pursuant to Section 5.3(a)
hereof, the Consolidated financial statements of Core Molding (provided that, if the internal
financial statements required by Section 5.3(a) hereof are not consistent with the audited
financial statements required by Section 5.3(b) hereof, the Applicable Margin shall be
retroactively adjusted upon receipt of the audited statements). The above matrix does not modify
or waive, in any respect, the requirements of Section 5.7 hereof, the rights of Agent and the
Lenders to charge the Default Rate, or the rights and remedies of Agent and the Lenders pursuant

3

 

to Articles VII and VIII hereof. Notwithstanding anything herein to the contrary, (i) during any
period when Borrowers shall have failed to timely deliver the Consolidated financial statements
pursuant to Section 5.3(a) or (b) hereof, or the Compliance Certificate pursuant to Section 5.3(c)
hereof, until such time as the appropriate Consolidated financial statements and Compliance
Certificate are delivered, the Applicable Margin shall be the highest rate per annum indicated in
the above pricing grid for Loans of that type regardless of the Leverage Ratio at such time, and
(ii) in the event that any financial information or certification provided to Agent in the
Compliance Certificate is shown to be inaccurate (regardless of whether this Agreement or the
Commitment is in effect when such inaccuracy is discovered), and such inaccuracy, if corrected,
would have led to the application of a higher Applicable Margin for any period (an “Applicable
Margin Period”) than the Applicable Margin applied for such Applicable Margin Period, then (A)
Borrowers shall immediately deliver to Agent a corrected Compliance Certificate for such Applicable
Margin Period, (B) the Applicable Margin shall be determined based on such corrected Compliance
Certificate, and (C) Borrowers shall immediately pay to Agent the accrued additional interest owing
as a result of such increased Applicable Margin for such Applicable Margin Period.

     “Assignment Agreement” means an Assignment and Acceptance Agreement in the form of the
attached Exhibit I.

     “Authorized Officer” means a Financial Officer or other individual authorized by a Financial
Officer in writing (with a copy to Agent) to handle certain administrative matters in connection
with this Agreement.

     “Bailee’s Waiver” means a bailee’s waiver, in form and substance satisfactory to Agent,
delivered by a Company in connection with this Agreement, as such waiver may from time to time be
amended, restated or otherwise modified.

     “Bank Product Agreements” means those certain cash management service and other agreements
entered into from time to time between a Company and Agent or a Lender (or an affiliate of a
Lender) in connection with any of the Bank Products.

     “Bank Product Obligations” means all obligations, liabilities, contingent reimbursement
obligations, fees, and expenses owing by a Company to Agent or any Lender (or an affiliate of a
Lender) pursuant to or evidenced by the Bank Product Agreements.

     “Bank Products” means any service or facility extended to a Company by Agent or any Lender (or
an affiliate of a Lender) including (a) credit cards and credit card processing services, (b) debit
and purchase cards, (c) ACH transactions, and (d) cash management, including controlled
disbursement, accounts or services.

     “Base Rate” means:

     (a) other than as set forth in subsection (b) below, a rate per annum equal to the
greater of (i) the Prime Rate, or (ii) one-half of one percent (.50%) in excess of the
Federal Funds Effective Rate; and

4

 

     (b) with respect to the Mexican Loan, a rate per annum equal to the prime rate reported
in The Wall Street Journal (or the average prime rate if a high and a low prime rate are
reported therein).

Any change in the Base Rate shall be effective immediately from and after such change in the Base
Rate.

     “Base Rate Loan” means a Revolving Loan described in Section 2.2(a) hereof, a portion of the
Term Loan described in Section 2.3 hereof, a Capex Draw Loan described in Section 2.4(a) hereof, a
portion of the Capex Term Loan described in Section 2.4(b) hereof, or the Mexican Loan described in
Section 2.5 hereof, that shall be denominated in Dollars and on which Borrowers shall pay interest
at a rate based on the Derived Base Rate.

     “Borrower” means that term as defined in the first paragraph hereof.

     “Borrowers” means that term as defined in the first paragraph hereof.

     “Budget” means the budget for the Mexican Project, specifying all costs and expenses of every
kind and nature whatever to be incurred by Borrowers in connection with the Mexican Project prior
to the Project Completion Date.

     “Business Day” means any day that is not a Saturday, a Sunday or another day of the year on
which national banks are authorized or required to close in Cleveland, Ohio, and, in addition, if
the applicable Business Day relates to a Eurodollar Loan, a day of the year on which dealings in
deposits are carried on in the London interbank Eurodollar market.

     “Capex Commitment” means the Capex Draw Commitment and the Capex Term Loan Commitment.

     “Capex Conversion Date” means May 31, 2009.

     “Capex Draw Commitment” means the obligation hereunder of the Lenders, during the applicable
Commitment Period, to make Capex Draw Loans, up to an aggregate principal amount outstanding at any
time equal to the Maximum Capex Draw Amount.

     “Capex Draw Exposure” means, at any time, the aggregate principal amount of all Capex Draw
Loans outstanding.

     “Capex Draw Loan” means a Loan granted to Core Molding by the Lenders in accordance with
Section 2.4(a) hereof.

     “Capex Loan” means a Capex Draw Loan or the Capex Term Loan.

     “Capex Note” means a Capex Note, in the form of the attached Exhibit D, executed and
delivered pursuant to Section 2.8(d) hereof.

5

 

     “Capex Term Loan” means the Loan granted to Core Molding in an original principal amount equal
to the aggregate principal amount of all Capex Draw Loans outstanding on the Capex Conversion Date,
in accordance with Section 2.4(b) hereof.

     “Capex Term Loan Commitment” means the obligation hereunder of the Lenders to make the Capex
Term Loan.

     “Capex Term Loan First Payment Date” means the first day of the first full calendar month
after the Capex Conversion Date.

     “Capex Term Loan Payment Amount” means an amount equal to the original principal amount of the
Capex Term Loan divided by eighty-four (84).

     “Capital Distribution” means a payment made, liability incurred or other consideration given
by a Company to any Person that is not a Company, for the purchase, acquisition, redemption,
repurchase, payment or retirement of any capital stock or other equity interest of such Company or
as a dividend, return of capital or other distribution (other than any stock dividend, stock split
or other equity distribution payable only in capital stock or other equity of such Company) in
respect of such Company’s capital stock or other equity interest.

     “Capital Expenditure Modification Date” means the later of (a) December 31, 2010, and (b) the
date that the aggregate principal amount of the Mexican Loan outstanding is equal to or less than
Two Million Dollars ($2,000,000).

     “Capitalized Lease Obligations” means obligations of the Companies for the payment of rent for
any real or personal property under leases or agreements to lease that, in accordance with GAAP,
have been or should be capitalized on the books of the lessee and, for purposes hereof, the amount
of any such obligation shall be the capitalized amount thereof determined in accordance with GAAP.

     “Change in Control” means (a) the acquisition of, or, if earlier, the shareholder or director
approval of the acquisition of, ownership or voting control, directly or indirectly, beneficially
(within the meaning of Rules 13d-3 and 13d-5 of the Securities Exchange Act of 1934, as then in
effect) or of record, on or after the Closing Date, by any Person or group (within the meaning of
Sections 13d and 14d of the Securities Exchange Act of 1934, as then in effect), of shares
representing more than thirty-five percent (35%) of the aggregate ordinary Voting Power represented
by the issued and outstanding capital stock of Core Molding; (b) the occupation of a majority of
the seats (other than vacant seats) on the board of directors or other governing body of Core
Molding by Persons who were neither (i) nominated by the board of directors or other governing body
of Core Molding nor (ii) appointed by directors so nominated; (c) if Core Molding shall cease to
own, directly or indirectly, one hundred percent (100%) (provided that such ownership may exclude a
nominal amount of shares required by law to be held by another Person) of the outstanding capital
stock of Core Mexico; or (d) the occurrence of a change in control, or other term of similar import
used therein, as defined in any Material Indebtedness Agreement.

6

 

     “Change Order” means any request for changes in the Plans and Specifications (other than minor
field changes involving no extra cost).

     “Closing Date” means the effective date of this Agreement as set forth in the first paragraph
of this Agreement.

     “Closing Fee Letter” means the Closing Fee Letter between Core Molding and Agent, dated as of
the Closing Date.

     “Code” means the Internal Revenue Code of 1986, as amended, together with the rules and
regulations promulgated thereunder.

     “Commitment” means the obligation hereunder of the Lenders, during the applicable Commitment
Periods, (a) to make Revolving Loans and to participate in the issuance of Letters of Credit and
Swing Loans pursuant to the Revolving Credit Commitment, (b) to make the Term Loan pursuant to the
Term Loan Commitment, (c) to make Capex Loans pursuant to the Capex Commitment, (d) to make the
Mexican Loan pursuant to the Mexican Loan Commitment, and (e) to participate in the issuance of the
IDRB Letter of Credit, up to the Total Commitment Amount.

     “Commitment Percentage” means, for each Lender, the percentage set forth opposite such
Lender’s name under the column headed “Commitment Percentage”, as listed in Schedule 1
hereto (taking into account any assignments pursuant to Section 11.10 hereof).

     “Commitment Period” means (a) with respect to the Revolving Credit Commitment, the period from
the Closing Date to April 30, 2010, (b) with respect to the Capex Draw Commitment, the period from
the Closing Date to the Capex Conversion Date, (c) with respect to the Mexican Loan Commitment, the
period from the Closing Date to the Mexican Line Conversion Date, and (d) with respect to the IDRB
Letter of Credit Commitment, the period from the Closing Date to April 17, 2013, or, in the case of
each (a), (b), (c) and (d), such earlier date on which the Commitment shall have been terminated
pursuant to Article VIII hereof.

     “Companies” means all Borrowers and all Subsidiaries of all Borrowers.

     “Company” means a Borrower or a Subsidiary of a Borrower.

     “Compliance Certificate” means a Compliance Certificate in the form of the attached
Exhibit H.

     “Confidential Information” means all confidential or proprietary information about the
Companies that has been furnished by any Company to Agent or any Lender, whether furnished before
or after the Closing Date and regardless of the manner in which it is furnished, but does not
include any such information that (a) is or becomes generally available to the public other than as
a result of a disclosure by Agent or such Lender not permitted by this Agreement, (b) was available
to Agent or such Lender on a nonconfidential basis prior to its disclosure to Agent or such Lender,
or (c) becomes available to Agent or such Lender on a nonconfidential basis from a Person other
than a Company.

7

 

     “Consideration” means, in connection with an Acquisition, the aggregate consideration paid or
to be paid, including borrowed funds, cash, deferred payments, the issuance of securities or notes,
the assumption or incurring of liabilities (direct or contingent), the payment of consulting fees
or fees for a covenant not to compete and any other consideration paid or to be paid for such
Acquisition.

     “Consolidated” means the resultant consolidation of the financial statements of Core Molding
and its Subsidiaries in accordance with GAAP, including principles of consolidation consistent with
those applied in preparation of the consolidated financial statements referred to in Section 6.14
hereof.

     “Consolidated Capital Expenditures” means, for any period, the amount of capital expenditures
of Core Molding (specifically including any software development costs that are capitalized), as
determined on a Consolidated basis and in accordance with GAAP.

     “Consolidated Depreciation and Amortization Charges” means, for any period, the aggregate of
all depreciation and amortization charges for fixed assets, leasehold improvements and general
intangibles (specifically including goodwill) of Core Molding for such period, as determined on a
Consolidated basis and in accordance with GAAP.

     “Consolidated EBITDA” means, for any period, as determined on a Consolidated basis and in
accordance with GAAP, (a) Consolidated Net Earnings for such period plus, without duplication, the
aggregate amounts deducted in determining such Consolidated Net Earnings in respect of
(i) Consolidated Interest Expense, (ii) Consolidated Income Tax Expense, (iii) Consolidated
Depreciation and Amortization Charges, and (iv) reasonable non-recurring non-cash losses not
incurred in the ordinary course of business; minus, (b) to the extent included in Consolidated Net
Earnings for such period, non-recurring gains not incurred in the ordinary course of business.

     “Consolidated Fixed Charges” means, for any period, on a Consolidated basis and in accordance
with GAAP, the aggregate, without duplication, of (a) Consolidated Interest Expense (including,
without limitation, the “imputed interest” portion of Capitalized Lease Obligations, synthetic
leases and asset securitizations, if any), (b) Consolidated Income Tax Expense, (c) scheduled
principal payments of long-term Consolidated Funded Indebtedness (other than scheduled principal
payments of the Mexican Loan that were prepaid by Core Molding or any of its Subsidiaries one year
(or longer) prior to the due date of such principal payment), (d) Capital Distributions, and (e)
Consolidated Unfunded Capital Expenditures; provided that, for the purposes of calculating the
Fixed Charge Coverage Ratio, on and after the Capital Expenditure Modification Date, Consolidated
Unfunded Capital Expenditures shall be deemed to be Two Million Dollars ($2,000,000) for the most
recently completed four fiscal quarters of Core Molding.

     “Consolidated Funded Indebtedness” means, at any date, all Indebtedness (including, but not
limited to, current, long-term and Subordinated Indebtedness, if any) of Core Molding, as
determined on a Consolidated basis and in accordance with GAAP.

8

 

     “Consolidated Income Tax Expense” means, for any period, all provisions for taxes based on the
gross or net income of Core Molding (including, without limitation, any additions to such taxes,
and any penalties and interest with respect thereto), and all franchise taxes of Core Molding, as
determined on a Consolidated basis and in accordance with GAAP.

     “Consolidated Interest Expense” means, for any period, the interest expense of Core Molding
for such period, as determined on a Consolidated basis and in accordance with GAAP.

     “Consolidated Net Earnings” means, for any period, the net income (loss) of Core Molding for
such period, as determined on a Consolidated basis and in accordance with GAAP.

     “Consolidated Net Worth” means, at any date, the stockholders’ equity of Core Molding,
determined as of such date on a Consolidated basis and in accordance with GAAP.

     “Consolidated Unfunded Capital Expenditures” means, for any period, all additions to fixed
assets of the Companies not funded with (a) long-term Indebtedness or (b) Capitalized Lease
Obligations.

     “Construction” means the construction and equipping of the Improvements in accordance with the
Plans and Specifications, and the installation of all personal property, fixtures and equipment
required for the operation of the Mexican Project.

     “Construction Contract” means the agreement, dated as of August 27, 2008, between Core Mexico
and the Construction Contractor to build the Mexican Project.

     “Construction Contractor” means AS Construcciones de Norte, S.A. de C.V., a company organized
and existing under the laws of Mexico.

     “Construction Schedule” means a schedule, satisfactory to Agent and the Consultant,
establishing a timetable for completion of the Construction, and showing, on a monthly basis, the
anticipated progress of the Construction, and also showing that the Improvements can be completed
on or before the Project Completion Date.

     “Consultant” means an independent consulting architect, inspector and/or engineer, designated
by Agent, in Agent’s sole discretion. As of the Closing Date, the Consultant is Dennis Heindel of
Property Solutions Inc.

     “Control Agreement” means each Deposit Account Control Agreement among a Credit Party, Agent
and a depository institution, dated on or after the Closing Date, as the same may from time to time
be amended, restated or otherwise modified.

     “Controlled Group” means a Company and each Person required to be aggregated with a Company
under Code Section 414(b), (c), (m) or (o).

     “Core Mexico” means that term as defined in the first paragraph hereof.

9

 

     “Core Molding” means that term as defined in the first paragraph hereof.

     “Credit Event” means the making by the Lenders of a Loan, the conversion by the Lenders of a
Base Rate Loan to a Daily LIBOR Loan or a Eurodollar Loan, the conversion by the Lenders of a Daily
LIBOR Loan to a Eurodollar Loan, the continuation by the Lenders of a Eurodollar Loan after the end
of the applicable Interest Period, the making by the Swing Line Lender of a Swing Loan, or the
issuance (or amendment or renewal) by the Fronting Lender of a Letter of Credit or the IDRB Letter
of Credit.

     “Credit Party” means a Borrower and any Subsidiary or other Affiliate that is a Guarantor of
Payment.

     “Daily Interest Period” means, with respect to a Daily LIBOR Loan, the period commencing on
the date such Daily LIBOR Loan is made and ending on the next day, with successive Daily Interest
Periods automatically commencing daily thereafter.

     “Daily LIBOR Loan” means a Revolving Loan described in Section 2.2(a) hereof, or the Mexican
Loan described in Section 2.5 hereof, that shall be denominated in Dollars and on which Borrowers
shall pay interest at a rate based on the Derived Daily LIBOR Rate.

     “Daily LIBOR Rate” means, for any Daily Interest Period:

     (a) with respect to a Daily LIBOR Loan that is a Revolving Loan or a Swing Loan, a rate
per annum equal to the greater of (i) the per annum rate of interest (rounded upwards, if
necessary, to the nearest 1/16th of 1%) at which, determined by Agent in
accordance with its usual procedures (which determination shall be conclusive absent
manifest error) as of approximately 11:00 A.M. (London time) two Business Days prior to the
beginning of such Daily Interest Period, Dollar deposits in immediately available funds in
an amount comparable to such Loan and with a maturity of one day are offered to the prime
banks by leading banks in the London interbank market, and (ii) one percent (1%); and

     (b) with respect to a Daily LIBOR Loan that is the Mexican Loan, a rate per annum equal
to the greater of (i) the per annum the rate of interest, as of approximately 11:00 A.M.
(London time) two Business Days prior to such date as the rate in the London interbank
market for Dollar deposits in immediately available funds in an amount comparable to such
Loan and with a maturity of one day are offered to the prime banks by leading banks in the
London interbank market, and (ii) one percent (1%).

     “Default” means an event or condition that constitutes, or with the lapse of any applicable
grace period or the giving of notice or both would constitute, an Event of Default, and that has
not been waived by the Required Lenders (or, if applicable, all of the Lenders) in writing.

     “Default Rate” means (a) with respect to any Loan or other Obligation, a rate per annum equal
to three percent (3%) in excess of the rate otherwise applicable thereto, and (b) with

10

 

respect to any other amount, if no rate is specified or available, a rate per annum equal to three
percent (3%) in excess of the Base Rate from time to time in effect (or in excess of the Derived
Base Rate if the Applicable Margin is a positive number at the time of the calculation of the
Default Rate).

     “Deficiency Deposit” means that term as defined in Section 12.5 hereof.

     “Deposit Account” means (a) a deposit account, as defined in the U.C.C., (b) any other deposit
account, and (c) any demand, time, savings, checking, passbook or similar account maintained with a
bank, savings and loan association, credit union or similar organization.

     “Derived Base Rate” means a rate per annum equal to the sum of the Applicable Margin (from
time to time in effect) for Base Rate Loans plus the Base Rate.

     “Derived Daily LIBOR Rate” means a rate per annum equal to the sum of the Applicable Margin
(from time to time in effect) for Daily LIBOR Loans plus the Daily LIBOR Rate.

     “Derived Eurodollar Rate” means a rate per annum equal to the sum of the Applicable Margin
(from time to time in effect) for Eurodollar Loans plus the Eurodollar Rate.

     “Derived Swing Loan Rate” means a rate per annum equal to the Derived Daily LIBOR Rate;
provided that, if the Daily LIBOR Rate shall be unavailable for any reason or the Swing Line Lender
shall be unable to determine the Daily LIBOR Rate on any day, the Derived Swing Loan Rate shall
equal the Derived Base Rate from time to time in effect.

     “Dollar” or the $ sign means lawful money of the United States of America.

     “Domestic Guarantor of Payment” means each of the Companies designated a “Domestic Guarantor
of Payment” on Schedule 2 hereto, each of which is executing and delivering a Guaranty of
Payment on the Closing Date, and any other Domestic Subsidiary that shall deliver a Guaranty of
Payment to Agent subsequent to the Closing Date.

     “Domestic Mortgage” means (a) each Existing IDRB Mortgage, (b) each Leasehold Mortgage, and
(c) each Open-End Mortgage, Assignment of Leases and Rents and Security Agreement (or deed of trust
or comparable document), dated on or after the Closing Date, relating to the Domestic Real
Property, executed and delivered by Core Molding or a Domestic Guarantor of Payment, to further
secure the Obligations, as the same may from time to time be amended, restated or otherwise
modified.

     “Domestic Real Property” means each parcel of the real estate owned by a Core Molding or a
Domestic Guarantor of Payment, as set forth on Schedule 3(a) hereto, together with all
improvements and buildings thereon and all appurtenances, easements or other rights thereto
belonging, and being defined collectively as the “Property” in each of the Domestic Mortgages.

     “Domestic Subsidiary” means a Subsidiary that is not a Foreign Subsidiary.

11

 

     “Dormant Subsidiary” means a Company that (a) is not a Credit Party, (b) has aggregate assets
of less than One Hundred Thousand Dollars ($100,000), and (c) has no direct or indirect
Subsidiaries with aggregate assets for such Company and all such Subsidiaries of more than One
Hundred Thousand Dollars ($100,000).

     “Eligible Transferee” means a commercial bank, financial institution or other “accredited
investor” (as defined in SEC Regulation D) that is not (a) a Borrower, a Subsidiary or an
Affiliate, or (b) a competitor (or any affiliate of a competitor) of a Company or of an Affiliate.

     “Environmental Laws” means all provisions of law (including the common law), statutes,
ordinances, codes, rules, guidelines, policies, procedures, orders in council, regulations,
permits, licenses, judgments, writs, injunctions, decrees, orders, awards and standards promulgated
by a Governmental Authority or by any court, agency, instrumentality, regulatory authority or
commission of any of the foregoing concerning environmental health or safety and protection of, or
regulation of the handling, or the discharge or release of, substances and Hazardous Material into,
the environment. With respect to Core Mexico, the term “Environmental Laws” shall also include,
without limitation, Mexico’s Ley General del Equilibrio Ecológico y la Protección al Ambiente,
Mexico’s Ley de Aguas Nacionales, Mexico’s Ley General para la Prevención y Gestión Integral de los
Residuos, Mexico’s Ley General de Salud, and their respective regulations, as well as Mexico’s
Reglamento Federal de Seguridad, Higiene y Medio Ambiente en el Trabajo, and Mexican official norms
(“normas oficiales mexicanas”), as each of the foregoing have been amended or supplemented or may
be amended or supplemented from time to time.

     “Environmental Permits” means all permits, licenses, authorizations, certificates, approvals
or registrations required by any Governmental Authority under any Environmental Laws.

     “Equipment” means all equipment, as defined in the U.C.C.

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

     “ERISA Event” means (a) the existence of a condition or event with respect to an ERISA Plan
that presents a significant risk of the imposition of an excise tax or any other material liability
on a Company or of the imposition of a Lien on the assets of a Company; (b) the engagement by a
Controlled Group member in a non-exempt “prohibited transaction” (as defined under ERISA Section
406 or Code Section 4975) or a breach of a fiduciary duty under ERISA that, in either case, could
result in a material liability to a Company; (c) the application by a Controlled Group member for a
waiver from the minimum funding requirements of Code Section 412 or ERISA Section 302 or a
Controlled Group member is required to provide security under Code Section 401(a)(29) or ERISA
Section 307; (d) the occurrence of a Reportable Event with respect to any Pension Plan as to which
PBGC Form 10 or Form 10 Advance notice is required to be provided to the PBGC; (e) the withdrawal
by a Controlled Group member from a Multiemployer Plan in a “complete withdrawal” or a “partial
withdrawal” (as such terms are defined in ERISA Sections 4203 and 4205, respectively); (f) the
involvement of, or occurrence

12

 

or existence of any event or condition that makes likely the involvement of, a Multiemployer Plan
in any reorganization under ERISA Section 4241; (g) the failure of an ERISA Plan (and any related
trust) that is intended to be qualified under Code Sections 401 and 501 to be so qualified or the
failure of any “cash or deferred arrangement” under any such ERISA Plan to meet the requirements of
Code Section 401(k) and such failure exposes or could expose a Company to a material liability; (h)
the taking by the PBGC of any steps to terminate a Pension Plan or appoint a trustee to administer
a Pension Plan, or the taking by a Controlled Group member of any steps to terminate a Pension
Plan; (i) the failure by a Controlled Group member or an ERISA Plan to satisfy any material
requirements of law applicable to an ERISA Plan; (j) the commencement, existence or threatening of
a material claim, action, suit, audit or investigation with respect to an ERISA Plan, other than a
routine claim for benefits; or (k) any incurrence by or any expectation of the incurrence by a
Controlled Group member of any material liability for post-retirement benefits under any Welfare
Plan, other than as required by ERISA Section 601, et. seq. or Code Section 4980B
other than limited payment in connection with severance benefits or with respect to senior
executives of a Company.

     “ERISA Plan” means an “employee benefit plan” (within the meaning of ERISA Section 3(3)) that
a Controlled Group member at any time sponsors, maintains, contributes to, has liability with
respect to or has an obligation to contribute to such plan.

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

     “Eurodollar” means a Dollar denominated deposit in a bank or branch outside of the United
States.

     “Eurodollar Loan” means a Capex Draw Loan described in Section 2.4(a) hereof, or a portion of
the Capex Term Loan described in Section 2.4(b) hereof, that shall be denominated in Dollars and on
which Core Molding shall pay interest at a rate based on the Derived Eurodollar Rate.

     “Eurodollar Rate” means, with respect to a Eurodollar Loan, for any Interest Period, a rate
per annum equal to the quotient obtained by dividing (a) the rate of interest, determined by Agent
in accordance with its usual procedures (which determination shall be conclusive absent manifest
error) as of approximately 11:00 A.M. (London time) two Business Days prior to the beginning of
such Interest Period pertaining to such Eurodollar Loan, as listed on British Bankers Association
Interest Rate LIBOR 01 or 02 as provided by Reuters or Bloomberg (or, if for any reason such rate
is unavailable from Reuters or Bloomberg, from any other similar company or service that provides
rate quotations comparable to those currently provided by Reuters or Bloomberg) as the rate in the
London interbank market for Dollar deposits in immediately available funds with a maturity
comparable to such Interest Period, provided that, in the event that such rate quotation is not
available for any reason, then the Eurodollar Rate shall be the average of the per annum rates at
which deposits in immediately available funds in Dollars for the relevant Interest Period and in
the amount of the Eurodollar Loan to be disbursed or to remain outstanding during such Interest
Period, as the case may be, are offered to Agent (or an affiliate of Agent, in Agent’s discretion)
by prime banks in any Eurodollar market reasonably

13

 

selected by Agent, determined as of 11:00 A.M. (London time) (or as soon thereafter as
practicable), two Business Days prior to the beginning of the relevant Interest Period pertaining
to such Eurodollar Loan; by (b) 1.00 minus the Reserve Percentage.

     “Event of Default” means an event or condition that shall constitute an event of default as
defined in Article VII hereof.

     “Excluded Taxes” means, in the case of Agent and each Lender, taxes imposed on or measured by
its overall net income or branch profits, and franchise taxes imposed on it (in lieu of net income
taxes), by the jurisdiction (or any political subdivision thereof) under the laws of which Agent or
such Lender, as the case may be, is organized or in which its principal office is located, or, in
the case of any Lender, in which its applicable lending office is located.

     “Existing IDRB Mortgage” means each Open-End Mortgage, Assignment of Leases and Rents and
Security Agreement (or deed of trust or comparable document), dated prior to the Closing Date,
relating to the Domestic Real Property, executed and delivered by Core Molding to further secure
the obligations of Core Molding under the IDRB Documents, as each may have been amended and as the
same may from time to time be further amended, restated or otherwise modified.

     “Existing Letter of Credit” means that term as defined in Section 2.2(b)(vii) hereof.

     “Federal Funds Effective Rate” means, for any day, the rate per annum (rounded upward to the
nearest one one-hundredth of one percent (1/100 of 1%)) announced by the Federal Reserve Bank of
New York (or any successor) on such day as being the weighted average of the rates on overnight
federal funds transactions arranged by federal funds brokers on the previous trading day, as
computed and announced by such Federal Reserve Bank (or any successor) in substantially the same
manner as such Federal Reserve Bank computes and announces the weighted average it refers to as the
“Federal Funds Effective Rate” as of the Closing Date.

     “Financial Officer” means any of the following officers: chief executive officer, president,
chief financial officer or treasurer. Unless otherwise qualified, all references to a Financial
Officer in this Agreement shall refer to a Financial Officer of Core Molding.

     “Fixed Charge Coverage Ratio” means, as determined for the most recently completed four fiscal
quarters of Core Molding, on a Consolidated basis and in accordance with GAAP, the ratio of (a)
Consolidated EBITDA to (b) Consolidated Fixed Charges.

     “Foreign Benefit Plan” means each material plan, fund, program or policy established under the
law of a jurisdiction other than the United States (or a state or local government thereof),
whether formal or informal, funded or unfunded, insured or uninsured, providing employee benefits,
including medical, hospital care, dental, sickness, accident, disability, life insurance, pension,
retirement or savings benefits, under which one or more Companies have any liability with respect
to any employee or former employee, but excluding any Foreign Pension Plan.

14

 

     “Foreign Guarantor of Payment” means each of the Companies set forth on Schedule 2
hereto that shall have been designated a “Foreign Guarantor of Payment”, that are each executing
and delivering a Guaranty of Payment, or any other Foreign Subsidiary that shall execute and
deliver a Guaranty of Payment to Agent subsequent to the Closing Date.

     “Foreign Pension Plan” means a pension plan required to be registered under the law of a
jurisdiction other than the United States (or a state or local government thereof), that is
maintained or contributed to by one or more Companies for their employees or former employees.

     “Foreign Subsidiary” means a Subsidiary that is organized under the laws of any jurisdiction
other than the United States, any State thereof or the District of Columbia.

     “Fronting Lender” means, as to any Letter of Credit transaction hereunder, Agent as issuer of
the Letter of Credit, or, in the event that Agent either shall be unable to issue or shall agree
that another Lender may issue, a Letter of Credit, such other Lender as shall agree to issue the
Letter of Credit in its own name, but in each instance on behalf of the Lenders hereunder.

     “GAAP” means generally accepted accounting principles in the United States as then in effect,
which shall include the official interpretations thereof by the Financial Accounting Standards
Board, applied on a basis consistent with the past accounting practices and procedures of Core
Molding, except with respect to Core Mexico, in which case, “GAAP” means, as may be applicable
depending on the date of applicability thereof, (a) the generally accepted accounting principles
issued by the Mexican Institute of Public Accountants (Instituto Mexicano de Contadores Públicos)
applied in a consistent basis using the same policies, procedures, judgments, assumption,
estimates, methodologies and calculations by the Companies to each period covered thereby, or (b)
the Financial Information Norms (Normas de Información Financiera) issued by the Mexican Council
for the Research and Development of Financial Information Norms (Normas de Información Financiera
publicadas por el Consejo Mexicano para la Investigación y Desarrollo de Normas de Información
Financiera, A.C.).

     “Governmental Approvals” mean, collectively, all consents, licenses and permits, and all other
authorizations or approvals required from any Governmental Authority for the Construction in
accordance with the Plans and Specifications.

     “Governmental Authority” means any nation or government, any state, province or territory or
other political subdivision thereof, any governmental agency, department, authority,
instrumentality, regulatory body, court, central bank or other governmental entity exercising
executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining
to government, any securities exchange and any self-regulatory organization exercising such
functions.

     “Guaranteed Obligations” means that term as defined in Section 10.1 hereof.

     “Guarantor” means a Person that shall have pledged its credit or property in any manner for
the payment or other performance of the indebtedness, contract or other obligation of another

15

 

and includes (without limitation) any guarantor (whether of payment or of collection), surety,
co-maker, endorser or Person that shall have agreed conditionally or otherwise to make any
purchase, loan or investment in order thereby to enable another to prevent or correct a default of
any kind.

     “Guarantor of Payment” means a Domestic Guarantor of Payment or Foreign Guarantor of Payment,
or any other Person that shall execute and deliver a Guaranty of Payment to Agent subsequent to the
Closing Date.

     “Guaranty of Payment” means each Guaranty of Payment executed and delivered on or after the
Closing Date in connection with this Agreement by the Guarantors of Payment, as the same may from
time to time be amended, restated or otherwise modified.

     “Hazardous Material” means petroleum and petroleum products, and compounds containing them,
including, without limitation, gasoline, diesel fuel and oil, toxic, corrosive, infectious,
carcinogenic, mutagenic, explosive and flammable materials, substances, or wastes, or any
constituents thereof, radioactive materials, polychlorinated biphenyls and compounds containing
them, lead and lead-based paint, asbestos or asbestos-containing materials in any form that is or
could become friable, urea formaldehyde foam insulation, radon gas, and any substance, material or
waste (whether solid, liquid or gas) which is or becomes regulated by or under any Environmental
Law.

     “Hedge Agreement” means any (a) hedge agreement, interest rate swap, cap, collar or floor
agreement, or other interest rate management device entered into by a Company with any Person in
connection with any Indebtedness of such Company, or (b) currency swap agreement, forward currency
purchase agreement or similar arrangement or agreement designed to protect against fluctuations in
currency exchange rates entered into by a Company with any Person.

     “IDRB Bonds” means the South Carolina Jobs-Economic Development Authority Multi-Mode Variable
Rate Industrial Development Revenue Bonds, Series 1998 (Core Materials Corporation Project).

     “IDRB Documents” means the IDRB Letter of Credit, the Indenture, and any other document
executed by Core Molding in connection with the issuance and sale of the IDRB Bonds.

     “IDRB Letter of Credit” means that certain Irrevocable Transferrable Letter of Credit No.
S98/95374 that was issued on or about May 7, 1998 in favor of The Huntington National Bank, as
trustee, by KeyBank for the benefit of Core Molding, including amendments thereto, if any, in the
amount, as of the Closing Date, of IDRB Letter of Credit Commitment, which letter of credit matures
on April 17, 2013, as such letter of credit may from time to time be amended or replaced.

     “IDRB Letter of Credit Commitment” means the obligation hereunder of the Fronting Lender, on
behalf of the Lenders, to honor draws with respect to the IDRB Letter of Credit to

16

 

Core Molding in the aggregate undrawn Dollar amount of Three Million Three Hundred Thirty-Two
Thousand Four Hundred Ninety-Three and 15/100 Dollars ($3,332,493.15).

     “IDRB Letter of Credit Exposure” means, at any time, the sum of (a) the aggregate undrawn
amount of the IDRB Letter of Credit, and (b) the aggregate of the draws made on the IDRB Letter of
Credit that have not been reimbursed by Core Molding.

     “Improvements” means the improvements described in the Plans and Specifications, offsite
improvements and any existing improvements not to be demolished.

     “In-Balance” means such term as defined in Section 12.5 hereof.

     “Indebtedness” means, for any Company, without duplication, (a) all obligations to repay
borrowed money, direct or indirect, incurred, assumed, or guaranteed, (b) all obligations for the
deferred purchase price of property or services (other than trade accounts payable in the ordinary
course of business), (c) all obligations under conditional sales or other title retention
agreements, (d) all obligations (contingent or otherwise) under any letter of credit or banker’s
acceptance, (e) all net obligations under any currency swap agreement, interest rate swap, cap,
collar or floor agreement or other interest rate management device or any Hedge Agreement, (f) all
synthetic leases, (g) all Capitalized Lease Obligations, (h) all obligations of such Company with
respect to asset securitization financing programs to the extent that there is recourse against
such Company or such Company is liable (contingent or otherwise) under any such program, (i) all
obligations to advance funds to, or to purchase assets, property or services from, any other Person
in order to maintain the financial condition of such Person, (j) all indebtedness of the types
referred to in subparts (a) through (i) above of any partnership or joint venture (other than a
joint venture that is itself a corporation or limited liability company) in which such Company is a
general partner or joint venturer, unless such indebtedness is expressly made non-recourse to such
Company, (k) any other transaction (including forward sale or purchase agreements) having the
commercial effect of a borrowing of money entered into by such Company to finance its operations or
capital requirements, and (l) any guaranty of any obligation described in subparts (a) through (k)
hereof.

     “Indenture” means that certain Trust Indenture between South Carolina Job-Economic Development
Authority and The Huntington National Bank, as trustee, dated as of April 1, 1998.

     “Intellectual Property Security Agreement” means an Intellectual Property Security Agreement
executed and delivered on or after the Closing Date by Core Molding or a Domestic Guarantor of
Payment, wherein such Borrower or Guarantor of Payment, as the case may be, has granted to Agent,
for the benefit of the Lenders, a security interest in all intellectual property owned by such
Borrower or Domestic Guarantor of Payment, as the same may from time to time be amended, restated
or otherwise modified.

     “Interest Adjustment Date” means the last day of each Interest Period.

     “Interest Period” means, with respect to a Eurodollar Loan, the period commencing on the date
such Eurodollar Loan is made and ending on the last day of such period, as selected by
Administrative Borrower pursuant to the provisions hereof, and thereafter (unless such

17

 

Eurodollar Loan is converted to a Base Rate Loan) each subsequent period commencing on the last day
of the immediately preceding Interest Period and ending on the last day of such period, as selected
by Administrative Borrower pursuant to the provisions hereof. The duration of each Interest Period
for a Eurodollar Loan shall be one month, as Administrative Borrower may select upon notice, as set
forth in Section 2.9 hereof; provided that, if Administrative Borrower shall fail to so select the
duration of any Interest Period for a Eurodollar Loan at least three Business Days prior to the
Interest Adjustment Date applicable to such Eurodollar Loan, Borrowers shall be deemed to have
converted such Eurodollar Loan to a Base Rate Loan at the end of the then current Interest Period.

     “Inventory” means all inventory, as defined in the U.C.C.

     “KeyBank” means KeyBank National Association, and its successors and assigns.

     “Landlord’s Waiver” means a landlord’s waiver or mortgagee’s waiver, each in form and
substance satisfactory to Agent, delivered by a Company in connection with this Agreement, as such
waiver may from time to time be amended, restated or otherwise modified.

     “Lease” means that certain Lease Purchase Agreement between Cherokee County, South Carolina,
as lessor, and Core Molding, as lessee, dated as of December 1, 1998, and recorded December 31,
1998 at Deed Book 41, Page 171 of Cherokee County, South Carolina Records, and re-recorded February
11, 1999 at Deed Book 45, Page 4 of Cherokee County, South Carolina Records.

     “Leasehold Mortgage” means each Leasehold Mortgage, Assignment of Leases and Rents and Fixture
Filing (or comparable document), dated on or after the Closing Date, relating to the Lease,
executed and delivered by Core Molding, to further secure the Obligations, as the same may from
time to time be amended, restated or otherwise modified.

     “Lender” means that term as defined in the first paragraph hereof and, as the context
requires, shall include the Fronting Lender and the Swing Line Lender.

     “Letter of Credit” means a commercial documentary letter of credit or standby letter of credit
that shall be issued by the Fronting Lender for the account of Core Molding or a Domestic Guarantor
of Payment, including amendments thereto, if any, and shall have an expiration date no later than
the earlier of (a) one year after its date of issuance (provided that such Letter of Credit may
provide for the renewal thereof for additional one year periods), or (b) thirty (30) days prior to
the last day of the Commitment Period for the Revolving Credit Commitment.

     “Letter of Credit Commitment” means the commitment of the Fronting Lender, on behalf of the
Lenders, to issue Letters of Credit in an aggregate face amount of up to One Hundred Thousand
Dollars ($100,000).

     “Letter of Credit Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of
all issued and outstanding Letters of Credit, and (b) the aggregate of the draws made

18

 

on Letters of Credit that have not been reimbursed by Core Molding or converted to a Revolving Loan
pursuant to Section 2.2(b)(v) hereof.

     “Leverage Ratio” means, as determined on a Consolidated basis and in accordance with GAAP, the
ratio of (a) Consolidated Funded Indebtedness (as determined on the last day of the most recently
completed fiscal quarter of Core Molding), to (b) Consolidated EBITDA (for the most recently
completed four fiscal quarters of Core Molding).

     “Lien” means any mortgage, deed of trust, security interest, security trust (fideicomiso de
garantía), lien (statutory or other), charge, assignment, hypothecation, encumbrance on, pledge or
deposit of, or conditional sale, leasing (other than operating leases), sale with a right of
redemption or other title retention agreement, any capitalized lease with respect to any property
(real or personal) or asset, and any device (including, without limitation, a foreign trust or
joint venture) established for the purpose of setting aside funds to facilitate payments to any
Person or group of Persons.

     “Loan” means (a) a Revolving Loan, a Swing Loan, the Term Loan or a Capex Loan granted to Core
Molding by the Lenders in accordance with Section 2.2(a), 2.2(c), 2.3 or 2.4 hereof, or (b) the
Mexican Loan granted to Core Mexico by the Lenders in accordance with Section 2.5 hereof.

     “Loan Documents” means, collectively, this Agreement, each Note, each Guaranty of Payment, all
documentation relating to each Letter of Credit, the IDRB Documents, each Security Document, the
Agent Fee Letter and the Closing Fee Letter, as any of the foregoing may from time to time be
amended, restated or otherwise modified or replaced, and any other document delivered pursuant
thereto.

     “Major Subcontract” means any subcontract between the Construction Contractor and any
subcontractor or material supplier that provides for an aggregate contract price equal to or
greater than Five Hundred Thousand Dollars ($500,000).

     “Major Subcontractor” means any subcontractor under a Major Subcontract.

     “Management Fees” means management, consulting or other similar fees paid by any Company to
any Affiliate of any Company.

     “Mandatory Prepayment” means that term as defined in Section 2.14(e) hereof.

     “Material Adverse Effect” means a material adverse effect on (a) the business, assets,
liabilities (actual or contingent), operations, condition (financial or otherwise) or prospects of
any Borrower, (b) the business, assets, liabilities (actual or contingent), operations, condition
(financial or otherwise) or prospects of the Companies taken as a whole, (c) the rights and
remedies of Agent or the Lenders under any Loan Document, (d) the ability of any Credit Party to
perform its obligations under any Loan Document to which it is a party, or (e) the legality,
validity, binding effect or enforceability against any Credit Party of any Loan Document to which
it is a party.

19

 

     “Material Indebtedness Agreement” means any debt instrument, lease (capital, operating or
otherwise), guaranty, contract, commitment, agreement or other arrangement evidencing or entered
into in connection with any Indebtedness of any Company or the Companies equal to or in excess of
the amount of Five Hundred Thousand Dollars ($500,000).

     “Material Recovery Determination Notice” means that term as defined in Section 2.14(e) hereof.

     “Material Recovery Event” means (a) any casualty loss in respect of assets of a Company
covered by casualty insurance, and (b) any compulsory transfer or taking under threat of compulsory
transfer of any asset of a Company by any Governmental Authority; provided that, in the case of
either (a) or (b), the proceeds received by the Companies from such loss, transfer or taking
exceeds One Hundred Thousand Dollars ($100,000).

     “Maximum Amount” means, for each Lender, the amount set forth opposite such Lender’s name
under the column headed “Maximum Amount” as set forth on Schedule 1 hereto, subject to
decreases determined pursuant to Section 2.12(e) hereof, and assignments of interests pursuant to
Section 11.10 hereof; provided that the Maximum Amount for the Swing Line Lender shall exclude the
Swing Line Commitment (other than its pro rata share), and the Maximum Amount of the Fronting
Lender shall exclude the Letter of Credit Commitment (other than its pro rata share).

     “Maximum Capex Draw Amount” means Twelve Million Dollars ($12,000,000).

     “Maximum Mexican Draw Amount” means Eight Million Dollars ($8,000,000).

     “Maximum Rate” means that term as defined in Section 2.7(i) hereof.

     “Maximum Revolving Amount” means Eight Million Dollars ($8,000,000), as such amount may be
reduced pursuant to Section 2.12(e) hereof.

     “Mexican Draw Disbursement” means a disbursement to Core Mexico by the Lenders in accordance
with Section 2.5(a) hereof.

     “Mexican Draw Exposure” means, at any time, the aggregate principal amount of all Mexican Draw
Disbursements outstanding.

     “Mexican Line Conversion Date” means May 31, 2009.

     “Mexican Loan” means the Loan granted to Core Mexico in the original principal amount of Eight
Million Dollars ($8,000,000), to be disbursed to Core Mexico pursuant to Section 2.9(b) hereof
prior to the Mexican Line Conversion Date, in accordance with Section 2.5 hereof.

     “Mexican Loan Commitment” means the obligation hereunder of the Lenders to make the Mexican
Loan.

20

 

     “Mexican Mortgage” means the Mexican law First Priority and Ranking Mortgage (or comparable
document), dated on or after the Closing Date, relating to the Mexican Real Property and the
Mexican Project, executed and delivered by Core Mexico to secure the Mexican Note, as the same may
from time to time be amended, restated or otherwise modified.

     “Mexican Note” means the Mexican Note of Core Mexico (which qualifies as pagaré under Mexican
law) and payable to KeyBank, in the form of the attached Exhibit E, executed and delivered
pursuant to Section 2.6(e) hereof.

     “Mexican Project” means the land acquisition and construction of a manufacturing plant in
Matamoros, Mexico, at the location set forth on Schedule 3(b) hereto, including the
Improvements, all rights, privileges, easements and hereditaments relating or appertaining thereto,
and all personal property, fixtures and equipment required or beneficial for the operation thereof.

     “Mexican Project Draw Request” means a Mexican Project Draw Request in the form of the
attached Exhibit G.

     “Mexican Project Loan Opening” means the first disbursement of the proceeds of the Capex Loans
or the Mexican Loan.

     “Mexican Real Property” means the real estate owned by Core Mexico, as set forth on
Schedule 3(b) hereto, together with all improvements and buildings thereon and all
appurtenances, easements or other rights thereto belonging, and being defined collectively as the
“Property” in the Mexican Mortgage.

     “Mexican Security Agreement” means the Mexican law “pledge without transfer of possession” in
form and substance satisfactory to Agent, whereby a first priority pledge is created over any and
all existing and future chattels, tangible and intangible assets, personal property, rights,
proceeds located in Mexico and Mexican registered intellectual property of Core Molding and Core
Composites Corporation, as the case may be, to secure any and all Secured Obligations.

     “Mexican Stock Pledge Agreement” means a Mexican law equity interest pledge agreement,
relating to the equity interests property of Core Molding or a Domestic Guarantor of Payment
representing sixty-five percent (65%) of the equity capital of Core Mexico, executed by Core
Molding or a Domestic Guarantor of Payment, as the same may from time to time amended, restated or
otherwise modified.

     “Moody’s” means Moody’s Investors Service, Inc., and any successor to such company.

     “Mortgage” means a Domestic Mortgage or the Mexican Mortgage.

     “Multiemployer Plan” means a Pension Plan that is subject to the requirements of Subtitle E of
Title IV of ERISA.

21

 

     “Non-Credit Party” means a Company that is not a Credit Party.

     “Non-Credit Party Exposure” means the aggregate amount, incurred on or after the Closing Date,
of loans by a Credit Party to, investments by a Credit Party in, guaranties by a Credit Party of
Indebtedness of, and Letters of Credit issued to or for the benefit of, a Foreign Subsidiary that
is a Non-Credit Party.

     “Non-U.S. Lender” means that term as defined in Section 3.2(d) hereof.

     “Note” means a Revolving Credit Note, the Swing Line Note, the Term Note, a Capex Note, or the
Mexican Note, or any other promissory note delivered pursuant to this Agreement.

     “Notice of Loan” means a Notice of Loan in the form of the attached Exhibit F.

     “Obligations” means, collectively, (a) all Indebtedness and other obligations now owing or
hereafter incurred by one or more Borrowers to Agent, the Swing Line Lender, the Fronting Lender,
or any Lender (or any affiliate thereof) pursuant to this Agreement and the other Loan Documents,
and includes the principal of and interest on all Loans and all obligations pursuant to Letters of
Credit and the IDRB Letter of Credit; (b) each renewal, extension, consolidation or refinancing of
any of the foregoing, in whole or in part; (c) the commitment and other fees, and any prepayment
fees payable pursuant to this Agreement or any other Loan Documents; (d) all fees and charges in
connection with the Letters of Credit; (e) every other liability, now or hereafter owing to Agent
or any Lender by any Company pursuant to this Agreement or any other Loan Document; and (f) all
Related Expenses.

     “Organizational Documents” means, with respect to any Person (other than an individual), such
Person’s Articles (Certificate) of Incorporation, operating agreement or equivalent formation
documents, its estatutos sociales and Regulations (Bylaws), or equivalent governing documents, and
any amendments to any of the foregoing.

     “Other Taxes” means any and all present or future stamp or documentary taxes or any other
excise, ad valorem or property taxes, goods and services taxes, harmonized sales taxes and other
sales taxes, use taxes, value added taxes, charges or similar taxes or levies arising from any
payment made hereunder or from the execution, delivery, registration, recording or enforcement of,
or otherwise with respect to, this Agreement or any other Loan Document.

     “Participant” means that term as defined in Section 11.11 hereof.

     “Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001, USA Patriot Act, Title III of Pub. L.
107-56, signed into law October 26, 2001, as amended from time to time.

     “PBGC” means the Pension Benefit Guaranty Corporation, and its successor.

     “Pension Plan” means an ERISA Plan that is a “pension plan” (within the meaning of ERISA
Section 3(2)).

22

 

     “Permitted Exceptions” means those matters listed on Schedule B to the Title Policy to which
title to the Mexican Project may be subject at the Mexican Project Loan Opening, and thereafter
such other title exceptions as Agent may reasonably approve in writing.

     “Permitted Foreign Subsidiary Loans and Investments” means:

     (a) the investments by Core Molding or a Domestic Subsidiary in a Foreign Subsidiary,
existing as of the Closing Date and set forth on Schedule 5.11 hereto;

     (b) the loans by Core Molding or a Domestic Subsidiary to a Foreign Subsidiary, in such
amounts existing as of the Closing Date and set forth on Schedule 5.11 hereto (and
any extension, renewal or refinancing thereof but, only to the extent that the principal
amount thereof does not increase after the Closing Date);

     (c) any investment by a Foreign Subsidiary in, or loan from a Foreign Subsidiary to, or
guaranty from a Foreign Subsidiary of Indebtedness of, a Company that is a Credit Party;

     (d) any investment or loan by Core Molding or a Domestic Subsidiary in or to, or
guaranty from Core Molding or a Domestic Subsidiary of Indebtedness of, Core Mexico, made
after the Closing Date, up to the aggregate amount of (i) at any time for the period
commencing with the Closing Date through December 31, 2009, Twelve Million Dollars
($12,000,000), and (ii) at any time for the period during any fiscal year commencing after
December 31, 2009, the sum of (A) Twelve Million Dollars ($12,000,000) plus (B) Three
Million Dollars ($3,000,000) for each fiscal year commencing after December 31, 2009;

     (e) any Non-Credit Party Exposure incurred after the Closing Date, up to the aggregate
amount of Five Hundred Thousand Dollars ($500,000) for such Non-Credit Party, so long as the
Non-Credit Party Exposure and loans by all Credit Parties to all Non-Credit Parties incurred
pursuant to this subpart (e) does not exceed the aggregate amount of Five Hundred Thousand
Dollars ($500,000) at any time outstanding; and

     (f) any investment by a Foreign Subsidiary that is a Non-Credit Party in, or loan by a
Foreign Subsidiary that is a Non-Credit Party to, a Company.

     “Permitted Investment” means:

     (a) the investments of a Company in the stock (or other debt or equity instruments) of
a Person (other than a Company) existing as of the Closing Date and as set forth on
Schedule 5.11 hereto; and

     (b) an investment of a Company in the stock (or other debt or equity instruments) of a
Person (other than a Company), so long as (i) the Company making the investment is a Credit
Party; and (ii) the aggregate amount of all such investments of all

23

 

Companies made after the Closing Date does not exceed, at any time, an aggregate amount (as
determined when each such investment is made) of Five Hundred Thousand Dollars ($500,000).

     “Person” means any individual, sole proprietorship, partnership, joint venture, unincorporated
organization, corporation, limited liability company, unlimited liability company, institution,
trust, estate, Governmental Authority or any other entity.

     “Plans and Specifications” means the reasonably detailed plans and specifications for the
Improvements, as approved by Agent, and as modified hereafter with Agent’s prior written approval
or as otherwise expressly permitted by this Agreement.

     “Pledge Agreement” means each of the Pledge Agreements, relating to the Pledged Securities,
executed and delivered by a Borrower or a Guarantor of Payment, as applicable, in favor of Agent,
for the benefit of the Lenders, dated as of the Closing Date, and any other Pledge Agreement
executed by any other Domestic Subsidiary on or after the Closing Date, as any of the foregoing may
from time to time be amended, restated or otherwise modified.

     “Pledged Securities” means all of the shares of capital stock or other equity interest of a
Subsidiary of Core Molding, whether now owned or hereafter acquired or created, and all proceeds
thereof; provided that Pledged Securities that secure Secured Obligations of Core Molding shall
only include up to sixty-five percent (65%) of the shares of voting capital stock or other voting
equity interest of any first-tier Foreign Subsidiary and shall not include any Foreign Subsidiary
other than a first-tier Foreign Subsidiary. Schedule 5 hereto lists, as of the Closing
Date, all of the Pledged Securities.

     “Prime Rate” means the interest rate established from time to time by Agent as Agent’s prime
rate, whether or not such rate shall be publicly announced; the Prime Rate may not be the lowest
interest rate charged by Agent for commercial or other extensions of credit. Each change in the
Prime Rate shall be effective immediately from and after such change.

     “Processor’s Waiver” means a processor’s waiver, in form and substance reasonably satisfactory
to Agent, delivered by a Company in connection with this Agreement, as such waiver may from time to
time be amended, restated or otherwise modified.

     “Project Completion Date” means May 31, 2009, subject to extension pursuant to Section 5.28(a)
hereof.

     “Register” means that term as described in Section 11.10(i) hereof.

     “Regularly Scheduled Payment Date” means the first day of each calendar month.

     “Reimbursement Agreement” means that certain Reimbursement Agreement, dated as of the 1st day
of April, 1998, as amended and restated on the date hereof, by and between Core Molding and
KeyBank, as the same may from time to time be further amended, restated or otherwise modified or
replaced.

24

 

     “Related Expenses” means any and all costs, liabilities and expenses (including, without
limitation, losses, damages, penalties, claims, actions, reasonable attorneys’ fees, legal
expenses, judgments, suits and disbursements) (a) incurred by Agent, or imposed upon or asserted
against Agent or any Lender, in any attempt by Agent and the Lenders to (i) obtain, preserve,
perfect or enforce any Loan Document or any security interest evidenced by any Loan Document; (ii)
obtain payment, performance or observance of any and all of the Obligations; or (iii) maintain,
insure, audit, collect, preserve, repossess or dispose of any of the collateral securing the
Obligations or any part thereof, including, without limitation, costs and expenses for appraisals,
assessments and audits of any Company or any such collateral; or (b) incidental or related to (a)
above, including, without limitation, interest thereupon from the date incurred, imposed or
asserted until paid at the Default Rate.

     “Related Writing” means each Loan Document and any other assignment, mortgage, security
agreement, guaranty agreement, subordination agreement, financial statement, audit report or other
writing furnished by any Credit Party, or any of its officers, to Agent or the Lenders pursuant to
or otherwise in connection with this Agreement.

     “Reportable Event” means any of the events described in Section 4043 of ERISA except where
notice is waived by the PBGC.

     “Request for Extension” means a notice, substantially in the form of the attached
Exhibit J.

     “Required Lenders” means the holders of more than fifty percent (50%) of the sum of (a) (i)
during the Commitment Period applicable to the Revolving Credit Commitment, the Maximum Revolving
Amount, or (ii) after such Commitment Period, the Revolving Credit Exposure; (b) the principal
outstanding under the Term Loan, (c) (A) during the Commitment Period applicable to the Capex Draw
Commitment, the Maximum Capex Draw Amount, or (B) after such Commitment Period, the principal
outstanding under the Capex Term Loan Commitment; (d) (1) during the Commitment Period applicable
to the Mexican Loan Commitment, the Maximum Mexican Draw Amount, or (2) after such Commitment
Period, the principal outstanding under the Mexican Loan Commitment; and (e) the IDRB Letter of
Credit Exposure.

     “Required Permits” mean each building permit, environmental permit, utility permit, land use
permit and any other permit, approval or license issued by any Governmental Authority that are
required in connection with the Construction or operation of the Mexican Project.

     “Requirement of Law” means, as to any Person, any law, treaty, rule or regulation or
determination or policy statement or interpretation of an arbitrator or a court or other
Governmental Authority, in each case applicable to or binding upon such Person or any of its
property.

     “Reserve Percentage” means, for any day, that percentage (expressed as a decimal) that is in
effect on such day, as prescribed by the Board of Governors of the Federal Reserve System (or

25

 

any successor) for determining the maximum reserve requirement (including, without limitation, all
basic, supplemental, marginal and other reserves and taking into account any transitional
adjustments or other scheduled changes in reserve requirements) for a member bank of the Federal
Reserve System in Cleveland, Ohio, in respect of Eurocurrency Liabilities. The Eurodollar Rate
shall be adjusted automatically on and as of the effective date of any change in the Reserve
Percentage.

     “Restricted Payment” means, with respect to any Company, (a) any Capital Distribution, (b) any
amount paid by such Company in repayment, redemption, retirement or repurchase, directly or
indirectly, of any Subordinated Indebtedness, or (c) any amount paid by such Company in respect of
Management Fees or other similar arrangement with any equity holder (other than a Company) of a
Company or Affiliate.

     “Revolving Credit Commitment” means the obligation hereunder, during the applicable Commitment
Periods, of (a) the Lenders to make Revolving Loans, (b) the Fronting Lender to issue and the
Lenders to participate in, Letters of Credit pursuant to the Letter of Credit Commitment, and (c)
the Swing Line Lender to make, and the Lenders to participate in, Swing Loans pursuant to the Swing
Line Commitment; up to an aggregate principal amount outstanding at any time equal to the Maximum
Revolving Amount.

     “Revolving Credit Exposure” means, at any time, the sum of (a) the aggregate principal amount
of all Revolving Loans outstanding, (b) the Swing Line Exposure, and (c) the Letter of Credit
Exposure.

     “Revolving Credit Note” means a Revolving Credit Note, in the form of the attached Exhibit
A, executed and delivered pursuant to Section 2.8(a) hereof.

     “Revolving Loan” means a Loan made to Core Molding by the Lenders in accordance with Section
2.2(a) hereof.

     “SEC” means the United States Securities and Exchange Commission, or any governmental body or
agency succeeding to any of its principal functions.

     “Secured Obligations” means, collectively, (a) the Obligations, (b) all obligations and
liabilities of the Companies owing to Lenders under Hedge Agreements, and (c) the Bank Product
Obligations owing to Lenders under Bank Product Agreements.

     “Security Agreement” means each Security Agreement, executed and delivered by a Borrower or
Guarantor of Payment in favor of Agent, for the benefit of the Lenders, dated as of the Closing
Date, and any other Security Agreement executed after the Closing Date, as the same may from time
to time be amended, restated or otherwise modified.

     “Security Documents” means each Security Agreement, each Pledge Agreement, each Intellectual
Property Security Agreement, each Mortgage, each Landlord’s Waiver, each Bailee’s Waiver, each
Control Agreement, each Mexican Stock Pledge Agreement, each Mexican Security Agreement, each
U.C.C. Financing Statement or similar filing as to a jurisdiction

26

 

located outside of the United States of America filed in connection herewith or perfecting any
interest created in any of the foregoing documents, and any other document pursuant to which any
Lien is granted by a Company or any other Person to Agent, for the benefit of the Lenders, as
security for the Secured Obligations, or any part thereof, and each other agreement executed in
connection with any of the foregoing, as any of the foregoing may from time to time be amended,
restated or otherwise modified or replaced.

     “Soil Report” means a soil test report prepared by a licensed engineer reasonably satisfactory
to Agent, indicating to the reasonable satisfaction of Agent that the soil and subsurface
conditions underlying the Mexican Project will support the Improvements.

     “Standard & Poor’s” means Standard & Poor’s Ratings Group, a division of McGraw-Hill, Inc.,
and any successor to such company.

     “Subordinated” means, as applied to Indebtedness, Indebtedness that shall have been
subordinated (by written terms or written agreement being, in either case, in form and substance
satisfactory to Agent and the Required Lenders) in favor of the prior payment in full of the
Obligations.

     “Subsidiary” means (a) a corporation more than fifty percent (50%) of the Voting Power of
which is owned, directly or indirectly, by a Borrower or by one or more other subsidiaries of such
Borrower or by such Borrower and one or more subsidiaries of such Borrower, (b) a partnership,
limited liability company or unlimited liability company of which a Borrower, one or more other
subsidiaries of such Borrower or such Borrower and one or more subsidiaries of such Borrower,
directly or indirectly, is a general partner or managing member, as the case may be, or otherwise
has an ownership interest greater than fifty percent (50%) of all of the ownership interests in
such partnership, limited liability company or unlimited liability company, or (c) any other Person
(other than a corporation, partnership, limited liability company or unlimited liability company)
in which a Borrower, one or more other subsidiaries of such Borrower or such Borrower and one or
more subsidiaries of such Borrower, directly or indirectly, has at least a majority interest in the
Voting Power or the power to elect or direct the election of a majority of directors or other
governing body of such Person. Unless otherwise specified, references to Subsidiary shall mean a
Subsidiary of Core Molding.

     “Swing Line Commitment” means the commitment of the Swing Line Lender to make Swing Loans to
Core Molding up to the aggregate amount at any time outstanding of One Million Dollars
($1,000,000).

     “Swing Line Exposure” means, at any time, the aggregate principal amount of all Swing Loans
outstanding.

     “Swing Line Lender” means KeyBank, as holder of the Swing Line Commitment.

     “Swing Line Note” means the Swing Line Note, in the form of the attached Exhibit B,
executed and delivered pursuant to Section 2.8(b) hereof.

27

 

     “Swing Loan” means a loan that shall be denominated in Dollars granted to Core Molding by the
Swing Line Lender under the Swing Line Commitment, in accordance with Section 2.2(c) hereof.

     “Swing Loan Maturity Date” means the last day of the Commitment Period applicable to the
Revolving Credit Commitment.

     “Taxes” means any and all present or future taxes of any kind, including but not limited to,
levies, imposts, duties, surtaxes, charges, fees, deductions or withholdings now or hereafter
imposed, levied, collected, withheld or assessed by any Governmental Authority (together with any
interest, penalties, fines, additions to taxes or similar liabilities with respect thereto) other
than Excluded Taxes.

     “Term Loan” means the Loan granted to Core Molding by the Lenders in accordance with Section
2.3 hereof.

     “Term Loan Commitment” means the obligation hereunder of the Lenders to make the Term Loan in
the original principal amount of Two Million Six Hundred Seventy-Eight Thousand Five Hundred
Sixty-Three Dollars ($2,678,563).

     “Term Note” means a Term Note, in the form of the attached Exhibit C executed and
delivered pursuant to Section 2.8(c) hereof.

     “Total Commitment Amount” means the principal amount of Thirty-Four Million Eleven Thousand
Fifty-Six and 15/100 Dollars ($34,011,056.15), or such lesser amount as shall be determined
pursuant to Section 2.12(e) hereof.

     “U.C.C.” means the Uniform Commercial Code, as in effect from time to time in the State of
Ohio.

     “U.C.C. Financing Statement” means a financing statement filed or to be filed in accordance
with the Uniform Commercial Code, as in effect from time to time, in the relevant state or states.

     “Unavoidable Delay” means any delay in the construction of the Mexican Project, caused by
natural disaster, fire, earthquake, floods, explosion, extraordinary adverse weather conditions,
inability to procure or a general shortage of labor, equipment, facilities, energy, materials or
supplies in the open market, failure of transportation, strikes or lockouts for which Borrowers
have notified Agent and the Lenders in writing.

     “Voting Power” means, with respect to any Person, the exclusive ability to control, through
the ownership of shares of capital stock, partnership interests, membership interests or otherwise,
the election of members of the board of directors or other similar governing body of such Person.
The holding of a designated percentage of Voting Power of a Person means the ownership of shares of
capital stock, partnership interests, membership interests or other interests

28

 

of such Person sufficient to control exclusively the election of that percentage of the members of
the board of directors or similar governing body of such Person.

     “Waterfall” means that term as described in Section 8.8(b)(ii) hereof.

     “Welfare Plan” means an ERISA Plan that is a “welfare plan” within the meaning of ERISA
Section 3(l).

     Section 1.2. Accounting Terms. Any accounting term not specifically defined in this
Article I shall have the meaning ascribed thereto by GAAP.

     Section 1.3. Terms Generally. The foregoing definitions shall be applicable to the
singular and plural forms of the foregoing defined terms.

ARTICLE II. AMOUNT AND TERMS OF CREDIT

     Section 2.1. Amount and Nature of Credit.

     (a) Subject to the terms and conditions of this Agreement, the Lenders, during the applicable
Commitment Periods and to the extent hereinafter provided, shall make Loans to Borrowers,
participate in Swing Loans made by the Swing Line Lender to Core Molding and issue or participate
in Letters of Credit and the IDRB Letter of Credit at the request of Administrative Borrower, in
such aggregate amount as Borrowers shall request pursuant to the Commitment; provided that in no
event shall the aggregate principal amount of all Loans, Letters of Credit and the IDRB Letter of
Credit outstanding under this Agreement be in excess of the Total Commitment Amount.

     (b) Each Lender, for itself and not one for any other, agrees to make Loans, participate in
Swing Loans, and issue or participate in Letters of Credit and the IDRB Letter of Credit, during
the applicable Commitment Periods, on such basis that, immediately after the completion of any
borrowing by Borrowers or the issuance of a Letter of Credit or the IDRB Letter of Credit:

     (i) the aggregate outstanding principal amount of Loans made by such Lender (other than
Swing Loans made by the Swing Line Lender), when combined with such Lender’s pro rata share,
if any, of the Letter of Credit Exposure and the Swing Line Exposure, shall not be in excess
of the Maximum Amount for such Lender; and

     (ii) the aggregate outstanding principal amount of Loans (other than Swing Loans) made
by such Lender shall represent that percentage of the aggregate principal
amount then outstanding on all Loans (other than Swing Loans) that shall be such Lender’s
Commitment Percentage.

29

 

Each borrowing (other than Swing Loans which shall be risk participated on a pro rata basis) from
the Lenders shall be made pro rata according to the respective Commitment Percentages of the
Lenders.

     (c) The Loans may be made as Revolving Loans as described in Section 2.2(a) hereof, as the
Term Loan as described in Section 2.3 hereof, as Capex Draw Loans as described in Section 2.4(a)
hereof, as the Capex Term Loan as described in Section 2.4(b) hereof, as the Mexican Loan as
described in Section 2.5 hereof, and as Swing Loans as described in Section 2.2(c) hereof, and
Letters of Credit may be issued in accordance with Section 2.2(b) hereof and the IDRB Letter of
Credit has been issued in accordance with Section 2.6 hereof.

     Section 2.2. Revolving Credit.

     (a) Revolving Loans. Subject to the terms and conditions of this Agreement, during
the Commitment Period applicable to the Revolving Credit Commitment, the Lenders shall make a
Revolving Loan or Revolving Loans to Core Molding in such amount or amounts as Administrative
Borrower, through an Authorized Officer, may from time to time request, but not exceeding in
aggregate principal amount at any time outstanding hereunder the Maximum Revolving Amount, when
such Revolving Loans are combined with the Letter of Credit Exposure and the Swing Line Exposure.
Core Molding shall have the option, subject to the terms and conditions set forth herein, to borrow
Revolving Loans, maturing on the last day of the Commitment Period applicable to the Revolving
Credit Commitment, by means of any combination of Base Rate Loans or Daily LIBOR Loans. Subject to
the provisions of this Agreement, Borrowers shall be entitled under this Section 2.2(a) to borrow
funds, repay the same in whole or in part and re-borrow hereunder at any time and from time to time
during the Commitment Period applicable to the Revolving Credit Commitment.

     (b) Letters of Credit.

     (i) Generally. Subject to the terms and conditions of this Agreement, during
the Commitment Period applicable to the Revolving Credit Commitment, the Fronting Lender
shall, in its own name, on behalf of the Lenders, issue such Letters of Credit for the
account of Core Molding or a Domestic Guarantor of Payment, as Administrative Borrower may
from time to time request. Administrative Borrower shall not request any Letter of Credit
(and the Fronting Lender shall not be obligated to issue any Letter of Credit) if, after
giving effect thereto, (A) the Letter of Credit Exposure would exceed the Letter of Credit
Commitment, or (B) the Revolving Credit Exposure would exceed the Maximum Revolving Amount.
The issuance of each Letter of Credit shall confer upon each Lender the benefits and
liabilities of a participation consisting of an undivided pro rata interest in the Letter of
Credit to the extent of such Lender’s Commitment Percentage.

     (ii) Request for Letter of Credit. Each request for a Letter of Credit shall
be delivered to Agent (and to the Fronting Lender, if the Fronting Lender is a Lender other
than Agent) by an Authorized Officer not later than 11:00 A.M. (U.S. Eastern time) three
Business Days prior to the date of the proposed issuance of the Letter of Credit. Each

30

 

such
request shall be in a form acceptable to Agent (and the Fronting Lender, if the Fronting
Lender is a Lender other than Agent) and shall specify the face amount thereof, whether such
Letter of Credit is a commercial documentary or a standby Letter of Credit, the account
party, the beneficiary, the requested date of issuance, amendment, renewal or extension, the
expiry date thereof, and the nature of the transaction or obligation to be supported
thereby. Concurrently with each such request, Administrative Borrower, and any Domestic
Guarantor of Payment for whose account the Letter of Credit is to be issued, shall execute
and deliver to the Fronting Lender an appropriate application and agreement, being in the
standard form of the Fronting Lender for such letters of credit, as amended to conform to
the provisions of this Agreement if required by Agent. Agent shall give the Fronting Lender
and each Lender notice of each such request for a Letter of Credit.

     (iii) Commercial Documentary Letters of Credit. With respect to each Letter of
Credit that shall be a commercial documentary letter of credit and the drafts thereunder,
whether issued for the account of Core Molding or any Domestic Guarantor of Payment, Core
Molding agrees to pay to Agent issuance, amendment, renewal, negotiation, draw, acceptance,
telex, courier, postage and any other fees as are generally charged by Agent from time to
time.

     (iv) Standby Letters of Credit. With respect to each Letter of Credit that
shall be a standby letter of credit and the drafts thereunder, if any, whether issued for
the account of Core Molding or any Domestic Guarantor of Payment, Core Molding agrees to pay
to Agent issuance, amendment, renewal, negotiation, draw, acceptance, telex, courier,
postage and any other fees as are generally charged by Agent from time to time.

     (v) Refunding of Letters of Credit with Revolving Loans. Whenever a Letter of
Credit shall be drawn, Core Molding shall immediately reimburse the Fronting Lender for the
amount drawn. In the event that the amount drawn shall not have been reimbursed by
Borrowers on the date of the drawing of such Letter of Credit, at the sole option of Agent
(and the Fronting Lender, if the Fronting Lender is a Lender other than Agent), Core Molding
shall be deemed to have requested a Revolving Loan, subject to the provisions of Sections
2.2(a) and 2.9 hereof (other than the requirement set forth in Section 2.9(d) hereof), in
the amount drawn. Such Revolving Loan shall be evidenced by the Revolving Credit Notes (or,
if a Lender has not requested a Revolving Credit Note, by the records of Agent and such
Lender). Each Lender agrees to make a Revolving Loan on the date of such notice, subject to
no conditions precedent whatsoever. Each Lender acknowledges and agrees that its obligation
to make a Revolving Loan pursuant to Section 2.2(a) hereof when required by this Section
2.2(b)(v) shall be absolute and unconditional and shall not be affected by any circumstance
whatsoever, including, without limitation, the occurrence and continuance of a Default or
Event of Default, and that its payment to Agent, for the account of the Fronting Lender, of
the proceeds of such
Revolving Loan shall be made without any offset, abatement, recoupment, counterclaim,
withholding or reduction whatsoever and whether or not the Revolving Credit Commitment shall
have been reduced or terminated. Core Molding irrevocably authorizes and instructs Agent to
apply the proceeds of any borrowing pursuant to this

31

 

Section 2.2(b)(v) to reimburse, in full
(other than the Fronting Lender’s pro rata share of such borrowing), the Fronting Lender for
the amount drawn on such Letter of Credit. Each such Revolving Loan shall be deemed to be a
Base Rate Loan unless otherwise requested by and available to Core Molding hereunder. Each
Lender is hereby authorized to record on its records relating to its Revolving Credit Note
(or, if such Lender has not requested a Revolving Credit Note, its records relating to
Revolving Loans) such Lender’s pro rata share of the amounts paid and not reimbursed on the
Letters of Credit.

     (vi) Participation in Letters of Credit. If, for any reason, Agent (and the
Fronting Lender if the Fronting Lender is a Lender other than Agent) shall be unable to or,
in the opinion of Agent, it shall be impracticable to, convert any Letter of Credit to a
Revolving Loan pursuant to the preceding subsection, Agent (and the Fronting Lender if the
Fronting Lender is a Lender other than Agent) shall have the right to request that each
Lender fund a participation in the amount due with respect to such Letter of Credit, and
Agent shall promptly notify each Lender thereof (by facsimile or telephone, confirmed in
writing). Upon such notice, but without further action, the Fronting Lender hereby agrees
to grant to each Lender, and each Lender hereby agrees to acquire from the Fronting Lender,
an undivided participation interest in the amount due with respect to such Letter of Credit
in an amount equal to such Lender’s Commitment Percentage of the principal amount due with
respect to such Letter of Credit. In consideration and in furtherance of the foregoing,
each Lender hereby absolutely and unconditionally agrees, upon receipt of notice as provided
above, to pay to Agent, for the account of the Fronting Lender, such Lender’s ratable share
of the amount due with respect to such Letter of Credit (determined in accordance with such
Lender’s Commitment Percentage). Each Lender acknowledges and agrees that its obligation to
acquire participations in the amount due under any Letter of Credit that is drawn but not
reimbursed by Core Molding pursuant to this subsection (vi) shall be absolute and
unconditional and shall not be affected by any circumstance whatsoever, including, without
limitation, the occurrence and continuance of a Default or Event of Default, and that each
such payment shall be made without any offset, abatement, recoupment, counterclaim,
withholding or reduction whatsoever and whether or not the Revolving Credit Commitment shall
have been reduced or terminated. Each Lender shall comply with its obligation under this
subsection (vi) by wire transfer of immediately available funds, in the same manner as
provided in Section 2.9 hereof with respect to Revolving Loans. Each Lender is hereby
authorized to record on its records such Lender’s pro rata share of the amounts paid and not
reimbursed on the Letters of Credit. In addition, each Lender agrees to risk participate in
the Existing Letters of Credit as provided in subsection (vii) below.

     (vii) Existing Letters of Credit. Schedule 2.2 hereto contains a
description of all letters of credit outstanding on, and to continue in effect after, the
Closing Date. Each such letter of credit issued by a bank that is or becomes a Lender under
this Agreement on the Closing Date (each, an “Existing Letter of Credit”) shall constitute a
“Letter of
Credit” for all purposes of this Agreement, issued, for purposes of Section 2.2(b)(v)
hereof, on the Closing Date. Core Molding, Agent and the Lenders hereby agree that, from
and after such date, the terms of this Agreement shall apply to the Existing Letters

32

 

of
Credit, superseding any other agreement theretofore applicable to them to the extent
inconsistent with the terms hereof.

     (c) Swing Loans.

     (i) Generally. Subject to the terms and conditions of this Agreement, during
the Commitment Period applicable to the Revolving Credit Commitment, the Swing Line Lender
shall make a Swing Loan or Swing Loans to Core Molding in such amount or amounts as
Administrative Borrower, through an Authorized Officer, may from time to time request;
provided that Administrative Borrower shall not request any Swing Loan if, after giving
effect thereto, (A) the Revolving Credit Exposure would exceed the Revolving Credit
Commitment, or (B) the Swing Line Exposure would exceed the Swing Line Commitment. Each
Swing Loan shall be due and payable on the Swing Loan Maturity Date. Each Swing Loan shall
be made in Dollars.

     (ii) Refunding of Swing Loans. If the Swing Line Lender so elects, by giving
notice to Administrative Borrower and the Lenders, Core Molding agrees that the Swing Line
Lender shall have the right, in its sole discretion, to require that any Swing Loan be
refinanced as a Revolving Loan. Such Revolving Loan shall be a Base Rate Loan unless
otherwise requested by and available to Core Molding hereunder. Upon receipt of such notice
by Core Molding and the Lenders, Core Molding shall be deemed, on such day, to have
requested a Revolving Loan in the principal amount of the Swing Loan in accordance with
Sections 2.2(a) and 2.9 hereof (other than the requirement set forth in Section 2.9(d)
hereof). Such Revolving Loan shall be evidenced by the Revolving Credit Notes (or, if a
Lender has not requested a Revolving Credit Note, by the records of Agent and such Lender).
Each Lender agrees to make a Revolving Loan on the date of such notice, subject to no
conditions precedent whatsoever. Each Lender acknowledges and agrees that such Lender’s
obligation to make a Revolving Loan pursuant to Section 2.2(a) hereof when required by this
Section 2.2(c)(ii) is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including, without limitation, the occurrence and continuance of a
Default or Event of Default, and that its payment to Agent, for the account of the Swing
Line Lender, of the proceeds of such Revolving Loan shall be made without any offset,
abatement, recoupment, counterclaim, withholding or reduction whatsoever and whether or not
the Revolving Credit Commitment shall have been reduced or terminated. Core Molding
irrevocably authorizes and instructs Agent to apply the proceeds of any borrowing pursuant
to this Section 2.2(c)(ii) to repay in full such Swing Loan. Each Lender is hereby
authorized to record on its records relating to its Revolving Credit Note (or, if such
Lender has not requested a Revolving Credit Note, its records relating to Revolving Loans)
such Lender’s pro rata share of the amounts paid to refund such Swing Loan.

     (iii) Participation in Swing Loans. If, for any reason, Agent is unable to or,
in the opinion of Agent, it is impracticable to, convert any Swing Loan to a Revolving Loan
pursuant to the preceding Section 2.2(c)(ii), then on any day that a Swing Loan is
outstanding (whether before or after the maturity thereof), Agent shall
have the right to
request that each Lender purchase a participation in such Swing Loan, and Agent shall

33

 

promptly notify each Lender thereof (by facsimile or telephone, confirmed in writing). Upon
such notice, but without further action, the Swing Line Lender hereby agrees to grant to
each Lender, and each Lender hereby agrees to acquire from the Swing Line Lender, an
undivided participation interest in such Swing Loan in an amount equal to such Lender’s
Commitment Percentage of the principal amount of such Swing Loan. In consideration and in
furtherance of the foregoing, each Lender hereby absolutely and unconditionally agrees, upon
receipt of notice as provided above, to pay to Agent, for the benefit of the Swing Line
Lender, such Lender’s ratable share of such Swing Loan (determined in accordance with such
Lender’s Commitment Percentage). Each Lender acknowledges and agrees that its obligation to
acquire participations in Swing Loans pursuant to this Section 2.2(c)(iii) is absolute and
unconditional and shall not be affected by any circumstance whatsoever, including, without
limitation, the occurrence and continuance of a Default or an Event of Default, and that
each such payment shall be made without any offset, abatement, recoupment, counterclaim,
withholding or reduction whatsoever and whether or not the Revolving Credit Commitment shall
have been reduced or terminated. Each Lender shall comply with its obligation under this
Section 2.2(c)(iii) by wire transfer of immediately available funds, in the same manner as
provided in Section 2.9 hereof with respect to Revolving Loans to be made by such Lender.

     Section 2.3. Term Loan. Subject to the terms and conditions of this Agreement, the
Lenders shall make the Term Loan to Core Molding on the Closing Date, in the amount of the Term
Loan Commitment. The Term Loan shall be payable in twenty-four (24) consecutive monthly
installments of One Hundred Seven Thousand One Hundred Forty-Three Dollars ($107,143) each,
commencing January 1, 2009, and continuing on each Regularly Scheduled Payment Date thereafter,
with the balance thereof payable in full on January 1, 2011. Administrative Borrower shall notify
Agent, in accordance with the notice provisions of Section 2.9 hereof, whether the Term Loan will
be a Base Rate Loan or one or more Eurodollar Loans. The Term Loan may be a mixture of a Base Rate
Loan and Eurodollar Loans.

     Section 2.4. Capex Commitment.

     (a) Capex Draw Loans. Subject to the terms and conditions of this Agreement, during
the Commitment Period applicable to the Capex Draw Commitment, the Lenders shall make a Capex Draw
Loan or Capex Draw Loans to Core Molding in such amount or amounts as Administrative Borrower,
through an Authorized Officer, may from time to time request, but in the aggregate principal amount
not exceeding at any time the Capex Draw Commitment. Core Molding shall have the option, subject
to the terms and conditions set forth herein, to borrow Capex Draw Loans, maturing on the last day
of the Commitment Period applicable to the Capex Draw Commitment, by means of any combination of
Base Rate Loans or Eurodollar Loans. Once Capex Draw Loans are made, such Capex Draw Loans may not
be repaid and re-borrowed.

     (b) Capex Term Loan. On the Capex Conversion Date, all Capex Draw Loans outstanding
on such date shall be refinanced by the Lenders with the Capex Term Loan. On the Capex Conversion
Date, the Capex Draw Commitment shall be automatically terminated, and, on and after the Capex
Conversion Date, Capex Draw Loans shall no longer be available. The

34

 

Capex Term Loan shall be
payable in eighty-three (83) consecutive monthly installments in an amount equal to the Capex Term
Loan Payment Amount, commencing on the Capex Term Loan First Payment Date and continuing on each
Regularly Scheduled Payment Date thereafter, with the balance thereof payable in full on the date
that is eighty-four (84) months after the Capex Term Loan First Payment Date. The Capex Term Loan
may be a mixture of a Base Rate Loan and Eurodollar Loans.

     Section 2.5. Mexican Loan Commitment.

     (a) Mexican Loan. Subject to the terms and conditions of this Agreement, during the
Mexican Loan Commitment Period, KeyBank shall make the Mexican Loan to Core Mexico through multiple
Mexican Draw Disbursements to Core Mexico. Administrative Borrower, through an Authorized Officer,
shall request the disbursements in accordance with Section 2.9(b) hereof, up to the amount of the
Mexican Loan Commitment. The Mexican Loan shall be payable in yearly installments commencing
January 31, 2010 and continuing on January 31 of each calendar year thereafter in the following
amounts, with the remaining principal balance to be paid in full on January 31, 2014:

	 	 	 	 	 
	Payment Date	 	Payment Amount
	January 31, 2010
	 	$	1,600,000	 
	January 31, 2011
	 	$	1,600,000	 
	January 31, 2012
	 	$	1,600,000	 
	January 31, 2013
	 	$	1,600,000	 
	January 31, 2014
	 	$	1,600,000	 

The Mexican Loan shall be a Daily LIBOR Loan (or, if required pursuant to Article III hereof, a
Base Rate Loan).

     (b) Funded Participation in Mexican Loan. Each Lender shall participate in the
Mexican Loan to the extent of its Commitment Percentage. Each Lender shall fund its participation
on the date of each Mexican Draw Disbursement.

     Section 2.6. IDRB Letter of Credit.

     (a) Generally. Prior to the Closing Date, KeyBank issued the IDRB Letter of Credit
for the account of Core Molding. Subject to the terms and conditions of this Agreement, the
IDRB Letter of Credit is part of the Commitment; in the amount of the IDRB Letter of Credit
Commitment, and the Fronting Lender shall have the obligations of KeyBank under the IDRB Letter of
Credit. The inclusion of the IDRB Letter of Credit in this Agreement shall cause the IDRB Letter
of Credit to be risk participated by the Lenders and shall confer upon each Lender

35

 

the benefits and
liabilities of a participation consisting of an undivided pro rata interest in the IDRB Letter of
Credit to the extent of such Lender’s Commitment Percentage.

     (b) Funding of IDRB Letter of Credit by the Lenders. Agent shall have the right to
request that each Lender fund the participation in the amount due with respect to the IDRB Letter
of Credit, and Agent shall promptly notify each Lender thereof (by facsimile or telephone,
confirmed in writing). Upon such notice, but without further action, the Fronting Lender hereby
agrees to grant to each Lender, and each Lender hereby agrees to acquire from the Fronting Lender,
an undivided participation interest in the amount due with respect to the IDRB Letter of Credit in
an amount equal to such Lender’s Commitment Percentage of the principal amount due with respect to
the IDRB Letter of Credit. In consideration and in furtherance of the foregoing, each Lender
hereby absolutely and unconditionally agrees, upon receipt of notice as provided above, to pay to
Agent, for the account of the Fronting Lender, such Lender’s ratable share of the amount due with
respect to the IDRB Letter of Credit (determined in accordance with such Lender’s Commitment
Percentage). Each Lender acknowledges and agrees that its obligation to acquire participations in
the amount due under the IDRB Letter of Credit that is drawn but not reimbursed by Core Molding
pursuant to this subsection (b) shall be absolute and unconditional and shall not be affected by
any circumstance whatsoever, including, without limitation, the occurrence and continuance of a
Default or Event of Default, and that each such payment shall be made without any offset,
abatement, recoupment, counterclaim, withholding or reduction whatsoever. Each Lender shall comply
with its obligation under this subsection (b) by wire transfer of immediately available funds, in
the same manner as provided in Section 2.9 hereof with respect to Revolving Loans. Each Lender is
hereby authorized to record on its records such Lender’s pro rata share of the amounts paid and not
reimbursed on the IDRB Letter of Credit.

     (c) IDRB Letter of Credit Fees. With respect to the IDRB Letter of Credit, Core
Molding agrees to:

     (i) pay to Agent, for the pro rata benefit of the Lenders, a non-refundable letter of
credit fee from the Closing Date through the last day of the Commitment Period applicable to
the IDRB Letter of Credit, which shall be paid monthly in arrears, on each Regularly
Scheduled Payment Date, at a rate per annum equal to (A) seventy-five (75.00) basis points,
multiplied by (B) the IDRB Letter of Credit Commitment, as such amount is reduced on a
quarterly basis in accordance with the terms of the IDRB Documents;

     (ii) pay to Agent, for the benefit of certain Lenders, as determined by Agent
(including pursuant to any Assignment Agreement executed by and between KeyBank and such
Lender), an additional non-refundable letter of credit fee from the Closing Date through the
last day of the Commitment Period applicable to the IDRB Letter of Credit, which additional
fee shall be paid monthly in arrears, on each Regularly Scheduled Payment Date, at a rate
per annum equal to (A) fifty (50.00) basis points, multiplied by (B) twenty-nine and forty
one-hundredths percent (29.40%), multiplied by (C) the IDRB
Letter of Credit Commitment, as such amount is reduced on a quarterly basis in accordance
with the terms of the IDRB Documents; and

36

 

     (iii) pay to Agent, for the benefit of the Fronting Lender, such other issuance,
amendment, negotiation, draw, acceptance, telex, courier, postage and similar transactional
fees as are customarily charged by Lender in respect of the issuance and administration of
similar letters of credit under its fee schedule as in effect from time to time, as they may
be set forth in the Reimbursement Agreement.

     (d) Reimbursement of IDRB Letter of Credit. Whenever the IDRB Letter of Credit shall
be drawn, the amount drawn shall be reimbursed by Core Molding in accordance with the terms of the
Reimbursement Agreement.

     Section 2.7. Interest.

     (a) Revolving Loans.

     (i) Base Rate Loan. Core Molding shall pay interest on the unpaid principal
amount of a Revolving Loan that is a Base Rate Loan outstanding from time to time, from the
date thereof until paid at the Derived Base Rate from time to time in effect. Interest on
such Base Rate Loan shall be payable, commencing January 1, 2009, and continuing on each
Regularly Scheduled Payment Date thereafter and at the maturity thereof.

     (ii) Daily LIBOR Loans. Core Molding shall pay interest on the unpaid
principal amount of each Revolving Loan that is a Daily LIBOR Loan outstanding from time to
time, from the date thereof until paid, at the Derived Daily LIBOR Rate from time to time in
effect. Interest on such Daily LIBOR Loan shall be payable, commencing January 1, 2009, and
continuing on each Regularly Scheduled Payment Date thereafter and at the maturity thereof.

     (b) Swing Loans. Core Molding shall pay interest to Agent, for the sole benefit of
the Swing Line Lender (and any Lender that shall have purchased a participation in such Swing
Loan), on the unpaid principal amount of each Swing Loan outstanding from time to time, from the
date thereof until paid, at the Derived Swing Loan Rate from time to time in effect. Interest on
Swing Loans shall be payable on each Regularly Scheduled Payment Date. Each Swing Loan shall bear
interest for a minimum of one day.

     (c) Term Loan.

     (i) Base Rate Loan. With respect to any portion of the Term Loan that is a
Base Rate Loan, Core Molding shall pay interest on the unpaid principal amount thereof
outstanding from time to time from the date thereof until paid, commencing January 1, 2009,
and continuing on each Regularly Scheduled Payment Date thereafter and at the maturity
thereof, at the Derived Base Rate from time to time in effect.

     (ii) Eurodollar Loans. With respect to any portion of the Term Loan that is a
Eurodollar Loan, Core Molding shall pay interest on the unpaid principal amount of such
Eurodollar Loan outstanding from time to time, fixed in advance on the first day of the

37

 

Interest Period applicable thereto through the last day of the Interest Period applicable
thereto, at a rate per annum equal to two hundred (200.00) basis points in excess of the
Eurodollar Rate). Interest on such Eurodollar Loan shall be payable on each Interest
Adjustment Date with respect to an Interest Period. Notwithstanding anything in this
Agreement to the contrary, all Eurodollar Loans that are a portion of the Term Loan shall
have an Interest Period of one month.

     (d) Capex Draw Loans.

     (i) Base Rate Loan. Core Molding shall pay interest on the unpaid principal
amount of a Capex Draw Loan that is a Base Rate Loan outstanding from time to time, from the
date thereof until paid at the Derived Base Rate from time to time in effect. Interest on
such Base Rate Loan shall be payable, commencing January 1, 2009, and continuing on each
Regularly Scheduled Payment Date thereafter and at the maturity thereof.

     (ii) Eurodollar Loans. Core Molding shall pay interest on the unpaid principal
amount of each Capex Draw Loan that is a Eurodollar Loan outstanding from time to time,
fixed in advance on the first day of the Interest Period applicable thereto through the last
day of the Interest Period applicable thereto (but subject to changes in the Applicable
Margin for Eurodollar Loans), at the Derived Eurodollar Rate. Interest on such Eurodollar
Loan shall be payable on each Interest Adjustment Date with respect to an Interest Period.

     (e) Capex Term Loan.

     (i) Base Rate Loan. With respect to any portion of the Capex Term Loan that is
a Base Rate Loan, Core Molding shall pay interest on the unpaid principal amount thereof
outstanding from time to time, from the date thereof until paid, commencing on the first
Regularly Scheduled Payment Date following the Capex Conversion Date, and continuing on each
Regularly Scheduled Payment Date thereafter and at the maturity thereof, at the Derived Base
Rate from time to time in effect.

     (ii) Eurodollar Loans. With respect to any portion of the Capex Term Loan that
is a Eurodollar Loan, Core Molding shall pay interest on the unpaid principal amount of such
Eurodollar Loan outstanding from time to time, fixed in advance on the first day of the
Interest Period applicable thereto through the last day of the Interest Period applicable
thereto (but subject to changes in the Applicable Margin for Eurodollar Loans), at the
Derived Eurodollar Rate. Interest on such Eurodollar Loan shall be payable on each Interest
Adjustment Date with respect to an Interest Period.

     (f) Mexican Loan. Core Mexico shall pay interest on the unpaid principal amount of
the Mexican Loan outstanding from time to time, from the date thereof until paid, at the Derived
Daily LIBOR Rate from time to time in effect. Interest on the Mexican Loan shall be payable,
commencing January 1, 2009, and continuing on each Regularly Scheduled Payment Date thereafter and
at the maturity thereof; provided that the Mexican Loan shall bear interest at the Derived Base
Rate if required by Article III hereof.

38

 

     (g) Additional Interest.

     (i) Core Molding hereby agrees to pay to Agent, for the benefit of the Lenders as set
forth below, additional interest of fifty (50.00) basis points, to be added to the
applicable interest rate payable to such Lenders by Core Molding under subsections (a), (c),
(d) and (e) above, on twenty-nine and forty one-hundredths percent (29.40%) of each of the
facilities referenced in the foregoing subsections. Such additional interest shall be
payable to Agent, for the benefit of KeyBank and each other Lender that shall be entitled
thereto, as determined by Agent (including pursuant to any Assignment Agreement executed by
and between KeyBank and such Lender).

     (ii) Core Mexico hereby agrees to pay to KeyBank additional interest of fifty (50.00)
basis points, to be added to the applicable interest rate payable by Core Mexico under
subsection (f) above, on twenty-nine and forty one-hundredths percent (29.40%) of the
Mexican Loan. Such additional interest shall be payable to KeyBank, for the benefit of
KeyBank and each other Lender that shall be entitled thereto, as determined by KeyBank
(including pursuant to any Assignment Agreement executed by and between KeyBank and such
Lender).

     (h) Default Rate. Anything herein to the contrary notwithstanding, if an Event of
Default shall occur, upon the election of the Required Lenders (i) the principal of each Loan and
the unpaid interest thereon shall bear interest, until paid, at the Default Rate, (ii) the fee for
the aggregate undrawn amount of all issued and outstanding Letters of Credit shall be increased by
three percent (3%) in excess of the rate otherwise applicable thereto, and (iii) in the case of any
other amount not paid when due from Borrowers hereunder or under any other Loan Document, such
amount shall bear interest at the Default Rate; provided that during an Event of Default under
Section 7.1 (except as to the Mexican Note), 7.13(a) or 7.14 hereof, the applicable Default Rate
shall apply without any election or action on the part of Agent or any Lender.

     (i) Limitation on Interest.

     (i) Generally. In no event shall the rate of interest hereunder exceed the
maximum rate allowable by law. Notwithstanding anything to the contrary contained in any
Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not
exceed the maximum rate of non-usurious interest permitted by applicable law (the “Maximum
Rate”). If Agent or any Lender shall receive interest in an amount that exceeds the Maximum
Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds
such unpaid principal, refunded the applicable Borrower. In determining whether the
interest contracted for, charged, or received by Agent or a Lender exceeds the Maximum Rate,
such Person may, to the extent permitted by applicable law, (A) characterize any payment
that is not principal as an expense, fee, or premium rather than interest, (B) exclude
voluntary prepayments and the effects thereof,
and (C) amortize, prorate, allocate, and spread in equal or unequal parts the total amount
of interest throughout the contemplated term of the Obligations.

39

 

     (ii) Foreign Jurisdiction Interest. If any provision of this Agreement or any
other Loan Document would obligate Core Mexico to make any payment of interest or other
amount payable to (including for the account of) any Lender in an amount, or calculated at a
rate, that would be prohibited by law or would result in a receipt by such Lender of
interest at a criminal rate then, notwithstanding such provision, such amount or rate shall
be deemed to have been adjusted with retroactive effect to the maximum amount or rate of
interest, as the case may be, as would not be so prohibited by law or so result in a receipt
by such Lender of interest at a criminal rate, such adjustment to be effected, to the extent
necessary, as follows: (A) first, by reducing the amount or rate of interest required to be
paid to such Lender under this Article II; and (B) thereafter, by reducing any fees,
commissions, premiums and other amounts required to be paid to such Lender that would
constitute interest for purposes of the applicable statute. Notwithstanding the foregoing,
and after giving effect to all adjustments contemplated thereby, if a Lender shall have
received an amount in excess of the maximum amount permitted by such statute, then the
Lender shall pay an amount equal to such excess to Core Mexico. Any amount or rate of
interest referred to in this Article II with respect to the foreign extensions of credit
shall be determined in accordance with generally accepted actuarial practices and principles
as an effective annual rate of interest over the term that such extensions of credit remain
outstanding on the assumption that any charges, fees or expenses that fall within the
meaning of “interest” shall, if they relate to a specific period of time, be pro-rated over
that period of time and otherwise be pro-rated over the Commitment Period and, in the event
of a dispute, a certificate of an actuary appointed by Agent shall be conclusive for the
purposes of such determination.

     Section 2.8. Evidence of Indebtedness.

     (a) Revolving Loans. Upon the request of a Lender, to evidence the obligation of Core
Molding to repay the Revolving Loans made by such Lender and to pay interest thereon, Core Molding
shall execute a Revolving Credit Note, payable to the order of such Lender in the principal amount
equal to its Commitment Percentage of the Revolving Credit Commitment, or, if less, the aggregate
unpaid principal amount of Revolving Loans made by such Lender; provided that the failure of a
Lender to request a Revolving Credit Note shall in no way detract from Core Molding’s obligations
to such Lender hereunder.

     (b) Swing Loans. Upon the request of the Swing Line Lender, to evidence the
obligation of Core Molding to repay the Swing Loans and to pay interest thereon, Core Molding shall
execute a Swing Line Note, payable to the order of the Swing Line Lender in the principal amount of
the Swing Line Commitment, or, if less, the aggregate unpaid principal amount of Swing Loans made
by the Swing Line Lender; provided that the failure of the Swing Line Lender to request a Swing
Line Note shall in no way detract from Core Molding’s obligations to the Swing Line Lender
hereunder.

     (c) Term Loan. Upon the request of a Lender, to evidence the obligation of Borrower
to repay the portion of the Term Loan made by such Lender and to pay interest thereon, Borrower
shall execute a Term Note, payable to the order of such Lender in the principal amount equal to its
Commitment Percentage of its Term Loan Commitment; provided that the failure of

40

 

a Lender to request
a Term Note shall in no way detract from Borrower’s obligations to such Lender hereunder.

     (d) Capex Loans. Upon the request of a Lender, to evidence the obligation of Core
Molding to repay the Capex Loans made by such Lender and to pay interest thereon, Core Molding
shall execute a Capex Note, payable to the order of such Lender in the principal amount of its
Commitment Percentage of the Capex Commitment; provided that the failure of a Lender to request a
Capex Note shall in no way detract from Core Molding’s obligations to such Lender hereunder.

     (e) Mexican Loan. The obligation of Core Mexico to repay the Mexican Loan and to pay
interest thereon shall be evidenced by the Mexican Note. The Mexican Note shall be payable to the
order of KeyBank, and each Lender shall have an undivided funded risk participation in the Mexican
Note. The Mexican Note shall be in the amount of the Mexican Loan Commitment.

     Section 2.9. Notice of Credit Event; Funding of Loans.

     (a) Notice of Credit Event.

     (i) Generally. Administrative Borrower, through an Authorized Officer, shall
provide to Agent a Notice of Loan prior to (A) 11:00 A.M. (U.S. Eastern time) on the
proposed date of borrowing of, or conversion of a Loan to, a Base Rate Loan, (B) 11:00 A.M.
(U.S. Eastern time) on the proposed date of borrowing of, or conversion of a Loan to, a
Daily LIBOR Loan, (C) 11:00 A.M. (U.S. Eastern time) three Business Days prior to the
proposed date of borrowing of, continuation of, or conversion of a Loan to, a Eurodollar
Loan, and (D) 2:00 P.M. (U.S. Eastern time) on the proposed date of borrowing of a Swing
Loan, or such other time to which the Swing Line Lender may agree. Borrowers shall comply
with the notice provisions set forth in Section 2.2(b) hereof with respect to Letters of
Credit.

     (ii) Capex Loans and Mexican Draw Disbursements. In addition to the
requirements set forth in subpart (i) above, with respect to the borrowing of a Capex Loan
or the disbursement of a Mexican Draw Disbursement, (A) the appropriate Borrower, through an
Authorized Officer of such Borrower, shall provide to Agent a Mexican Project Draw Request,
to be in form and substance satisfactory to Agent, prior to 2:00 P.M. (U.S. Eastern time)
ten days prior to the proposed date of borrowing (or, with respect to the borrowing of a
Capex Loan on the Closing Date, on the date of the proposed borrowing), and (B) Borrowers
shall comply with the provisions of Article XII hereof.

     (b) Funding of Loans. Agent shall notify each Lender of the date, amount and Interest
Period (if applicable) promptly upon the receipt of a Notice of Loan or a Mexican Project Draw
Request, and, in any event, by 2:00 P.M. (U.S. Eastern time) on the date such Notice of Loan is
received. On the date that the Credit Event set forth in such Notice of Loan is to occur (or, with
respect to a Mexican Project Draw Request, the date that all requirements for

41

 

such Loan have been
satisfied), each such Lender shall provide to Agent, not later than 3:00 P.M. (U.S. Eastern time),
the amount in Dollars, in federal or other immediately available funds, required of it. If Agent
shall elect to advance the proceeds of such Loan prior to receiving funds from such Lender, Agent
shall have the right, upon prior notice to Administrative Borrower, to debit any account of Core
Molding or otherwise receive such amount from the appropriate Borrower, promptly after demand, in
the event that such Lender shall fail to reimburse Agent in accordance with this subsection. Agent
shall also have the right to receive interest from such Lender at the Federal Funds Effective Rate
in the event that such Lender shall fail to provide its portion of the Loan on the date requested
and Agent shall elect to provide such funds.

     (c) Conversion and Continuation of Loans.

     (i) At the request of Administrative Borrower to Agent, subject to Section 2.7 hereof
and the notice and other provisions of this Section 2.9, the Lenders shall convert a Base
Rate Loan to one or more Eurodollar Loans at any time and shall convert a Eurodollar Loan to
a Base Rate Loan on any Interest Adjustment Date applicable thereto.

     (ii) At the request of Administrative Borrower to Agent, subject to the notice and
other provisions of this Section 2.9, the appropriate Lenders shall continue one or more
Eurodollar Loans as of the end of the applicable Interest Period as a new Eurodollar Loan
with a new Interest Period.

     (d) Minimum Amount for Loans. Each request for:

     (i) a Base Rate Loan (other than a Capex Draw Loan or a Mexican Draw Disbursement that
is a Base Rate Loan) shall be in an amount of not less than One Hundred Thousand Dollars
($100,000), increased by increments of Fifty Thousand Dollars ($50,000);

     (ii) a Daily LIBOR Loan (other than a Mexican Draw Disbursement that is Daily LIBOR
Loan) shall be in an amount of not less than One Hundred Thousand Dollars ($100,000),
increased by increments of Fifty Thousand Dollars ($50,000);

     (iii) a Eurodollar Loan (other than a Capex Draw Loan that is a Eurodollar Loan) shall
be in an amount of not less than One Million Dollars ($1,000,000), increased by increments
of One Hundred Thousand Dollars ($100,000); and

     (iv) a Swing Loan may be in any amount as may be agreed to by the Swing Line Lender.

     (e) Interest Periods. Borrowers shall not request that Eurodollar Loans be
outstanding for more than four different Interest Periods at the same time.

42

 

     Section 2.10. Payment on Loans and Other Obligations.

     (a) Payments Generally. Each payment made hereunder by a Credit Party shall be made
without any offset, abatement, recoupment, counterclaim, withholding or reduction whatsoever.

     (b) Payments from Borrowers. All payments (including prepayments) to Agent of the
principal of or interest on each Loan or other payment, including but not limited to principal,
interest, fees or any other amount owed by Borrowers under this Agreement, shall be made in
Dollars. All payments described in this subsection (b) shall be remitted to Agent, at the address
of Agent for notices referred to in Section 11.4 hereof (or at such other office or account as
designated in writing by Agent to Administrative Borrower) for the account of the Lenders (or the
Fronting Lender or the Swing Line Lender, as appropriate) not later than 11:00 A.M. (U.S. Eastern
time) on the due date thereof in immediately available funds. Any such payments received by Agent
after 11:00 A.M. (U.S. Eastern time) shall be deemed to have been made and received on the next
Business Day.

     (c) Payments to Lenders. Upon Agent’s receipt of payments hereunder, Agent shall
immediately distribute to each Lender (except with respect to Swing Loans, which shall be paid to
the Swing Line Lender and any Lender that has funded a participation in such Swing Loan, or, with
respect to Letters of Credit or the IDRB Letter of Credit, certain of which payments shall be paid
to the Fronting Lender) their respective ratable shares, if any, of the amount of principal,
interest, and commitment and other fees received by Agent for the account of such Lender. Payments
received by Agent shall be delivered to the Lenders in immediately available funds. Each Lender
shall record any principal, interest or other payment, the principal amounts of Base Rate Loans,
Daily LIBOR Loans, Eurodollar Loans and Swing Loans, Letters of Credit and the IDRB Letter of
Credit, all prepayments and the applicable dates, including Interest Periods, with respect to the
Loans made, and payments received by such Lender, by such method as such Lender may generally
employ; provided that failure to make any such entry shall in no way detract from the obligations
of Borrowers under this Agreement or any Note. The aggregate unpaid amount of Loans, types of
Loans, Interest Periods and similar information with respect to the Loans, the Letters of Credit
and the IDRB Letter of Credit set forth on the records of Agent shall be rebuttably presumptive
evidence with respect to such information, including the amounts of principal, interest and fees
owing to each Lender.

     (d) Timing of Payments. Whenever any payment to be made hereunder, including, without
limitation, any payment to be made on any Loan, shall be stated to be due on a day that is not a
Business Day, such payment shall be made on the next Business Day and such extension of time shall
in each case be included in the computation of the interest payable on such Loan;
provided that, with respect to a Eurodollar Loan, if the next Business Day shall fall in the
succeeding calendar month, such payment shall be made on the preceding Business Day and the
relevant Interest Period shall be adjusted accordingly.

     Section 2.11. Prepayment.

     (a) Right to Prepay.

43

 

     (i) Borrowers shall have the right at any time or from time to time to prepay, on a pro
rata basis for all of the Lenders (except with respect to Swing Loans, which shall be paid
to the Swing Line Lender and any Lender that has funded a participation in such Swing Loan),
all or any part of the principal amount of the Loans, as designated by the appropriate
Borrower. Such payment shall include interest accrued on the amount so prepaid to the date
of such prepayment and any amount payable under Article III hereof with respect to the
amount being prepaid. Prepayments of Base Rate Loans and Daily LIBOR Loans shall be without
any premium or penalty. Each prepayment of the Term Loan, the Capex Term Loan or the
Mexican Loan shall be applied to the principal installments thereof in the inverse order of
their respective maturities.

     (ii) Core Molding shall have the right, at any time or from time to time, to prepay,
for the benefit of the Swing Line Lender (and any Lender that has funded a participation in
such Swing Loan), all or any part of the principal amount of the Swing Loans then
outstanding, as designated by Administrative Borrower, plus interest accrued on the amount
so prepaid to the date of such prepayment.

     (b) Notice of Prepayment. Administrative Borrower shall give Agent irrevocable
written notice of prepayment of a Base Rate Loan or a Daily LIBOR Loan or Swing Loan by no later
than 11:00 A.M. (U.S. Eastern time) on the Business Day on which such prepayment is to be made and
written notice of the prepayment of any Eurodollar Loan not later than 1:00 P.M. (U.S. Eastern
time) three Business Days before the Business Day on which such prepayment is to be made. Swing
Loans may be prepaid without advance notice if prepaid through a “sweep” cash management
arrangement with Agent.

     (c) Minimum Amount. Each prepayment of a Eurodollar Loan shall be in the principal
amount of not less than One Million Dollars ($1,000,000), or, if less, the principal amount of such
Eurodollar Loan, or, with respect to a Swing Loan, the principal amount of such Swing Loan, except
in the case of a mandatory payment pursuant to Section 2.14 hereof or Article III hereof.

     Section 2.12. Commitment and Other Fees; Reduction of Revolving Credit Commitment.

     (a) Commitment Fee. Core Molding shall pay to Agent, for the ratable account of the
Lenders, as a consideration for the Revolving Credit Commitment, a commitment fee from the Closing
Date to and including the last day of the Commitment Period applicable to the
Revolving Credit Commitment, payable quarterly, at a rate per annum equal to (i) the Applicable
Commitment Fee Rate in effect on the payment date, multiplied by (ii) (A) the average daily Maximum
Revolving Amount in effect during such quarter, minus (B) the average daily Revolving Credit
Exposure (exclusive of the Swing Line Exposure) during such quarter. The commitment fee shall be
payable in arrears, on January 1, 2009 and continuing on the first day of each April, July, October
and January thereafter, and on the last day of the Commitment Period applicable to the Revolving
Credit Commitment.

44

 

     (b) Agent Fee. Core Molding shall pay to Agent, for its sole benefit, the fees set
forth in the Agent Fee Letter.

     (c) Collateral Audit and Appraisal Fees. Core Molding shall reimburse Agent, for its
sole benefit, for all out-of-pocket expenses relating to (i) collateral field audits, (ii) fixed
asset appraisals, and (iii) any other collateral assessment expenses, that may be conducted by or
on behalf of Agent. Core Molding shall promptly reimburse Agent for all reasonable and documented
costs and expenses incurred in connection with (A) collateral field audits (which, other than
during the continuance of an Event of Default, shall be conducted no more frequently than four
times per year), (B) inventory appraisals (which, other than during the continuance of an Event of
Default, shall be conducted no more frequently than two times per year), and (C) any other
collateral assessment that may be conducted from time to time by or on behalf of Agent, the scope
and frequency of which shall be in Agent’s sole discretion.

     (d) Authorization to Debit Account. Core Molding hereby agrees that Agent has the
right to debit from any deposit account of Core Molding, amounts owing to Agent by any Borrower
under this Agreement and the Loan Documents for payment of fees and expenses incurred in connection
therewith.

     (e) Optional Reduction of Revolving Credit Commitment. Core Molding may at any time
and from time to time permanently reduce in whole or ratably in part the Maximum Revolving Amount
to an amount not less than the then existing Revolving Credit Exposure, by giving Agent not fewer
than five Business Days’ (or thirty (30) days if the Commitment is to be reduced or terminated in
its entirety) written notice of such reduction, provided that any such partial reduction shall be
in an aggregate amount, for all of the Lenders, of not less than One Million Dollars ($1,000,000),
increased in increments of Five Hundred Thousand Dollars ($500,000) Agent shall promptly notify
each Lender of the date of each such reduction and such Lender’s proportionate share thereof.
After each such partial reduction, the commitment fees payable hereunder shall be calculated upon
the Maximum Revolving Amount as so reduced. If Borrowers reduce in whole the Revolving Credit
Commitment, on the effective date of such reduction (the appropriate Borrowers having prepaid in
full the unpaid principal balance, if any, of the Loans, together with all interest (if any) and
commitment and other fees accrued and unpaid with respect thereto, and provided that no Letter of
Credit Exposure or Swing Line Exposure shall exist), all of the Revolving Credit Notes shall be
delivered to Agent marked “Canceled” and Agent shall redeliver such Revolving Credit Notes to
Administrative Borrower. Each reduction in the Maximum Revolving Amount shall result in an equal
reduction in the Total Commitment Amount. Any partial reduction in the Maximum Revolving Amount
shall be effective during the remainder of the Commitment Period.

     Section 2.13. Computation of Interest and Fees. Interest on Loans, Letter of Credit
fees, Related Expenses, and commitment and other fees and charges hereunder shall be computed on
the basis of a year having three hundred sixty (360) days and calculated for the actual number of
days elapsed.

     Section 2.14. Mandatory Payments.

45

 

     (a) Revolving Credit Exposure. If, at any time, the Revolving Credit Exposure shall
exceed the Revolving Credit Commitment, Core Molding shall, as promptly as practicable, but in no
event later than the next Business Day, pay an aggregate principal amount of the Revolving Loans
sufficient to bring the Revolving Credit Exposure within the Revolving Credit Commitment.

     (b) Swing Line Exposure. If, at any time, the Swing Line Exposure shall exceed the
Swing Line Commitment, Core Molding shall, as promptly as practicable, but in no event later than
the next Business Day, pay an aggregate principal amount of the Swing Loans sufficient to bring the
Swing Line Exposure within the Swing Line Commitment.

     (c) Capex Draw Exposure. If, at any time, the Capex Draw Exposure shall exceed the
Capex Draw Commitment, Core Molding shall, as promptly as practicable, but in no event later than
the next Business Day, pay an aggregate principal amount of the Capex Draw Loans sufficient to
bring the Capex Draw Exposure within the Capex Draw Commitment.

     (d) Mexican Draw Exposure. If, at any time, the Mexican Draw Exposure shall exceed
the Mexican Loan Commitment, Core Mexico shall, as promptly as practicable, but in no event later
than the next Business Day, pay an aggregate principal amount of the Mexican Draw Disbursements
sufficient to bring the Mexican Draw Exposure within the Mexican Loan Commitment.

     (e) Mandatory Prepayments. Borrowers shall make Mandatory Prepayments (each a
“Mandatory Prepayment”) in accordance with the following provisions:

     (i) Additional Indebtedness. If, at any time, any of the Companies shall incur
Consolidated Funded Indebtedness for borrowed money (including Capitalized Lease Obligations
and letters of credit) other than Indebtedness permitted pursuant to Section 5.8(a) through
(g) hereof (which other Indebtedness shall not be incurred without the prior written consent
of Agent and the Required Lenders), Core Molding (if such Company is Core Molding or a
Domestic Subsidiary) or Core Mexico (if such Company is a Foreign Subsidiary) shall make a
Mandatory Prepayment, on the date that such Consolidated Funded Indebtedness is incurred, in
an amount equal to one hundred percent (100%) of the net cash proceeds of such Consolidated
Funded Indebtedness.

     (ii) Sale of Assets. Upon the sale or other disposition of any assets by a
Company (permitted pursuant to Section 5.12 hereof) to any Person other than in the ordinary
course of business, and to the extent the proceeds of such sale or other
disposition are in excess of One Hundred Thousand Dollars ($100,000) during any fiscal year
of Core Molding and are not to be reinvested in fixed assets or other similar assets within
one hundred eighty (180) days of such sale or other disposition, Core Molding or a Domestic
Subsidiary, or Core Mexico (if such Company is a Foreign Subsidiary) shall make a Mandatory
Prepayment, on the date of such sale or other disposition, in an amount equal to one hundred
percent (100%) of the proceeds of such disposition net of amounts required to pay taxes and
reasonable costs applicable to the disposition.

46

 

     (iii) Additional Equity. Within thirty (30) days after any equity offering
(other than the offering or exercise of stock options or other equity awards pursuant to
management incentive plans) by Core Molding (which shall be only with the prior written
consent of Agent and the Required Lenders), Core Molding shall make a Mandatory Prepayment
in an amount equal to seventy-five percent (75%) of the net cash proceeds of such equity
offering.

     (iv) Material Recovery Event. Within ten days after the occurrence of a
Material Recovery Event, Administrative Borrower shall furnish to Agent written notice
thereof. Within sixty (60) days after such Material Recovery Event, Administrative Borrower
shall notify Agent of Administrative Borrower’s determination as to whether or not to
replace, rebuild or restore the affected property (a “Material Recovery Determination
Notice”). If Administrative Borrower decides not to replace, rebuild or restore such
property or if Administrative Borrower has not delivered the Material Recovery Determination
Notice within sixty (60) days after such Material Recovery Event, then the proceeds of
insurance paid in connection with such Material Recovery Event shall be paid as a Mandatory
Prepayment. If Administrative Borrower decides to replace, rebuild or restore such
property, then any such replacement, rebuilding or restoration must be (A) commenced within
six months of the date of the Material Recovery Event, and (B) substantially completed
within twelve (12) months of such commencement date, with such net proceeds and other funds
available to the appropriate Companies. Any amounts of such insurance proceeds not applied
to the costs of replacement or restoration shall be applied as a Mandatory Prepayment.

     (f) Application of Mandatory Prepayments. Each Mandatory Prepayment required to be
made pursuant to Section 2.14(e) hereof shall be applied as follows:

     (i) if such Mandatory Prepayment is payable by Core Molding, (A) first, to the Term
Loan (to the payments of principal in the inverse order of maturities), with such payment
first to be applied to the outstanding Base Rate Loans and then to the outstanding
Eurodollar Loans, (B) second, as applicable, to the Capex Draw Loans and the Capex Term Loan
(to the payments of principal in the inverse order of maturities), with such payment first
to be applied to the outstanding Base Rate Loans and then to the outstanding Eurodollar
Loans, and (C) third, to Revolving Loans, with such payment first to be applied to the
outstanding Base Rate Loans and then to the outstanding Daily LIBOR Loans; and

     (ii) if such Mandatory Prepayment is payable by Core Mexico, to the Mexican Loan;

provided that, in each case, if the outstanding principal amount of any Eurodollar Loan shall be
reduced to an amount less than the minimum amount set forth in Section 2.9(d) hereof as a result of
such prepayment, then such Eurodollar Loan shall be converted into a Base Rate Loan on the date of
such prepayment. Any prepayment of a Eurodollar Loan pursuant to this Section 2.14 shall be
subject to the prepayment provisions set forth in Article III hereof.

47

 

     Section 2.15. Liability of Borrowers.

     (a) Liability. Each Borrower hereby authorizes Administrative Borrower to request
Loans or Letters of Credit hereunder. Core Molding acknowledges and agrees that Agent and the
Lenders are entering into this Agreement at the request of Core Molding and with the understanding
that Core Molding is and shall remain fully liable for payment in full of the Obligations
(including the Obligations of Core Mexico through Article X hereof) and any other amount payable
under this Agreement and the other Loan Documents. Core Molding agrees that it is receiving or
will receive a direct pecuniary benefit for the each Loan made and each Letter of Credit and the
IDRB Letter of Credit issued hereunder.

     (b) Appointment of Administrative Borrower. Each Borrower hereby irrevocably appoints
Administrative Borrower as the borrowing agent and attorney-in-fact for all Borrowers, which
appointment shall remain in full force and effect unless and until Agent shall have received prior
written notice signed by each Borrower that such appointment has been revoked and that another
Borrower has been appointed Administrative Borrower. Each Borrower hereby irrevocably appoints and
authorizes Administrative Borrower to (i) provide Agent with all notices with respect to Loans and
Letters of Credit obtained for the benefit of any Borrower and all other notices and instructions
under this Agreement, (ii) take such action as Administrative Borrower deems appropriate on its
behalf to obtain Loans and Letters of Credit, and (iii) exercise such other powers as are
reasonably incidental thereto to carry out the purposes of this Agreement.

     (c) Waivers of Each Borrower. In the event that any obligation of any Borrower under
this Agreement is deemed to be an agreement by such Borrower to answer for the debt or default of
another Credit Party or as an hypothecation of property as security therefor, each Borrower
represents and warrants that (i) no representation has been made to such Borrower as to the
creditworthiness of such other Credit Party, and (ii) such Borrower has established adequate means
of obtaining from such other Credit Party on a continuing basis, financial or other information
pertaining to such other Credit Party’s financial condition. Each Borrower expressly waives,
except as expressly required under this Agreement, diligence, demand, presentment, protest and
notice of every kind and nature whatsoever, consents to the taking by Agent and the Lenders of any
additional security of another Credit Party for the obligations secured hereby, or the alteration
or release in any manner of any security of another Credit Party now or hereafter held in
connection with the Obligations, and consents that Agent, the Lenders and any other Credit Party
may deal with each other in connection with such obligations or otherwise, or alter any contracts
now or hereafter existing between them, in any manner
whatsoever, including without limitation the renewal, extension, acceleration or changes in time
for payment of any such obligations or in the terms or conditions of any security held. Agent and
the Lenders are hereby expressly given the right, at their option, to proceed in the enforcement of
any of the Obligations independently of any other remedy or security they may at any time hold in
connection with such obligations secured and it shall not be necessary for Agent and the Lenders to
proceed upon or against or exhaust any other security or remedy before proceeding to enforce their
rights against such Borrower. Each Borrower further waives any right of subrogation,
reimbursement, exoneration, contribution, indemnification, setoff or other recourse in respect of
sums paid to Agent and the Lenders by any other Credit Party.

48

 

     (d) Liability of Foreign Borrowers. Anything herein to the contrary notwithstanding,
Core Mexico shall not at any time be liable for the Indebtedness of Core Molding under this
Agreement (exclusive of Indebtedness of Core Mexico that is guaranteed by Core Molding under this
Agreement).

     Section 2.16. Extension of Commitment. Contemporaneously with the delivery of the
financial statements required pursuant to Section 5.3(b) hereof (beginning with the financial
statements for the fiscal year of Core Molding ending December 31, 2009), Administrative Borrower
may deliver a Request for Extension, requesting that the Lenders extend the maturity of the
Revolving Credit Commitment for an additional year. Each such extension shall require the
unanimous written consent of all of the Lenders and shall be upon such terms and conditions as may
be agreed to by Agent, Borrowers and the Lenders. Core Molding shall pay any attorneys’ fees or
other expenses of Agent in connection with the documentation of any such extension, as well as such
other fees as may be agreed upon between Borrowers and Agent.

ARTICLE III. ADDITIONAL PROVISIONS RELATING TO

EURODOLLAR LOANS; INCREASED CAPITAL; TAXES

     Section 3.1. Requirements of Law.

     (a) If, after the Closing Date, (i) the adoption of or any change in any Requirement of Law or
in the interpretation or application thereof by a Governmental Authority, or (ii) the compliance by
any Lender with any request or directive (whether or not having the force of law) from any central
bank or other Governmental Authority:

     (A) shall subject any Lender to any tax of any kind whatsoever with respect to this
Agreement, the IDRB Letter of Credit, any Letter of Credit or any Eurodollar Loan made by
it, or change the basis of taxation of payments to such Lender in respect thereof (except
for Taxes and Excluded Taxes which are governed by Section 3.2 hereof);

     (B) shall impose, modify or hold applicable any reserve, special deposit, compulsory
loan or similar requirement against assets held by, deposits or other liabilities
in or for the account of, advances, loans or other extensions of credit by, or any other
acquisition of funds by, any office of such Lender that is not otherwise included in the
determination of the Eurodollar Rate; or

     (C) shall impose on such Lender any other condition;

and the result of any of the foregoing is to increase the cost to such Lender of making, converting
into, continuing or maintaining Eurodollar Loans or issuing or participating in Letters of Credit
or the IDRB Letter of Credit, or to reduce any amount receivable hereunder in respect thereof,
then, in any such case, Core Molding (and Core Mexico, with respect to the Mexican Loan) shall pay
to such Lender, promptly after receipt of a written request therefor, any additional amounts
necessary to compensate such Lender for such increased cost or reduced amount receivable. If

49

 

any
Lender becomes entitled to claim any additional amounts pursuant to this subsection (a), such
Lender shall promptly notify Administrative Borrower (with a copy to Agent) of the event by reason
of which it has become so entitled.

     (b) If any Lender shall have determined that, after the Closing Date, the adoption of or any
change in any Requirement of Law regarding capital adequacy or in the interpretation or application
thereof by a Governmental Authority or compliance by such Lender or any corporation controlling
such Lender with any request or directive regarding capital adequacy (whether or not having the
force of law) from any Governmental Authority shall have the effect of reducing the rate of return
on such Lender’s or such corporation’s capital as a consequence of its obligations hereunder, or
under or in respect of any Letter of Credit or the IDRB Letter of Credit, to a level below that
which such Lender or such corporation could have achieved but for such adoption, change or
compliance (taking into consideration the policies of such Lender or such corporation with respect
to capital adequacy), then from time to time, upon submission by such Lender to Administrative
Borrower (with a copy to Agent) of a written request therefor (which shall include the method for
calculating such amount and reasonable detail regarding such calculation), Core Molding (and Core
Mexico, with respect to the Mexican Loan) shall promptly pay or cause to be paid to such Lender
such additional amount or amounts as will compensate such Lender or such corporation for such
reduction.

     (c) A certificate as to any additional amounts payable pursuant to this Section 3.1 submitted
by any Lender to Administrative Borrower, together with a reasonably detailed calculation and
description of such amounts contemplated by this Section 3.1 (with a copy to Agent) shall be
rebuttably presumptive evidence of the amounts so payable. In determining any such additional
amounts, such Lender may use any method of averaging and attribution that it (in its reasonable
credit judgment) shall deem applicable. The obligations of Borrowers pursuant to this Section 3.1
shall survive the termination of this Agreement and the payment of the Loans and all other amounts
payable hereunder.

     Section 3.2. Taxes.

     (a) All payments made by any Credit Party under any Loan Document shall be made free and clear
of, and without deduction or withholding for or on account of any Taxes or Other Taxes. If any
Taxes or Other Taxes are required to be deducted or withheld from any amounts
payable to Agent or any Lender hereunder, the amounts so payable to Agent or such Lender shall be
increased by such additional amounts to the extent necessary to yield to Agent or such Lender
(after deducting, withholding and payment of all Taxes and Other Taxes, and including any of the
foregoing levied on such additional amounts) interest or any such other amounts payable hereunder
at the rates or in the amounts specified in the Loan Documents that Agent or such Lender would have
received had no such deduction or withholding been required.

     (b) Whenever any Taxes or Other Taxes are required to be withheld and paid by a Credit Party,
such Credit Party shall timely withhold and pay such taxes to the relevant Governmental
Authorities. As promptly as possible thereafter, Administrative Borrower shall send to Agent for
its own account or for the account of the relevant Lender, as the case may be, a certified copy of
an original official receipt received by such Credit Party showing payment

50

 

thereof or other
evidence of payment reasonably acceptable to Agent or such Lender. If such Credit Party shall fail
to pay any Taxes or Other Taxes when due to the appropriate Governmental Authority or fails to
remit to Agent the required receipts or other required documentary evidence, such Credit Party and
Core Molding shall indemnify Agent and the appropriate Lenders on demand for any incremental Taxes
or Other Taxes paid or payable by Agent or such Lender as a result of any such failure.

     (c) If any Lender shall be so indemnified by a Credit Party, such Lender shall use reasonable
efforts to obtain the benefits of any refund, deduction or credit for any taxes or other amounts
with respect to the amount paid by such Credit Party and shall reimburse such Credit Party to the
extent, but only to the extent, that such Lender shall receive a refund with respect to the amount
paid by such Credit Party or an effective net reduction in taxes or other governmental charges
(including any taxes imposed on or measured by the total net income of such Lender) of the United
States or any state or subdivision or any other Governmental Authority thereof by virtue of any
such deduction or credit, after first giving effect to all other deductions and credits otherwise
available to such Lender. If, at the time any audit of such Lender’s income tax return is
completed, such Lender determines, based on such audit, that it shall not have been entitled to the
full amount of any refund reimbursed to such Credit Party as aforesaid or that its net income taxes
shall not have been reduced by a credit or deduction for the full amount reimbursed to such Credit
Party as aforesaid, such Credit Party, upon request of such Lender, shall promptly pay to such
Lender the amount so refunded to which such Lender shall not have been so entitled, or the amount
by which the net income taxes of such Lender shall not have been so reduced, as the case may be.

     (d) Each Lender that is not (i) a citizen or resident of the United States of America, (ii) a
corporation, partnership or other entity created or organized in or under the laws of the United
States of America (or any jurisdiction thereof), or (iii) an estate or trust that is subject to
federal income taxation regardless of the source of its income (any such Person, a “Non-U.S.
Lender”) shall deliver to Administrative Borrower and Agent two copies of either U.S. Internal
Revenue Service Form W-8BEN or Form W-8ECI, or, in the case of a Non-U.S. Lender claiming exemption
from U.S. federal withholding tax under Section 871(h) or 881(c) of the Code with respect to
payments of “portfolio interest”, a statement with respect to such interest and a Form W-8BEN, or
any subsequent versions thereof or successors thereto, properly completed and duly executed by such
Non-U.S. Lender claiming complete exemption from, or a
reduced rate of, U.S. federal withholding tax on all payments by Credit Parties under this
Agreement and the other Loan Documents. Such forms shall be delivered by each Non-U.S. Lender on
or before the date it becomes a party to this Agreement or such other Loan Document. In addition,
each Non-U.S. Lender shall deliver such forms or appropriate replacements promptly upon the
obsolescence or invalidity of any form previously delivered by such Non-U.S. Lender. Each Non-U.S.
Lender shall promptly notify Administrative Borrower at any time it determines that such Lender is
no longer in a position to provide any previously delivered certificate to Administrative Borrower
(or any other form of certification adopted by the U.S. taxing authorities for such purpose).
Notwithstanding any other provision of this subsection (d), a Non-U.S. Lender shall not be required
to deliver any form pursuant to this subsection (d) that such Non-U.S. Lender is not legally able
to deliver.

51

 

     (e) The agreements in this Section 3.2 shall survive the termination of the Loan Documents and
the payment of the Loans and all other amounts payable hereunder.

     (f) Borrowers hereby acknowledge that Agent and the Lenders are subject to withholding tax
liabilities with respect to the Mexican Loan that, pursuant to this Section 3.2, are payable by
Borrowers. Borrowers hereby agree not to contest their obligation to pay such tax liabilities.

     Section 3.3. Funding Losses. Core Molding (and Core Mexico, with respect to the
Mexican Loan) agree to indemnify each Lender, promptly after receipt of a written request therefor,
and to hold each Lender harmless from, any loss or expense that such Lender may sustain or incur as
a consequence of (a) default by a Borrower in making a borrowing of, conversion into or
continuation of Eurodollar Loans after such Borrower has given a notice requesting the same in
accordance with the provisions of this Agreement, (b) default by a Borrower in making any
prepayment of or conversion from Eurodollar Loans after such Borrower has given a notice thereof in
accordance with the provisions of this Agreement, (c) the making of a prepayment of a Eurodollar
Loan on a day that is not the last day of an Interest Period applicable thereto, or (d) any
conversion of a Eurodollar Loan to a Base Rate Loan or a Daily LIBOR Loan on a day that is not the
last day of an Interest Period applicable thereto. Such indemnification shall be in an amount
equal to the excess, if any, of (i) the amount of interest (with no additional premium or penalty
thereon) that would have accrued on the amounts so prepaid, or not so borrowed, converted or
continued, for the period from the date of such prepayment or of such failure to borrow, convert or
continue to the last day of such Interest Period (or, in the case of a failure to borrow, convert
or continue, the Interest Period that would have commenced on the date of such failure) in each
case at the applicable rate of interest for such Loans provided for herein (excluding, however, the
Applicable Margin included therein, if any) over (ii) the amount of interest (as reasonably
determined by such Lender) that would have accrued to such Lender on such amount by placing such
amount on deposit for a comparable period with leading banks in the appropriate London interbank
market, along with any administration fee charged by such Lender. A certificate as to any amounts
payable pursuant to this Section 3.3 submitted to Administrative Borrower, together with a
reasonably detailed calculation and description of such amounts (with a copy to Agent) by any
Lender shall be rebuttably presumptive evidence of the amount so payable. The obligations of
Borrowers
pursuant to this Section 3.3 shall survive the termination of this Agreement and the payment of the
Loans and all other amounts payable hereunder.

     Section 3.4. Eurodollar Rate or Daily LIBOR Rate Lending Unlawful; Inability to Determine
Rate.

     (a) If any Lender shall determine (which determination shall, upon notice thereof to
Administrative Borrower and Agent, be conclusive and binding on Borrowers) that, after the Closing
Date, (i) the introduction of or any change in or in the interpretation of any law makes it
unlawful, or (ii) any Governmental Authority asserts that it is unlawful, for such Lender to make
or continue any Loan as, or to convert (if permitted pursuant to this Agreement) any Loan into, a
Eurodollar Loan or a Daily LIBOR Loan, the obligations of such Lender to make, continue or convert
any such Eurodollar Loan or Daily LIBOR Loan shall, upon such determination, be

52

 

suspended until
such Lender shall notify Agent that the circumstances causing such suspension no longer exist, and
all outstanding Eurodollar Loans and Daily LIBOR Loans payable to such Lender shall automatically
convert (if conversion is permitted under this Agreement) into a Base Rate Loan, or be repaid (if
no conversion is permitted) at the end of the then current Interest Periods with respect thereto or
sooner, if required by law or such assertion.

     (b) If Agent or the Required Lenders determine that for any reason adequate and reasonable
means do not exist for determining the Eurodollar Rate or the Daily LIBOR Rate with respect to a
proposed Daily LIBOR Loan, for any requested Interest Period with respect to a proposed Eurodollar
Loan, or that the Eurodollar Rate for any requested Interest Period with respect to a proposed
Eurodollar Loan or the Daily LIBOR Rate with respect to a proposed Daily LIBOR Loan does not
adequately and fairly reflect the cost to the Lenders of funding such Loan, Agent will promptly so
notify Administrative Borrower and each Lender. Thereafter, the obligation of the Lenders to make
or maintain such Eurodollar Loan shall be suspended until Agent (upon the instruction of the
Required Lenders) revokes such notice. Upon receipt of such notice, Administrative Borrower may
revoke any pending request for a borrowing of, conversion to or continuation of such Eurodollar
Loan or, failing that, will be deemed to have converted such request into a request for a borrowing
of a Base Rate Loan in the amount specified therein.

     Section 3.5. Discretion of Lenders as to Manner of Funding. Notwithstanding any
provision of this Agreement to the contrary, each Lender shall be entitled to fund and maintain its
funding of all or any part of such Lender’s Loans in any manner such Lender deems to be
appropriate; it being understood, however, that, for the purposes of this Agreement, all
determinations hereunder shall be made as if such Lender had actually funded and maintained each
Eurodollar Loan during the applicable Interest Period for such Loan through the purchase of
deposits having a maturity corresponding to such Interest Period and bearing an interest rate equal
to the Eurodollar Rate for such Interest Period.

     Section 3.6. Failure of Lender to Obtain Lower Withholding Tax Status. If any Lender
fails (a) both (i) to be registered with the Ministry of Finance and Public Credit of Mexico
(“Hacienda”)
as a foreign financial institution for purposes of Article 195-I of the Mexican Income Tax Law (Ley
del Impuesto Sobre la Renta) or any successor provision, and (ii) to be a resident (or to have the
principal offices of such party be a resident, if such party lends through a branch or agency) for
tax purposes, of a country with which Mexico has entered into a treaty that is in effect for the
avoidance of double taxation to the extent that such registration or residency continues to be a
legal requirement for the application of a reduced withholding tax rate on Mexican sourced interest
income, or (b) to use its reasonable efforts (consistent with legal and regulatory restrictions) to
file any certificate or document reasonably requested by such Company to maintain (or, if relevant,
reestablish) the registration referred to in subpart (a)(i) above, if the making of such filing
would not, in the reasonable judgment of such party, be disadvantageous to such party, then
Administrative Borrower may, at its sole expense and effort, upon notice to such Lender and, in
consultation with Agent, require such Lender to assign and delegate, without recourse (in
accordance with and subject to the restrictions contained in Section 11.10 hereof), all its
interests, rights and obligations under the Loan Documents to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided
that (i) Administrative Borrower shall have received the

53

 

prior written consent of Agent, which
consent shall not unreasonably be withheld, (ii) such Lender shall have received payment of an
amount equal to the outstanding principal of its Loans and participations in Letters of Credit, the
IDRB Letter of Credit, Swing Line Loans and the Mexican Loan, accrued interest thereon, accrued
fees and all other amounts payable to it hereunder, from the assignee (to the extent of such
outstanding principal and accrued interest and fees) or Administrative Borrower (in the case of all
other amounts), and (iii) such assignment will result in a reduction in such compensation or
payments. A Lender shall not be required to make any such assignment and delegation if, prior
thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling
Administrative Borrower to require such assignment and delegation cease to apply.

ARTICLE IV. CONDITIONS PRECEDENT

     Section 4.1. Conditions to Each Credit Event. The obligation of the Lenders, the
Fronting Lender and the Swing Line Lender to participate in any Credit Event shall be conditioned,
in the case of each Credit Event, upon the following:

     (a) all conditions precedent as listed in Section 4.2 hereof required to be satisfied prior to
the first Credit Event shall have been satisfied prior to or as of the first Credit Event;

     (b) Administrative Borrower shall have submitted a Notice of Loan (or with respect to a Letter
of Credit, complied with the provisions of Section 2.2(b)(ii) hereof) and otherwise complied with
Section 2.9 hereof;

     (c) no Default or Event of Default shall then exist or immediately after such Credit Event
would exist; and

     (d) each of the representations and warranties contained in Article VI hereof shall be true in
all material respects as if made on and as of the date of such Credit Event, except to the extent
that any thereof expressly relate to an earlier date.

Each request by Administrative Borrower or any other Borrower for a Credit Event shall be deemed to
be a representation and warranty by Borrowers as of the date of such request as to the satisfaction
of the conditions precedent specified in subsections (c) and (d) above.

     Section 4.2. Conditions to the First Credit Event. Borrowers shall cause the
following conditions to be satisfied on or prior to the Closing Date. The obligation of the
Lenders, the Fronting Lender and the Swing Line Lender to participate in the first Credit Event is
subject to Borrowers satisfying each of the following conditions prior to or concurrently with such
Credit Event:

     (a) Notes as Requested. (i) Core Molding shall have executed and delivered to
(A) each Lender requesting a Revolving Credit Note such Lender’s Revolving Credit Note, (B) each
Lender requesting a Term Note such Lender’s Term Note, (C) each Lender requesting a Capex Note such
Lender’s Capex Note, and (D) the Swing Line Lender the Swing Line Note, if

54

 

requested by the Swing
Line Lender, and (ii) Core Mexico shall have executed and delivered to KeyBank the Mexican Note.

     (b) Guaranties of Payment. Each Guarantor of Payment shall have executed and
delivered to Agent a Guaranty of Payment, in form and substance satisfactory to Agent.

     (c) Security Agreements. Core Molding and each Domestic Guarantor of Payment shall
have executed and delivered to Agent, for the benefit of the Lenders, a Security Agreement and such
other documents or instruments, as may be required by Agent to create or perfect the Liens of
Agent, for the benefit of the Lenders, in the assets of such Company, all to be in form and
substance satisfactory to Agent.

     (d) Mexican Security Agreements. Core Molding and each Domestic Guarantor of Payment
with assets in Mexico shall have executed and delivered to Agent, for the benefit of the Lenders, a
Mexican Security Agreement, and such other documents or instruments as may be required by Agent to
create or perfect the Liens of Agent, for the benefit of the Lenders, in the assets of such
Company, all to be in form and substance satisfactory to Agent.

     (e) Pledge Agreements. Core Molding and each Domestic Guarantor of Payment that has a
Subsidiary shall have (i) executed and delivered to Agent, for the benefit of the Lenders, a Pledge
Agreement, in form and substance satisfactory to Agent and the Lenders, with respect to the Pledged
Securities, (ii) executed and delivered to Agent, for the benefit of the Lenders, appropriate
transfer powers for each of the Pledged Securities, (iii) delivered to Agent, for the benefit of
the Lenders, the Pledged Securities, and (iv) delivered to Agent any other documentation (including
legal opinions from foreign counsel) reasonably required by Agent regarding the perfection of such
Pledged Securities.

     (f) Mexican Stock Pledge Agreements. Core Molding and each Domestic Guarantor of
Payment that owns an equity interest in Core Mexico shall have (i) executed and delivered to Agent,
for the benefit of the Lenders, a Mexican Stock Pledge Agreement, in form and substance
satisfactory to Agent and the Lenders, with respect to the Pledged Securities referenced therein,
and (ii) delivered to Agent any other documentation (including legal opinions from foreign counsel)
reasonably required by Agent regarding the perfection of such Pledged Securities.

     (g) Control Agreements. Borrowers shall have delivered to Agent an executed Control
Agreement, in form and substance reasonably satisfactory to Agent, for each Deposit Account
maintained by a Borrower or a Domestic Guarantor of Payment; provided that Core Mexico shall not be
required to deliver a Control Agreement for any Deposit Account, so long as the aggregate amount of
all Deposit Accounts of Core Mexico that are not subject to a Control Agreement does not exceed
Fifty Thousand Dollars ($50,000).

     (h) Domestic Real Estate Matters. With respect to each parcel of the Domestic Real
Property owned by Core Molding or any Domestic Guarantor of Payment, Borrowers shall have delivered
to Agent:

55

 

     (i) an updated Loan Policy of title insurance reasonably acceptable to Agent issued to
Agent, for the benefit of the Lenders, by a title company acceptable to Agent, in an amount
equal to the lesser of the Total Commitment Amount or the appraised value of the Domestic
Real Property insuring the applicable Mortgage to be a valid, first-priority lien in the
Domestic Real Property, free and clear of all defects and encumbrances except such matters
of record as accepted by Agent, in its sole discretion, and shown as Permitted Encumbrances
in “Exhibit B” to such Mortgage;

     (ii) evidence to Agent’s satisfaction in its sole discretion that no portion of such
Domestic Real Property is located in a Special Flood Hazard Area or is otherwise classified
as Class A or Class BX on the Flood Maps maintained by the Federal Emergency Management
Agency; and

     (iii) two fully executed originals of the Mortgage with respect to such Domestic Real
Property.

     (i) Mexican Real Property Matters. With respect to the Mexican Real Property,
Borrowers shall have delivered to Agent:

     (i) a copy of a no-lien certificate on the land of the Mexican Project issued by the
corresponding Public Registry of Property and eligible as “avis pre-preventivo” for the
Mexican Loan Commitment hereunder and copy of the corporate file (“folio o matricula
mercantile”) of Core Mexico showing no Liens involving Core Mexico or its assets, each in
form and substance satisfactory to Agent; and

     (ii) a notarized copy (“copias certificada”) of the Mexican Mortgage deed (“escritura
pública de hipoteca”) issued by a local Mexican notary public.

     (j) Reimbursement Agreement. Core Molding shall have executed and delivered to Agent
the Reimbursement Agreement, in form and substance satisfactory to Agent.

     (k) Lien Searches. With respect to the property located in the United States owned or
leased by each Borrower and Guarantor of Payment, and any other property securing the Obligations
located in the United States, Borrowers shall have caused to be delivered to Agent (i) the results
of Uniform Commercial Code lien searches, satisfactory to Agent and the Lenders, (ii) the results
of federal and state tax lien and judicial lien searches, satisfactory to Agent and the Lenders,
and (iii) Uniform Commercial Code termination statements reflecting termination of all U.C.C.
Financing Statements previously filed by any Person and not expressly permitted pursuant to Section
5.9 hereof. With respect to the property located in Mexico owned or leased by each Borrower and
Guarantor of Payment, Borrowers shall have caused to be delivered to Agent a corporate certificate
from the applicable local commerce registry listing any filings and Liens (“folio mercantil” or
“matrícula mercantil”) on such Borrower or Guarantor of Payment.

     (l) Officer’s Certificate, Resolutions, Organizational Documents. Each Credit Party
shall have delivered to Agent an officer’s certificate (or comparable domestic or foreign
documents) certifying the names of the officers of such Credit Party authorized to sign the Loan

56

 

Documents, together with the true signatures of such officers and certified copies of (i) the
resolutions of the board of directors (or comparable domestic or foreign documents) of such Credit
Party evidencing approval of the execution and delivery of the Loan Documents and the execution of
other Related Writings to which such Credit Party is a party, and (ii) the Organizational Documents
of such Credit Party.

     (m) Good Standing and Full Force and Effect Certificates. Borrowers shall have
delivered to Agent a good standing certificate or full force and effect certificate (or comparable
document, if neither certificate is available in the applicable jurisdiction), as the case may be,
for each Credit Party, issued on or about the Closing Date by the Secretary of State in the state
or states where such Credit Party is incorporated or formed or qualified as a foreign entity.

     (n) Legal Opinion. Borrowers shall have delivered to Agent an opinion of counsel for
each Credit Party, in form and substance satisfactory to Agent and the Lenders.

     (o) Insurance Certificate. Borrowers shall have delivered to Agent evidence of
insurance on ACORD 25 and 27 or 28 form, or on “insurance endorsement certificates” with respect to
the Mexican insurance policies, in each case satisfactory to Agent and the Lenders, of adequate
real property, personal property and liability insurance of each Company, with Agent, on behalf of
the Lenders, listed as mortgagee, Lender’s loss payee and additional insured, as appropriate.

     (p) Pro-Forma Projections. Borrowers shall have delivered to Agent annual pro-forma
projections of financial statements (which report shall include balance sheets and statements of
income (loss) and cash-flow) of Borrowers for the fiscal year ending December 31, 2008, prepared on
a Consolidated and consolidating basis, in accordance with GAAP, and in form and substance
satisfactory to Agent.

     (q) Collateral Audit and Equipment Appraisals. Borrowers shall have delivered to
Agent the results of a collateral field audit and an appraisal of Borrowers’ equipment and
machinery, each in form and substance satisfactory to Agent.

     (r) Advertising Permission Letter. Borrowers shall have delivered to Agent an
advertising permission letter, authorizing Agent to publicize the transaction and specifically to
use the names of Borrowers in connection with “tombstone” advertisements in one or more
publications selected by Agent.

     (s) Agent Fee Letter and Other Fees. Core Molding shall have (i) executed and
delivered to Agent, the Agent Fee Letter and paid to Agent, for its sole account, the fees stated
therein, and (ii) paid all legal fees and expenses of Agent in connection with the preparation and
negotiation of the Loan Documents.

     (t) Existing Loan Agreement. Borrowers shall have terminated the Loan Agreement (and
any documents executed in connection therewith (other than any document related to the IDRB Letter
of Credit)), dated as of December 30, 2003, as amended, between Core Molding

57

 

and KeyBank, which
terminations shall be deemed to have occurred upon payment in full of all of the Indebtedness
outstanding thereunder.

     (u) Closing Certificate. Borrowers shall have delivered to Agent and the Lenders an
officer’s certificate certifying that, as of the Closing Date, (i) all conditions precedent set
forth in this Article IV have been satisfied, (ii) no Default or Event of Default exists nor
immediately after the first Credit Event will exist, and (iii) each of the representations and
warranties contained in Article VI hereof are true and correct as of the Closing Date.

     (v) Letter of Direction. Borrowers shall have delivered to Agent a letter of
direction authorizing Agent, on behalf of the Lenders, to disburse the proceeds of the Loans, which
letter of direction includes the authorization to transfer funds under this Agreement and the wire
instructions that set forth the locations to which such funds shall be sent.

     (w) No Material Adverse Change. No material adverse change, in the opinion of Agent,
shall have occurred in the financial condition, operations or prospects of the Companies since June
30, 2008.

     (x) Registrations in Mexico. Agent shall have received evidence, in form and substance
satisfactory to Agent, that (i) the Second Preemptive Notice with respect to the Mexican Mortgage
has been filed for registration before the appropriate Public Registry of Property and Commerce,
and (ii) the pledge pursuant to each Mexican Stock Pledge Agreement has been duly registered in the
members or shareholders registry of Core Mexico.

     (y) Miscellaneous. Borrowers shall have provided to Agent and the Lenders such other
items and shall have satisfied such other conditions as may be reasonably required by Agent or the
Lenders.

     Section 4.3. Post-Closing Conditions. On or before the dates specified in this
Section 4.3, unless otherwise agreed to by Agent in writing, Borrowers shall satisfy each of the
items specified below:

     (a) Landlords’ Waivers, Mortgagees’ Waivers and Processors’ Waivers. No later than
December 19, 2008, Borrowers shall have delivered (i) a Landlord’s Waiver and a mortgagee’s waiver,
if applicable, each in form and substance satisfactory to Agent, for each location of Core Molding
or a Domestic Guarantor of Payment where any of the collateral securing any part of the Obligations
is located, unless such location is owned by the Company that owns the collateral located there,
and (ii) a Processor’s Waiver for each location where Core Molding or a Domestic Guarantor of
Payment maintains any inventory with a processor, together with filed U.C.C. Financing Statements,
in form and substance satisfactory to Agent; provided that Borrowers shall not be required to
deliver a Landlord’s Waiver, mortgagee’s waiver or Processor’s Waiver, as applicable, with respect
to a location, so long as the aggregate fair market value of all of the assets of the Companies
located at all locations (referenced in this Section 4.3(a)) that are not subject to a Landlord’s
Waiver, mortgagee’s waiver or Processor’s Waiver, as applicable, does not exceed Two Hundred Fifty
Thousand Dollars ($250,000).

58

 

     (b) Registrations in Mexico.

     (i) No later than January 9, 2009, Agent shall have received evidence from Borrowers,
in form and substance satisfactory to Agent, that all registration fees for the filing of
the Mexican Mortgage and the Mexican Security Agreement have been paid and the Mexican
Mortgage and the Mexican Security Agreement have been filed (in each case as a first
priority Lien) for registration before the corresponding Public Registry of Property and
Commerce, respectively.

     (ii) Within thirty (30) days after the Mexican Mortgage and the Mexican Security
Agreement are filed for registration pursuant to Section 4.3(c)(i) hereof, Agent shall have
received from Borrowers the first transcript of the public deed formalizing the Mexican
Mortgage and the notarized Mexican Security Agreement, duly recorded on the corresponding
Public Registry of Property and Commerce, respectively.

     (c) Schedule of Values for Mexican Project. No later than December 19, 2008,
Borrowers shall have delivered to Agent a schedule of values, with respect to the Mexican Project,
including a trade payment breakdown, setting forth a description of all contracts entered into by
one or more Borrowers and/or the Construction Contractor for the design, engineering, construction
and equipping of the Improvements.

     (d) Title Insurance for the Mexican Real Property. No later than December 19, 2008,
with respect to the Mexican Real Property, Borrowers shall have delivered to Agent copies of the
title insurance, in form and substance satisfactory to Agent, obtained by Core Mexico on the
acquisition of the land for the Mexican Project and original insurance certificate appointing
Agent, for the benefit of the Lenders, as first loss payee thereunder.

ARTICLE V. COVENANTS

     Section 5.1. Insurance. Each Company shall at all times maintain insurance upon its
inventory, equipment and other personal and real property in such form, written by such companies,
in such amounts, for such periods, and against such risks as is reasonable and standard for other
companies engaged in similar businesses as those of the Companies, with provisions satisfactory to
Agent for, with respect to Credit Parties, payment of all losses thereunder to Agent, for the
benefit of the Lenders, and such Company as their interests may appear (with lender’s loss payable
endorsement in favor of Agent, for the benefit of the Lenders), and, if required by Agent, Core
Molding shall deposit the policies with Agent. Any such policies of insurance shall provide for no
fewer than thirty (30) days prior written notice of cancellation to Agent and the Lenders. Any
sums received by Agent, for the benefit of the Lenders, in payment of insurance losses, returns, or
unearned premiums under the policies shall be applied as set forth in Section 2.14(f) hereof.
Agent is hereby authorized to act as attorney-in-fact for the Companies in obtaining, adjusting,
settling and canceling such insurance and indorsing any drafts. In the event of failure to provide
such insurance as herein provided, Agent may, at its option, provide such insurance and the
appropriate Borrower shall pay to Agent, upon demand, the cost thereof. Should such Borrower fail
to pay such sum to Agent upon demand, interest

59

 

shall accrue thereon, from the date of demand until
paid in full, at the Default Rate. Within ten days of Agent’s written request, Borrowers shall
furnish to Agent such information about the insurance of the Companies as Agent may from time to
time reasonably request, which information shall be prepared in form and detail satisfactory to
Agent and certified by a Financial Officer.

     Section 5.2. Money Obligations. Each Company shall pay in full (a) prior in each
case to the date when penalties would attach, all taxes, assessments and governmental charges and
levies (except only those so long as and to the extent that the same shall be contested in good
faith by appropriate and timely proceedings and for which adequate provisions have been established
in accordance with GAAP) for which it may be or become liable or to which any or all of its
properties may be or become subject; (b) in the case of Core Molding, all of its material wage
obligations to its employees in compliance with the Fair Labor Standards Act (29 U.S.C. §§ 206-207)
or any comparable provisions, including those under foreign laws with respect to employee source
deductions, obligations and employer obligations to its employees; and (c) all of its other
material obligations calling for the payment of money (except only those so long as and to the
extent that the same shall be contested in good faith and for which adequate provisions have been
established in accordance with GAAP) before such payment becomes overdue.

     Section 5.3. Financial Statements and Information.

     (a) Quarterly Financials. Borrowers shall deliver to Agent and the Lenders, within
fifty (50) days after the end of each quarterly period of each fiscal year of Core Molding, balance
sheets of the Companies as of the end of such period and statements of income (loss), stockholders’
equity and cash flow for the quarter and fiscal year to date periods, all prepared on
a Consolidated and consolidating basis, in accordance with GAAP, and in form and detail
satisfactory to Agent and the Lenders and certified by a Financial Officer.

     (b) Annual Audit Report. Borrowers shall deliver to Agent and the Lenders, within
ninety-five (95) days after the end of each fiscal year of Core Molding, an annual audit report of
the Companies for that year prepared on a Consolidated and consolidating basis, in accordance with
GAAP, and in form and detail satisfactory to Agent and the Lenders and certified by an unqualified
opinion of an independent public accountant satisfactory to Agent, which report shall include
balance sheets and statements of income (loss), stockholders’ equity and cash-flow for that period.

     (c) Compliance Certificate. Borrowers shall deliver to Agent and the Lenders,
concurrently with the delivery of the financial statements set forth in subsections (a) and (b)
above, a Compliance Certificate.

     (d) Management Report. Borrowers shall deliver to Agent and the Lenders, concurrently
with the delivery of the quarterly and annual financial statements set forth in subsections (a) and
(b) above, a copy of the summary report or summary letter prepared with respect to any management
report, letter or similar writing furnished to the Companies by the accountants in respect of the
Companies’ systems, operations, financial condition or properties.

60

 

     (e) Pro-Forma Projections. Borrowers shall deliver to Agent and the Lenders, within
ninety-five (95) days after the end of each fiscal year of Core Molding, annual pro-forma
projections of the Companies for the then current fiscal year and the next two succeeding fiscal
years, to be in form reasonably acceptable to Agent.

     (f) Shareholder and SEC Documents. Borrowers shall deliver to Agent and the Lenders,
as soon as available, copies of all notices, reports, definitive proxy or other statements and
other documents sent by Borrowers to their shareholders, to the holders of any of its debentures or
bonds or the trustee of any indenture securing the same or pursuant to which they are issued, or
sent by Borrowers (in final form) to any securities exchange or over the counter authority or
system, or to the SEC or any similar federal agency having regulatory jurisdiction over the
issuance of any Borrower’s securities.

     (g) Financial Information of Companies. Borrowers shall deliver to Agent and the
Lenders, within ten days of the written request of Agent or any Lender, such other information
about the financial condition, properties and operations of any Company, or relating to the Mexican
Project, as Agent or such Lender may from time to time reasonably request, which information shall
be submitted in form and detail reasonably satisfactory to Agent or such Lender and certified by a
Financial Officer of the Company or Companies in question.

     Section 5.4. Financial Records. Each Company shall at all times maintain true and
complete records and books of account, including, without limiting the generality of the foregoing,
appropriate provisions for possible losses and liabilities, all in accordance with GAAP, and at all
reasonable times (during normal business hours and upon notice to such Company) permit Agent or any
Lender, or any representative of
Agent or such Lender, to examine such Company’s books and records and to make excerpts therefrom
and transcripts thereof.

     Section 5.5. Franchises; Change in Business.

     (a) Each Company (other than a Dormant Subsidiary) shall preserve and maintain at all times
its existence, and its rights and franchises necessary for its business, except as otherwise
permitted pursuant to Section 5.12 hereof.

     (b) No Company shall engage in any business if, as a result thereof, the general nature of the
business of the Companies taken as a whole would be substantially changed from the general nature
of the business the Companies are engaged in on the Closing Date.

     Section 5.6. ERISA Pension and Benefit Plan Compliance.

     (a) No Company shall incur any material accumulated funding deficiency within the meaning of
ERISA, or any material liability to the PBGC, established thereunder in connection with any ERISA
Plan. Borrowers shall furnish to Agent and the Lenders (i) as soon as possible and in any event
within thirty (30) days after any Company knows or has reason to know that any Reportable Event
with respect to any ERISA Plan has occurred, a statement of a Financial Officer of such Company,
setting forth details as to such Reportable Event and the action that

61

 

such Company proposes to take
with respect thereto, together with a copy of the notice of such Reportable Event given to the PBGC
if a copy of such notice is available to such Company, and (ii) promptly after receipt thereof a
copy of any notice such Company, or any member of the Controlled Group may receive from the PBGC or
the Internal Revenue Service with respect to any ERISA Plan administered by such Company; provided
that this latter clause shall not apply to notices of general application promulgated by the PBGC
or the Internal Revenue Service or to letters or notices such as a favorable Determination Letter
with respect to an ERISA Plan, which does not threaten a material liability to a Company.
Borrowers shall promptly notify Agent of any material taxes assessed, proposed to be assessed or
that Borrowers have reason to believe may be assessed against a Company by the Internal Revenue
Service with respect to any ERISA Plan. As used in this Section 5.6, “material” means the measure
of a matter of significance that shall be determined as being an amount equal to five percent (5%)
of Consolidated Net Worth. As soon as practicable, and in any event within thirty (30) days, after
any Company shall become aware that an ERISA Event shall have occurred, such Company shall provide
Agent with notice of such ERISA Event with a certificate by a Financial Officer of such Company
setting forth the details of the event and the action such Company or another Controlled Group
member proposes to take with respect thereto. Borrowers shall, at the request of Agent or any
Lender, deliver or cause to be delivered to Agent or such Lender, as the case may be, true and
correct copies of any documents relating to the ERISA Plan of any Company.

     (b) Foreign Pension Plans and Benefit Plans.

     (i) For each existing, or hereafter adopted, Foreign Pension Plan and Foreign Benefit
Plan, Core Molding and any appropriate Foreign Subsidiary shall in a timely fashion comply
with and perform in all material respects all of its obligations under and in respect of
such Foreign Pension Plan or Foreign Benefit Plan, including under any funding agreements
and all applicable laws (including any fiduciary, funding, investment and administration
obligations).

     (ii) All employer or employee payments, contributions or premiums required to be
remitted, paid to or in respect of each Foreign Pension Plan or Foreign Benefit Plan shall
be paid or remitted by Core Molding and any appropriate Foreign Subsidiary in a timely
fashion in accordance with the terms thereof, any funding agreements and all applicable
laws.

     (iii) Core Molding and any appropriate Foreign Subsidiary shall deliver to Agent (A) if
requested by Agent, copies of each annual and other return, report or valuation with respect
to each Foreign Pension Plan as filed with any applicable Governmental Authority; (B)
promptly after receipt thereof, a copy of any material direction, order, notice, ruling or
opinion that Core Molding and any appropriate Foreign Subsidiary may receive from any
applicable Governmental Authority with respect to any Foreign Pension Plan; and (C)
notification within thirty (30) days of any increases having a cost to the Companies in
excess of Two Hundred Fifty Thousand Dollars ($250,000) per annum in the aggregate, in the
benefits of any existing Foreign Pension Plan or Foreign Benefit Plan, or the establishment
of any new Foreign Pension Plan or Foreign

62

 

Benefit Plan, or the commencement of
contributions to any such plan to which the Companies were not previously contributing.

     Section 5.7. Financial Covenants.

     (a) Leverage Ratio. Borrowers shall not suffer or permit at any time the Leverage
Ratio to exceed 3.00 to 1.00.

     (b) Fixed Charge Coverage Ratio. Borrowers shall not suffer or permit at any time the
Fixed Charge Coverage Ratio to be less than 1.10 to 1.00.

     (c) Capital Expenditures. Without the prior written consent of the Required Lenders,
the Companies shall not, for any fiscal year of Core Molding ending prior to the Capital
Expenditure Modification Date, invest in Consolidated Capital Expenditures more than an aggregate
amount equal to Three Million Dollars ($3,000,000) during such fiscal year, provided that
Consolidated Capital Expenditures incurred in connection with the Mexican Project shall be excluded
from the calculation of Consolidated Capital Expenditures.

     Section 5.8. Borrowing. No Company shall create, incur or have outstanding any
Indebtedness of any kind; provided that this Section 5.8 shall not apply to the following:

     (a) the Loans, the Letters of Credit, the IDRB Letter of Credit and any other Indebtedness
under this Agreement;

     (b) any loans granted to or Capitalized Lease Obligations entered into by any Company for the
purchase or lease of fixed assets (and refinancings of such loans or Capitalized Lease
Obligations), which loans and Capitalized Lease Obligations shall only be secured by the fixed
assets being purchased or leased, so long as the aggregate principal amount of all such loans and
Capitalized Lease Obligations for all Companies shall not exceed Five Hundred Thousand Dollars
($500,000) at any time outstanding;

     (c) the Indebtedness existing on the Closing Date, in addition to the other Indebtedness
permitted to be incurred pursuant to this Section 5.8, as set forth in Schedule 5.8 hereto
(and any extension, renewal or refinancing thereof but only to the extent that the principal amount
thereof does not increase after the Closing Date);

     (d) loans to, and guaranties of Indebtedness of, a Company from a Company so long as each such
Company is Core Molding or a Domestic Guarantor of Payment;

     (e) Indebtedness under any Hedge Agreement, so long as such Hedge Agreement shall have been
entered into in the ordinary course of business and not for speculative purposes;

     (f) Permitted Foreign Subsidiary Loans and Investments, so long as no Default or Event of
Default shall then exist or would result therefrom; and

63

 

     (g) other unsecured Indebtedness, in addition to the Indebtedness listed above, in an
aggregate principal amount for all Companies not to exceed Five Hundred Thousand Dollars ($500,000)
at any time outstanding.

     Section 5.9. Liens. No Company shall create, assume or suffer to exist (upon the
happening of a contingency or otherwise) any Lien upon any of its property or assets, whether now
owned or hereafter acquired; provided that this Section 5.9 shall not apply to the following:

     (a) Liens for taxes, assessments or governmental charges or levies on such Company’s property
or assets if, in each case, the same shall not at the time be delinquent or thereafter can be paid
without penalty, or are being actively contested in good faith by appropriate and timely
proceedings and for which adequate provisions have been established in accordance with GAAP;

     (b) other statutory Liens incidental to the conduct of its business or the ownership of its
property and assets that (i) were not incurred in connection with the borrowing of money or the
obtaining of advances or credit, and (ii) do not in the aggregate materially detract from the value
of its property or assets or materially impair the use thereof in the operation of its business;

     (c) Liens on property or assets of a Subsidiary to secure obligations of such Subsidiary to a
Borrower or a Guarantor of Payment;

     (d) any Lien granted to Agent, for the benefit of the Lenders;

     (e) the Liens existing on the Closing Date as set forth in Schedule 5.9 hereto and
replacements, extensions, renewals, refundings or refinancings thereof, but only to the extent that
the amount of debt secured thereby shall not be increased;

     (f) purchase money Liens on fixed assets securing the loans and Capitalized Lease Obligations
pursuant to Section 5.8(b) hereof, provided that such Lien is limited to the purchase price and
only attaches to the property being acquired;

     (g) easements or other minor defects or irregularities in title of real property not
interfering in any material respect with the use of such property in the business of any Company;

     (h) Liens arising out of deposits to secure the performance of bids, trade contracts (other
than contracts for the payment of money), leases, licenses, franchises, statutory obligations,
surety and appeal bonds, performance bonds and other obligations of a like nature incurred in the
ordinary course of business in an aggregate amount, for all Companies, not in excess of Two Hundred
Fifty Thousand Dollars ($250,000);

     (i) Liens arising with respect to rights of lessees or sublessees under operating leases in
assets leased by a Company under an operating lease; or

64

 

     (j) other Liens, in addition to the Liens listed above, not incurred in connection with the
borrowing of money, securing amounts, in the aggregate for all Companies, not to exceed Two Hundred
Fifty Thousand Dollars ($250,000) at any time.

No Company shall enter into any contract or agreement (other than (i) a contract or agreement
entered into in connection with the purchase or lease of fixed assets that prohibits Liens on such
fixed assets or (ii) any agreement with a restriction that is not enforceable under Section 9-406,
9-407 or 9-408 of the U.C.C. or any laws of similar effect) that would prohibit Agent or the
Lenders from acquiring a security interest, mortgage or other Lien on, or a collateral assignment
of, any of the property or assets of such Company.

     Section 5.10. Regulations T, U and X. No Company shall take any action that would
result in any non-compliance of the Loans, the IDRB Letter of Credit or the Letters of Credit with
Regulations T, U or X, or any other applicable regulation, of the Board of Governors of the Federal
Reserve System.

     Section 5.11. Investments, Loans and Guaranties. No Company shall (a) create,
acquire or hold any Subsidiary, (b) make or hold any investment in any stocks, bonds or securities
of any kind, (c) be or become a party to any joint venture or other partnership, (d) make or keep
outstanding any advance or loan to any Person, or (e) be or become a Guarantor of any kind (other
than a Guarantor of Payment under the Loan Documents); provided that this Section 5.11 shall not
apply to the following:

     (i) any endorsement of a check or other medium of payment for deposit or collection
through normal banking channels or similar transaction in the normal course of business;

     (ii) any investment in direct obligations of the United States of America or in
certificates of deposit issued by a member bank (having capital resources in excess of Five
Hundred Million Dollars ($500,000,000)) of the Federal Reserve System;

     (iii) any investment in commercial paper or securities that at the time of such
investment is assigned the highest quality rating in accordance with the rating systems
employed by either Moody’s or Standard & Poor’s;

     (iv) the holding of each of the Subsidiaries listed on Schedule 6.1 hereto, and
the creation, acquisition and holding of, and any investment in, any new Subsidiary after
the Closing Date, so long as such new Subsidiary shall have been created, acquired or held,
and investments made, in accordance with the terms and conditions of this Agreement;

     (v) loans to, investments by and guaranties of the Indebtedness of, a Company from or
by a Company so long as each such Company is Core Molding or a Domestic Guarantor of
Payment;

65

 

     (vi) any advance or loan to an officer or employee of a Company as an advance on
commissions, travel and other items in the ordinary course of such Company’s business, so
long as all such advances and loans from all Companies aggregate not more than the maximum
principal sum of One Hundred Thousand Dollars ($100,000) at any time outstanding; and

     (vii) any Permitted Investments or Permitted Foreign Subsidiary Loans and Investments,
so long as no Default or Event of Default shall then exist or would result therefrom.

For purposes of this Section 5.11, the amount of any investment in equity interests shall be based
upon the initial amount invested and shall not include any appreciation in value or return on such
investment, but shall take into account repayments, redemptions and return of capital.

     Section 5.12. Merger and Sale of Assets. No Company shall merge, amalgamate or
consolidate with any other Person, or sell, lease or transfer or otherwise dispose of any assets to
any Person other than in the ordinary course of business, except that, if no Default or Event of
Default shall then exist or immediately thereafter shall begin to exist:

     (a) a Credit Party may merge, amalgamate or consolidate with any other Company (provided that
(i) if one of such Companies is Core Molding, Core Molding shall be the continuing or surviving
Company, (ii) if one of such Companies is Core Mexico and the other is
not Core Molding, Core Mexico shall be the continuing or surviving Person, and (iii) if at least
one of such Companies is a Credit Party, a Credit Party shall be the continuing or surviving
Person;

     (b) a Non-Credit Party may merge, amalgamate or consolidate with any other Company (provided
that if such Company is a Credit Party, such Credit Party shall be the continuing or surviving
Company);

     (c) Core Molding or any Domestic Guarantor of Payment may sell, lease, transfer or otherwise
dispose of any of its assets to Core Molding or any other Domestic Guarantor of Payment;

     (d) Core Mexico or any Foreign Guarantor of Payment may sell, lease, transfer or otherwise
dispose of any of its assets to any other Credit Party;

     (e) a Non-Credit Party may sell, lease, transfer or otherwise dispose of any of its assets to
any other Company;

     (f) a Company may sell, lease, transfer or otherwise dispose of any assets that are obsolete
or no longer useful in such Company’s business;

     (g) a Company may sell, lease, transfer or otherwise dispose of any assets in an amount not to
exceed Five Hundred Thousand Dollars ($500,000) in any fiscal year so long as the net proceeds
thereof are either reinvested in similar assets within one hundred eighty (180)

66

 

days of such sale
or other disposition or applied to the prepayment of obligations in accordance with Section 2.14(e)
hereof; and

     (h) Acquisitions may be effected in accordance with the provisions of Section 5.13 hereof.

     Section 5.13. Acquisitions. No Company shall effect an Acquisition; provided,
however, that a Credit Party may effect an Acquisition so long as:

     (a) in the case of a merger, amalgamation or other combination including a Borrower, such
Borrower shall be the surviving entity;

     (b) in the case of a merger, amalgamation or other combination including a Credit Party (other
than a Borrower), a Credit Party shall be the surviving entity;

     (c) the business to be acquired shall be similar, or related to, or incidental to the lines of
business of the Companies;

     (d) the Companies shall be in full compliance with the Loan Documents both prior to and after
giving pro forma effect to the transaction;

     (e) no Default or Event of Default shall exist prior to or after giving effect to such
Acquisition;

     (f) Borrowers shall have provided to Agent and the Lenders, at least twenty (20) days prior to
such Acquisition, historical financial statements of the target entity and a pro forma financial
statement of the Companies accompanied by a certificate of a Financial Officer showing pro forma
compliance with Section 5.7 hereof, both before and after giving effect to the proposed
Acquisition;

     (g) the aggregate Consideration paid for such Acquisition by the Companies shall not exceed,
when combined with all other Acquisitions, the aggregate amount of Two Million Five Hundred
Thousand Dollars ($2,500,000); and

     (h) such Acquisition is not actively opposed by the board of directors (or similar governing
body) of the selling Persons or the Persons whose equity interests are to be acquired.

     Section 5.14. Notice. Each Borrower shall cause a Financial Officer of such Borrower
to promptly notify Agent and the Lenders, in writing whenever:

     (a) a Default or Event of Default may occur hereunder or any representation or warranty made
in Article VI hereof or elsewhere in this Agreement or in any Related Writing may for any reason
cease in any material respect to be true and complete;

67

 

     (b) a Borrower learns of a litigation or proceeding against such Borrower before a court,
administrative agency or arbitrator that, if successful, might have a Material Adverse Effect;

     (c) a Borrower learns that there has occurred or begun to exist any event, condition or thing
that is reasonably likely to (i) have a material adverse effect on the Mexican Project, or (ii)
delay the completion of the Mexican Project to a date beyond the Project Completion Date; and

     (d) a Borrower learns that there has occurred or begun to exist any event, condition or thing
that is reasonably likely to have a Material Adverse Effect.

     Section 5.15. Restricted Payments. No Company shall make or commit itself to make
any Restricted Payment at any time.

     Section 5.16. Environmental Compliance. Each Company shall comply in all respects
with any and all Environmental Laws and Environmental Permits, including, without limitation, all
Environmental Laws in jurisdictions in which such Company owns or operates a facility or site,
arranges for disposal or treatment of hazardous substances, solid waste or other wastes, accepts
for transport any hazardous substances, solid waste or other wastes or holds any interest in real
property or otherwise. Each Company shall furnish to Agent and the Lenders, promptly after receipt
thereof, a copy of any notice such Company may receive from any Governmental Authority or private
Person, or
otherwise, that any material litigation or proceeding pertaining to any environmental, health or
safety matter has been filed or is threatened against such Company, any real property in which such
Company holds any interest or any past or present operation of such Company. No Company shall allow
the release or disposal of hazardous waste, solid waste or other wastes on, under or to any real
property in which any Company holds any ownership interest or performs any of its operations, in
violation of any Environmental Law. As used in this Section 5.16, “litigation or proceeding” means
any demand, claim, notice, suit, suit in equity action, administrative action, investigation or
inquiry whether brought by any Governmental Authority or private Person, or otherwise. Each
Borrower shall defend, indemnify and hold Agent and the Lenders harmless against all costs,
expenses, claims, damages, penalties and liabilities of every kind or nature whatsoever (including
attorneys’ fees) arising out of or resulting from the noncompliance of any Company with any
Environmental Law. Such indemnification shall survive any termination of this Agreement.

     Section 5.17. Affiliate Transactions. No Company shall, directly or indirectly,
enter into or permit to exist any transaction (including, without limitation, the purchase, sale,
lease or exchange of any property or the rendering of any service) with any Affiliate (other than a
Company that is a Credit Party) on terms that shall be less favorable to such Company than those
that might be obtained at the time in a transaction with a non-Affiliate; provided that the
foregoing shall not prohibit the payment of customary and reasonable directors’ fees to directors
who are not employees of a Company or an Affiliate.

     Section 5.18. Use of Proceeds. Borrowers’ use of the proceeds of (a) the Capex Loans
and the Mexican Loan shall be for the Mexican Project, and (b) the Revolving Loans and the

68

 

Term
Loan shall be for working capital and other general corporate purposes of the Companies, for the
refinancing of existing Indebtedness.

     Section 5.19. Corporate Names and Locations of Collateral. No Company shall change
its corporate name or its state, province or other jurisdiction of organization, unless, in each
case, such Company shall have provided Agent and the Lenders with at least fifteen (15) days prior
written notice thereof. Administrative Borrower shall promptly notify Agent of (a) any change in
any location where any Company’s inventory or equipment is maintained, and any new locations where
any Company’s Inventory or Equipment is to be maintained; (b) any change in the location of the
office where any Company’s records pertaining to its Accounts are kept; (c) the location of any new
places of business and the changing or closing of any of its existing places of business; and (d)
any change in the location of any Company’s chief executive office. In the event of any of the
foregoing or if deemed appropriate by Agent, Agent is hereby authorized to file new U.C.C.
Financing Statements describing all collateral and otherwise in form and substance sufficient for
recordation wherever necessary or appropriate, as determined in Agent’s sole discretion, to perfect
or continue perfected the security interest of Agent, for the benefit of the Lenders, in such
collateral. Core Molding shall pay all filing and recording fees and taxes in connection with the
filing or recordation of such U.C.C. Financing Statements and security interests and shall promptly
reimburse Agent therefor if Agent pays the same. Such amounts shall be Related Expenses hereunder.

     Section 5.20. Lease Rentals. The Companies shall not pay or commit themselves to pay
lease rentals on operating leases, for all Companies, in excess of the aggregate amount of (a) Two
Million Six Hundred Thousand Dollars ($2,600,000) during the 2008 fiscal year of Core Molding, and
(b) One Million Seven Hundred Thousand Dollars ($1,700,000) during any fiscal year of Core Molding
thereafter.

     Section 5.21. Subsidiary Guaranties, Security Documents and Pledge of Stock or Other
Ownership Interest.

     (a) Domestic Guaranties and Security Documents. Each Domestic Subsidiary (that is not
a Dormant Subsidiary) (and each Foreign Subsidiary with respect to which there are no adverse tax
consequences caused by the following actions) created, acquired or held subsequent to the Closing
Date, shall promptly execute and deliver to Agent, for the benefit of the Lenders, a Guaranty of
Payment of all of the Obligations and a Security Agreement and Domestic Mortgages, as appropriate,
such agreements to be in form and substance reasonably acceptable to Agent, along with any such
other supporting documentation, Security Documents, corporate governance and authorization
documents, and an opinion of counsel as may be deemed necessary or advisable by Agent.

     (b) Foreign Subsidiary Guaranties. So long as there shall be no adverse tax
consequences, each Foreign Subsidiary (that is not a Dormant Subsidiary) shall execute and deliver
to Agent, for the benefit of the Lenders, a Guaranty of Payment of the Obligations of Core Mexico.
In connection with each of the foregoing Guaranties of Payment, Administrative Borrower shall
deliver to Agent such other supporting documentation, corporate governance and authorization
documents, and an opinion of counsel as may be reasonably deemed necessary or

69

 

advisable by Agent.
Anything in this subsection (b) to the contrary notwithstanding, if the execution and delivery of
such Guaranty of Payment under the laws of such foreign jurisdiction is impractical or cost
prohibitive, in the reasonable judgment of Agent, after consultation with Administrative Borrower,
then Agent may forego such Guaranty of Payment in such foreign jurisdiction.

     (c) Pledge of Stock or Other Ownership Interest. With respect to the creation,
acquisition or holding of a first-tier Foreign Subsidiary or a Domestic Subsidiary, Administrative
Borrower shall deliver to Agent, for the benefit of the Lenders, all of the share certificates (or
other evidence of equity) owned by a Credit Party pursuant to the terms of a Pledge Agreement
executed by the appropriate Credit Party; provided that no Company shall be required to pledge more
than sixty-five percent (65%) of the outstanding voting shares or other voting ownership interest
of any Foreign Subsidiary as security for the Obligations of Core Molding. With respect to the
creation, acquisition or holding of a material Foreign Subsidiary, if required by Agent or the
Required Lenders, Administrative Borrower shall deliver to Agent, for the benefit of the Lenders,
all of the share certificates (or other evidence of equity) owned by a Credit Party that is a
Foreign Subsidiary pursuant to the terms of a Pledge Agreement executed by such Credit Party as
security for the Obligations of Core Mexico, if applicable, pursuant to the terms of such Stock
Pledge Agreement. Anything in this subsection (c) to the contrary notwithstanding, if the
execution and delivery of such pledge of stock under the laws of such foreign jurisdiction is
impractical or cost prohibitive, in the reasonable judgment of Agent, after consultation with
Administrative Borrower, then Agent may forego such pledge of stock (or foreign perfection of such
pledge of stock in such foreign jurisdiction).

     (d) Perfection or Registration of Interest in Foreign Shares. With respect to any
foreign shares pledged to Agent, for the benefit of the Lenders, on or after the Closing Date,
Agent shall at all times, in the reasonable discretion of Agent or the Required Lenders, have the
right to perfect, at Core Molding’s cost, payable upon request therefor (including, without
limitation, any foreign counsel, or foreign notary, filing, registration or similar, fees, costs or
expenses), its security interest in such shares in the respective foreign jurisdiction.

     Section 5.22. Restrictive Agreements. Except as set forth in this Agreement,
Borrowers shall not, and shall not permit any of their Subsidiaries to, directly or indirectly,
create or otherwise cause or suffer to exist or become effective any encumbrance or restriction on
the ability of any Subsidiary to (a) make, directly or indirectly, any Capital Distribution to any
Borrower, (b) make, directly or indirectly, loans or advances or capital contributions to any
Borrower or (c) transfer, directly or indirectly, any of the properties or assets of such
Subsidiary to any Borrower; except for such encumbrances or restrictions existing under or by
reason of (i) applicable law, (ii) customary non-assignment provisions in leases or other
agreements entered in the ordinary course of business and consistent with past practices, or (iii)
customary restrictions in security agreements or mortgages securing Indebtedness or Capitalized
Lease Obligations, of a Company to the extent such restrictions shall only restrict the transfer of
the property subject to such security agreement, mortgage or lease.

     Section 5.23. Other Covenants and Provisions. In the event that any Company shall
enter into, or shall have entered into, any Material Indebtedness Agreement, wherein the

70

 

covenants
and agreements contained therein shall be more restrictive than the covenants and agreements set
forth herein, then the Companies shall be bound hereunder by such more restrictive covenants and
agreements with the same force and effect as if such covenants and agreements were written herein.

     Section 5.24. Amendment of Organizational Documents. Without the prior written
consent of Agent, no Company shall (a) amend its Organizational Documents in any manner adverse to
the Lenders, or (b) amend its Organizational Documents to change its name or state, province or
other jurisdiction of organization.

     Section 5.25. Fiscal Year of Borrowers. No Borrower shall change the date of its
fiscal year-end without the prior written consent of Agent and the Required Lenders. As of the
Closing Date, the fiscal year end of each Borrower is December 31 of each year.

     Section 5.26. Banking Relationship. Until payment in full of the Obligations, Core
Molding shall maintain its primary banking and depository relationship with Agent.

     Section 5.27. Spanish Language Translation. In the reasonable discretion of Agent,
Agent may, at the expense of Borrowers, receive a translation of the Credit Agreement or one or
more of the Loan Documents (as reasonably necessary in the reasonable opinion of Agent) into the
Spanish language, prepared by an expert Mexican translator satisfactory to Agent, together with a
certificate of Core Mexico to the effect that Core Mexico and Core Molding, to the extent
applicable, irrevocably (a) acknowledges and agrees to be bound in accordance with the terms of
each such translation, and (b) waives any right that it may have to challenge or invalidate any
such translation of any term thereof.

     Section 5.28. Other Covenants Relating to the Mexican Project. Borrowers further
covenant and agree as follows:

     (a) Construction of Improvements. The Improvements shall be constructed and fully
equipped in a good and workmanlike manner, with materials of high quality, strictly in accordance
with the Plans and Specifications (or in accordance with any changes therein that may be approved
in writing by Agent, or as to which Agent’s approval is not required), and such construction and
equipping will be prosecuted with due diligence and continuity in accordance with the Construction
Schedule and fully completed not later than the Project Completion Date. The Project Completion
Date may be extended in writing by Agent by the number of days resulting from any Unavoidable Delay
in the construction of the Mexican Project (but under no circumstances shall Agent be obligated to
extend the Project Completion Date). In connection with any request by Borrowers for an extension
(i) Borrowers shall give notice of such delay to Agent within ten days of learning of the event
resulting in such delay, and (ii) after giving effect to the consequences of such delay, the Capex
Loans and the Mexican Loan shall remain “In-Balance”.

     (b) Changes in Plans and Specifications. No changes will be made in the Plans and
Specifications without the prior written approval of Agent; provided that Borrowers may make
changes to the Plans and Specifications if (i) Borrowers notify Agent in writing of such change

71

 

within seven days thereafter, (ii) Borrowers obtain the approval of all parties whose approval is
required, including any sureties and any Governmental Authority to the extent approval from such
parties is required, (iii) the structural integrity of the Improvements is not impaired, (iv) no
material change in architectural appearance is negatively affected, (v) the performance of the
mechanical, electrical, and life safety systems of the Improvements is not negatively affected, and
(vi) the cost of or reduction resulting from such change (A) does not exceed Fifty Thousand Dollars
($50,000), and (B) when added to all other changes which have not been approved in writing by
Agent, the resulting aggregate cost or reduction does not exceed Two Hundred Fifty Thousand Dollars
($250,000). Changes in the scope of construction work or to any construction related contract must
be documented with a Change Order on the AIA Form G701 or similar form.

     (c) Inspection by Agent. Borrowers will cooperate with Agent in arranging for
inspections by representatives of Agent, during normal business hours and with prior notice, of the
progress of the Construction from time to time, including an examination of (i) the
Improvements, (ii) all materials to be used in the Construction, (iii) all plans and shop drawings
that are or may be kept at the construction site, (iv) any contracts, bills of sale, statements,
receipts or vouchers in connection with the Improvements, (v) all work done, labor performed,
materials furnished in and about the Improvements, (vi) all books, contracts and records with
respect to the Improvements, and (vii) any other documents relating to the Improvements or the
Construction. Borrowers shall cooperate with the Consultant to enable the Consultant to perform
its functions hereunder, and will promptly comply with Agent’s requirements and remove any
dissatisfaction regarding the Construction of the Improvements or the progress thereof.

     (d) Renewal of Insurance. Borrowers shall cause insurance policies to be maintained
in compliance with the terms of this Agreement and satisfactory to Agent. Borrowers shall timely
pay all premiums on all insurance policies required hereunder, and as and when additional insurance
is required, from time to time, during the progress of Construction, and as and when any policies
of insurance may expire, furnish to Agent, premiums prepaid, additional and renewal insurance
policies with companies, coverage and in amounts satisfactory to Agent.

     (e) Payment of Taxes. Borrowers shall pay all real estate taxes and assessments and
charges of every kind upon the Mexican Project, before the same become delinquent, provided that
Borrowers shall have the right to pay such project tax under protest or to otherwise contest any
such project tax or assessment, but only if (i) such contest has the effect of preventing the
collection of such project taxes so contested and also of preventing the sale or forfeiture of the
Mexican Project or any part thereof or any interest therein, (ii) Borrowers have notified Agent of
Borrowers’ intent to contest such project taxes, and (iii) Borrowers have deposited security, in
form and amount satisfactory to Agent, in its sole discretion, and has increased the amount of such
security so deposited promptly after Agent’s request therefor. If a Borrower fails to commence
such contest or, having commenced to contest the same, and having deposited such security required
by Agent for its full amount, shall thereafter fail to prosecute such contest in good faith or with
due diligence, or, upon adverse conclusion of any such contest, shall fail to pay such tax,
assessment or charge, Agent may, at its election (but shall not be required to), pay and discharge
any such tax, assessment or charge, and any interest or penalty thereon, and any amounts so
expended by Agent shall be deemed to constitute disbursements of the proceeds of

72

 

the Capex Loans or
the Mexican Loan, as applicable, hereunder. Borrowers shall furnish to Agent evidence that project
taxes have been paid at least five days prior to the last date for payment of such project taxes
and before imposition of any penalty or accrual of interest.

     (f) Tax and Insurance Escrow Accounts. Borrowers shall, following the written request
of Agent, or upon the occurrence of any Event of Default, make insurance and tax escrow deposits,
in amounts reasonably determined by Agent from time to time as being needed to pay taxes and
insurance premiums when due, in an interest bearing escrow account held by Agent in Agent’s name
and under its sole dominion and control. All payments deposited in the escrow account, and all
interest accruing thereon, are pledged as additional collateral for the Capex Loans and the Mexican
Loan, depending on which Borrower has made the deposit. Notwithstanding Agent’s holding of the
escrow account, nothing herein shall obligate Agent to pay any insurance premiums or real property
taxes with respect to any portion of the Mexican Project, unless the Event of Default has been
cured to the satisfaction of Agent. If the Event of Default has been satisfactorily cured, Agent
shall make available to the appropriate Borrower
such funds as may be deposited in the escrow account from time to time for such Borrower’s payment
of insurance premiums or real property taxes due with respect to the Mexican Project.

     (g) Personal Property. All of Borrowers’ personal property, fixtures, attachments and
equipment delivered upon, attached to or used in connection with the Construction or the operation
of the Mexican Project shall always be located at the Mexican Project and shall be kept free and
clear of all liens, encumbrances and security interests, except for Permitted Exceptions and Liens
permitted pursuant to Section 5.9 of the Credit Agreement.

     (h) Furnishing Information. Borrowers shall deliver, or cause to be delivered, to
Agent not later than fifteen (15) days before the end of each fiscal year of Core Molding, the
Mexican Project’s updated annual operating budget for the following fiscal year.

     (i) Sign and Publicity. Upon Agent’s request, Borrowers shall promptly erect a sign
approved in advance by Agent in a conspicuous location on the Mexican Project during the
Construction, indicating that the financing for the Mexican Project is provided by Agent and the
Lenders. Agent reserves the right to publicize the making of the Mexican Loan.

     (j) Management Contracts. Borrowers shall not enter into, modify, amend, terminate or
cancel any management contracts for the Mexican Project or agreements with agents or brokers,
without the prior written approval of Agent.

     (k) Furnishing Notices. Borrowers shall provide Agent with copies of all material
notices pertaining to the Mexican Project received by a Borrower from a Governmental Authority or
insurance company within seven days after such notice is received.

     (l) Construction Contracts. No Borrower shall enter into, modify, amend, terminate or
cancel any contracts for the Construction, except in connection with a change in the Plans and
Specifications permitted under Section 5.28(a) or (b) hereof, without the prior written approval of
Agent, which approval shall not be unreasonably withheld. Each Borrower will furnish Agent,
promptly after execution thereof, executed copies of all Major
Subcontracts, which Major

73

 

Subcontracts may not have been furnished pursuant to Section 12.1(a) hereof at the time of the
Closing Date.

     (m) Correction of Defects. Within five days after a Borrower acquires knowledge of or
receives notice of a defect in the Improvements or any material departure from the Plans and
Specifications, or any other requirement of this Agreement, such Borrower will proceed with
diligence to correct all such defects and departures.

     (n) Hold Disbursements in Trust. Each Borrower shall receive and hold in trust for
the sole benefit of Agent and the Lenders (and not for the benefit of any other Person, including,
but not limited to, contractors or any subcontractors) all advances made hereunder directly to such
Borrower, for the purpose of paying costs of the Construction in accordance with the Budget. Each
Borrower shall use the proceeds of the Capex Loans or the Mexican Loan, as applicable, solely for
the payment of costs as specified in the Budget. Borrowers will pay all
other costs, expenses and fees relating to the acquisition, equipping, use and operation of the
Mexican Project.

     (o) Foundation Survey. Not later than thirty (30) days after completion of the
foundation with respect to the Improvements, Borrowers shall furnish to Agent a survey of the Land
with the foundation of the Improvements located thereon.

     (p) Alterations. Without the prior written consent of Agent, Borrowers shall not make
any material alterations to the Mexican Project (other than completion of the Construction in
accordance with the Plans and Specifications).

     (q) Completion of the Mexican Project. Core Mexico and Core Molding shall implement
the Mexican Project promptly in accordance with the Budget, and shall use commercially reasonable
efforts to cause the Mexican Project to be completed by the Project Completion Date.

     Section 5.29. Further Assurances. Borrowers shall, promptly upon request by Agent,
or the Required Lenders through Agent, (a) correct any material defect or error that may be
discovered in any Loan Document or in the execution, acknowledgment, filing or recordation thereof,
and (b) do, execute, acknowledge, deliver, record, re-record, file, re-file, register and
re-register any and all such further acts, deeds, certificates, assurances and other instruments as
Agent, or the Required Lenders through Agent, may reasonably require from time to time in order to
carry out more effectively the purposes of the Loan Documents.

ARTICLE VI. REPRESENTATIONS AND WARRANTIES

     Section 6.1. Corporate Existence; Subsidiaries; Foreign Qualification. Each Company
is duly organized, validly existing and, where applicable, in good standing (or comparable concept
in the applicable jurisdiction) under the laws of its state or jurisdiction of incorporation or
organization, and is duly qualified and authorized to do business and, where applicable, is in good
standing (or comparable concept in the applicable jurisdiction) as a foreign entity in the

74

 

jurisdictions set forth opposite its name on Schedule 6.1 hereto, which are all of the
states or jurisdictions where the character of its property or its business activities makes such
qualification necessary, except where a failure to so qualify will not cause or result in a
Material Adverse Effect. Schedule 6.1 hereto sets forth, as of the Closing Date, each
Subsidiary of a Borrower (and whether such Subsidiary is a Dormant Subsidiary) and each Person that
is an owner of a Borrower’s equity, its state (or jurisdiction) of formation, its relationship to a
Borrower, including the percentage of each class of stock or other equity interest owned by a
Company, each Person that owns the stock or other equity interest of each Company, the location of
its chief executive office and its principal place of business. Each Borrower, directly or
indirectly, owns all of the equity interests of each of its Subsidiaries (excluding directors’
qualifying shares and, in the case of Foreign Subsidiaries, other nominal amounts of shares held by
a Person other than a Company).

     Section 6.2. Corporate Authority. Each Credit Party has the right and power and is
duly authorized and empowered to enter into, execute and deliver the Loan Documents to which it is
a party and to perform and observe the provisions of the Loan Documents. The Loan Documents to
which each Credit Party is a party have been duly authorized and approved by such Credit Party’s
board of directors or other governing body, as applicable, and are the valid and binding
obligations of such Credit Party, enforceable against such Credit Party in accordance with their
respective terms, except as enforceability may be limited by bankruptcy, insolvency or similar laws
affecting the enforcement of creditors’ rights generally and by equitable principles (regardless of
whether enforcement is sought in equity or at law). The execution, delivery and performance of the
Loan Documents do not conflict with, result in a breach in any of the provisions of, constitute a
default under, or result in the creation of a Lien (other than Liens permitted under Section 5.9
hereof) upon any assets or property of any Company under the provisions of, such Company’s
Organizational Documents or any material agreement.

     Section 6.3. Compliance with Laws and Contracts. Each Company:

     (a) holds permits, certificates, licenses, orders, registrations, franchises, authorizations,
and other approvals from any Governmental Authority necessary for the conduct of its business and
is in compliance with all applicable laws relating thereto, except where the failure to do so would
not have a Material Adverse Effect;

     (b) is in compliance with all federal, state, local, or foreign applicable statutes, rules,
regulations, and orders including, without limitation, those relating to environmental protection,
occupational safety and health, and equal employment practices, except where the failure to be in
compliance would not have a Material Adverse Effect;

     (c) is not in violation of or in default under any agreement to which it is a party or by
which its assets are subject or bound, except with respect to any violation or default that would
not have a Material Adverse Effect;

     (d) has ensured and shall continue to ensure that no Person who owns a controlling interest in
or otherwise controls a Company is or shall be (i) listed on the Specially Designated Nationals and
Blocked Person List maintained by the Office of Foreign Assets Control

75

 

(“OFAC”), Department of the
Treasury, or any other similar lists maintained by OFAC pursuant to any authorizing statute,
executive order or regulation, or (ii) a Person designated under Section 1(b), (c) or (d) of
Executive Order No. 13224 (September 23, 2001), any related enabling legislation or any other
similar executive orders;

     (e) is in material compliance with all applicable Bank Secrecy Act (“BSA”) and anti-money
laundering laws and regulations; and

     (f) is in compliance, in all material respects, with the Patriot Act.

     Section 6.4. Litigation and Administrative Proceedings. Except as disclosed on
Schedule 6.4 hereto, there are (a) no lawsuits, actions, investigations, examinations or
other proceedings pending or, to the knowledge of the Companies, threatened against any Company, or
in respect of which any Company may have any liability, in any court or before or by any
Governmental Authority, arbitration board, or other tribunal, which Borrowers reasonably expect to
have a Material Adverse Effect, (b) no orders, writs, injunctions, judgments, or decrees of any
court or Governmental Authority to which any Company is a party or by which the property or assets
of any Company are bound, which Borrowers reasonably expect to have a Material Adverse Effect, and
(c) no grievances, disputes, or controversies outstanding with any union or other organization of
the employees of any Company, or threats of work stoppage, strike, or pending demands for
collective bargaining.

     Section 6.5. Title to Assets. Each Company has good title to and ownership of all
property it purports to own, which property is free and clear of all Liens, except those permitted
under Section 5.9 hereof. As of the Closing Date, the Companies own the real property listed on
Schedule 6.5 hereto.

     Section 6.6. Liens and Security Interests. On and after the Closing Date, except for
Liens permitted pursuant to Section 5.9 hereof, (a) there is and will be no U.C.C. Financing
Statement or similar notice of Lien outstanding covering any personal property of any Company; (b)
there is and will be no mortgage outstanding covering any real property of any Company; and (c) no
real or personal property of any Company is subject to any Lien of any kind. Agent, for the
benefit of the Lenders, upon the filing of the U.C.C. Financing Statements and taking such other
actions necessary to perfect its Lien against collateral of the corresponding type as authorized
hereunder will have a valid and enforceable first Lien on such collateral. No Company has entered
into any contract or agreement (other than (i) a contract or agreement entered into in connection
with the purchase or lease of fixed assets that prohibits Liens on such fixed assets or a contract
or agreement entered into in the ordinary course of business that does not permit Liens on, or
collateral assignment of, the property relating to such contract or agreement, or (ii) any
agreement with a restriction that is not enforceable under Section 9-406, 9-407 or 9-408 of the
U.C.C.) that exists on or after the Closing Date that would prohibit Agent or the Lenders from
acquiring a Lien on, or a collateral assignment of, any of the property or assets of any Company.

     Section 6.7. Tax Returns. All federal, state and local tax returns and other reports
required by law to be filed in respect of the income, business, properties and employees of each

76

 

Company have been filed (or extended as permitted by applicable law) and all taxes, assessments,
fees and other governmental charges that are due and payable have been paid, except as otherwise
permitted herein. The provision for taxes on the books of each Company is adequate for all years
not closed by applicable statutes and for the current fiscal year.

     Section 6.8. Environmental Laws. Each Company is in substantial compliance with all
Environmental Laws, including, without limitation, all Environmental Laws in all jurisdictions in
which any Company owns or operates,
or has owned or operated, a facility or site, arranges or has arranged for disposal or treatment of
hazardous substances, solid waste or other wastes, accepts or has accepted for transport any
hazardous substances, solid waste or other wastes or holds or has held any interest in real
property or otherwise. No material litigation or proceeding arising under, relating to or in
connection with any Environmental Law is pending or, to the best knowledge of each Company,
threatened, against any Company, any real property in which any Company holds or has held an
interest or any past or present operation of any Company. No material release, threatened release
or disposal of hazardous waste, solid waste or other wastes is occurring, or has occurred (other
than those that are currently being remediated in accordance with Environmental Laws), on, under or
to any real property in which any Company holds any interest or performs any of its operations, in
violation of any Environmental Law. As used in this Section 6.8, “litigation or proceeding” means
any demand, claim, notice, suit, suit in equity, action, administrative action, investigation or
inquiry whether brought by any Governmental Authority or private Person, or otherwise.

     Section 6.9. Locations. As of the Closing Date, the Companies have places of
business or maintain their Accounts, Inventory and Equipment at the locations (including
third-party locations) set forth on Schedule 6.9 hereto, and each Company’s chief executive
office is set forth on Schedule 6.9 hereto. Schedule 6.9 hereto further specifies
whether each location, as of the Closing Date, (a) is owned by the Companies, or (b) is leased by a
Company from a third party, and, if leased by a Company from a third party, if a Landlord’s Waiver
has been requested. As of the Closing Date, Schedule 6.9 hereto correctly identifies the
name and address of each third-party location where assets of the Companies are located.

     Section 6.10. Continued Business. There exists no actual, pending, or, to each
Borrower’s knowledge, any threatened termination, cancellation or limitation of, or any
modification or change in the business relationship of any Company and any customer or supplier, or
any group of customers or suppliers, which any Credit Party reasonably expects to have a Material
Adverse Effect.

     Section 6.11. Employee Benefits Plans.

     (a) US Employee Benefit Plans. Schedule 6.11 hereto identifies each ERISA
Plan as of the Closing Date. No ERISA Event has occurred or is expected to occur with respect to
an ERISA Plan. Full payment has been made of all amounts that a Controlled Group member is
required, under applicable law or under the governing documents, to have paid as a contribution to
or a benefit under each ERISA Plan. The liability of each Controlled Group member with respect to
each ERISA Plan has been fully funded based upon reasonable and proper actuarial assumptions, has
been fully insured, or has been fully reserved for on its financial statements.

77

 

No changes have
occurred or are expected to occur that would cause a material increase in the cost of providing
benefits under the ERISA Plan. With respect to each ERISA Plan that is intended to be qualified
under Code Section 401(a), in all material respects or are subject to cure under a correction
program approved by a Governmental Authority; (i) the ERISA Plan and any associated trust
operationally comply with the applicable requirements of Code Section 401(a); (ii) to the extent
applicable, the ERISA Plan and any associated trust have been amended to
comply with all such requirements as currently in effect, other than those requirements for which a
retroactive amendment can be made within the “remedial amendment period” available under Code
Section 401(b) (as extended under Treasury Regulations and other Treasury pronouncements upon which
taxpayers may rely); (iii) the ERISA Plan and any associated trust have received a favorable
determination letter from the Internal Revenue Service stating that the ERISA Plan qualifies under
Code Section 401(a), that the associated trust qualifies under Code Section 501(a) and, if
applicable, that any cash or deferred arrangement under the ERISA Plan qualifies under Code Section
401(k), unless the ERISA Plan was first adopted at a time for which the above-described “remedial
amendment period” has not yet expired; (iv) the ERISA Plan currently satisfies the requirements of
Code Section 410(b), subject to any retroactive amendment that may be made within the
above-described “remedial amendment period”; and (v) no contribution made to the ERISA Plan is
subject to an excise tax under Code Section 4972. With respect to any Pension Plan, the
“accumulated benefit obligation” of Controlled Group members with respect to the Pension Plan (as
determined in accordance with Statement of Accounting Standards No. 87, “Employers’ Accounting for
Pensions”) does not exceed the fair market value of Pension Plan assets.

     (b) Foreign Pension Plan and Benefit Plans. As of the Closing Date, Schedule
6.11 hereto lists all Foreign Benefit Plans and Foreign Pension Plans currently maintained or
contributed to by Core Molding and any appropriate Foreign Subsidiaries. The Foreign Pension Plans
are duly registered under all applicable laws which require registration. Core Molding and any
appropriate Foreign Subsidiaries have complied with and performed all of its obligations under and
in respect of the Foreign Pension Plans and Foreign Benefit Plans under the terms thereof, any
funding agreements and all applicable laws (including any fiduciary, funding, investment and
administration obligations) except to the extent as would not reasonably be expected to have a
Material Adverse Effect. All employer and employee payments, contributions or premiums to be
remitted, paid to or in respect of each Foreign Pension Plan or Foreign Benefit Plan have been paid
in a timely fashion in accordance with the terms thereof, any funding agreement and all applicable
laws except to the extent the failure to do so would not reasonably be expected to have a Material
Adverse Effect. There are no outstanding actions or suits concerning the assets of the Foreign
Pension Plans or the Foreign Benefit Plans. Each of the Foreign Pension Plans is fully funded on
an ongoing basis (using actuarial methods and assumptions as of the date of the valuations last
filed with the applicable Governmental Authorities and that are consistent with generally accepted
actuarial principles).

     Section 6.12. Consents or Approvals. No consent, approval or authorization of, or
filing, registration or qualification with, any Governmental Authority or any other Person is
required to be obtained or completed by any Company in connection with the execution, delivery or
performance of any of the Loan Documents, that has not already been obtained or completed.

78

 

     Section 6.13. Solvency.

     (a) Core Molding. Core Molding has received consideration that is the reasonably
equivalent value of the obligations and liabilities that Core Molding has incurred to Agent and the
Lenders. Core Molding is not insolvent as defined in any applicable state, federal or relevant
foreign statute, nor will Core Molding be rendered insolvent by the execution and delivery of the
Loan Documents to Agent and the Lenders. Core Molding is not engaged or about to engage in any
business or transaction for which the assets retained by it are or will be an unreasonably small
amount of capital, taking into consideration the obligations to Agent and the Lenders incurred
hereunder. Core Molding does not intend to, nor does it believe that it will, incur debts beyond
its ability to pay such debts as they mature.

     (b) Core Mexico. Core Mexico has received consideration that is the reasonably
equivalent value of the obligations and liabilities that Core Mexico has incurred to the Lenders.
Core Mexico is not insolvent or in general failure of its obligations (“incumplimiento generalizado
de obligaciones”), as defined in any applicable state, federal or relevant foreign statute or the
“Ley de Concursos Mercantiles”, nor will Core Mexico be rendered insolvent by the execution and
delivery of the Loan Documents to Agent and the Lenders. Core Mexico does not have liabilities,
including contingent liabilities, greater than its assets. Core Mexico does not intend to, nor
does it believe that it will, incur debts beyond its ability to pay such debts as they mature.

     Section 6.14. Financial Statements. The Consolidated financial statements of Core
Molding for the fiscal year ended December 31, 2007, and the unaudited Consolidated financial
statements of Core Molding for the fiscal quarter ended September 30, 2008, furnished to Agent and
the Lenders, are true and complete, have been prepared in accordance with GAAP, and fairly present
the financial condition of the Companies as of the dates of such financial statements and the
results of their operations for the periods then ending. Since the ending dates of the periods
addressed in such statements, there has been no material adverse change in any Company’s financial
condition, properties or business or any change in any Company’s accounting procedures.

     Section 6.15. Regulations. No Company is engaged principally or as one of its
important activities, in the business of extending credit for the purpose of purchasing or carrying
any “margin stock” (within the meaning of Regulation U of the Board of Governors of the Federal
Reserve System of the United States of America). Neither the granting of any Loan (or any
conversion thereof), the IDRB Letter of Credit or any Letter of Credit nor the use of the proceeds
of any Loan, the IDRB Letter of Credit or any Letter of Credit will violate, or be inconsistent
with, the provisions of Regulation T, U or X or any other Regulation of such Board of Governors.

     Section 6.16. Material Agreements. Except as disclosed on Schedule 6.16
hereto, as of the Closing Date, no Company is a party to any (a) debt instrument (excluding the
Loan Documents); (b) lease (capital, operating or otherwise), whether as lessee or lessor
thereunder; (c) contract, commitment, agreement, or other arrangement involving the purchase or
sale of any inventory by it, or the license of any right to or by it; (d) contract, commitment,
agreement, or

79

 

other arrangement with any of its “Affiliates” (as such term is defined in the
Securities Exchange Act of 1934, as amended) other than a Company; (e) management or employment
contract or contract for personal services with any of its Affiliates that is not otherwise
terminable at will or on less than ninety (90) days’ notice without liability; (f) collective
bargaining agreement; or (g) other contract, agreement,
understanding, or arrangement with a third party; that, as to subsections (a) through (g), above,
if violated, breached, or terminated for any reason, would have or would be reasonably expected to
have a Material Adverse Effect.

     Section 6.17. Intellectual Property. Each Company owns, or has the right to use, all
of the patents, patent applications, industrial designs, designs, trademarks, service marks,
copyrights and licenses, and rights with respect to the foregoing, reasonably necessary for the
conduct of its business without any known conflict with the rights of others. Schedule
6.17 hereto sets forth all patents, trademarks, copyrights and license agreements owned by each
Company as of the Closing Date.

     Section 6.18. Insurance. Each Company maintains with financially sound and reputable
insurers insurance with coverage and limits as required by law and as is customary with Persons
engaged in the same businesses as the Companies. Schedule 6.18 hereto sets forth all
insurance carried by the Companies on the Closing Date, setting forth in detail the amount and type
of such insurance.

     Section 6.19. Deposit Accounts. Schedule 6.19 hereto lists all banks and
other financial institutions at which any Company maintains deposit or other accounts as of the
Closing Date, and Schedule 6.19 hereto correctly identifies the name, address and telephone
number of each depository, the name in which the account is held, a description of the purpose of
the account, and the complete account number therefor.

     Section 6.20. Accurate and Complete Statements. Neither the Loan Documents nor any
written statement made by any Company in connection with any of the Loan Documents contains any
untrue statement of a material fact or omits to state a material fact necessary to make the
statements contained therein or in the Loan Documents not misleading. After due inquiry by
Borrowers, there is no known fact that any Company has not disclosed to Agent and the Lenders that
has or is likely to have a Material Adverse Effect.

     Section 6.21. Investment Company; Other Restrictions. No Company is (a) an
“investment company” or a company “controlled” by an “investment company” within the meaning of the
Investment Company Act of 1940, as amended, or (b) subject to regulation under any foreign,
federal, state or local statute or regulation limiting its ability to incur Indebtedness.

     Section. 6.22. Mexican Project.

     (a) No condemnation of any portion of the Mexican Project, no condemnation or relocation of
any roadways abutting the Mexican Project, and no proceeding to deny access to the Mexican Project
from any point or planned point of access to the Mexican Project, has commenced or, to the
knowledge of any Borrower, is contemplated by any Governmental Authority.

80

 

     (b) The amounts set forth in the initial Budget present a full and complete itemization by
category of all capital costs with respect to fixed assets and all expenses with respect to moving
equipment which Borrowers reasonably expect to pay, or reasonably anticipate becoming obligated to
pay, to complete the Construction. No Borrower is aware of any other such costs, expenses or fees
that are material and are not covered by the Budget.

     (c) Neither the construction of the Improvements, nor the use of the Mexican Project when
completed and the contemplated accessory uses, will violate, in any material manner, (i) any laws
(including subdivision, zoning, building and environmental protection laws), or (ii) any building
permits, restrictions of record, or agreements affecting the Mexican Project or any part thereof.
Neither the zoning authorizations, approvals or variances, nor any other right to construct or to
use the Mexican Project, is to any extent dependent upon or related to any real estate other than
the Mexican Real Property. Borrowers hold and have secured any and all material permits, licenses
and approvals required by any Governmental Authority (the “Required Approvals”) to build and
construct the Mexican Project, and construction in accordance with the Construction Contract will
conform to and comply in all material respects with all covenants, conditions, restrictions and
reservations in the Required Approvals and all applicable laws.

     (d) The Mexican Project will have adequate water, gas and electrical supply, storm and
sanitary sewerage facilities, other required public utilities, fire and police protection, and
means of access between the Mexican Project and public highways; none of the foregoing will be
foreseeably delayed or impeded by virtue of any requirements under any applicable laws.

     (e) Except as disclosed by Borrowers to Lender, (i) the Mexican Project is in a clean, safe
and healthful condition, and, except for materials used in the ordinary course of construction,
maintenance and operation of the Mexican Project, is free of all Hazardous Material and is in
material compliance with all applicable laws; (ii) no Borrower nor, to the knowledge of any
Borrower, any other Person, has ever caused or permitted any Hazardous Material to be placed, held,
located or disposed of on, under, at or in a manner to affect the Mexican Project, or any part
thereof, and the Mexican Project has never been used (whether by a Borrower or, to the knowledge of
any Borrower, by any other Person) for any activities involving, directly or indirectly, the use,
generation, treatment, storage, transportation, or disposal of any Hazardous Material; (iii)
neither the Mexican Project nor any Borrower is subject to any existing, pending, or, to the
knowledge of any Borrower, threatened investigation or inquiry by any Governmental Authority, and
the Mexican Project is not subject to any remedial obligations under any applicable laws pertaining
to health or the environment; and (iv) there are no underground tanks, vessels, or similar
facilities for the storage, containment or accumulation of Hazardous Materials of any sort on,
under or affecting the Mexican Project.

     (f) The Mexican Project may be mortgaged, conveyed and otherwise dealt with as an independent
parcel.

     (g) Other than with respect to the Permitted Exceptions, when the Construction is completed in
accordance with the Plans and Specifications, no building or other improvement will encroach upon
any property line, building line, setback line, side yard line or any recorded

81

 

or visible easement (or other easement of which any Borrower is aware or has reason to believe may
exist) with respect to the Mexican Project.

     (h) Core Mexico is in compliance with, and shall continue to be in compliance with, all of its
material obligations as an employer.

     (i) There is no labor or employee action, suit, investigation or proceeding by or before any
court, arbitrator, administrative agency or other Governmental Authority pending against Core
Mexico and as to which Core Mexico has been served with process and, to the knowledge of Core
Mexico, there is no other action, suit, investigation or proceeding pending against Core Mexico or
affecting the Mexican Project that could reasonably be expected to have a material adverse effect
on the Mexican Project.

     (j) There are no strikes, slowdowns or work stoppages (i) against Core Mexico, or (ii)
affecting the Mexican Project in any material respect by the employees of any project party that,
in either case, are on-going, or, to the knowledge of Core Mexico, currently threatened, which in
each case could reasonably be expected to have a material adverse effect on the Mexican Project.

     Section 6.23. Defaults. No Default or Event of Default exists hereunder, nor will
any begin to exist immediately after the execution and delivery hereof.

ARTICLE VII. EVENTS OF DEFAULT

     Each of the following shall constitute an Event of Default hereunder:

     Section 7.1. Payments. If (a) interest on any Loan or any facility or other fee
shall not be paid in full when due and payable or within five Business Days thereafter, or (b) the
principal of any Loan or any obligation under any Letters of Credit or the IDRB Letter of Credit
shall not be paid in full when due and payable.

     Section 7.2. Special Covenants. If any Company shall fail or omit to perform and
observe Section 5.7, 5.8, 5.9, 5.11, 5.12, 5.13, 5.15, 5.20 or 5.23 hereof.

     Section 7.3. Other Covenants. If any Company shall fail or omit to perform and
observe any agreement or other provision (other than those referred to in Section 7.1 or 7.2
hereof) contained or referred to in this Agreement or any Related Writing that is on such Company’s
part to be complied with, and that Default shall not have been fully corrected within thirty (30)
days after the earlier of (a) any Financial Officer of such Company becomes aware of the occurrence
thereof, or (b) the giving of written notice thereof to Administrative Borrower by Agent or the
Required Lenders that the specified Default is to be remedied.

     Section 7.4. Representations and Warranties. If any representation, warranty or
statement made in or pursuant to this Agreement or any Related Writing or any other material

82

 

information furnished by any Company to Agent or the Lenders, or any thereof, or any other holder
of any Note, shall be false or erroneous in any material respect.

     Section 7.5. Cross Default. If any Company shall default in the payment of principal
or interest due and owing under any Material Indebtedness Agreement beyond any period of grace
provided with respect thereto or in the performance or observance of any other agreement, term or
condition contained in any agreement under which such obligation is created, if the effect of such
default is to allow the acceleration of the maturity of such Indebtedness or to permit the holder
thereof to cause such Indebtedness to become due prior to its stated maturity.

     Section 7.6. ERISA Default. The occurrence of one or more ERISA Events that (a) the
Required Lenders determine could have a Material Adverse Effect, or (b) results in a Lien on any of
the assets of any Company, in the aggregate for all such Liens for all Companies in excess of Five
Hundred Thousand Dollars ($500,000).

     Section 7.7. Change in Control. If any Change in Control shall occur.

     Section 7.8. Judgments. There is entered against any Company:

     (a) a final judgment or order for the payment of money by a court of competent jurisdiction,
that remains unpaid or unstayed and undischarged for a period (during which execution shall not be
effectively stayed) of thirty (30) days after the date on which the right to appeal has expired,
provided that the aggregate of all such judgments for all such Companies, shall exceed Five Hundred
Thousand Dollars ($500,000) (less any amount that will be covered by the proceeds of insurance and
is not subject to dispute by the insurance provider); or

     (b) any one or more non-monetary final judgments that are not covered by insurance, or, if
covered by insurance, for which the insurance company has not agreed to or acknowledged coverage,
and that, in either case, the Required Lenders reasonably determine have, or could reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect and, in either case,
(i) enforcement proceedings are commenced by the prevailing party or any creditor upon such
judgment or order, or (ii) there is a period of three consecutive Business Days during which a stay
of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect.

     Section 7.9. Material Adverse Change. There shall have occurred any condition or
event that Agent or the Required Lenders reasonably determine has or is reasonably likely to have a
Material Adverse Effect.

     Section 7.10. Security. If any Lien granted in any Loan Document in favor of Agent,
for the benefit of the Lenders, shall be determined to be (a) void, voidable or invalid, or is
subordinated or not otherwise given the priority contemplated by such Loan Document and Borrowers
have (or the appropriate Credit Party has) failed to promptly execute appropriate documents to
correct such matters, or (b) unperfected as to any material amount of collateral (as determined by
Agent, in its reasonable discretion) and Borrowers have (or the appropriate Credit Party has)
failed to promptly execute appropriate documents to correct such matters.

83

 

     Section 7.11. Validity of Loan Documents. If (a) any material provision, in the sole
opinion of Agent, of any Loan Document shall at any time cease to be valid, binding and enforceable
against any Credit Party; (b) the validity, binding effect or enforceability of any Loan Document
against any Credit Party shall be contested by any Credit Party; (c) any Credit Party shall deny
that it has any or further liability or obligation under any Loan Document; or (d) any Loan
Document shall be terminated, invalidated or set aside, or be declared ineffective or inoperative
or in any way cease to give or provide to Agent and the Lenders the benefits purported to be
created thereby.

     Section 7.12. Expropriation Default. If any Governmental Authority condemns,
nationalizes, seizes, or otherwise expropriates any substantial portion of the assets of Core
Mexico or Core Molding, or takes any action that would prevent Core Mexico or Core Molding from
carrying on any material part of its business or operations.

     Section 7.13. Defaults with Respect to the Mexican Project. If any of the following
shall occur:

     (a) Borrowers shall fail to provide Agent with evidence, in form and substance reasonably
satisfactory to Agent, by no later than January 9, 2009, that all registration fees for the filing
of the Mexican Mortgage and the Mexican Security Agreement have been paid and the Mexican Mortgage
and the Mexican Security Agreement have been filed for registration before the corresponding Public
Registry of Property and Commerce, respectively;

     (b) Agent or the Consultant shall disapprove, at any time, any construction work and Borrowers
shall fail to cause the same to be corrected, to the satisfaction of Agent, within thirty (30)
days;

     (c) there shall occur a delay in the Construction or a discontinuance for a period of
fifteen (15) days after written notice from Agent concerning such delay or discontinuance (other
than Unavoidable Delays), or in any event a delay in the Construction so that the same is not, in
Agent’s judgment (giving due consideration to the assessment of the Consultant), likely to be
completed on or before the Project Completion Date;

     (d) the bankruptcy or insolvency of the Construction Contractor shall occur and Borrowers
shall fail to procure a contract with a new contractor satisfactory to Agent within thirty (30)
days from the occurrence of such bankruptcy or insolvency;

     (e) any Borrower shall be enjoined, restrained or in any way prevented by any court order from
constructing or operating the Mexican Project;

     (f) any Borrower shall fail to make any Deficiency Deposit with Agent within the time and in
the manner required by Article 12 hereof;

84

 

     (g) Borrowers shall fail to comply with and satisfy any of the final disbursement conditions
contained in Section 12.3 hereof within sixty (60) days after the Project Completion Date; or

     (h) a material adverse change shall occur with respect to the Mexican Project.

     Section 7.14. Solvency. If any Company (other than a Dormant Subsidiary) shall (a)
except as permitted pursuant to Section 5.12 hereof, discontinue business, (b) generally not pay
its debts as such debts become due, (c) make a general assignment for the benefit of creditors, (d)
apply for or consent to the appointment of an interim receiver, a receiver, a receiver and manager,
an administrator, sequestrator, monitor, a custodian, a trustee, an interim trustee, liquidator,
agent, “conciliadora” or “sindico” or other similar official of all or a substantial part of its
assets or of such Company, (e) be adjudicated a debtor or insolvent or have entered against it an
order for relief under Title 11 of the United States Code, or under any other bankruptcy
insolvency, liquidation, winding-up, corporate or similar statute or law, foreign, federal, state
or provincial, in any applicable jurisdiction, now or hereafter existing, as any of the foregoing
may be amended from time to time, or other applicable statute for jurisdictions outside of the
United States, as the case may be, (f) file a voluntary petition in bankruptcy, or file a proposal
or notice of intention to file a proposal or have an involuntary proceeding filed against it and
the same shall continue undismissed for a period of sixty (60) days from commencement of such
proceeding or case, or file a petition, an answer, an application or a proposal seeking
reorganization or an arrangement with creditors or seeking to take advantage of any other law
(whether federal, provincial or state, or, if applicable, other jurisdiction) relating to relief of
debtors, or admit (by answer, by default or otherwise) the material allegations of a petition filed
against it in any bankruptcy, reorganization, insolvency or other proceeding (whether federal,
provincial or state, or, if applicable, other jurisdiction) relating to relief of debtors, (g)
suffer or permit to continue unstayed and in effect for sixty (60) consecutive days any judgment,
decree or order entered by a court of competent jurisdiction, that approves a petition or an
application or a proposal seeking its reorganization or appoints an interim receiver, a receiver
and manager, an administrator, custodian, trustee, interim trustee or liquidator of all or a
substantial part of its assets, or of such Company, (h) have an administrative receiver appointed
over the whole or substantially the whole of its assets, or of such Company, (i) take, or omit to
take, any action in order thereby to effect any of the foregoing, (j) have assets, the value of
which is less than its liabilities (taking into account prospective and contingent liabilities), or
(k) have a moratorium declared in respect of any of its Indebtedness, or any analogous procedure or
step is taken in any jurisdiction.

ARTICLE VIII. REMEDIES UPON DEFAULT

     Notwithstanding any contrary provision or inference herein or elsewhere:

     Section 8.1. Optional Defaults. If any Event of Default referred to in Section 7.1,
7.2, 7.3, 7.4, 7.5, 7.6, 7.7, 7.8, 7.9, 7.10, 7.11, 7.12 or 7.13 hereof shall occur, Agent may,
with the consent of the Required Lenders, and shall, at the written request of the Required
Lenders, give written notice to Borrowers to:

85

 

     (a) terminate the Commitment, if not previously terminated, and, immediately upon such
election, the obligations of the Lenders, and each thereof, to make any further Loan, and the
obligation of the Fronting Lender to issue any Letter of Credit, immediately shall be terminated;
and/or

     (b) accelerate the maturity of all of the Obligations (if the Obligations are not already due
and payable), whereupon all of the Obligations shall become and thereafter be immediately due and
payable in full without any presentment or demand and without any further or other notice of any
kind, all of which are hereby waived by each Borrower.

     Section 8.2. Automatic Defaults. If any Event of Default referred to in Section 7.14
hereof shall occur:

     (a) all of the Commitment shall automatically and immediately terminate, if not previously
terminated, and no Lender thereafter shall be under any obligation to grant any further Loan, nor
shall the Fronting Lender be obligated to issue any Letter of Credit; and

     (b) the principal of and interest then outstanding on all of the Loans, and all of the other
Obligations, shall thereupon become and thereafter be immediately due and payable in full (if the
Obligations are not already due and payable), all without any presentment, demand or notice of any
kind, which are hereby waived by each Borrower.

     Section 8.3. Letters of Credit and IDRB Letter of Credit. If the maturity of the
Obligations shall be accelerated pursuant to Section 8.1 or 8.2 hereof, Core Molding shall
immediately deposit with Agent, as security for the obligations of Core Molding and any Domestic
Guarantor of Payment to reimburse Agent and the Lenders for any then outstanding Letters of Credit
and the IDRB Letter of Credit, cash equal to the sum of the aggregate undrawn balance of any then
outstanding Letters of Credit and the IDRB Letter of Credit. Agent and the Lenders are hereby
authorized, at their option, to deduct any and all such amounts from any deposit balances then
owing by any Lender (or any affiliate of such Lender, wherever located) to or for the credit or
account of Core Molding or any Domestic Guarantor of Payment, as security for the obligations of
Core Molding and any Domestic Guarantor of Payment to reimburse Agent and the Lenders for any then
outstanding Letters of Credit and the IDRB Letter of Credit.

     Section 8.4. Mexican Project. If the maturity of the Obligations shall be
accelerated pursuant to Section 8.1 or 8.2 hereof, Agent may take possession of the Mexican Project
and complete the Construction and do anything that is reasonably necessary or appropriate, in
Agent’s reasonable judgment, to fulfill the obligations of Borrowers under this Agreement and the
other Loan Documents, including either the right to avail itself of and procure performance of
existing contracts or let any contracts with the same contractors or others. Without restricting
the generality of the foregoing and for the purposes aforesaid, each Borrower hereby appoints and
constitutes Agent its lawful attorney in fact with full power of substitution in the Mexican
Project to complete the Construction in the name of each Borrower, as appropriate, to use
unadvanced funds remaining under the Capex Commitment or the Mexican Loan Commitment, or that may
be reserved, escrowed or set aside for any purposes hereunder at any time, to

86

 

complete the
Construction, to make changes in the Plans and Specifications which shall be necessary or desirable
to complete the Construction in substantially the manner contemplated by the Plans and
Specifications, to retain or employ new general contractors, subcontractors, architects, engineers
and inspectors as shall be required for such purposes, to pay, settle or compromise all existing
bills and claims, that may be Liens or security interests, or to avoid such bills and claims
becoming Liens against the Mexican Project, to execute all applications and certificates in the
name of the appropriate Borrower, to prosecute and defend all actions or proceedings in connection
with the Improvements or the Mexican Project, and to do any and every act which a Borrower might do
in its own behalf, it being understood and agreed that this power of attorney shall be a power
coupled with an interest and cannot be revoked.

     Section 8.5. Offsets. If there shall occur or exist any Event of Default referred to
in Section 7.14 hereof or if the maturity of the Obligations is accelerated pursuant to Section 8.1
or 8.2 hereof, each Lender shall have the right at any time to set off against, and to appropriate
and apply toward the payment of, any and all of the Obligations then owing by a Borrower or
Guarantor of Payment to such Lender (including, without limitation, any participation purchased or
to be purchased pursuant to Section 2.2(b), 2.2(c), 2.5, 2.6 or 8.6 hereof), whether or not the
same shall then have matured, any and all deposit (general or special) balances and all other
indebtedness then held or owing by such Lender (including, without limitation, by branches and
agencies or any affiliate of such Lender, wherever located) to or for the credit or account of such
Borrower or Guarantor of Payment, all without notice to or demand upon such Borrower or any other
Person, all such notices and demands being hereby expressly waived by each Borrower.

     Section 8.6. Equalization Provisions. Each Lender agrees with the other Lenders that
if it, at any time, shall obtain any Advantage over the other Lenders or any thereof in respect of
the Obligations (except as to Swing Loans and Letters of Credit prior to Agent’s giving of notice
to participate and except under Article III hereof), it shall purchase from the other Lenders, for
cash and at par, such additional participation in the Obligations as shall be necessary to nullify
the Advantage. If any such Advantage resulting in the purchase of an additional participation as
aforesaid shall be recovered in whole or in part from the Lender receiving the Advantage, each such
purchase shall be rescinded, and the purchase price restored (but without interest unless the
Lender receiving the Advantage is required to pay interest on the Advantage to the Person
recovering the Advantage
from such Lender) ratably to the extent of the recovery. Each Lender further agrees with the other
Lenders that if it at any time shall receive any payment for or on behalf of any Borrower on any
Indebtedness owing by any Borrower pursuant to this Agreement (whether by voluntary payment, by
realization upon security, by reason of offset of any deposit or other indebtedness, by
counterclaim or cross-action, by the enforcement of any right under any Loan Document, or
otherwise), it will apply such payment first to any and all Obligations owing by such Borrower to
that Lender (including, without limitation, any participation purchased or to be purchased pursuant
to this Section 8.6 or any other section of this Agreement). Each Credit Party agrees that any
Lender so purchasing a participation from the other Lenders or any thereof pursuant to this Section
8.6 may exercise all of its rights of payment (including the right of set-off) with respect to such
participation as fully as if such Lender were a direct creditor of such Credit Party in the amount
of such participation.

87

 

     Section 8.7. Other Remedies. The remedies in this Article VIII are in addition to,
not in limitation of, any other right, power, privilege, or remedy, either in law, in equity, or
otherwise, to which the Lenders may be entitled. Agent shall exercise the rights under this
Article VIII and all other collection efforts on behalf of the Lenders and no Lender shall act
independently with respect thereto, except as otherwise specifically set forth in this Agreement.

     Section 8.8. Application of Proceeds.

     (a) Payments Prior to Exercise of Remedies. Prior to the exercise by Agent, on behalf
of the Lenders, of remedies under this Agreement or the other Loan Documents, all monies received
by Agent shall be applied, unless otherwise required by the terms of the other Loan Documents or by
applicable law, as follows (provided that Agent shall have the right at all times to apply any
payment received from Borrowers first to the payment of all obligations (to the extent not paid by
Borrowers) incurred by Agent pursuant to Section 11.5 hereof and to the payment of Related
Expenses):

     (i) with respect to payments received in connection with the Revolving Credit
Commitment, to the Revolving Loans;

     (ii) with respect to payments received in connection with the Term Loan Commitment, to
the Term Loan;

     (iii) with respect to payments received in connection with the Capex Commitment, to the
Capex Loans;

     (iv) with respect to payments received in connection with the Mexican Loan Commitment,
to the Mexican Loan; and

     (v) with respect to payments received in connection with the IDRB Letter of Credit
Commitment, to the payment of outstanding Obligations under the IDRB Letter of Credit.

     (b) Payments Subsequent to Exercise of Remedies. After the exercise by Agent or the
Required Lenders of remedies under this Agreement or the other Loan Documents, all monies received
by Agent shall be applied, unless otherwise required by the terms of the other Loan Documents or by
applicable law, as follows:

     (i) with respect to:

     (A) payments from assets of Companies organized in the United States (or a
state thereof), (1) first, to the Secured Obligations of Core Molding, and (2)
second, to the Secured Obligations of any other Borrower, in each case applied in
accordance with the Waterfall;

88

 

     (B) payments from assets of Companies organized in Mexico, to the Secured
Obligations of Core Molding, applied in accordance with the Waterfall; and

     (C) any other payments, in accordance with the Waterfall; and

     (ii) in accordance with the following priority (the “Waterfall”):

     (A) first, to the extent incurred in connection with obligations payable by a
specific Borrower, the payment of all obligations (to the extent not paid by
Borrowers) incurred by Agent pursuant to Section 11.5 hereof and to the payment of
Related Expenses;

     (B) second, to the extent incurred in connection with the obligations payable
by a specific Borrower, to the payment pro rata of (1) interest then accrued and
payable on the outstanding Loans, (2) any fees then accrued and payable to Agent,
and (3) any fees then accrued and payable to any Fronting Lender or the holders of
the Letter of Credit Commitment in respect of the Letter of Credit Exposure;

     (C) third, with respect to all other monies received by Agent, principal
outstanding on the Loans, the Letter of Credit Exposure and the IDRB Letter of
Credit Exposure, on a pro rata basis to the Lenders, based upon each such Lender’s
Commitment Percentage; provided that the amounts payable in respect of the Letter of
Credit Exposure shall be held and applied by Agent as security for the reimbursement
obligations in respect thereof, and, if any Letter of Credit shall expire without
being drawn, then the amount with respect to such Letter of Credit shall be
distributed to the Lenders on a pro rata basis based upon each such Lender’s
Commitment Percentage; and

     (D) finally, any remaining surplus after all of the Secured Obligations have
been paid in full, to Administrative Borrower for distribution to the appropriate
Borrowers, or to whomsoever shall be lawfully entitled thereto.

ARTICLE IX. THE AGENT

     The Lenders authorize KeyBank and KeyBank hereby agrees to act as agent for the Lenders in
respect of this Agreement upon the terms and conditions set forth elsewhere in this Agreement, and
upon the following terms and conditions:

     Section 9.1. Appointment and Authorization. Each Lender hereby irrevocably appoints
and authorizes Agent to take such action as agent on its behalf and to exercise such powers
hereunder as are delegated to Agent by the terms hereof, together with such powers as are
reasonably incidental thereto. Neither Agent nor any of its affiliates, directors, officers,
attorneys or employees shall (a) be liable for any action taken or omitted to be taken by it
or

89

 

them hereunder or in connection herewith, except for its or their own gross negligence or willful
misconduct (as determined by a court of competent jurisdiction), or be responsible in any manner to
any of the Lenders for the effectiveness, enforceability, genuineness, validity or due execution of
this Agreement or any other Loan Documents, (b) be under any obligation to any Lender to ascertain
or to inquire as to the performance or observance of any of the terms, covenants or conditions
hereof or thereof on the part of Borrowers or any other Company, or the financial condition of
Borrowers or any other Company, or (c) be liable to any of the Companies for consequential damages
resulting from any breach of contract, tort or other wrong in connection with the negotiation,
documentation, administration or collection of the Loans or Letters of Credit or any of the Loan
Documents. Notwithstanding any provision to the contrary contained in this Agreement or in any
other Loan Document, Agent shall not have any duty or responsibility except those expressly set
forth herein, nor shall Agent have or be deemed to have any fiduciary relationship with any Lender
or participant, and no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against
Agent. Without limiting the generality of the foregoing sentence, the use of the term “agent”
herein and in other Loan Documents with reference to Agent is not intended to connote any fiduciary
or other implied (or express) obligations arising under agency doctrine of any applicable law.
Instead, such term is used merely as a matter of market custom, and is intended to create or
reflect only an administrative relationship between independent contracting parties.

     Section 9.2. Note Holders. Agent may treat the payee of any Note as the holder
thereof (or, if there is no Note, the holder of the interest as reflected on the books and records
of Agent) until written notice of transfer shall have been filed with Agent, signed by such payee
and in form satisfactory to Agent.

     Section 9.3. Consultation With Counsel. Agent may consult with legal counsel
selected by Agent and shall not be liable for any action taken or suffered in good faith by Agent
in accordance with the opinion of such counsel.

     Section 9.4. Documents. Agent shall not be under any duty to examine into or pass
upon the validity, effectiveness, genuineness or value of any Loan Document or any other Related
Writing furnished pursuant hereto or in connection
herewith or the value of any collateral obtained hereunder, and Agent shall be entitled to assume
that the same are valid, effective and genuine and what they purport to be.

     Section 9.5. Agent and Affiliates. KeyBank and its affiliates may make loans to,
issue letters of credit for the account of, accept deposits from, acquire equity interests in and
generally engage in any kind of banking, trust, financial advisory, underwriting or other business
with the Companies and Affiliates as though KeyBank were not Agent hereunder and without notice to
or consent of any Lender. Each Lender acknowledges that, pursuant to such activities, KeyBank or
its affiliates may receive information regarding any Company or any Affiliate (including
information that may be subject to confidentiality obligations in favor of such Company or such
Affiliate) and acknowledge that Agent shall be under no obligation to provide such information to
other Lenders. With respect to Loans and Letters of Credit (if any), KeyBank and its affiliates
shall have the same rights and powers under this Agreement as any other Lender and

90

 

may exercise the
same as though KeyBank were not Agent, and the terms “Lender” and “Lenders” include KeyBank and its
affiliates, to the extent applicable, in their individual capacities.

     Section 9.6. Knowledge of Default. Agent shall not be deemed to have knowledge or
notice of the occurrence of any Default or Event of Default unless Agent has received written
notice from a Lender or a Borrower referring to this Agreement, describing such Default or Event of
Default and stating that such notice is a “notice of default”. In the event that Agent receives
such a notice, Agent shall give notice thereof to the Lenders. Agent shall take such action with
respect to such Default or Event of Default as shall be reasonably directed by the Required Lenders
(or, if so specified by this Agreement, all Lenders); provided that, unless and until Agent shall
have received such directions, Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Default or Event of Default as it shall deem
advisable, in its discretion, for the protection of the interests of the holders of the
Obligations.

     Section 9.7. Action by Agent. Subject to the other terms and conditions hereof, so
long as Agent shall be entitled, pursuant to Section 9.6 hereof, to assume that no Default or Event
of Default shall have occurred and be continuing, Agent shall be entitled to use its discretion
with respect to exercising or refraining from exercising any rights that may be vested in it by, or
with respect to taking or refraining from taking any action or actions that it may be able to take
under or in respect of, this Agreement. Agent shall incur no liability under or in respect of this
Agreement by acting upon any notice, certificate, warranty or other paper or instrument believed by
it to be genuine or authentic or to be signed by the proper party or parties, or with respect to
anything that it may do or refrain from doing in the reasonable exercise of its judgment, or that
may seem to it to be necessary or desirable in the premises. Without limiting the foregoing, no
Lender shall have any right of action whatsoever against Agent as a result of Agent’s acting or
refraining from acting hereunder in accordance with the instructions of the Required Lenders.

     Section 9.8. Release of Collateral or Guarantor of Payment. In the event of a
transfer of assets permitted by Section 5.12 hereof (or otherwise permitted pursuant to this
Agreement) where the proceeds of
such transfer are applied in accordance with the terms of this Agreement to the extent required to
be so applied, Agent, at the request and expense of Borrowers, is hereby authorized by the Lenders
to (a) release such collateral from this Agreement, (b) release a Guarantor of Payment in
connection with such permitted transfer, and (c) duly assign, transfer and deliver to the affected
Company (without recourse and without any representation or warranty) such collateral as is then
(or has been) so transferred or released and as may be in possession of Agent and has not
theretofore been released pursuant to this Agreement.

     Section 9.9. Delegation of Duties. Agent may execute any of its duties under this
Agreement or any other Loan Document by or through agents, employees or attorneys-in-fact and shall
be entitled to advice of counsel and other consultants or experts concerning all matters pertaining
to such duties. Agent shall not be responsible for the negligence or misconduct of any agent or
attorney-in-fact that it selects in the absence of gross negligence or willful misconduct, as
determined by a court of competent jurisdiction.

91

 

     Section 9.10. Indemnification of Agent. The Lenders agree to indemnify Agent (to the
extent not reimbursed by Borrowers) ratably, according to their respective Commitment Percentages,
from and against any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses (including reasonable attorneys’ fees and expenses) or
disbursements of any kind or nature whatsoever that may be imposed on, incurred by or asserted
against Agent in its capacity as agent in any way relating to or arising out of this Agreement or
any Loan Document or any action taken or omitted by Agent with respect to this Agreement or any
Loan Document, provided that no Lender shall be liable for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses (including
reasonable attorneys’ fees and expenses) or disbursements resulting from Agent’s gross negligence
or willful misconduct as determined by a court of competent jurisdiction, or from any action taken
or omitted by Agent in any capacity other than as agent under this Agreement or any other Loan
Document. No action taken in accordance with the directions of the Required Lenders shall be
deemed to constitute gross negligence or willful misconduct for purposes of this Section 9.10. The
undertaking in this Section 9.10 shall survive repayment of the Loans, cancellation of the Notes,
if any, expiration or termination of the Letters of Credit, termination of the Commitment, any
foreclosure under, or modification, release or discharge of, any or all of the Loan Documents,
termination of this Agreement and the resignation or replacement of the agent.

     Section 9.11. Successor Agent. Agent may resign as agent hereunder by giving not
fewer than thirty (30) days prior written notice to Administrative Borrower and the Lenders. If
Agent shall resign under this Agreement, then either (a) the Required Lenders shall appoint from
among the Lenders a successor agent for the Lenders (with the consent of Administrative Borrower so
long as an Event of Default does not exist and which consent shall not be unreasonably withheld),
or (b) if a successor agent shall not be so appointed and approved within the thirty (30) day
period following Agent’s notice to the Lenders of its resignation, then Agent shall appoint a
successor agent that shall serve as agent until such time as the Required Lenders appoint a
successor agent. If no successor agent has accepted appointment as Agent by the date that is
thirty (30) days following a retiring Agent’s
notice of resignation, the retiring Agent’s resignation shall nevertheless thereupon become
effective, and the Lenders shall assume and perform all of the duties of Agent hereunder until such
time, if any, as the Required Lenders appoint a successor agent as provided for above. Upon its
appointment, such successor agent shall succeed to the rights, powers and duties as agent, and the
term “Agent” means such successor effective upon its appointment, and the former agent’s rights,
powers and duties as agent shall be terminated without any other or further act or deed on the part
of such former agent or any of the parties to this Agreement. After any retiring Agent’s
resignation as Agent, the provisions of this Article IX shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was Agent under this Agreement and the other
Loan Documents.

     Section 9.12. Fronting Lender. The Fronting Lender shall act on behalf of the
Lenders with respect to any Letters of Credit issued by the Fronting Lender and the documents
associated therewith. The Fronting Lender shall have all of the benefits and immunities (a)
provided to Agent in Article IX hereof with respect to any acts taken or omissions suffered by the
Fronting Lender in connection with the Letters of Credit and the applications and agreements for
letters of credit pertaining to such Letters of Credit as fully as if the term “Agent”, as used in
Article IX

92

 

hereof, included the Fronting Lender with respect to such acts or omissions, and (b) as
additionally provided in this Agreement with respect to the Fronting Lender.

     Section 9.13. Swing Line Lender. The Swing Line Lender shall act on behalf of the
Lenders with respect to any Swing Loans. The Swing Line Lender shall have all of the benefits and
immunities (a) provided to Agent in Article IX hereof with respect to any acts taken or omissions
suffered by the Swing Line Lender in connection with the Swing Loans as fully as if the term
“Agent”, as used in Article IX hereof, included the Swing Line Lender with respect to such acts or
omissions, and (b) as additionally provided in this Agreement with respect to the Swing Line
Lender.

     Section 9.14. Agent May File Proofs of Claim. In case of the pendency of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to any Credit Party, (a) Agent (irrespective of
whether the principal of any Loan shall then be due and payable as herein expressed or by
declaration or otherwise and irrespective of whether Agent shall have made any demand on any
Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise, to (i)
file and prove a claim for the whole amount of the principal and interest owing and unpaid in
respect of the Loans, and all other Obligations that are owing and unpaid and to file such other
documents as may be necessary or advisable in order to have the claims of the Lenders and Agent
(including any claim for the reasonable compensation, expenses, disbursements and advances of the
Lenders and Agent and their respective agents and counsel and all other amounts due the Lenders and
Agent) allowed in such judicial proceedings, and (ii) collect and receive any monies or other
property payable or deliverable on any such claims and to distribute the same; and (b) any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Lender to make such payments to Agent and, in
the event that Agent shall consent to the making of such payments directly to the Lenders, to pay
to Agent any
amount due for the reasonable compensation, expenses, disbursements and advances of Agent and its
agents and counsel, and any other amounts due Agent. Nothing contained herein shall be deemed to
authorize Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of
reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of
any Lender or to authorize Agent to vote in respect of the claim of any Lender in any such
proceeding.

     Section 9.15. No Reliance on Agent’s Customer Identification Program. Each Lender
acknowledges and agrees that neither such Lender, nor any of its affiliates, participants or
assignees, may rely on Agent to carry out such Lender’s or its affiliate’s, participant’s or
assignee’s customer identification program, or other obligations required or imposed under or
pursuant to the Patriot Act or the regulations thereunder, including the regulations contained in
31 CFR 103.121 (as hereafter amended or replaced, the “CIP Regulations”), or any other
anti-terrorism law, including any programs involving any of the following items relating to or in
connection with Borrowers, their respective Affiliates or agents, the Loan Documents or the
transactions hereunder: (a) any identity verification procedures, (b) any record keeping, (c) any
comparisons with government lists, (d) any customer notices or (e) any other procedures required
under the CIP Regulations or such other laws.

93

 

     Section 9.16. Other Agents. Agent shall have the continuing right from time to time
to designate one or more Lenders (or its or their affiliates as “syndication agent”, “documentation
agent”, “book runner”, “lead arranger”, “arrangers” or other designations for purposes hereof, but
(a) any such designation shall have no substantive effect, and (b) any such Lender and its
affiliates shall have no additional powers, duties or responsibilities as a result thereof.

ARTICLE X. GUARANTY BY CORE MOLDING

OF OBLIGATIONS OF CORE MEXICO

     Section 10.1. The Guaranty. Core Molding hereby guarantees to Agent, for the benefit
of the Lenders, as a primary obligor and not as a surety, the prompt payment in full when due
(whether at stated maturity, by acceleration or otherwise) of the principal of and interest on the
Loans made by the Lenders to Core Mexico and all other amounts from time to time owing to Agent or
the Lenders by Core Mexico under this Agreement and any other Loan Document (such obligations being
herein collectively referred to as the “Guaranteed Obligations”). Core Mexico hereby further
agrees that, if Core Mexico shall fail to pay in full when due (whether at stated maturity, by
acceleration or otherwise) any of the Guaranteed Obligations, Core Molding will promptly pay the
same, without any demand or notice whatsoever, and that, in the case of any extension of time of
payment or renewal of any of the Guaranteed Obligations, the same will be promptly paid in full
when due (whether at extended maturity, by acceleration or otherwise) in accordance with the terms
of such extension or renewal.

     Section 10.2. Obligations Unconditional. The obligations of Core Molding under
Section 10.1 above are absolute and unconditional, irrespective of the value, genuineness,
validity, regularity or enforceability of the obligations of Core Mexico under this Agreement or
any other agreement or instrument referred to herein, or any substitution, release, impairment or
exchange of any other guaranty of or security for any of the Guaranteed Obligations, and, to the
fullest extent permitted by applicable law, irrespective of any other circumstance whatsoever that
might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor, it
being the intent of this Section 10.2 that the obligations of Core Molding hereunder shall be
absolute and unconditional under any and all circumstances. Without limiting the generality of the
foregoing, it is agreed that the occurrence of any one or more of the following shall not alter or
impair the liability of Core Molding hereunder, which shall remain absolute and unconditional as
described above:

     (a) at any time or from time to time, without notice to Core Molding, the time for any
performance of or compliance with any of the Guaranteed Obligations shall be extended, or such
performance or compliance shall be waived;

     (b) any of the acts mentioned in any of the provisions of any of the Loan Documents or any
other agreement or instrument referred to in the Loan Documents shall be done or omitted;

     (c) the maturity of any of the Guaranteed Obligations shall be accelerated, or any of the
Guaranteed Obligations shall be modified, supplemented or amended in any respect, or any

94

 

right
under any of the Loan Documents or any other agreement or instrument referred to in the Loan
Documents shall be waived, or any other guaranty of any of the Guaranteed Obligations, or any
security therefor, shall be released, impaired or exchanged in whole or in part, or otherwise dealt
with;

     (d) any Lien granted to, or in favor of, Agent, for the benefit of the Lenders, as security
for any of the Guaranteed Obligations shall fail to attach or be perfected;

     (e) any of the Guaranteed Obligations shall be determined to be void or voidable (including,
without limitation, for the benefit of any creditor of any Guarantor) or shall be subordinated to
the claims of any Person (including, without limitation, any creditor); or

     (f) any law or regulation of any jurisdiction or any event affecting any term of the
Guaranteed Obligations.

Core Molding hereby expressly waives diligence, presentment, demand of payment, protest and all
notices whatsoever, and any requirement that Agent or any Lender exhaust any right, power or remedy
or proceed against Core Mexico under any Loan Documents or any other agreement or instrument
referred to in the Loan Documents, or against any other Person under any other guaranty of, or
security for, any of the Guaranteed Obligations.

     Section 10.3. Reinstatement. The obligations of Core Molding under this Article X
shall be automatically reinstated if and to the extent that,
for any reason, any payment by or on behalf of Core Mexico in respect of the Guaranteed Obligations
is rescinded or must be otherwise restored by any holder of any of the Guaranteed Obligations,
whether as a result of any proceedings in bankruptcy or reorganization or otherwise, and Core
Molding hereby agrees that it will indemnify Agent and each Lender on demand for all reasonable
costs and expenses (including fees and expenses of counsel) incurred by Agent or such Lender in
connection with such rescission or restoration, including any such costs and expenses incurred in
defending against any claim alleging that such payment constituted a preference, fraudulent
transfer or similar payment under any bankruptcy, insolvency or similar law.

     Section 10.4. Subrogation. Core Molding hereby agrees that, until the payment and
satisfaction in full of all Guaranteed Obligations and the expiration and termination of the
Commitment, it shall not exercise any right or remedy arising by reason of any performance by it of
its guaranty in Section 10.1 hereof, whether by subrogation or otherwise, against Core Mexico or
any guarantor of any of the Guaranteed Obligations, or any security for any of the Guaranteed
Obligations.

     Section 10.5. Remedies. Core Molding agrees that the obligations of Core Mexico
under this Agreement may be declared to be forthwith due and payable as provided in Article VIII
hereof (and shall be deemed to have become automatically due and payable in the circumstances
provided in Article VIII hereof) for purposes of Section 10.1 hereof, notwithstanding any stay,
injunction or other prohibition preventing such declaration (or such obligations from becoming
automatically due and payable) as against Core Mexico, and that, in the event of such declaration
(or such obligations being deemed to have become automatically due and payable), such

95

 

obligations
(whether or not due and payable by Core Mexico) shall forthwith become due and payable by Core
Molding for purposes of Section 10.1 hereof.

     Section 10.6. Instrument for the Payment of Money. Core Molding hereby acknowledges
that the guaranty in this Article X constitutes an instrument for the payment of money only.

     Section 10.7. Continuing Guaranty. The guaranty in this Article X is a guaranty of
payment and not of collection a continuing guaranty, and shall apply to all Guaranteed Obligations
whenever arising.

     Section 10.8. Payments. All payments by Core Molding under this Article X shall be
made in Dollars, and free and clear of any Taxes.

ARTICLE XI. MISCELLANEOUS

     Section 11.1. Lenders’ Independent Investigation. Each Lender, by its signature to
this Agreement, acknowledges and agrees that Agent has made no representation or warranty, express
or implied, with respect to the creditworthiness, financial condition, or any other condition of
any Company
or with respect to the statements contained in any information memorandum furnished in connection
herewith or in any other oral or written communication between Agent and such Lender. Each Lender
represents that it has made and shall continue to make its own independent investigation of the
creditworthiness, financial condition and affairs of the Companies in connection with the extension
of credit hereunder, and agrees that Agent has no duty or responsibility, either initially or on a
continuing basis, to provide any Lender with any credit or other information with respect thereto
(other than such notices as may be expressly required to be given by Agent to the Lenders
hereunder), whether coming into its possession before the first Credit Event hereunder or at any
time or times thereafter. Each Lender further represents that it has reviewed each of the Loan
Documents.

     Section 11.2. No Waiver; Cumulative Remedies. No omission or course of dealing on
the part of Agent, any Lender or the holder of any Note (or, if there is no Note, the holder of the
interest as reflected on the books and records of Agent) in exercising any right, power or remedy
hereunder or under any of the Loan Documents shall operate as a waiver thereof; nor shall any
single or partial exercise of any such right, power or remedy preclude any other or further
exercise thereof or the exercise of any other right, power or remedy hereunder or under any of the
Loan Documents. The remedies herein provided are cumulative and in addition to any other rights,
powers or privileges held under any of the Loan Documents or by operation of law, by contract or
otherwise.

     Section 11.3. Amendments, Waivers and Consents.

     (a) General Rule. No amendment, modification, termination, or waiver of any provision
of any Loan Document nor consent to any variance therefrom, shall be effective unless

96

 

the same
shall be in writing and signed by the Required Lenders and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which given.

     (b) Exceptions to the General Rule. Notwithstanding the provisions of subsection (a)
of this Section 11.3 and subject to subpart (iii) below, unanimous consent of the Lenders shall be
required with respect to (i) any increase in the Commitment hereunder, (ii) the extension of
maturity of the Loans, the payment date of interest or scheduled principal hereunder, or the
payment date of commitment fees payable hereunder, (iii) any reduction in the stated rate of
interest on the Loans (provided that the institution of the Default Rate and a subsequent removal
of the Default Rate shall not constitute a decrease in interest rate pursuant to this Section
11.3), or in any amount of interest or scheduled principal due on any Loan, or the payment of
commitment fees hereunder or any change in the manner of pro rata application of any payments made
by Borrowers to the Lenders hereunder, (iv) any change in any percentage voting requirement, voting
rights, or the Required Lenders definition in this Agreement, (v) the release of any Borrower or
Guarantor of Payment or of any material amount of collateral, except as specifically permitted
hereunder, securing the Obligations, or (vi) any amendment to this Section 11.3 or Section 8.6 or
8.8 hereof.

     (c) Provisions Relating to Special Rights and Duties. No provision of this Agreement
affecting Agent in its capacity as such shall be amended, modified or waived without the consent
of Agent. No provision of this Agreement relating to the rights or duties of the Fronting Lender
in its capacity as such shall be amended, modified or waived without the consent of the Fronting
Lender. No provision of this Agreement relating to the rights or duties of the Swing Line Lender
in its capacity as such shall be amended, modified or waived without the consent of the Swing Line
Lender.

     (d) Generally. Notice of amendments, waivers or consents ratified by the Lenders
hereunder shall be forwarded by Agent to all of the Lenders. Each Lender or other holder of a Note
(or interest in any Loan or Letter of Credit) shall be bound by any amendment, waiver or consent
obtained as authorized by this Section 11.3, regardless of its failure to agree thereto.

     Section 11.4. Notices. All notices, requests, demands and other communications
provided for hereunder shall be in writing and, if to a Borrower, mailed or delivered to it,
addressed to it at the address specified on the signature pages of this Agreement, if to a Lender,
mailed or delivered to it, addressed to the address of such Lender specified on the signature pages
of this Agreement, or, as to each party, at such other address as shall be designated by such party
in a written notice to each of the other parties. All notices, statements, requests, demands and
other communications provided for hereunder shall be given by overnight delivery or first class
mail with postage prepaid by registered or certified mail, addressed as aforesaid, or sent by
facsimile with telephonic confirmation of receipt (if received during a Business Day, otherwise the
following Business Day), except that all notices hereunder shall not be effective until received.
For purposes of Article II hereof, Agent shall be entitled to rely on telephonic instructions from
any person that Agent in good faith believes is an Authorized Officer and Borrowers shall hold
Agent and each Lender harmless from any loss, cost or expense resulting from any such reliance.

97

 

     Section 11.5. Costs, Expenses and Taxes. Core Molding agrees to pay on demand all
costs and expenses of Agent and all Related Expenses, including but not limited to (a) syndication,
administration, travel and properly documented out-of-pocket expenses, including but not limited to
reasonable attorneys’ fees and expenses, of Agent in connection with the preparation, negotiation
and closing of the Loan Documents and the administration of the Loan Documents, and the collection
and disbursement of all funds hereunder and the other instruments and documents to be delivered
hereunder, (b) properly documented extraordinary expenses of Agent incurred in connection with the
administration of the Loan Documents and the other instruments and documents to be delivered
hereunder, and (c) the reasonable and properly documented fees and out-of-pocket expenses of
special counsel for Agent, with respect to the foregoing, and of local counsel, if any, who may be
retained by said special counsel with respect thereto. Core Molding also agrees to pay on demand
all properly documented costs and expenses (including Related Expenses) of Agent and the Lenders,
including reasonable attorneys’ fees and expenses, in connection with the restructuring or
enforcement of the Obligations, this Agreement or any Related Writing. In addition, Core Molding
(and Core Mexico, if appropriate) shall pay any and all properly documented stamp, transfer,
documentary and other taxes, assessments, charges and fees payable or determined to be payable in
connection with the execution and delivery of the Loan Documents, and the other instruments and
documents to be delivered hereunder, and agree to hold Agent and each Lender harmless from and
against any and all liabilities with respect to or
resulting from any delay in paying or failure to pay such taxes or fees, other than those
liabilities resulting from the gross negligence or willful misconduct of Agent, or, with respect to
amounts owing to a Lender, such Lender, in each case as determined by a court of competent
jurisdiction. All obligations provided for in this Section 11.5 shall survive any termination of
this Agreement.

     Section 11.6. Indemnification. Core Molding (and Core Mexico to the extent relating
to the Mexican Loan or any other extensions of credit to Core Mexico) agrees to defend, indemnify
and hold harmless Agent and the Lenders (and their respective affiliates, officers, directors,
attorneys, agents and employees) from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses (including attorneys’ fees) or
disbursements of any kind or nature whatsoever that may be imposed on, incurred by or asserted
against Agent or any Lender in connection with any investigative, administrative or judicial
proceeding (whether or not such Lender or Agent shall be designated a party thereto) or any other
claim by any Person relating to or arising out of any Loan Document or any actual or proposed use
of proceeds of the Loans or any of the Obligations, or any activities of any Company or its
Affiliates; provided that no Lender nor Agent shall have the right to be indemnified under this
Section 11.6 for its own gross negligence or willful misconduct, as determined by a court of
competent jurisdiction. All obligations provided for in this Section 11.6 shall survive any
termination of this Agreement.

     Section 11.7. Obligations Several; No Fiduciary Obligations. The obligations of the
Lenders hereunder are several and not joint. Nothing contained in this Agreement and no action
taken by Agent or the Lenders pursuant hereto shall be deemed to constitute Agent or the Lenders a
partnership, association, joint venture or other entity. No default by any Lender hereunder shall
excuse the other Lenders from any obligation under this Agreement; but no Lender shall have or
acquire any additional obligation of any kind by reason of such default.

98

 

The relationship between
Borrowers and the Lenders with respect to the Loan Documents and the Related Writings is and shall
be solely that of debtors and creditors, respectively, and neither Agent nor any Lender shall have
any fiduciary obligation toward any Credit Party with respect to any such documents or the
transactions contemplated thereby.

     Section 11.8. Execution in Counterparts. This Agreement may be executed in any
number of counterparts and by different parties hereto in separate counterparts, and by facsimile
signature, each of which counterparts when so executed and delivered shall be deemed to be an
original and all of which taken together shall constitute but one and the same agreement.

     Section 11.9. Binding Effect; Borrowers’ Assignment. This Agreement shall become
effective when it shall have been executed by each Borrower, Agent and each Lender and thereafter
shall be binding upon and inure to the benefit of each Borrower, Agent and each of the Lenders and
their respective successors and assigns, except that no Borrower shall have the right to assign its
rights hereunder or any interest herein without the prior written consent of Agent and all of the
Lenders.

     Section 11.10. Lender Assignments.

     (a) Assignments of Commitments. Each Lender shall have the right at any time or times
to assign to an Eligible Transferee (other than to a Lender that shall not be in compliance with
this Agreement), without recourse, all or a percentage of all of the following: (i) such Lender’s
Commitment, (ii) all Loans made by that Lender, (iii) such Lender’s Notes, and (iv) such Lender’s
interest in any Letter of Credit or Swing Loan, and any participation purchased pursuant to Section
2.2(b), 2.2(c), 2.5, 2.6 or 8.6 hereof. Each Lender shall at all times maintain the same
Commitment Percentage (as rounded to the sixth decimal) with respect to the Revolving Credit
Commitment, the Term Loan Commitment, the Capex Commitment, the Mexican Loan Commitment and the
IDRB Letter of Credit Commitment.

     (b) Prior Consent. No assignment may be consummated pursuant to this Section 11.10
without the prior written consent of Administrative Borrower and Agent (other than an assignment by
any Lender to any affiliate of such Lender which affiliate is an Eligible Transferee and either
wholly-owned by a Lender or is wholly-owned by a Person that wholly owns, either directly or
indirectly, such Lender, or to another Lender), which consent of Administrative Borrower and Agent
shall not be unreasonably withheld (provided that a failure of Administrative Borrower to approve
assignments to the following Persons shall not be deemed to be unreasonable (i) a distressed debt
fund or vulture fund as an Eligible Transferee and (ii) a Person who is not organized under the
laws of México or is not registered with the Ministry of Finance and Public Credit (Secretaría de
Hacienda y Crédito Público) for purposes of Article 195(I) of the Mexican Income Tax Law (Ley del
Impuesto sobre la Renta) or any successor provision and resident in a jurisdiction that is party to
a treaty with México for the avoidance of double taxation); provided that (A) the consent of
Administrative Borrower shall not be required if, at the time of the proposed assignment, any
Default or Event of Default shall then exist and (B) Administrative Borrower shall be deemed to
have granted its consent unless Administrative Borrower has expressly objected to such assignment
within three Business Days after notice thereof. Anything herein to the contrary notwithstanding,
any Lender may at any time make a

99

 

collateral assignment of all or any portion of its rights under
the Loan Documents to a Federal Reserve Bank, and no such assignment shall release such assigning
Lender from its obligations hereunder.

     (c) Minimum Amount. Each such assignment shall be in a minimum amount of the lesser
of One Million Dollars ($1,000,000) of the assignor’s Commitment and interest herein, or the entire
amount of the assignor’s Commitment and interest herein.

     (d) Assignment Fee. Unless the assignment shall be to an affiliate of the assignor or
the assignment shall be due to merger of the assignor or for regulatory purposes, either the
assignor or the assignee shall remit to Agent, for its own account, an administrative fee of Three
Thousand Five Hundred Dollars ($3,500).

     (e) Assignment Agreement. Unless the assignment shall be due to merger of the
assignor or a collateral assignment for regulatory purposes, the assignor shall (i) cause the
assignee to execute and deliver to Administrative Borrower and Agent an Assignment Agreement, and
(ii) execute and deliver, or cause the assignee to execute and deliver, as the case
may be, to Agent such additional amendments, assurances and other writings as Agent may reasonably
require.

     (f) Non-U.S. Assignee. If the assignment is to be made to an assignee that is
organized under the laws of any jurisdiction other than the United States or any state thereof, the
assignor Lender shall cause such assignee, at least five Business Days prior to the effective date
of such assignment, (i) to represent to the assignor Lender (for the benefit of the assignor
Lender, Agent and Borrowers) that under applicable law and treaties no taxes will be required to be
withheld by Agent, Borrowers or the assignor with respect to any payments to be made to such
assignee in respect of the Loans hereunder, (ii) to furnish to the assignor Lender (and, in the
case of any assignee registered in the Register (as defined below), Agent and Borrowers) either
U.S. Internal Revenue Service Form W-8ECI or U.S. Internal Revenue Service Form W-8BEN, as
applicable (wherein such assignee claims entitlement to complete exemption from U.S. federal
withholding tax on all payments hereunder), and (iii) to agree (for the benefit of the assignor,
Agent and Borrowers) to provide to the assignor Lender (and, in the case of any assignee registered
in the Register, to Agent and Borrowers) a new Form W-8ECI or Form W-8BEN, as applicable, upon the
expiration or obsolescence of any previously delivered form and comparable statements in accordance
with applicable U.S. laws and regulations and amendments duly executed and completed by such
assignee, and to comply from time to time with all applicable U.S. laws and regulations with regard
to such withholding tax exemption.

     (g) Deliveries by Borrowers. Upon satisfaction of all applicable requirements
specified in subsections (a) through (f) above, Borrowers shall execute and deliver (i) to Agent,
the assignor and the assignee, any consent or release (of all or a portion of the obligations of
the assignor) required to be delivered by Borrowers in connection with the Assignment Agreement,
and (ii) to the assignee, if requested, and the assignor, if applicable, an appropriate Note or
Notes. After delivery of the new Note or Notes, the assignor’s Note or Notes, if any, being
replaced shall be returned to Administrative Borrower marked “replaced”.

100

 

     (h) Effect of Assignment. Upon satisfaction of all applicable requirements set forth
in subsections (a) through (g) above, and any other condition contained in this Section 11.10, (i)
the assignee shall become and thereafter be deemed to be a “Lender” for the purposes of this
Agreement, (ii) the assignor shall be released from its obligations hereunder to the extent that
its interest has been assigned, (iii) in the event that the assignor’s entire interest has been
assigned, the assignor shall cease to be and thereafter shall no longer be deemed to be a “Lender”
and (iv) the signature pages hereto and Schedule 1 hereto shall be automatically amended,
without further action, to reflect the result of any such assignment.

     (i) Agent to Maintain Register. Agent shall maintain at the address for notices
referred to in Section 11.4 hereof a copy of each Assignment Agreement delivered to it and a
register (the “Register”) for the recordation of the names and addresses of the Lenders and the
Commitment of, and principal amount of the Loans owing to, each Lender from time to time. The
entries in the Register shall be conclusive, in the absence of manifest error, and Borrowers, Agent
and the Lenders may treat each Person whose name is recorded in the Register as the owner of the
Loan recorded therein for all purposes of this Agreement. The Register shall be available for
inspection by Borrowers or any Lender at any reasonable time and from time to time upon reasonable
prior notice.

     Section 11.11. Sale of Participations. Any Lender may, in the ordinary course of its
commercial banking business and in accordance with applicable law, at any time sell participations
to one or more Eligible Transferees (each a “Participant”) in all or a portion of its rights or
obligations under this Agreement and the other Loan Documents (including, without limitation, all
or a portion of the Commitment and the Loans and participations owing to it and the Note, if any,
held by it) without the consent of any Borrower or Agent; provided that:

     (a) any such Lender’s obligations under this Agreement and the other Loan Documents shall
remain unchanged;

     (b) such Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations;

     (c) the parties hereto shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement and each of the other
Loan Documents;

     (d) such Participant shall be bound by the provisions of Section 8.6 hereof, and the Lender
selling such participation shall obtain from such Participant a written confirmation of its
agreement to be so bound; and

     (e) no Participant (unless such Participant is itself a Lender) shall be entitled to require
such Lender to take or refrain from taking action under this Agreement or under any other Loan
Document, except that such Lender may agree with such Participant that such Lender will not,
without such Participant’s consent, take action of the type described as follows:

101

 

     (i) increase the portion of the participation amount of any Participant over the amount
thereof then in effect, or extend the Commitment Period, without the written consent of each
Participant affected thereby; or

     (ii) reduce the principal amount of or extend the time for any payment of principal of
any Loan, or reduce the rate of interest or extend the time for payment of interest on any
Loan, or reduce the commitment fee, without the written consent of each Participant affected
thereby.

Borrowers agree that any Lender that sells participations pursuant to this Section 11.11 shall
still be entitled to the benefits of Article III hereof, notwithstanding any such transfer;
provided that the obligations of Borrowers shall not increase as a result of such transfer and
Borrowers shall have no obligation to any Participant.

     Section 11.12. Patriot Act Notice. Each Lender and Agent (for itself and not on
behalf of any other party) hereby notifies the Credit Parties that, pursuant to the requirements of
the Patriot Act, such Lender and Agent are required to obtain, verify and record information that
identifies the Credit Parties, which information includes the name and address of each of the
Credit Parties and other information that will allow such Lender or Agent, as applicable, to
identify the Credit Parties in accordance with the Patriot Act. Each Borrower shall provide, to
the extent commercially reasonable, such information and take such actions as are reasonably
requested by Agent or a Lender in order to assist Agent or such Lender in maintaining compliance
with the Patriot Act.

     Section 11.13. Severability of Provisions; Captions; Attachments. Any provision of
this Agreement that shall be prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof or affecting the validity or enforceability of such
provision in any other jurisdiction. The several captions to sections and subsections herein are
inserted for convenience only and shall be ignored in interpreting the provisions of this
Agreement. Each schedule or exhibit attached to this Agreement shall be incorporated herein and
shall be deemed to be a part hereof.

     Section 11.14. Investment Purpose. Each of the Lenders represents and warrants to
Borrowers that it is entering into this Agreement with the present intention of acquiring any Note
issued pursuant hereto (or, if there is no Note, the interest as reflected on the books and records
of Agent) for investment purposes only and not for the purpose of distribution or resale, it being
understood, however, that each Lender shall at all times retain full control over the disposition
of its assets.

     Section 11.15. Entire Agreement. This Agreement, any Note and any other Loan
Document or other agreement, document or instrument attached hereto or executed on or as of the
Closing Date integrate all of the terms and conditions mentioned herein or incidental hereto and supersede all oral representations and
negotiations and prior writings with respect to the subject matter hereof.

102

 

     Section 11.16. Additional Provisions Relating to the Mexican Note.

     (a) Borrowers agree and acknowledge that (i) the Mexican Note does not provide identical terms
of payment and interest rate as provided in this Agreement, and (ii) if Agent enforces collection
of the Mexican Note in Mexican courts in accordance with the terms and provisions of the Mexican
Note, (A) it shall in no way release or detract from the obligations of Core Molding or Core Mexico
as a borrower or guarantor a payment, as the case may be, pursuant to this Agreement or any other
Loan Document (other than the Mexican Note), (B) Agent and the Lenders may enforce the payment of
such obligations or any amount not pursued by Agent under the Mexican Note, or in enforcing the
Mexican Mortgage, in accordance with any remedy under this Agreement and such amounts are expressly
guaranteed by Core Molding under Article X hereof, (C) to the extent that this Agreement has
additional obligations of Core Mexico, such amounts shall be payable, notwithstanding the terms of
the Mexican Note, and (D) Borrowers shall not challenge enforcement of the Mexican Note on grounds
of the rights or obligations of Borrowers under this Agreement; provided that Agent and the Lenders
shall not be paid twice for the same Indebtedness of Core Mexico to Agent and the Lenders.

     (b) Borrowers further agree that, in addition to any offset rights pursuant to Section 8.5
hereof, Agent is hereby authorized at any time, to the fullest extent permitted by law, to set-off
and apply any surplus proceeds collected from enforcement of the Mexican Note, after having been
paid the obligations under the Mexican Note, to any and all of the obligations of Core Mexico now
or hereafter existing under this Agreement, irrespective of whether or not Agent or the Lenders
shall have made any demand under this Agreement, and without presentment, protest or other notice
of any kind to Borrowers, all of which is hereby expressly waived, and although such obligations
may be unmatured.

     (c) In the event of a direct conflict between this Agreement and the Mexican Note, the terms
of this Agreement shall prevail; provided that this Agreement and the Mexican Note shall be
construed to permit payment and enforcement of the Mexican Note so long as the Mexican Loan has
been made.

     Section 11.17. Confidentiality. Agent and each Lender shall hold all Confidential
Information in accordance with the customary procedures of Agent or such Lender for handling
confidential information of this nature, and in accordance with safe and sound banking practices.
Notwithstanding the foregoing, Agent or any Lender may in any event make disclosures of, and
furnish copies of Confidential Information (a) to another agent under this Agreement or another
Lender; (b) when reasonably required by any bona fide transferee or participant in connection with
the contemplated transfer of any Loans or Commitment or participation therein (provided that each
such prospective transferee or participant shall have an agreement for the benefit of Borrowers
with such prospective transferor Lender or participant containing substantially similar provisions
to those contained in this Section 11.17); (c) to the parent corporation or other affiliates of
Agent or such Lender, and to their respective auditors and attorneys; and (d) as required or requested by any Governmental
Authority or representative thereof, or pursuant to legal process, provided, that, unless
specifically prohibited by applicable law or court order, Agent or such Lender, as applicable,
shall notify the chief financial officer of Administrative Borrower of any request by any
Governmental Authority or representative thereof (other than

103

 

any such request in connection with an
examination of the financial condition of Agent or such Lender by such Governmental Authority), and
of any other request pursuant to legal process, for disclosure of any such non-public information
prior to disclosure of such Confidential Information. Notwithstanding anything contained herein to
the contrary, Agent, each Lender, Borrowers and their Affiliates may disclose to any and all
Persons, without limitation of any kind, the tax treatment and tax structure of the transactions
contemplated hereby and by the other Loan Documents and materials of any kind (including opinions
or other tax analyses) that are provided to Agent, any Lender, Borrowers or their Affiliates
relating to such tax treatment and tax structure; it being understood that this authorization is
retroactively effective to the commencement of the first discussions between or among any of the
parties regarding the transactions contemplated hereby and by the other Loan Documents. In no
event shall Agent or any Lender be obligated or required to return any materials furnished by or on
behalf of any Company. Each Borrower hereby agrees that the failure of Agent or any Lender to
comply with the provisions of this Section 11.17 shall not relieve any Borrower of any of the
obligations to Agent and the Lenders under this Agreement and the other Loan Documents.

     Section 11.18. Legal Representation of Parties. The Loan Documents were negotiated
by the parties with the benefit of legal representation and any rule of construction or
interpretation otherwise requiring this Agreement or any other Loan Document to be construed or
interpreted against any party shall not apply to any construction or interpretation hereof or
thereof.

     Section 11.19. Currency.

     (a) Currency Equivalent Generally. For the purposes of making valuations or
computations under this Agreement (but not for the purposes of the preparation of any financial
statements delivered pursuant hereto), unless expressly provided otherwise, where a reference is
made to a dollar amount the amount is to be considered as the amount in Dollars and, therefor, each
other currency shall be converted into the dollar equivalent.

     (b) Judgment Currency. If Agent, on behalf of the Lenders, or any other holder of the
Obligations (the “Applicable Creditor”) obtains a judgment or judgments against any Credit Party in
respect of any sum adjudged to be due to Agent or the Lenders hereunder or under the Notes (the
“Judgment Amount”) in a currency (the “Judgment Currency”) other than the currency (the “Original
Currency”) in which such sum is stated to be due hereunder, the obligations of such Credit Party in
connection with such judgment shall be discharged only to the extent that, on the Business Day
following receipt by the Applicable Creditor of any sum adjudged to be so due in the Judgment
Currency, such Applicable Creditor may, in accordance with the normal banking procedures in the
relevant jurisdiction, purchase the Original Currency with the Judgment Currency; if the amount of
Original Currency so purchased is less than the amount of Original Currency that could have been
purchased with the Judgment Amount on the
date or dates the Judgment Amount (excluding the portion of the Judgment Amount that has accrued as
a result of the failure of such Credit Party to pay the sum originally due hereunder when it was
originally due and owing to Agent or the Lenders hereunder) was originally due and owing to Agent
or the Lenders hereunder (the “Loss”), such Credit Party agrees as a separate obligation and
notwithstanding any such judgment, to indemnify Agent or such Lender, as the

104

 

case may be, against
such Loss. For purposes of determining the equivalent in one currency of another currency as
provided in this Section 11.19, such amount shall include any premium and costs payable in
connection with the conversion into or from any currency. The obligations of Borrowers contained
in this Section 11.19 shall survive the termination of this Agreement and the payment of all other
amounts owing hereunder.

     Section 11.20. Governing Law; Submission to Jurisdiction.

     (a) Governing Law. This Agreement, each of the Notes and any Related Writing (except
as otherwise set forth in any Loan Document executed by a Foreign Subsidiary) shall be governed by
and construed in accordance with the laws of the State of Ohio and the respective rights and
obligations of Borrowers, Agent, and the Lenders shall be governed by Ohio law, without regard to
principles of conflicts of laws.

     (b) Submission to Jurisdiction. Each Borrower hereby irrevocably submits to the
non-exclusive jurisdiction of any Ohio state or federal court sitting in Cleveland, Ohio, over any
action or proceeding arising out of or relating to this Agreement, the Obligations or any Related
Writing (except as otherwise set forth in any Loan Document executed by a Foreign Subsidiary), and
each Borrower hereby irrevocably agrees that all claims in respect of such action or proceeding may
be heard and determined in such Ohio state or federal court. Each Borrower, on behalf of itself
and its Subsidiaries, hereby irrevocably waives, to the fullest extent permitted by law, any
objection it may now or hereafter have to the laying of venue in any action or proceeding in any
such court as well as any right it may now or hereafter have to remove such action or proceeding,
once commenced, to another court on the grounds of FORUM NON CONVENIENS or otherwise. Each
Borrower agrees that a final, non-appealable judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law.

     (c) Process Agent. Core Mexico hereby irrevocably appoints, and by a separate
irrevocable power of attorney granted in a notarial instrument pursuant to the Protocol on
Uniformity of Powers of Attorney which are to be Utilized Abroad will appoint CT Corporation System
(the “Process Agent”), with an office on the date hereof at 111 Eighth Avenue, New York, New York
10011, as its agent and true and lawful attorney-in-fact in its name, place and stead to accept on
its behalf service of process of copies of the summons and complaint and any other process that may
be served in any such suit, action or proceeding brought in the State of Ohio, and agrees that the
failure of the Process Agent to give any notice of any such service of process to it shall not
impair or affect the validity of such services or, to the extent permitted by applicable law, the
enforcement of any judgment based thereon. Such appointment shall be irrevocable until the final
payment of all amounts payable under this Agreement and the other Loan Documents, except that if
for any reason the Process Agent appointed hereby ceases to be able to act as such, then Core Mexico shall irrevocably designate and appoint, without delay,
another agent for services of process in the city of Cleveland reasonably satisfactory to Agent,
and shall promptly deliver to Agent evidence in writing of such other process agent’s acceptance of
such appointment, including a special power of attorney, notarized in Mexico by a Mexican notary
public, in form and substance reasonably satisfactory to Agent, granted by Core Mexico in favor of
the new agent for service of process. Core Mexico covenants and agrees that it shall

105

 

take any and
all reasonable actions (including the execution and filing of any and all documents) that may be
necessary to continue the designation of the Process Agent pursuant to this paragraph and to cause
the Process Agent to act as such. Nothing herein shall in any way be deemed to limit the ability
of any party to serve any process or summons in any manner permitted by applicable law.

ARTICLE XII. ADDITIONAL PROVISIONS

RELATING TO THE MEXICAN PROJECT

     Section 12.1. Delivery of Certain Documents Relating to the Construction. Prior to
the Mexican Project Loan Opening, Borrowers shall deliver to Agent the following, each in form and
substance satisfactory to Agent:

     (a) fully executed copies of (i) the Construction Contract, and (ii) all Major Subcontracts in
existence as of the Closing Date;

     (b) copies of each of the Required Permits, except for those Required Permits which cannot be
issued at the current stage of development of the Construction or are not required until completion
of the Construction, in which event such Required Permits will be obtained by Borrowers on a timely
basis and in accordance with all recorded maps and conditions, and all applicable building, land
use, zoning and environmental codes, statutes and regulations, and will be delivered to Agent at
the earliest possible date. Notwithstanding anything herein to the contrary, permits required for
the commencement of Construction shall be required to be delivered prior to the Mexican Project
Loan Opening;

     (c) copies of reasonably detailed Plans and Specifications for the Improvements, prepared by
the Construction Contractor;

     (d) the Construction Schedule;

     (e) the Soil Report;

     (f) a report from the Consultant which contains an analysis of the Plans and Specifications,
the Budget, the Construction Schedule, the Construction Contract, all subcontracts and the Soil
Report. Such report shall be solely for the benefit of Agent and the Lenders and contain (i) an
analysis, satisfactory to Agent, demonstrating the adequacy of the Budget to complete the Mexican
Project, and (ii) a confirmation that the Construction Schedule is realistic. The Consultant shall monitor construction of the Mexican Project, shall visit the
Mexican Project at least one time each month, and shall certify the amounts of construction costs
for all requested fundings;

     (g) a copy of the Budget; and

     (h) such other papers, materials and documents as Agent may reasonably require with respect to
the Construction.

106

 

     Section 12.2. Construction Payout Requirements.

     (a) Applicability of Sections. The provisions contained in this Section 12.2 shall
apply to the Mexican Project Loan Opening and to each disbursement of the Capex Loans and the
Mexican Draw Disbursements.

     (b) Monthly Payouts. After the Mexican Project Loan Opening, further Mexican Draw
Disbursements and disbursements of the Capex Loans shall be made from time to time as the
Construction progresses, but no more frequently than (i) once in each calendar month with respect
to the Capex Loans, and (ii) once in each calendar month with respect to the Mexican Draw
Disbursements.

     (c) Documents to be Furnished for Each Disbursement. As a condition precedent to each
Mexican Draw Disbursement and of the Capex Loans (including the initial disbursement on the Closing
Date), Borrowers shall furnish or cause to be furnished to Agent the following documents, in form
and substance satisfactory to Agent:

     (i) a completed Mexican Project Draw Request and a completed Soft and Hard Cost
Requisition Form in the form of Exhibit L attached hereto and made a part hereof,
each executed by an Authorized Officer of the applicable Borrower;

     (ii) paid invoices or other evidence reasonably satisfactory to Agent that fixtures and
equipment, if any, have been paid for and are free of any lien or security interest therein
other than Permitted Exceptions, and Liens permitted pursuant to Section 5.9 hereof;

     (iii) copies of any proposed or executed Change Orders on standard AIA G701 form (or
similar form reasonably acceptable to Agent) which have not been previously furnished to
Agent and which require, and are not valid without, the signatures of the Construction
Contractor and the Borrowers;

     (iv) copies of all Major Subcontracts which have been executed since the last
disbursement;

     (v) all Required Permits as are applicable to the then current stage of development of
the Construction at the time of each such disbursement;

     (vi) satisfactory evidence that all Governmental Approvals have been obtained for
development of the Mexican Project; and

     (vii) such other instruments, documents and information as Agent may reasonably
request.

Each Mexican Draw Disbursement and disbursement of the Capex Loans, as applicable, other than the
disbursement of the Capex Loans made on the Closing Date, shall be made

107

 

approximately ten days
after receipt of all information (including the notice requirements pursuant to Section 2.9(a)(ii)
hereof) required by Agent to approve such requested disbursement.

     (d) Retainages. At the time of each Mexican Draw Disbursement and disbursement of the
proceeds of the Capex Loans, as applicable, seven percent (7%) of the amount specified and
described in Clause 5 of the Construction Contract with respect to retainage, then due the
Construction Contractor and excluding the amounts due with respect to the steel set forth in Clause
25 of the Construction Contract, shall be withheld from the amount disbursed. The retained amounts
for the Construction costs will be disbursed only at the time of the final disbursement of Loan
proceeds pursuant to Section 12.3 hereof; provided that, upon the satisfactory completion of one
hundred percent (100%) of the work with respect to any trade (including any trade performed by the
Construction Contractor) or the delivery of all materials pursuant to a purchase order in
accordance with the Plans and Specifications, as certified by the Construction Contractor and the
Consultant, Agent may decide, on a case by case basis (but shall not be obligated), to permit
retainages with respect to such trade or order to be disbursed to the appropriate Borrower upon the
Consultant’s approval of all work and materials, and Agent’s receipt of a final waiver of lien with
respect to such completed work or delivered materials.

     (e) Disbursements for Materials Stored On Site. Any requests for a Mexican Draw
Disbursement or a disbursement of the Capex Loans which in whole or in part relate to materials,
equipment or furnishings which a Borrower owns and which are not incorporated into the Improvements
as of the date of the request for such disbursement, but are to be temporarily stored at the
Mexican Project, shall be made in an aggregate amount not to exceed Two Hundred Fifty Thousand
Dollars ($250,000); provided that, on the Closing Date, up to One Million Dollars ($1,000,000) of
the disbursement of the Capex Loans may be used to purchase steel beams and steel erection parts
that are not yet incorporated into Improvements. Any such request must be accompanied by evidence,
satisfactory to Agent, that (i) such stored materials are included within the coverages of
insurance policies carried by such Borrower, (ii) the ownership of such materials is vested in such
Borrower free of any liens and claims of third parties, (iii) such materials are properly insured
and protected against theft or damage, (iv) the materials used in the Construction are not
commodity items but are uniquely fabricated for the Construction, (v) the Consultant has viewed and
inspected the stored materials, and (vi) in the opinion of the Consultant the stored materials are
physically secured and can be incorporated into the Mexican Project within forty-five (45) days.

     (f) Disbursements for Offsite Materials. Agent and the Lenders may, in Agent’s sole
discretion, but shall not be obligated to, make disbursements for materials stored off-site, in which event all of the requirements of Section 12.2(e) hereof shall be applicable to such
disbursement, as well as any other requirements which Agent may, in its sole discretion, determine
are appropriate.

     Section 12.3. Final Disbursement for Construction. Agent and the Lenders will advance
to the appropriate Borrower the final Mexican Draw Disbursement and disbursement of the Capex Loans
for the cost of the Construction (including retainages), when the following conditions have been
complied with, provided that all other conditions in this Agreement for disbursements have been
complied with:

108

 

     (a) The Improvements have been fully completed and equipped in accordance with the Plans and
Specifications, free and clear of liens and security interests, and are ready for occupancy;

     (b) Borrowers shall have furnished to Agent insurance, in form and amount and with companies
satisfactory to Agent, in accordance with the requirements contained herein;

     (c) Borrowers shall have furnished to Agent copies of all licenses and permits required by any
Governmental Authority having jurisdiction for the occupancy of the Improvements and the operation
thereof, including a notice or certificate of construction completion, filed with Governmental
Authority at the municipality in which the Mexican Project is located;

     (d) Borrowers shall have furnished a plat of survey covering the completed Improvements;

     (e) all fixtures, furnishings, furniture, equipment and other property required for the
operation of the Mexican Project shall have been installed, free and clear of all liens and
security interests, except for Liens of Agent, for the benefit of the Lenders;

     (f) Borrowers shall have furnished to Agent a certificate from the Construction Contractor or
other evidence satisfactory to Agent, dated on or about the Project Completion Date, stating that
(i) the Improvements have been completed in accordance with the Plans and Specifications, and (ii)
the Improvements, as so completed, comply with all applicable laws; and

     (g) Agent shall have received a certificate from the Consultant certifying that the
Improvements have been satisfactorily completed in accordance with the Plans and Specifications.

     Section 12.4. Budget Matters. The Mexican Draw Disbursements and the disbursements
of the Capex Loans shall be governed by the Budget, which shall be in form and substance
substantially similar to the initial Budget and reasonably satisfactory to Agent. The Budget shall
specify the amount of cash equity invested in the Mexican Project, and all costs and expenses to be
incurred by one or more Borrowers in connection with the Mexican Project; provided that the initial
Budget delivered pursuant to Section 6.22(b) hereof shall only be required to specify the amount of cash equity invested in the
Mexican Project, capital costs with respect to fixed assets, and all expenses with respect to
moving equipment that Borrowers reasonably expect to be incurred by one or more Borrowers in
connection with the Mexican Project. No Borrower is aware of any other such costs, expenses or
fees (in connection with the Mexican Project) that are material and are not covered by the Budget.
The Budget shall include line items for the costs of all labor, materials, equipment, fixtures and
furnishings needed for the completion of the Construction, and all other costs, fees and expenses
relating to the Construction of the Improvements, amounts satisfactory to Agent for soft costs and
reserves, and all other sums due in connection with the Construction and operation of the Mexican
Project. The initial Budget is attached as Exhibit K, and has been approved by Agent. All
additional changes to the Budget

109

 

shall be subject to the prior written consent of Agent. Each
Borrower shall pay, as they become due, all amounts set forth in the Budget with respect to the
costs required to be paid for by such Borrower.

     Section 12.5. Loan-In-Balance. Anything contained in this Agreement to the contrary
notwithstanding, it is expressly understood and agreed that the Capex Loans and the Mexican Loan
shall at all times be “In-Balance” on an aggregate basis. The Capex Loans and the Mexican Loan
shall be deemed to be “In-Balance”, in the aggregate, only when the total of the undisbursed
portion of such Loans, equals or exceeds the aggregate of (a) the costs required to complete the
construction of the Mexican Project in accordance with the Plans and Specifications and the Budget;
(b) the amounts to be paid as retainages to persons who have supplied labor or materials to the
Mexican Project; and (c) all other hard and soft costs not yet paid for in connection with the
Mexican Project, as such costs and amounts described in subparts (a) and (b) hereof may be
estimated and/or approved in writing by Agent from time to time. Core Molding, and Core Mexico
with respect to the Mexican Real Property, agrees that, if for any reason, Agent has determined, in
the exercise of its reasonable credit judgment, the aggregate amount of the undistributed proceeds
of the Capex Loans and the Mexican Loan shall at any time be or become insufficient for such
purpose regardless of how such condition may be caused, Core Molding, and Core Mexico with respect
to the Mexican Real Property, will, within ten days after written request of Agent, deposit the
deficiency with Agent (“Deficiency Deposit”). The Deficiency Deposit shall first be exhausted
before any further disbursement of the Capex Loans or any Mexican Draw Disbursement shall be made.
Agent and the Lenders shall not be obligated to make any Mexican Draw Disbursement or disbursements
of the Capex Loans if and for as long as such Loans are not In-Balance.

[Remainder of page left intentionally blank]

110

 

     JURY TRIAL WAIVER. TO THE EXTENT PERMITTED BY LAW, EACH BORROWER, AGENT AND EACH
LENDER WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN
CONTRACT, TORT OR OTHERWISE, AMONG BORROWERS, AGENT AND THE LENDERS, OR ANY THEREOF, ARISING OUT
OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN
CONNECTION WITH THIS AGREEMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR
DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO. THIS WAIVER SHALL NOT IN ANY
WAY AFFECT, WAIVE, LIMIT, AMEND OR MODIFY AGENT’S OR ANY LENDER’S ABILITY TO PURSUE REMEDIES
PURSUANT TO ANY CONFESSION OF JUDGMENT OR COGNOVIT PROVISION CONTAINED IN ANY NOTE OR OTHER
INSTRUMENT, DOCUMENT OR AGREEMENT AMONG BORROWERS, AGENT AND THE LENDERS, OR ANY THEREOF.

     IN WITNESS WHEREOF, the parties have executed and delivered this Credit Agreement in Columbus,
Ohio as of the date first set forth above.

	 	 	 	 	 
	Address:

	 	800 Manor Park Drive
	 	CORE MOLDING TECHNOLOGIES, INC.
	 

	 	Columbus, Ohio 43228	 	 
	 

	 	Attention: Chief Financial Officer
	 	By: Herman F. Dick Jr. /s/
	 

	 	 	 	Name: Herman F. Dick Jr.

Title: Chief Financial Officer
and Vice President
	 
	 	 	 	 
	Address:

	 	Prolongacion Avenida Uniones 

S.N colonia industrial del norte

Matamoros, Tamaulipas CP 87316

Attn: Plant Manager

	 	CORECOMPOSITES DE MEXICO, S.
DE R.L. DE C.V.

By: Herman F. Dick Jr. /s/

Name: Herman F. Dick Jr.

Title: Attorney in Fact

	 
	 	 	 	 
	Address:

	 	88 East Broad Street

Columbus, Ohio 43215

Attention: Commercial Bank
	 	KEYBANK NATIONAL ASSOCIATION,

as Agent and as a Lender

By: Roger D. Campbell /s/

Name: Roger D. Campbell

Title: Senior Vice President

Signature Page

1 of 1 of the Credit Agreement

 

 

SCHEDULE 1

	 	 	 	 	 
	 	 	KeyBank National	 
	LENDERS	 	Association	 
	COMMITMENT PERCENTAGE
	 	 	100	%
	REVOLVING CREDIT COMMITMENT AMOUNT
	 	$	8,000,000.00	 
	TERM LOAN COMMITMENT AMOUNT
	 	$	2,678,563.00	 
	CAPEX COMMITMENT AMOUNT
	 	$	12,000,000.00	 
	MEXICAN LOAN COMMITMENT AMOUNT
	 	$	8,000,000.00	 
	IDRB LETTER OF CREDIT COMMITMENT
AMOUNT
	 	$	3,332,493.15	 
	MAXIMUM AMOUNT
	 	$	34,011,056.15	 
	 
	 	 	 	 
	Total Commitment Amount:
	 	$	34,011,056.15	 

 

 

SCHEDULE 2

GUARANTORS OF PAYMENT

Domestic Guarantors of Payment

Core Composites Corporation

Core Automotive Technologies LLC

Core Composite Cincinnati, LLC

Foreign Guarantors of Payment

None on the Closing Date.

 

 

EXHIBIT A

FORM OF

REVOLVING CREDIT NOTE

			
	 	 	 
	$                                         
	 	Columbus, Ohio
	 
	 	December 9, 2008

     FOR VALUE RECEIVED, the undersigned, CORE MOLDING TECHNOLOGIES, INC., a Delaware corporation
(“Borrower”), promises to pay, on the last day of the Commitment Period, as defined in the Credit
Agreement (as hereinafter defined), to the order of ___ (“Lender”) at the main office of
KEYBANK NATIONAL ASSOCIATION, as Agent, as hereinafter defined, 88 East Broad Street, Columbus,
Ohio 43215 the principal sum of

DOLLARS

or the aggregate unpaid principal amount of all Revolving Loans, as defined in the Credit
Agreement, made by Lender to Borrower pursuant to Section 2.2(a) of the Credit Agreement, whichever
is less, in lawful money of the United States of America. Borrowers also agree to pay any
additional amount that is required to be paid pursuant to Section 11.17 of the Credit Agreement.

     As used herein, “Credit Agreement” means the Credit Agreement dated as of December 9, 2008,
among Borrower, CoreComposites de Mexico, S. de R.L. de C.V., a sociedad de responsabilidad
limitada de capital variable organized under the laws of Mexico, the Lenders, as defined therein,
and KeyBank National Association, as the lead arranger, sole book runner and administrative agent
for the Lenders (“Agent”), as the same may from time to time be amended, restated or otherwise
modified. Each capitalized term used herein that is defined in the Credit Agreement and not
otherwise defined herein shall have the meaning ascribed to it in the Credit Agreement.

     Borrower also promises to pay interest on the unpaid principal amount of each Revolving Loan
from time to time outstanding, from the date of such Revolving Loan until the payment in full
thereof, at the rates per annum that shall be determined in accordance with the provisions of
Section 2.7(a) of the Credit Agreement. Such interest shall be payable on each date provided for
in such Section 2.7(a); provided that interest on any principal portion that is not paid when due
shall be payable on demand.

     The portions of the principal sum hereof from time to time representing Base Rate Loans and
Daily LIBOR Loans, interest owing thereon, and payments of principal and interest of any thereof,
shall be shown on the records of Lender by such method as Lender may generally employ; provided
that failure to make any such entry shall in no way detract from the obligations of Borrower under
this Note.

     If this Note shall not be paid at maturity, whether such maturity occurs by reason of lapse of
time or by operation of any provision for acceleration of maturity contained in the Credit
Agreement, the principal hereof and the unpaid interest thereon shall bear interest, pursuant to

E-1

 

the terms of the Credit Agreement, until paid, at a rate per annum equal to the Default Rate. All
payments of principal of and interest on this Note shall be made in immediately available funds.

     This Note is one of the Revolving Credit Notes referred to in the Credit Agreement. Reference
is made to the Credit Agreement for a description of the right of the undersigned to anticipate
payments hereof, the right of the holder hereof to declare this Note due prior to its stated
maturity, and other terms and conditions upon which this Note is issued.

     Except as expressly provided in the Credit Agreement, Borrower expressly waives presentment,
demand, protest and notice of any kind. This Note shall be governed by and construed in accordance
with the laws of the State of Ohio, without regard to conflicts of laws provisions.

     The undersigned authorizes any attorney at law at any time or times after the maturity hereof
(whether maturity occurs by lapse of time or by acceleration) to appear in any state or federal
court of record in the United States of America, to waive the issuance and service of process, to
admit the maturity of this Note and the nonpayment thereof when due, to confess judgment against
the undersigned in favor of the holder of this Note for the amount then appearing due, together
with interest and costs of suit, and thereupon to release all errors and to waive all rights of
appeal and stay of execution. The foregoing warrant of attorney shall survive any judgment, and if
any judgment be vacated for any reason, the holder hereof nevertheless may thereafter use the
foregoing warrant of attorney to obtain an additional judgment or judgments against the
undersigned. The undersigned agrees that Agent’s attorney may confess judgment pursuant to the
foregoing warrant of attorney. The undersigned further agrees that the attorney confessing
judgment pursuant to the foregoing warrant of attorney may receive a legal fee or other
compensation from Agent or the Lenders.

	 	 	 	 	 	 	 
	 	 	CORE MOLDING TECHNOLOGIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

“WARNING — BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT
TRIAL. IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE TAKEN AGAINST YOU
WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT
FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR
RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT,
OR ANY OTHER CAUSE.”

E-2

 

EXHIBIT B

FORM OF

SWING LINE NOTE

			
	 	 	 
	$1,000,000
	 	Columbus, Ohio
	 
	 	December 9, 2008

     FOR VALUE RECEIVED, the undersigned, CORE MOLDING TECHNOLOGIES, INC., a Delaware corporation
(“Borrower”), promises to pay to the order of KEYBANK NATIONAL ASSOCIATION (“Swing Line Lender”) at
the main office of KEYBANK NATIONAL ASSOCIATION, as Agent, as hereinafter defined, 88 East Broad
Street, Columbus, Ohio 43215 the principal sum of

		 	
	ONE MILLION AND 00/100  DOLLARS 	 	 DOLLARS

or the aggregate unpaid principal amount of all Swing Loans, as defined in the Credit Agreement (as
hereinafter defined), made by the Swing Line Lender to Borrower pursuant to Section 2.2(c) of the
Credit Agreement, whichever is less, in lawful money of the United States of America on the earlier
of the last day of the Commitment Period applicable to the Revolving Credit Commitment, as defined
in the Credit Agreement, or, with respect to each Swing Loan, the Swing Loan Maturity Date.

     As used herein, “Credit Agreement” means the Credit Agreement dated as of December 9, 2008,
among Borrower, CoreComposites de Mexico, S. de R.L. DE C.V., a sociedad de responsabilidad
limitada de capital variable organized under the laws of Mexico, the Lenders, as defined therein,
and KeyBank National Association, as the lead arranger, sole book runner and administrative agent
for the Lenders (“Agent”), as the same may from time to time be amended, restated or otherwise
modified. Each capitalized term used herein that is defined in the Credit Agreement and not
otherwise defined herein shall have the meaning ascribed to it in the Credit Agreement.

     Borrower also promises to pay interest on the unpaid principal amount of each Swing Loan from
time to time outstanding, from the date of such Swing Loan until the payment in full thereof, at
the rates per annum that shall be determined in accordance with the provisions of Section 2.7(b) of
the Credit Agreement. Such interest shall be payable on each date provided for in such Section
2.7(b); provided that interest on any principal portion that is not paid when due shall be payable
on demand.

     The principal sum hereof from time to time, and the payments of principal and interest
thereon, shall be shown on the records of Swing Line Lender by such method as Swing Line Lender may
generally employ; provided that failure to make any such entry shall in no way detract from the
obligation of Borrower under this Note.

     If this Note shall not be paid at maturity, whether such maturity occurs by reason of lapse of
time or by operation of any provision for acceleration of maturity contained in the Credit
Agreement, the principal hereof and the unpaid interest thereon shall bear interest, pursuant to

E-3

 

the terms of the Credit Agreement, until paid, at a rate per annum equal to the Default Rate. All
payments of principal of and interest on this Note shall be made in immediately available funds.

     This Note is the Swing Line Note referred to in the Credit Agreement. Reference is made to
the Credit Agreement for a description of the right of the undersigned to anticipate payments
hereof, the right of the holder hereof to declare this Note due prior to its stated maturity, and
other terms and conditions upon which this Note is issued.

     Except as expressly provided in the Credit Agreement, Borrower expressly waives presentment,
demand, protest and notice of any kind. This Note shall be governed by and construed in accordance
with the laws of the State of Ohio, without regard to conflicts of laws provisions.

     The undersigned authorizes any attorney at law at any time or times after the maturity hereof
(whether maturity occurs by lapse of time or by acceleration) to appear in any state or federal
court of record in the United States of America, to waive the issuance and service of process, to
admit the maturity of this Note and the nonpayment thereof when due, to confess judgment against
the undersigned in favor of the holder of this Note for the amount then appearing due, together
with interest and costs of suit, and thereupon to release all errors and to waive all rights of
appeal and stay of execution. The foregoing warrant of attorney shall survive any judgment, and if
any judgment be vacated for any reason, the holder hereof nevertheless may thereafter use the
foregoing warrant of attorney to obtain an additional judgment or judgments against the
undersigned. The undersigned agrees that Agent’s attorney may confess judgment pursuant to the
foregoing warrant of attorney. The undersigned further agrees that the attorney confessing
judgment pursuant to the foregoing warrant of attorney may receive a legal fee or other
compensation from Agent or the Lenders.

	 	 	 	 	 	 	 
	 	 	CORE MOLDING TECHNOLOGIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

“WARNING — BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT
TRIAL. IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE TAKEN AGAINST YOU
WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT
FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR
RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT,
OR ANY OTHER CAUSE.”

E-4

 

EXHIBIT C

FORM OF

TERM NOTE

			
	 	 	 
	$                                        
	 	Columbus, Ohio
	 
	 	December 9, 2008

     FOR VALUE RECEIVED, the undersigned, CORE MOLDING TECHNOLOGIES, INC., a Delaware corporation
(“Borrower”), promises to pay to the order of KEYBANK NATIONAL ASSOCIATION (“Lender”) at the main
office of KEYBANK NATIONAL ASSOCIATION, as Agent, as hereinafter defined, 88 East Broad Street,
Columbus, Ohio 43215 the principal sum of

DOLLARS

in lawful money of the United States of America in consecutive principal payments as set forth in
the Credit Agreement (as hereinafter defined).

     As used herein, “Credit Agreement” means the Credit Agreement dated as of December 9, 2008,
among Borrower, CoreComposites de Mexico, S. de R.L. DE C.V., a sociedad de responsabilidad
limitada de capital variable organized under the laws of Mexico, the Lenders, as defined therein,
and KeyBank National Association, as the lead arranger, sole book runner and administrative agent
for the Lenders (“Agent”), as the same may from time to time be amended, restated or otherwise
modified. Each capitalized term used herein that is defined in the Credit Agreement and not
otherwise defined herein shall have the meaning ascribed to it in the Credit Agreement.

     Borrower also promises to pay interest on the unpaid principal amount of the Term Loan from
time to time outstanding, from the date of the Term Loan until the payment in full thereof, at the
rates per annum that shall be determined in accordance with the provisions of Section 2.7(c) of the
Credit Agreement. Such interest shall be payable on each date provided for in such Section 2.7(c);
provided that interest on any principal portion that is not paid when due shall be payable on
demand.

     The portions of the principal sum hereof from time to time representing Base Rate Loans and
Eurodollar Loans, interest owing thereon, and payments of principal and interest of any thereof,
shall be shown on the records of Lender by such method as Lender may generally employ; provided
that failure to make any such entry shall in no way detract from the obligations of Borrower under
this Note.

     If this Note shall not be paid at maturity, whether such maturity occurs by reason of lapse of
time or by operation of any provision for acceleration of maturity contained in the Credit
Agreement, the principal hereof and the unpaid interest thereon shall bear interest, until paid, at
a rate per annum equal to the Default Rate. All payments of principal of and interest on this Note
shall be made in immediately available funds.

E-5

 

     This Note is one of the Term Notes referred to in the Credit Agreement. Reference is made to
the Credit Agreement for a description of the right of the undersigned to anticipate payments
hereof, the right of the holder hereof to declare this Note due prior to its stated maturity, and
other terms and conditions upon which this Note is issued.

     Except as expressly provided in the Credit Agreement, Borrower expressly waives presentment,
demand, protest and notice of any kind. This Note shall be governed by and construed in accordance
with the laws of the State of Ohio, without regard to conflicts of laws provisions.

     JURY TRIAL WAIVER. BORROWER, TO THE EXTENT PERMITTED BY LAW, HEREBY WAIVES ANY RIGHT
TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR
OTHERWISE, AMONG BORROWER, AGENT AND THE LENDERS, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION
WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS
NOTE OR ANY OTHER NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN
CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO.

	 	 	 	 	 	 	 
	 	 	CORE MOLDING TECHNOLOGIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

E-6

 

EXHIBIT D

FORM OF

CAPEX NOTE

			
	 	 	 
	$                                        
	 	Columbus, Ohio
	 
	 	December 9, 2008

     FOR VALUE RECEIVED, the undersigned, CORE MOLDING TECHNOLOGIES, INC., a Delaware corporation
(“Borrower”), promises to pay to the order of [___] ( “Lender”) at the main office of KEYBANK
NATIONAL ASSOCIATION, as Agent, as hereinafter defined, 88 East Broad Street, Columbus, Ohio 43215
the principal sum of

DOLLARS

or the aggregate unpaid principal amount of all Capex Draw Loans, as defined in the Credit
Agreement, as hereinafter defined, made by Lender to Borrower pursuant to Section 2.4(a) of the
Credit Agreement, whichever is less, in lawful money of the United States of America, or, with
respect to Capex Draw Loans that have been converted to a Capex Term Loan, as defined in the Credit
Agreement, payable pursuant to Section 2.4(b) of the Credit Agreement.

     As used herein, “Credit Agreement” means the Credit Agreement dated as of December 9, 2008,
among Borrower, CoreComposites de Mexico, S. de R.L. DE C.V., a sociedad de responsabilidad
limitada de capital variable organized under the laws of Mexico, the Lenders, as defined therein,
and KeyBank National Association, as the lead arranger, sole book runner and administrative agent
for the Lenders (“Agent”), as the same may from time to time be amended, restated or otherwise
modified. Each capitalized term used herein that is defined in the Credit Agreement and not
otherwise defined herein shall have the meaning ascribed to it in the Credit Agreement.

     Borrower also promises to pay interest on the unpaid principal amount of each Capex Loan from
time to time outstanding, from the date of such Capex Loan until the payment in full thereof, at
the rates per annum that shall be determined in accordance with the provisions of Sections 2.7(d)
and (e) of the Credit Agreement. Such interest shall be payable on each date provided for in such
Sections 2.7(d) and (e); provided that interest on any principal portion that is not paid when due
shall be payable on demand.

     The portions of the principal sum hereof from time to time representing Base Rate Loans and
Eurodollar Loans, interest owing thereon, and payments of principal and interest of any thereof,
shall be shown on the records of Lender by such method as Lender may generally employ; provided
that failure to make any such entry shall in no way detract from the obligations of Borrower under
this Note.

     If this Note shall not be paid at maturity, whether such maturity occurs by reason of lapse of
time or by operation of any provision for acceleration of maturity contained in the Credit
Agreement, the principal hereof and the unpaid interest thereon shall bear interest, pursuant to

E-7

 

the terms of the Credit Agreement, until paid, at a rate per annum equal to the Default Rate. All
payments of principal of and interest on this Note shall be made in immediately available funds.

     This Note is one of the Capex Notes referred to in the Credit Agreement. Reference is made to
the Credit Agreement for a description of the right of the undersigned to anticipate payments
hereof, the right of the holder hereof to declare this Note due prior to its stated maturity, and
other terms and conditions upon which this Note is issued.

     Except as expressly provided in the Credit Agreement, Borrower expressly waive presentment,
demand, protest and notice of any kind. This Note shall be governed by and construed in accordance
with the laws of the State of Ohio, without regard to conflicts of laws provisions.

     The undersigned authorizes any attorney at law at any time or times after the maturity hereof
(whether maturity occurs by lapse of time or by acceleration) to appear in any state or federal
court of record in the United States of America, to waive the issuance and service of process, to
admit the maturity of this Note and the nonpayment thereof when due, to confess judgment against
the undersigned in favor of the holder of this Note for the amount then appearing due, together
with interest and costs of suit, and thereupon to release all errors and to waive all rights of
appeal and stay of execution. The foregoing warrant of attorney shall survive any judgment, and if
any judgment be vacated for any reason, the holder hereof nevertheless may thereafter use the
foregoing warrant of attorney to obtain an additional judgment or judgments against the
undersigned. The undersigned agrees that Agent’s attorney may confess judgment pursuant to the
foregoing warrant of attorney. The undersigned further agrees that the attorney confessing
judgment pursuant to the foregoing warrant of attorney may receive a legal fee or other
compensation from Agent or the Lenders.

	 	 	 	 	 	 	 
	 	 	CORE MOLDING TECHNOLOGIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

“WARNING — BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT
TRIAL. IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE TAKEN AGAINST YOU
WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT
FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR
RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART TO COMPLY WITH THE AGREEMENT,
OR ANY OTHER CAUSE.”

E-8

 

EXHIBIT E

FORM OF

MEXICAN NOTE

	 	 	 
	PROMISSORY NOTE	 	PAGARÉ
	U.S.$8,000,000.00

	 	E.U.A.$8,000,000.00
	 
	 	 
	The undersigned, CoreComposites de México, S. de R.L.
de C.V. (the “Borrower”), by this Promissory Note
hereby unconditionally promises to pay to the order
of KeyBank National Association (the “Lender”), the
principal sum of U.S.$8,000,000.00 (Eight Million and
00/100 Dollars, in lawful currency of the United
States of America), payable in five (5) annual
successive installments on the dates and for the
amounts specified herein below (each a “Payment
Date”).

	 	La suscrita, CoreComposites de México, S. de R.L.
de C.V. (el “Suscriptor”), por este Pagaré
promete incondicionalmente pagar a la orden de
KeyBank National Association (el “Acreedor”), la
suma principal de E.U.A. $8,000,000.00 (Ocho
Millones de Dólares 00/100, moneda de curso legal
de los Estados Unidos de América), pagadera en
cinco (5) vencimientos anuales sucesivos en las
fechas y por las cantidades que a continuación se
indican (cada una la “Fecha de Pago”).

	 	 	 	 	 	 	 
	Payment Date of each	 	Payment Amount	 	Fecha de Pago de	 	Suma Principal Pagadera
	Installment	 	(Dollars)	 	cada abono	 	(Dólares)
	January 31, 2010

	 	US$1,600,000.00
	 	31 de enero de 2010
	 	E.U.A.$1,600,000.00
	 
	January 31, 2011

	 	US$1,600,000.00
	 	31 de enero de 2011
	 	E.U.A.$1,600,000.00
	 
	January 31, 2012

	 	US$1,600,000.00
	 	31 de enero de 2012
	 	E.U.A.$1,600,000.00
	 
	January 31, 2013

	 	US$1,600,000.00
	 	31 de enero de 2013
	 	E.U.A.$1,600,000.00
	 
	January 31, 2014

	 	US$1,600,000.00
	 	31 de enero de 2014
	 	E.U.A.$1,600,000.00

	 	 	 
	The Borrower promises to pay interest to the Lender
on each Interest Payment Date (as hereinafter
defined), or the next Business Day (as hereinafter
defined) in the event the Interest Payment Date is
not a Business Day, on the principal amount hereof
outstanding from the date hereof until paid in full,
at an annual rate equal to the LIBOR Rate (as
hereinafter defined) in effect from time to time,
plus (1.897) percentage points; provided that, if the
LIBOR Rate shall be unavailable, this Promissory Note
shall bear interest at an annual rate equal to the
Prime Rate (as hereinafter defined) in effect from
time to time.

	 	El Suscriptor promete pagar al Acreedor por
concepto de intereses en cada Fecha de Pago de
Intereses (según se define más adelante), o el
Día Hábil siguiente (según se define más
adelante) en caso de que la Fecha de Pago de
Intereses sea inhábil, sobre la suma principal de
este Pagaré insoluta, a partir del la fecha de
suscripción de este Pagaré y hasta su pago total,
a razón de una tasa anual que será igual a la
Tasa LIBOR (según se define más adelante) que
esté vigente durante de tiempo en tiempo, más
(1.897) puntos base, en el entendido que si la
Tasa LIBOR no está disponible, este Pagaré
causará intereses a la tasa anual igual a la Tasa
Prime (según se define más adelante) que esté

E-9

 

	 	 	 
	 

	 	vigente de tiempo en tiempo.
	 
	 	 
	Notwithstanding the provisions of the preceding
paragraph, in the event that the Borrower shall fail
to pay in full when due any amount of any principal
installment owed by the Borrower hereunder, the
Borrower shall pay, on demand, during the continuance
of such default, interest on the full principal
amount hereof then outstanding, computed at an annual
rate equal three (3) percentage points in excess of
the interest rate applicable thereto.

	 	No obstante lo dispuesto en el párrafo anterior,
en el caso de que el Suscriptor no pague en la
Fecha de Pago la totalidad de cualquier abono de
la suma de principal de este Pagaré que el
Suscriptor deba pagar al Acreedor conforme a este
Pagaré, el Suscriptor pagará, a la vista, durante
la continuación de dicho incumplimiento,
intereses sobre el monto total de la suma de
principal de este Pagaré entonces insoluta,
calculados a razón de una tasa anual que será
igual al resultado de sumar tres (3) puntos base
a la tasa la tase de interés aplicable.
	 
	 	 
	Each payment by the Borrower hereunder shall be made
free and clear of, and without deduction for or on
account of, any present or future Taxes (as
hereinafter defined), including Other Taxes (as
hereinafter defined) but excluding Excluded Taxes (as
hereinafter defined). If any such Taxes that are not
Excluded Taxes (“Non-Excluded Taxes”) are required to
be withheld from any amounts payable to the Lender
hereunder, then (i) the amounts payable to the Lender
shall be increased by such additional amounts (the
“Additional Amounts”) necessary to yield to the
Lender (after payment of all Non-Excluded Taxes,
Other Taxes and Additional Amounts, including any of
the foregoing levied on Additional Amounts) interest
or any such other amounts payable hereunder at the
rates or in the amounts specified hereunder that the
Lender would have received had no such deduction or
withholding been required, and (ii) the Borrower
shall make the required withholding and pay the full
amount withheld for such Non-Excluded Taxes,
including Other Taxes, to the appropriate taxing
authority in accordance with applicable law.

	 	Cualquier pago que efectúe el Suscriptor de
acuerdo con el presente Pagaré deberá hacerse
libre de, y sin deducción por, o a cuenta de,
cualquier Impuesto (según se define más adelante)
presente o futuro, incluyendo Otros Impuestos
(según se define más adelante), pero excluyendo
Impuestos Excluidos (según se define más
adelante). Si cualquiera de dichos Impuestos que
no sean Impuestos Excluidos (“Impuestos No
Excluidos”) deban ser retenidos de cualquier
cantidad pagadera al Acreedor conforme a este
Pagaré, entonces (i) las cantidades pagaderas al
Acreedor deberán incrementarse por cantidades
adicionales (las “Cantidades Adicionales”)
necesarias para entregar al Acreedor (después del
pago de todos los Impuestos No Excluidos, Otros
Impuestos y Cantidades Adicionales) intereses o
cualquier otra cantidad pagadera conforme a este
Pagaré a las tasas o en las cantidades
especificadas en el presente Pagaré que el
Acreedor hubiera recibido si dichos impuestos no
hubieren sido deducidos o retenidos, y (ii) el
Suscriptor hará las retenciones requeridas y
pagará la cantidad retenida por dichos Impuestos
No Excluidos, incluyendo los Otros Impuestos, a
la Autoridad Gubernamental correspondiente
conforme a la ley aplicable.
	 
	 	 
	Interest hereunder shall be calculated on the basis
of a three hundred and sixty (360) day year, and paid
for the actual number of days elapsed, including the
first but excluding the last of such days.

	 	Los intereses a que se refiere este Pagare se
calcularán sobre la base de un año de trescientos
sesenta (360) días, y pagadero por el número de
días que efectivamente transcurran, incluyendo el
primero pero excluyendo el último de dichos días.

E-10

 

	 	 	 
	The principal amount hereof and interest thereon
shall be payable to Lender, no later than 11:00 a.m.
(Cleveland, Ohio, USA time) on the date on which such
payments are due, in Dollars, and in freely
transferable same day or immediately available funds
to the Dollar Account of Lender (as hereinafter
defined).

	 	La suma principal e intereses de este Pagare,
serán pagaderos al Acreedor a más tardar a las
11:00 a.m. horas (hora de la Ciudad de Cleveland,
Estados Unidos de América) en la fecha en que se
deba hacer dicho pago, en Dólares, en fondos
libremente transferibles y disponibles el mismo
día o de inmediato a la Cuenta en Dólares del
Acreedor (según se define más adelante).
	 
	 	 
	As used herein, the following terms shall have the
following meanings:

	 	Tal como se utilizan en el presente Pagaré, los
siguientes términos tendrán los significados que
se indican a continuación:
	 
	 	 
	“Business
Day” means any day that is not a Saturday,
a Sunday or another day of the year on which national
banks are authorized or required to close in
Cleveland, Ohio, USA or Mexico City, Mexico.

	 	“Día Hábil” significa cualquier día que no es ni
sábado o domingo ni día festivo en el que los
bancos estén autorizados u obligados a cerrar en
la ciudad de Cleveland, Ohio, o México, Distrito
Federal.
	 
	 	 
	“Dollar
Account of Lender” means account no. 3057
(Commercial Loans) of Lender maintained at KeyBank
National Association (ABA No. 041001039) (ref:
Corecomposites De Mexico, S. De R.L. De C.V.), or
such other account at such other bank in the United
States of America as the Lender shall specify from
time to time to the Borrower. Any change in the
identity of the Dollar Account of Lender shall be
effective on the second Business Day following notice
thereof by Lender to the Borrower and the Lender.

	 	“Cuenta en Dólares del
Acreedor” significa la
cuenta no. 3057 (Commercial Loans) del Acreedor
que mantenga con KeyBank National Association
(ABA No. 041001039) (ref: Corecomposites De
Mexico, S. De R.L. De C.V.), o cualquier otra
cuenta en cualquier otro banco en los Estados
Unidos de América según sea especificado de
tiempo en tiempo al Suscriptor por el Acreedor.
Cualquier cambio en la identidad de la Cuenta en
Dólares del Acreedor surtirá efectos el segundo
Día Hábil siguiente al aviso dado por el Acreedor
al Suscriptor.
	 
	 	 
	“Excluded
Taxes” means, in the case of Lender, taxes
imposed on or measured by its overall net income or
branch profits, and franchise taxes imposed on it (in
lieu of net income taxes), by the jurisdiction (or
any political subdivision thereof) under the laws of
which Lender is organized or in which its principal
office is located.

	 	“Impuestos Excluidos” significa, respecto del
Acreedor cualquier impuesto sobre el ingreso
global neto o sobre el ingreso de una sucursal, o
impuestos sobre ingreso neto de las actividades
en cierta jurisdicción o sobre el capital en esa
jurisdicción (en sustitución al impuesto sobre la
renta), de conformidad con las leyes de la
jurisdicción (o subdivisión política de la misma)
bajo la cual se encuentra organizado o tenga su
principal asiento de negocios.
	 
	 	 
	“Governmental
Authority” means the government of the
United States of America or of the Unites Mexican
States, or any other nation or any political
subdivision thereof, whether state or local, and any
agency, authority, instrumentality, regulatory body,
court, central bank or other person exercising
executive, legislative, judicial, taxing, regulatory
or administrative powers or

	 	“Autoridad Gubernamental” significa el gobierno
de los Estados Unidos de América o de los Estados
Unidos Méxicanos, cualquier otra nación o
subdivisión política de ésta, ya sea estatal o
municipal, y cualquier agencia, autoridad, órgano
regulador, banco central u otra persona
ejerciendo facultades o funciones ejecutivas,
legislativas, judiciales, impositivas,

E-11

 

	 	 	 
	functions of or pertaining to government.

	 	regulatorias o administrativas de o
pertenecientes al gobierno.
	 
	 	 
	“Interest
Payment Date” means the first day of each
calendar month, providing that (i) the first Interest
Payment Date shall be on the first day of the
immediately following calendar month from the date
hereof, and (ii) any Interest Payment Date that would
otherwise extend beyond the Payment Date shall end on
the stated Payment Date.

	 	“Fecha de Pago de
Intereses” significa el primer
día de cada mes calendario; en el entendido de
que (i) la primer Fecha de Pago de Intereses será
el primer día del mes calendario inmediato
siguiente a la fecha de este pagaré, y (ii)
cualquier Fecha de Pago de Intereses que se
extienda a una fecha posterior a la Fecha de Pago
terminará en la Fecha de Pago.
	 
	 	 
	“LIBOR
Rate” means, for any date, the greater of (i)
the per annum rate of interest published by Bloomberg
(as shown on the display page designated as “Telerate
British Bankers Assoc. Interest Settlement Rates
Page”) at approximately 11:00 A.M. (London time) two
Business Days prior to such date as the rate in the
London interbank market for Dollar deposits in
immediately available funds in an amount comparable
to the principal outstanding of this Promissory Note
and with a maturity of one day; or (ii) a per annum
rate of 1% (one percent).

	 	“Tasa LIBOR Diaria” significa, respecto de
cualquier fecha, lo que resulte mayor de (i) una
tasa de interés anual que se publica en Bloomberg
(como aparece desplegado en la página denominada
por sus siglas en inglés “Telerate British
Bankers Assoc. Interest Settlement Rates Page” o
Página Telerate de Liquidación de Tasas de
Interés de la Asociación de Banqueros Británicos)
aproximadamente a las 11:00 a.m. (hora de
Londres), dos Días Hábiles previos a dicha fecha,
como la tasa de interés en el mercado
interbancario de Londres para depósitos en
Dólares en fondos inmediatamente disponibles en
cantidad similares al importe principal insoluto
de este Pagaré y con vencimiento de un día; o
(ii) una tasa de interés anual de 1% (uno por
ciento).
	 
	 	 
	“Other
Taxes” means any and all present or future
stamp or documentary taxes or any other excise, ad
valorem or property taxes, goods and services taxes,
harmonized sales taxes and other sales taxes, use
taxes, value added taxes, charges or similar taxes or
levies arising from any payment made hereunder or
from the execution, delivery or enforcement of, or
otherwise with respect to, this Promissory Note.

	 	“Otros Impuestos” significa cualquier impuesto
presente o futuro de estampilla o sobre actos
jurídicos, o cualquier otro impuesto por compra
de bienes, al valor agregado o propiedad, al
consumo, bienes o servicios, impuestos estatales
y otros impuestos sobre ventas, por uso, valor
agregado, contribuciones o impuestos similares
que deriven de o a cuenta de cualquier pago
realizado o requerido conforme al presente Pagaré
o por la suscripción, entrega o ejecución de este
Pagaré.
	 
	 	 
	“Prime
Rate” means the interest rate publicly
announced from time to time by the Wall Street
Journal as its prime rate. Each change in the Prime
Rate shall be effective immediately from and after
such change.

	 	“Tasa Prime” significa la tasa de interés que de
tiempo en tiempo se publica como Tasa Prime en el
Wall Street Journal. Cualquier cambio en la Tasa
Prime será efectivo de manera inmediata a dicho
cambio.
	 
	 	 
	“Taxes” means any and all present or future taxes of
any kind, including but not limited to, levies,
imposts, duties, surtaxes, charges, fees, deductions
or withholdings now

	 	“Impuestos” significa todos los impuestos
presentes o futuros de cualquier tipo, incluyendo
sin limitar, contribuciones, derechos, aranceles, por omisión de

E-12

 

	 	 	 
	or hereafter imposed, levied,
collected, withheld or assessed by any Governmental
Authority (together with any interest, penalties,
fines, additions to taxes or similar liabilities with
respect thereto) other than Excluded Taxes.

	 	pagos, cargas, derechos,
deducciones, retenciones que actualmente o
posteriormente se establezcan, impongan, cobren,
retenga o graven por cualquier Autoridad
Gubernamental (incluyendo sus intereses, penas,
multas, actualizaciones y recargos o
responsabilidades fiscales similares) distintos a
Impuestos Excluidos.
	 
	 	 
	This Promissory Note shall be governed by and
construed in accordance with the law of the United
Mexican States.

	 	Este Pagaré será regido e interpretado de
conformidad con la legislación de los Estados
Unidos Mexicanos.
	 
	 	 
	The Borrower hereby waives presentment, demand,
protest and notice of any kind in connection with
this Promissory Note.

	 	El Suscriptor renuncia a la presentación,
demanda, protesto y notificación de cualquier
clase, en relación con el presente Pagaré.
	 
	 	 
	This Promissory Note is executed in both the English
and Spanish languages, both versions of which shall
bind the Borrower; provided, however, that in the
event of any doubt as to the proper interpretation or
construction of this Promissory Note, the Spanish
version shall be controlling in all instances.

	 	Este Pagaré es firmado en versiones en inglés y
español y ambas versiones obligan al Suscriptor;
en el entendido, sin embargo, que en el caso de
cualquier duda sobre la interpretación de este
Pagaré, la versión en español será la que
prevalezca en todos los casos.
	 
	 	 
	The Borrower hereby extends the expiry of the period
for presentment of this Promissory Note through the
second anniversary from January 31, 2014; provided,
however, that such extension does not preclude
presentment of this Promissory Note at an earlier
date.

	 	El Suscriptor amplía el plazo para la
presentación de este Pagaré hasta el segundo
aniversario posterior al trigésimo primero de
enero de 2014; en el entendido de que dicha
prórroga no impide que este Pagaré pueda ser
presentado para su pago en fecha anterior.
	 
	 	 
	This Promissory Note consists of five (5) pages.

	 	Este Pagaré consiste de cinco (5) páginas.
	 
	 	 
	Made in Cleveland, Ohio, on December 9, 2008.

	 	Se suscribe en Cleveland, Ohio, a 9 de diciembre
de 2008.

El Suscriptor/Borrower

CORECOMPOSITES, S. DE R.L. DE C.V.

 

By / por: Herman F. Dick Jr.

Title / Cargo: Attorney-in-Fact / Apoderado

E-13

 

EXHIBIT F

FORM OF

NOTICE OF LOAN

                                        , 20     

KeyBank National Association, as Agent

88 East Broad Street

Columbus, Ohio 43215

Attention: Commercial Bank

Ladies and Gentlemen:

     The undersigned, CORE MOLDING TECHNOLOGIES, INC., a Delaware corporation, (“Administrative
Borrower”) refers to the Credit Agreement, dated as of December 9, 2008 (“Credit Agreement”, the
terms defined therein being used herein as therein defined), among Administrative Borrower and
CORECOMPOSITES DE MEXICO, S. DE R.L. DE C.V., a sociedad de responsabilidad limitada de capital
variable organized under the laws of Mexico (together with Administrative Borrower, collectively,
“Borrowers”), the Lenders, as defined in the Credit Agreement, and KEYBANK NATIONAL ASSOCIATION, as
Agent, and hereby gives you notice, pursuant to Section 2.9 of the Credit Agreement that Borrowers
hereby request [a Loan (the “Proposed Loan”)][an interest change with respect to a portion of the
[Capex][Mexican] Term Loan (the “[Capex][Mexican] Term Loan Interest Change”)], and in connection
therewith sets forth below the information relating to the [Proposed Loan][[Capex][Mexican] Term
Loan Interest Change] as required by Section 2.9 of the Credit Agreement:

	 	(a)	 	The Borrower requesting the [Proposed Loan][[Capex][Mexican] Term Loan Interest
Change] is                                         .
	 
	 	(b)	 	The [Proposed Loan is to be][[Capex][Mexican] Term Loan Interest Change] is
for]:
	 
	 	 	 	a Revolving Loan       / a Capex Loan       /
	 
	 	 	 	a Mexican Loan      . (Check one.)
	 
	 	(c)	 	The Business Day of the [Proposed Loan][[Capex][Mexican] Term Loan Interest
Change] is                     , 20_.
	 
	 	(d)	 	The amount of the [Proposed Loan][[Capex][Mexican] Term Loan Interest
Change] is $                         .
	 
	 	(e)	 	The Proposed Loan is to be a:
	 
	 	 	 	Base Rate Loan       / Eurodollar Loan       / Swing Loan     . (Check one.)

     (f) If the [Proposed Loan][[Capex][Mexican] Term Loan Interest Change] is a Eurodollar Loan,
the Interest Period requested is one month.

E-14

 

The undersigned hereby certifies on behalf of Borrowers that the following statements are true on
the date hereof, and will be true on the date of the [Proposed Loan][[Capex][Mexican] Term Loan
Interest Change]:

     (i) the representations and warranties contained in each Loan Document are correct,
before and after giving effect to the [Proposed Loan][[Capex][Mexican] Term Loan Interest
Change] and the application of the proceeds therefrom, as though made on and as of such
date;

     (ii) no event has occurred and is continuing, or would result from such [Proposed
Loan][[Capex][Mexican] Term Loan Interest Change], or the application of proceeds therefrom,
that constitutes a Default or Event of Default; and

     (iii) the conditions set forth in Section 2.9 and Article IV of the Credit Agreement
have been satisfied.

	 	 	 	 	 	 	 
	 	 	CORE MOLDING TECHNOLOGIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

E-15

 

EXHIBIT G

FORM OF

MEXICAN PROJECT DRAW REQUEST

                                        , 20     

KeyBank National Association, as Agent

88 East Broad Street

Columbus, Ohio 43215

Attention: Commercial Bank

Ladies and Gentlemen:

     The undersigned, CORE MOLDING TECHNOLOGIES, INC., a Delaware corporation (“Administrative
Borrower”), refers to the Credit Agreement, dated as of December 9, 2008 (the “Credit Agreement”,
the terms defined therein being used herein as therein defined), among Administrative Borrower and
CORECOMPOSITES DE MEXICO, S. DE R.L. DE C.V., a sociedad de responsabilidad limitada de capital
variable organized under the laws of Mexico (collectively, “Borrowers”), the Lenders, as defined in
the Credit Agreement, and KEYBANK NATIONAL ASSOCIATION, as Agent, and hereby gives you notice,
pursuant to Section 2.9(a)(ii) of the Credit Agreement, that Borrowers hereby request a [Capex
Loan] [Mexican Draw Disbursement] in the amount of [$                    ]. This disbursement request
is for payment of labor and/or material completed to date and is detailed in the attached AIA or
substitute documents, for the Mexican Project.

     Borrowers acknowledge that this disbursement is subject, but not limited to the requirements
set forth in Article XII of the Credit Agreement. If requested by Agent, Borrowers agrees to
provide a list detailing the names and the amounts currently due to those to whom Borrowers are
obligated for labor, material and/or services supplied.

The undersigned also covenants and agrees that:

     (a) Borrowers have complied with all requirements and obligations pursuant to the terms of the
Credit Agreement;

     (b) no Event of Default has occurred and is continuing;

     (c) each representation and warranty contained in the Credit Agreement is true and correct as
of date hereof;

     (d) any and all Change Orders and changes to the Plans and Specifications (required to be
approved by Agent pursuant to Section 5.28(b) hereof) have been submitted to and approved by Agent;

     (e) all funds previously disbursed have been used for the purposes as set forth in the Credit
Agreement;

E-16

 

     (f) all claims for labor, materials and/or services furnished prior to this draw request have
been paid;

     (g) all construction prior to the date of this certificate has been accomplished in accordance
with the Plans and Specifications previously supplied to Agent;

     (h) all sums advanced by Agent and the Lenders, or contributed by equity on account of this
request, will be used solely for the purpose of paying obligations owing as shown on the attached
documentation;

     (i) no item in the current payment request has been included in and paid for in any prior
disbursement and/or equity contribution;

     (j) there are no Liens outstanding against the subject project or its equipment except for
Permitted Exceptions and Liens permitted on such property or equipment pursuant to Section 5.9 of
the Credit Agreement; and

     (k) the amount of undisbursed Mexican Draw Disbursements and proceeds of the Capex Loans
and/or approved equity requirement remaining is sufficient to pay the cost of completing the
Mexican Project in accordance with the Plans and Specifications originally submitted to the Agent,
or as modified by Agent by way of approved Change Orders.

     The undersigned understands that this certification is made for the purpose of inducing Agent
and the Lenders to make an advance to the undersigned and that in making such advance, Agent and
the Lenders have relied upon the accuracy of the matters stated in this certificate.

The undersigned further certifies that the statements made in this certificate and any documents
submitted herewith are true and correct

	 	 	 	 	 	 	 
	 	 	CORE MOLDING TECHNOLOGIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Required attachment: AIA 702 & 703, or approved substitute, or contractors invoice w/detail

E-17

 

EXHIBIT H

FORM OF

COMPLIANCE CERTIFICATE

For Fiscal Quarter ended                                         

THE UNDERSIGNED HEREBY CERTIFIES THAT:

     (1) I am the duly elected [President] [Chief Financial Officer] of CORE MOLDING TECHNOLOGIES,
INC., a Delaware corporation (“Administrative Borrower”, and together with CORECOMPOSITES DE
MEXICO, S. DE R.L. DE C.V., a sociedad de responsabilidad limitada de capital variable organized
under the laws of Mexico, “Borrowers”);

     (2) I am familiar with the terms of that certain Credit Agreement, dated as of December 9,
2008, among Borrowers, the lenders from time to time named on Schedule 1 thereto (together
with their respective successors and assigns, collectively, the “Lenders”), as defined in the
Credit Agreement, and KEYBANK NATIONAL ASSOCIATION, as Agent (as the same may from time to time be
amended, restated or otherwise modified, the “Credit Agreement”, the terms defined therein being
used herein as therein defined), and the terms of the other Loan Documents, and I have made, or
have caused to be made under my supervision, a review in reasonable detail of the transactions and
condition of Borrowers and their Subsidiaries during the accounting period covered by the attached
financial statements;

     (3) The review described in paragraph (2) above did not disclose, and I have no knowledge of,
the existence of any condition or event that constitutes or constituted a Default or Event of
Default, at the end of the accounting period covered by the attached financial statements or as of
the date of this Certificate;

     (4) The representations and warranties made by Borrowers contained in each Loan Document are
true and correct as though made on and as of the date hereof; and

     (5) Set forth on Attachment I hereto are calculations of the financial covenants set forth in
Sections 5.7 and 5.20 of the Credit Agreement, which calculations show compliance with the terms
thereof.

     IN WITNESS WHEREOF, I have signed this certificate, in my capacity as the [President] [Chief
Financial Officer] of Administrative Borrower, as of the      day of                     , 20     .

	 	 	 	 	 	 	 
	 	 	CORE MOLDING TECHNOLOGIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

E-18

 

EXHIBIT I

FORM OF

ASSIGNMENT AND ACCEPTANCE AGREEMENT

     This Assignment and Acceptance Agreement (this “Assignment Agreement”) between
                                         (the “Assignor”) and                                     
     (the “Assignee”) is dated as of
                    , 20     . The parties hereto agree as follows:

     1. Preliminary Statement. Assignor is a party to a Credit Agreement, dated as of
December 9, 2008 (as the same may from time to time be amended, restated or otherwise modified, the
“Credit Agreement”), among CORE MOLDING TECHNOLOGIES, INC., a Delaware corporation, and
CORECOMPOSITES DE MEXICO, S. DE R.L. DE C.V., a sociedad de responsabilidad limitada de capital
variable organized under the laws of Mexico (collectively, “Borrowers” and, individually, each a
“Borrower”), the lenders named on Schedule 1 thereto (together with their respective
successors and assigns, collectively, the “Lenders” and, individually, each a “Lender”), and
KEYBANK NATIONAL ASSOCIATION, as the lead arranger, sole book runner and administrative agent for
the Lenders (“Agent”). Capitalized terms used herein and not otherwise defined herein shall have
the meanings attributed to them in the Credit Agreement.

     2. Assignment and Assumption. Assignor hereby sells and assigns to Assignee, and
Assignee hereby purchases and assumes from Assignor, an interest in and to Assignor’s rights and
obligations under the Credit Agreement, effective as of the Assignment Effective Date (as
hereinafter defined), equal to the percentage interest specified on Annex 1 hereto
(hereinafter, the “Assigned Percentage”) of Assignor’s right, title and interest in and to (a) the
Commitment, (b) any Loan made by Assignor that is outstanding on the Assignment Effective Date, (c)
Assignor’s interest in any Letter of Credit outstanding on the Assignment Effective Date, (d) any
Note delivered to Assignor pursuant to the Credit Agreement, and (e) the Credit Agreement and the
other Related Writings. After giving effect to such sale and assignment and on and after the
Assignment Effective Date, Assignee shall be deemed to have a “Commitment Percentage” under the
Credit Agreement equal to the Commitment Percentage set forth in subpart II.A on Annex 1
hereto and an Assigned Amount as set forth on subpart I.B of Annex 1 hereto (hereinafter,
the “Assigned Amount”).

     3. Assignment Effective Date. The Assignment Effective Date (the “Assignment
Effective Date”) shall be [                            ,      ] (or such other date agreed to by Agent). On or prior
to the Assignment Effective Date, Assignor shall satisfy the following conditions:

     (a) receipt by Agent of this Assignment Agreement, including Annex 1 hereto, properly
executed by Assignor and Assignee and accepted and consented to by Agent and, if necessary pursuant
to the provisions of Section 11.10(b) of the Credit Agreement, by Administrative Borrower;

     (b) receipt by Agent from Assignor of a fee of [Three Thousand Five Hundred Dollars ($3,500)],
if required by Section 11.10(d) of the Credit Agreement;

E-19

 

     (c) receipt by Agent from Assignee of an administrative questionnaire, or other similar
document, which shall include (i) the address for notices under the Credit Agreement, (ii) the
address of its Lending Office, (iii) wire transfer instructions for delivery of funds by Agent,
(iv) and such other information as Agent shall request; and

     (d) receipt by Agent from Assignor or Assignee of any other information required pursuant to
Section 11.10 of the Credit Agreement or otherwise necessary to complete the transaction
contemplated hereby.

     4. Payment Obligations. In consideration for the sale and assignment of Loans
hereunder, Assignee shall pay to Assignor, on the Assignment Effective Date, the amount agreed to
by Assignee and Assignor. Any interest, fees and other payments accrued prior to the Assignment
Effective Date with respect to the Assigned Amount shall be for the account of Assignor. Any
interest, fees and other payments accrued on and after the Assignment Effective Date with respect
to the Assigned Amount shall be for the account of Assignee. Each of Assignor and Assignee agrees
that it will hold in trust for the other party any interest, fees or other amounts which it may
receive to which the other party is entitled pursuant to the preceding sentence and to pay the
other party any such amounts which it may receive promptly upon receipt thereof.

     5. Credit Determination; Limitations on Assignor’s Liability. Assignee represents and
warrants to Assignor, Borrowers, Agent and the Lenders (a) that it is capable of making and has
made and shall continue to make its own credit determinations and analysis based upon such
information as Assignee deemed sufficient to enter into the transaction contemplated hereby and not
based on any statements or representations by Assignor; (b) Assignee confirms that it meets the
requirements to be an assignee as set forth in Section 11.10 of the Credit Agreement; (c) Assignee
confirms that it is able to fund the Loans and the Letters of Credit as required by the Credit
Agreement; (d) Assignee agrees that it will perform in accordance with their terms all of the
obligations which by the terms of the Credit Agreement and the Related Writings are required to be
performed by it as a Lender thereunder; and (e) Assignee represents that it has reviewed each of
the Loan Documents. It is understood and agreed that the assignment and assumption hereunder are
made without recourse to Assignor and that Assignor makes no representation or warranty of any kind
to Assignee and shall not be responsible for (i) the due execution, legality, validity,
enforceability, genuineness, sufficiency or collectability of the Credit Agreement or any Related
Writings, (ii) any representation, warranty or statement made in or in connection with the Credit
Agreement or any of the Related Writings, (iii) the financial condition or creditworthiness of any
Borrower or Guarantor of Payment, (iv) the performance of or compliance with any of the terms or
provisions of the Credit Agreement or any of the Related Writings, (v) the inspection of any of the
property, books or records of Borrowers, or (vi) the validity, enforceability, perfection,
priority, condition, value or sufficiency of any collateral securing or purporting to secure the
Loans or Letters of Credit. Neither Assignor nor any of its officers, directors, employees, agents
or attorneys shall be liable for any mistake, error of judgment, or action taken or omitted to be
taken in connection with the Loans, the Letters of Credit, the Credit Agreement or the Related
Writings, except for its or their own gross negligence or willful misconduct. Assignee appoints
Agent to take such action as agent on its

E-20

 

behalf and to exercise such powers under the Credit Agreement as are delegated to Agent by the
terms thereof.

     6. Indemnity. Assignee agrees to indemnify and hold Assignor harmless against any and
all losses, cost and expenses (including, without limitation, attorneys’ fees) and liabilities
incurred by Assignor in connection with or arising in any manner from Assignee’s performance or
non-performance of obligations assumed under this Assignment Agreement.

     7. Subsequent Assignments. After the Assignment Effective Date, Assignee shall have
the right, pursuant to Section 11.10 of the Credit Agreement, to assign the rights which are
assigned to Assignee hereunder, provided that (a) any such subsequent assignment does not violate
any of the terms and conditions of the Credit Agreement, any of the Related Writings, or any law,
rule, regulation, order, writ, judgment, injunction or decree and that any consent required under
the terms of the Credit Agreement or any of the Related Writings has been obtained, (b) the
assignee under such assignment from Assignee shall agree to assume all of Assignee’s obligations
hereunder in a manner satisfactory to Assignor, and (c) Assignee is not thereby released from any
of its obligations to Assignor hereunder.

     8. Reductions of Aggregate Amount of Commitments. If any reduction in the Total
Commitment Amount occurs between the date of this Assignment Agreement and the Assignment Effective
Date, the percentage of the Total Commitment Amount assigned to Assignee shall remain the
percentage specified in Section 1 hereof and the dollar amount of the Commitment of Assignee shall
be recalculated based on the reduced Total Commitment Amount.

     9. Acceptance of Agent; Notice by Assignor. This Assignment Agreement is conditioned
upon the acceptance and consent of Agent and, if necessary pursuant to Section 11.10 of the Credit
Agreement, upon the acceptance and consent of Administrative Borrower; provided that the execution
of this Assignment Agreement by Agent and, if necessary, by Administrative Borrower is evidence of
such acceptance and consent.

     10. Entire Agreement. This Assignment Agreement embodies the entire agreement and
understanding between the parties hereto and supersedes all prior agreements and understandings
between the parties hereto relating to the subject matter hereof.

     11. Governing Law. This Assignment Agreement shall be governed by the laws of the
State of Ohio, without regard to conflicts of laws.

     12. Notices. Notices shall be given under this Assignment Agreement in the manner set
forth in the Credit Agreement. For the purpose hereof, the addresses of the parties hereto (until
notice of a change is delivered) shall be the address set forth under each party’s name on the
signature pages hereof.

     13. Counterparts. This Assignment Agreement may be executed in any number of
counterparts, by different parties hereto in separate counterparts and by facsimile signature, each

E-21

 

of which when so executed and delivered shall be deemed to be an original and all of which taken
together shall constitute but one and the same agreement.

[Remainder of page intentionally left blank.]

E-22

 

     14. JURY TRIAL WAIVER. EACH OF THE UNDERSIGNED, TO THE EXTENT PERMITTED BY LAW, WAIVES ANY
RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR
OTHERWISE, AMONG AGENT, ANY OF THE LENDERS, AND ANY OF THE BORROWERS, OR ANY THEREOF, ARISING OUT
OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN EACH OF
THEM IN CONNECTION WITH THIS INSTRUMENT OR ANY NOTE OR OTHER AGREEMENT, INSTRUMENT OR DOCUMENT
EXECUTED OR DELIVERED IN CONNECTION THEREWITH OR THE TRANSACTIONS RELATED HERETO. THIS WAIVER
SHALL NOT IN ANY WAY AFFECT, WAIVE, LIMIT, AMEND OR MODIFY AGENT’S OR ANY LENDER’S ABILITY TO
PURSUE REMEDIES PURSUANT TO ANY CONFESSION OF JUDGMENT OR COGNOVIT PROVISION CONTAINED IN ANY NOTE
OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT AMONG BORROWERS, AGENT AND THE LENDERS, OR ANY THEREOF.

     IN WITNESS WHEREOF, the parties hereto have executed this Assignment Agreement by their duly
authorized officers as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Address:	 	 	 	 	 	 	 	ASSIGNOR:	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Attn:
	 	 	 	 	 	By:
	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 
	 

	 	Phone:
	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 
	 

	 	Fax:
	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Address:	 	 	 	 	 	 	 	ASSIGNEE:	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Attn:
	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 
	 

	 	Phone:
	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 
	 

	 	Fax:
	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Accepted and Consented to this
     day of
     , 20__:	 	Accepted and Consented to this       day
of           , 20__:
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	KEYBANK NATIONAL ASSOCIATION, 

as Agent	 	CORE MOLDING TECHNOLOGIES, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	 	 	Name:	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	 	 	Title:	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

E-23

 

ANNEX 1

TO

ASSIGNMENT AND ACCEPTANCE AGREEMENT

     On and after the Assignment Effective Date, after giving effect to all other assignments being
made by Assignor on the Assignment Effective Date, the Commitment of Assignee, and, if this is less
than an assignment of all of Assignor’s interest, Assignor, shall be as follows:

	 	 	 	 	 	 	 
	I.	 	INTEREST BEING ASSIGNED TO ASSIGNEE	 	 
	 
	 	 	 	 	 	 
	 

	 	A.
	 	Assigned Percentage
	 	                    %
	 
	 	 	 	 	 	 
	 

	 	B.
	 	Assigned Amount
	 	$                    
	 
	 	 	 	 	 	 
	II.	 	ASSIGNEE’S COMMITMENT (as of the Assignment Effective Date)	 	 
	 
	 	 	 	 	 	 
	 

	 	A.
	 	Assignee’s Commitment Percentage
under the Credit Agreement
	 	                    %
	 
	 	 	 	 	 	 
	 

	 	B.
	 	Assignee’s Commitment Amount under
the Credit Agreement
	 	$                    
	 
	 	 	 	 	 	 
	III.	 	ASSIGNOR’S COMMITMENT (as of the Assignment Effective Date)	 	 
	 
	 	 	 	 	 	 
	 

	 	A.
	 	Assignor’s Commitment Percentage
under the Credit Agreement
	 	                    %
	 
	 	 	 	 	 	 
	 

	 	B.
	 	Assignor’s Commitment Amount
under the Credit Agreement
	 	$                    

E-24

 

EXHIBIT J

FORM OF

REQUEST FOR EXTENSION

                    , 20     

KeyBank National Association, as Agent

127 Public Square

Cleveland, Ohio 44114

Attention: Community Bank — Columbus

Ladies and Gentlemen:

     The undersigned, CORE MOLDING TECHNOLOGIES, INC., a Delaware corporation, (“Borrower”), refers
to the Credit Agreement, dated as of December 9, 2008 (as the same may from time to time be
amended, restated or otherwise modified, the “Credit Agreement”, the terms defined therein being
used herein as therein defined), among Borrower, and CORECOMPOSITES DE MEXICO, S. DE R.L. DE C.V.,
a sociedad de responsabilidad limitada de capital variable organized under the laws of Mexico, the
Lenders, as defined in the Credit Agreement, and KEYBANK NATIONAL ASSOCIATION, as the lead
arranger, sole book runner and administrative agent for the Lenders (“Agent”), and hereby gives you
notice, pursuant to Section 2.16 of the Credit Agreement that the undersigned hereby requests an
extension as set forth below (the “Extension”) under the Credit Agreement, and in connection with
the Extension sets forth below the information relating to the Extension as required by Section
2.16 of the Credit Agreement.

     The undersigned hereby requests Agent and the Lenders to extend the Commitment Period from
                          , 20       to                           , 20      .

     The undersigned hereby certifies that the following statements are true on the date hereof,
and will be true on the date of the Extension: (a) the representations and warranties contained in
each Loan Document are correct, before and after giving effect to the Extension and the application
of the proceeds therefrom, as though made on and as of such date; (b) no event has occurred and is
continuing, or would result from such Extension, or the application of proceeds therefrom, which
constitutes a Default or an Event of Default; and (c) the conditions set forth in Section 2.16 and
Article IV of the Credit Agreement have been satisfied.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	CORE MOLDING TECHNOLOGIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

E-25

 

EXHIBIT K

INITIAL BUDGET

See attached

E-26

 

EXHIBIT L

SOFT AND HARD COST REQUISITION FORM

See attached

E-27

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00156-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00156-of-00352.parquet"}]]