FERRO CORP
EX-10.1
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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>exhibit1.htm
<DESCRIPTION>EX-10.1
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<P align="center" style="font-size: 10pt"><FONT style="font-size: 12pt"><B>AMENDMENT TO</B></FONT>



<P align="center" style="font-size: 12pt"><B>PURCHASE AND CONTRIBUTION AGREEMENT</B>



<P align="left" style="font-size: 12pt; text-indent: 8%">AMENDMENT TO PURCHASE AND CONTRIBUTION AGREEMENT (this &#147;<U>Amendment</U>&#148;) dated as of
June&nbsp;29, 2006, among Ferro Corporation, an Ohio corporation, and Ferro Electronic Materials Inc., a
Delaware corporation (collectively, the &#147;<U>Sellers</U>&#148;) and Ferro Finance Corporation, an Ohio
corporation (the &#147;<U>Purchaser</U>&#148;).


<P align="left" style="font-size: 12pt; text-indent: 8%">PRELIMINARY STATEMENTS.


<P align="left" style="font-size: 12pt; text-indent: 8%">(A)&nbsp;The Sellers and the Purchaser entered into a Purchase and Contribution Agreement dated as
of September&nbsp;28, 2000, as heretofore amended (the &#147;<U>PCA</U>&#148;). Capitalized terms not defined
herein are used as defined in the PCA.


<P align="left" style="font-size: 12pt; text-indent: 8%">(B)&nbsp;The parties hereto desire to amend certain provisions of the PCA.


<P align="left" style="font-size: 12pt; text-indent: 8%">NOW, THEREFORE, the parties hereto hereby agree as follows:


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 1. <U>Amendments to PCA</U>. Upon effectiveness of this Amendment, as provided in
Section&nbsp;2 below:


<P align="left" style="font-size: 12pt; text-indent: 8%">(a)&nbsp;The PCA shall be amended to incorporate the changes shown on the marked pages attached
hereto as <U>Exhibit&nbsp;A</U>.


<P align="left" style="font-size: 12pt; text-indent: 8%">(b)&nbsp;The exhibits to the PCA shall be amended by adding thereto new Exhibits&nbsp;F and G in the
forms set forth in <U>Exhibit&nbsp;F</U> and <U>Exhibit&nbsp;G</U> to this Amendment respectively,
immediately after Exhibit&nbsp;E-2 to the PCA.


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 2. <U>Effectiveness</U>. This Amendment shall become effective at such time that
executed counterparts of this Amendment and the Confirmation of Undertaking Agreement attached
hereto have been delivered by each party hereto to the other parties hereto and Citicorp North
America, Inc., as Agent, has executed and delivered the consent on the signature page hereto.


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 3. <U>Covenants</U>. Notwithstanding anything to the contrary in the PCA, as amended
hereby, including, without limitation, Section&nbsp;2.06 thereof, each of the Sellers and the Purchaser
hereby agree that, commencing on the date hereof, all transfers of Receivables by Ferro Corporation
to the Purchaser under the PCA shall be effected by the contribution of such Receivables by Ferro
Corporation to the Purchaser until such time as the Tangible Net Worth is equal to at least 10.0%
of the Outstanding Balance of the Transferred Receivables.


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 4. <U>Representations and Warranties</U>. Each Seller makes, as to itself, each of
the representations and warranties contained in Section&nbsp;4.01 of the PCA (after giving effect to
this Amendment), and for the purpose of making such representations and warranties, each reference
in Section&nbsp;4.01 of the PCA to &#147;the Agreement&#148; shall include this Amendment.


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 5. <U>Confirmation of PCA</U>. Each reference in the PCA to &#147;this Agreement&#148; or &#147;the
Agreement&#148; shall mean the PCA as amended by this Amendment, and as hereafter amended or restated.
Except as herein expressly amended, the PCA is ratified and confirmed in all respects and shall
remain in full force and effect in accordance with its terms.


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 6. <U>Execution in Counterparts</U>. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement. Delivery of an executed counterpart of a signature page to
this Amendment by telecopier shall be effective as delivery of a manually executed counterpart of
this Amendment.


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 7. <U>GOVERNING LAW</U>. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAW
PRINCIPLES THEREOF).


<P align="center" style="font-size: 12pt">&#091;Remainder of this page intentionally left blank&#093;





<P align="center" style="font-size: 10pt; display: none">1
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<P align="left" style="font-size: 12pt; text-indent: 8%">IN WITNESS WHEREOF, the undersigned parties have caused this Amendment to be duly executed by
their authorized officers thereunto duly authorized, as of the date first above written.

<DIV align="center">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="95%">
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<TR valign="bottom">
    <TD width="44%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="51%">&nbsp;</TD>
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<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SELLER:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">FERRO CORPORATION<BR>
By:</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rhonda S. Ferguson<BR>
Assistant Secretary</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SELLER:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">FERRO ELECTRONIC MATERIALS INC.<BR>
By:</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rhonda S. Ferguson<BR>
Assistant Secretary</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">PURCHASER:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">FERRO FINANCE CORPORATION<BR>
By:</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rhonda S. Ferguson<BR>
Secretary</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD colspan="3" valign="top" align="left">Pursuant to Section&nbsp;5.01(m) of the Sale Agreement, Citicorp<BR></TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD colspan="3" valign="top" align="left">North America, Inc., as Agent under the Sale Agreement,<BR></TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD colspan="3" valign="top" align="left">consents to the foregoing Amendment to Purchase and<BR></TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Contribution Agreement.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR></TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD colspan="3" valign="top" align="left">CITICORP NORTH AMERICA, INC., as Agent<BR></TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR></TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR></TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Name: Junette M. Earl<BR>
Title: Vice President
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR>
<BR></TD>
</TR>
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</TABLE>
</DIV>


<P align="center" style="font-size: 10pt; display: none">2
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<P align="center" style="font-size: 12pt">EXHIBIT A



<P align="center" style="font-size: 12pt">Conformed Copy



<P align="left" style="font-size: 12pt">Incorporating Amendments
<BR>
Through June&nbsp;30, 2005


<P align="left" style="font-size: 12pt">PURCHASE AND CONTRIBUTION AGREEMENT


<P align="center" style="font-size: 12pt">Dated as of September&nbsp;28, 2000



<P align="center" style="font-size: 12pt">Between



<P align="center" style="font-size: 12pt">FERRO CORPORATION



<P align="center" style="font-size: 12pt">and



<P align="center" style="font-size: 12pt">FERRO ELECTRONIC MATERIALS , INC.



<P align="center" style="font-size: 12pt"><U>as Sellers</U>



<P align="center" style="font-size: 12pt">and



<P align="center" style="font-size: 12pt">FERRO FINANCE CORPORATION



<P align="center" style="font-size: 12pt"><U>as Purchaser</U>



<P align="center" style="font-size: 10pt; display: none">3
<!-- PAGEBREAK -->

<P align="center" style="font-size: 12pt">TABLE OF CONTENTS



<P align="left" style="font-size: 12pt; text-indent: 47%"><U>Page</U>

<DIV align="center">
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<TR valign="bottom" style="font-size: 12pt">
    <TD colspan="5" align="left">pRELIMINARY <B>PRELIMINARY </B>STATEMENTS<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD colspan="5" align="left" style="border-top: 3px double #000000">&nbsp;<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">ARTICLE I</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">DEFINITIONS<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 1.01.Certain Defined Terms<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 1.02.Other Terms<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13<B>11</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">ARTICLE II</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">AMOUNTS AND TERMS OF PURCHASES AND CONTRIBUTIONS 13 <B>ANDCONTRIBUTIONS<BR></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>12</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000; border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 2.01.Facility<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13<B>12</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 2.02.Making Purchases<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13<B>12</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 2.03.Collections.<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14<B>13</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 2.04.Settlement Procedures<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15<B>14</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 2.05.Payments and Computations, Etc 16<B>.<BR></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>15</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 2.06.Contributions<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17<B>15</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">ARTICLE III</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">CONDITIONS OF PURCHASES<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17<B>16</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="11%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>SECTION 3.01. Conditions Precedent to Initial Purchase from the Sellers 17
<U><B>16</B></U></TD>
</TR>

</TABLE>

<DIV align="center">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="13%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="27%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="27%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 12pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">SECTION 3.02.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Conditions Precedent to All Purchases</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">18<B>17</B></TD>
</TR>
<TR style="font-size: 12pt" valign="bottom">
    <TD nowrap align="left">ARTICLE IV</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7">REPRESENTATIONS AND WARRANTIES</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">20<B>18</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 4.01.<BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Representations and Warranties of the Sellers<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20<B>18</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">ARTICLE V</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">COVENANTS<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23<B>22</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 5.01.<BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Covenants of the Sellers<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23<B>22</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 5.02.<BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Grant of Security Interest<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28<B>26</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 5.03.<BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Covenant of each Seller <B>andthe </B>and the Purchaser<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28<B>26</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD>ARTICLE VI</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left">ADMINISTRATION AND COLLECTION<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29<B>27</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 6.01.<BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Designation of Collection Agent 29 <B>CollectionAgent27</B><BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align="left" style="border-top: 3px double #000000">&nbsp;<BR></TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 6.02.<BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Duties of Collection Agent<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29<B>28</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 6.03.<BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Collection Agent Fee<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31<B>29</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 6.04.<BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Certain Rights of the Purchaser 31 <B>thePurchaser<BR></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>29</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 6.05.<BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Rights and Remedies<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">.32<B>30</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 6.06.<BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Transfer of Records to Purchaser. 33 <B>toPurchaser.<BR></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>31</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">ARTICLE VII</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">EVENTS OF TERMINATION<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34<B>32</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 7.01.<BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Events of Termination<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34<B>32</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">ARTICLE VIII</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">INDEMNIFICATION<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37<B>35</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 8.01.<BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Indemnities by the Sellers<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37<B>35</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">ARTICLE IX</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">MISCELLANEOUS<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39<B>37</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 9.01.<BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Amendments, Etc 39<B>.<BR></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>37</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 9.02.<BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Notices, Etc 40<B>.<BR></B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><B>37</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 9.03.<BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Binding Effect; Assignability<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40<B>38</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 9.04.<BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Costs, Expenses and Taxes<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41<B>38</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 9.05.<BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">No Proceedings<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41<B>39</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 9.06.<BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Confidentiality<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41<B>39</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 9.07.<BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">GOVERNING LAW<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42<B>39</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 9.08.<BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Third Party Beneficiary<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42<B>39</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">SECTION 9.09.<BR></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Execution in Counterparts<BR></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42<B>40</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 12pt">EXHIBITS


<DIV align="center">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="18%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="77%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">EXHIBIT A<BR>
EXHIBIT B<BR>
EXHIBIT C<BR>
EXHIBIT D<BR>
EXHIBIT E-1<BR>
EXHIBIT E-2<BR>
<B>EXHIBIT F</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Credit and Collection Policy<BR>
Lock-Box Banks<BR>
Form of Promissory Note for Deferred Purchase Price<BR>
Form of Promissory Note for Purchaser Loans<BR>
Approved OECD Countries<BR>
Other Approved Jurisdictions<BR>
<B>Seller UCC Information</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 3px double #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>EXHIBIT G</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>Form of Ferro Electronic Order and Acknowledgment</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 3px double #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 3px double #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt; display: none">4
<!-- PAGEBREAK -->

<P align="center" style="font-size: 12pt">PURCHASE AND CONTRIBUTION AGREEMENT



<P align="center" style="font-size: 12pt">Dated as of September&nbsp;28, 2000



<P align="left" style="font-size: 12pt; text-indent: 8%">FERRO CORPORATION, an Ohio corporation (&#147;<U>Ferro Corporation</U>&#148;), and FERRO ELECTRONIC
MATERIALS , INC., a Delaware corporation (&#147;<U>Ferro Electronic</U>&#148;) (Ferro Corporation and Ferro
Electronic being hereinafter sometimes referred to as the &#147;<U>Sellers</U>&#148;), and FERRO FINANCE
CORPORATION, an Ohio corporation (the &#147;<U>Purchaser</U>&#148;), agree as follows:


<P align="left" style="font-size: 12pt; text-indent: 8%">PRELIMINARY STATEMENTS. (1)&nbsp;Certain terms which are capitalized and used throughout this
Agreement (in addition to those defined above) are defined in Article&nbsp;I of this Agreement.


<P align="left" style="font-size: 12pt; text-indent: 8%">(2)&nbsp;The Sellers have Receivables that they wish to sell to the Purchaser, and the Purchaser is
prepared to purchase such Receivables on the terms set forth herein.


<P align="left" style="font-size: 12pt; text-indent: 8%">(3)&nbsp;The Sellers may also wish to contribute Receivables to the capital of the Purchaser on the
terms set forth herein.


<P align="left" style="font-size: 12pt; text-indent: 8%">NOW, THEREFORE, the parties agree as follows:


<P align="center" style="font-size: 12pt">ARTICLE I



<P align="center" style="font-size: 12pt">DEFINITIONS



<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 1.01. <U>Certain Defined Terms</U>. As used in this Agreement, the following terms
shall have the following meanings (such meanings to be equally applicable to both the singular and
plural forms of the terms defined):



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%"><U><B>&#147;2005 Downgrade Event&#148; means the BB Downgrade Event which occurred on June&nbsp;2, 2005,
as a result of the downgrade to BB by S&#038;P of Ferro Corporation&#146;s long term public senior
unsecured non-credit-enhanced debt securities.</B></U>



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%"><U><B>&#147;2006 Downgrade Events&#148; means (i)&nbsp;the BB Downgrade Event which occurred on
March&nbsp;20, 2006, as a result of Moody&#146;s downgrading the long term public senior unsecured
non-credit-enhanced debt securities of Ferro Corporation to B1 and then withdrawing its
rating on such debt securities, and (ii)&nbsp;the further downgrading by S&#038;P on March&nbsp;31, 2006 of
the long term public senior unsecured non-credit-enhanced debt securities of Ferro
Corporation to B.</B></U>



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Adverse Claim</U>&#148; means a lien, security interest, or other charge or
encumbrance, or any other type of preferential arrangement.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Affiliate</U>&#148; means, as to any Person, any other Person that, directly or
indirectly, is in control of, is controlled by or is under common control with such Person
or is a director or officer of such Person.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Agent</U>&#148; means Citicorp North America, Inc., in its capacity as agent under the
Sale Agreement or any successor agent thereunder.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Alternate Base Rate</U>&#148; means a fluctuating interest rate per annum as shall be
in effect from time to time, which rate shall be at all times equal to the highest of:



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 4%">(a)&nbsp;the rate of interest announced publicly by Citibank, N.A. in New York, New
York, from time to time as Citibank, N.A.&#146;s <U><B>N.A.&#146;s</B></U> base rate;



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 4%">(b)&nbsp;1/2 of one percent above the latest three-week moving average of secondary
market morning offering rates in the United States for three-month certificates of
deposit of major United States money market banks, such three-week moving average
being determined weekly on each Monday (or, if such day is not a Business Day, on
the next succeeding Business Day) for the three-week period ending on the previous
Friday by Citibank, N.A. on the basis of such rates reported by certificate of
deposit dealers to and published by the Federal Reserve Bank of New York or, if such
publication shall be suspended or terminated, on the basis of quotations for such
rates received by Citibank, N.A. from three New York certificate of deposit dealers
of recognized standing selected by Citibank, N.A., in either case adjusted to the
nearest 1/4 of one percent or, if there is no nearest 1/4 of one percent, to the
next higher 1/4 of one percent; or



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 4%">(c)&nbsp;the Federal Funds Rate.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>APC Receivable</U>&#148; means any receivable created or originated by the Advance
Polymer Compounding Division of Ferro Corporation.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Approved OECD Country</U>&#148; means each of the countries listed on Exhibit&nbsp;E-1
hereto, as such Exhibit may be amended from time to time upon request of Ferro Corporation,
with the prior written approval of the Purchaser and the Agent. Additionally, if the Agent
removes any country from the Schedule of Approved OECD Countries attached to the Sale
Agreement, such country will cease to be an Approved OECD Country hereunder and the
Purchaser will immediately notify Ferro Corporation thereof.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>BB Downgrade Event</U>&#148; means any of the long term public senior unsecured
non-credit-enhanced debt securities of Ferro Corporation are rated below BB&#043; by S&#038;P or Ba1
by Moody&#146;s, or if Ferro Corporation does not have long term public senior unsecured
non-credit-enhanced debt ratings from both S&#038;P and Moody&#146;s, Ferro Corporation is judged by
the Agent, in its sole discretion, to be of credit quality below (with respect to each
missing rating) BB&#043; by S&#038;P or Ba1 by Moody&#146;s.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Business Day</U>&#148; means any day on which banks are not authorized or required to
close in New York, New York or Cleveland, Ohio.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Collection Agent</U>&#148; means at any time the Person then authorized pursuant to
Section&nbsp;6.01 to service, administer and collect Transferred Receivables.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Collection Agent Fee</U>&#148; has the meaning specified in Section&nbsp;6.03.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Collections</U>&#148; means, with respect to any Receivable, all cash collections and
other cash proceeds of such Receivable, including, without limitation, all cash proceeds of
Related Security with respect to such Receivable, and all funds deemed to have been
received by the Seller or any other Person as a Collection pursuant to Section&nbsp;2.04.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Contract</U>&#148; means an agreement between a Seller and an Obligor, substantially in
the form of one of the written contracts or (in the case of any open account agreement) one
of the invoices approved by the Purchaser, pursuant to or under which such Obligor shall be
obligated to pay for merchandise, insurance or services from time to time.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Contributed Receivable</U>&#148; has the meaning specified in Section&nbsp;2.06.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Credit and Collection Policy</U>&#148; means those receivables credit and collection
policies and practices of each Seller in effect on the date of this Agreement applicable to
the Receivables and described in Exhibit&nbsp;A hereto, as modified in compliance with this
Agreement.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Daily Report</U>&#148; means a report in form and substance satisfactory to the
Purchaser, furnished by the Collection Agent to the Purchaser pursuant to the third sentence
of Section&nbsp;6.02(b).



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Debt</U>&#148; means (i)&nbsp;indebtedness for borrowed money, (ii)&nbsp;obligations evidenced by
bonds, debentures, notes or other similar instruments, (iii)&nbsp;obligations to pay the deferred
purchase price of property or services, (iv)&nbsp;obligations as lessee under leases which shall
have been or should be, in accordance with generally accepted accounting principles,
recorded as capital leases, and (v)&nbsp;obligations under direct or indirect guaranties in
respect of, and obligations (contingent or otherwise) to purchase or otherwise acquire, or
otherwise to assure a creditor against loss in respect of, indebtedness or obligations of
others of the kinds referred to in clauses (i)&nbsp;through (iv)&nbsp;above.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Defaulted Receivable</U>&#148; means a Receivable:



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 5%">(i)&nbsp;as to which any payment, or part thereof, remains unpaid for 90&nbsp;days or
more from the original due date for such payment;



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 4%">(ii)&nbsp;as to which the Obligor thereof or any other Person obligated thereon or
owning any Related Security in respect thereof has taken any action, or suffered any
event to occur, of the type described in Section&nbsp;7.01(g); or



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 4%">(iii)&nbsp;which, consistent with the Credit and Collection Policy, would be written
off as uncollectible.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Deferred Purchase Price</U>&#148; means the portion of the Purchase Price of Purchased
Receivables purchased on any Purchase Date exceeding the amount of the Purchase Price under
Section&nbsp;2.02 to be paid in cash, which portion when added to the cumulative amount of all
previous Deferred Purchase Prices (after giving effect to any payments made on account
thereof) shall not exceed 32.0% of the Outstanding Balance of the Transferred Receivables.
The obligations of the Purchaser in respect of the Deferred Purchase Price shall be
evidenced by the Purchaser&#146;s <U><B>Purchaser&#146;s</B></U> subordinated promissory note in the form of
Exhibit&nbsp;C hereto.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Designated Obligor</U>&#148; means, at any time, each Obligor; <U>provided</U>,
<U>however</U>, that any Obligor shall cease to be a Designated Obligor upon three Business
Days&#146; <U><B>Days&#146;</B></U> notice by the Purchaser to the relevant Seller.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Dilution</U>&#148; means, with respect to any Receivable, the aggregate amount of any
reductions or adjustments in the Outstanding Balance of such Receivable as a result of any
defective, rejected, returned, repossessed or foreclosed merchandise or services or any cash
discount, discount for quick payment or other adjustment or setoff.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Discount</U>&#148; means, in respect of each Purchase, 2.5% of the Outstanding Balance
of the Receivables that are the subject of such Purchase; provided, however, the foregoing
Discount may be revised prospectively by request of the relevant Seller or the Purchaser to
reflect changes in recent experience with respect to write-offs, timing and cost of
Collections and cost of funds, provided that such revision is consented to by both of such
parties (it being understood that each party agrees to duly consider such request but shall
have no obligation to give such consent).



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Eligible Receivable</U>&#148; means a Receivable:



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 5%">(i)&nbsp;the Obligor of which is a resident of the United States (including, without
limitation, Puerto Rico), Canada, an Approved OECD Country or an Other Approved
Jurisdiction, <U>provided</U> that (A)&nbsp;the aggregate Outstanding Balance of all
Eligible Receivables having Obligors which are residents of an Approved OECD Country
or an Other Approved Jurisdiction may not exceed 20% of the then outstanding Capital
under the Sale Agreement, (B)&nbsp;the aggregate Outstanding Balance of all Eligible
Receivables having Obligors which are residents of an Other Approved Jurisdiction
may not exceed 10% of the then outstanding Capital under the Sale Agreement and
(C)&nbsp;with respect to each country which is an Other Approved Jurisdiction, the
aggregate Outstanding Balance of all Eligible Receivables having Obligors which are
residents of such country may not exceed (1)&nbsp;5% of the then outstanding Capital
under the Sale Agreement, at any time that the sovereign long-term debt rating of
such country is at least A by S&#038;P and at least A2 by Moody&#146;s, and (2)&nbsp;3.3% of the
then outstanding Capital under the Sale Agreement, at any time that the sovereign
long-term debt rating of such country is not at least A by S&#038;P and at least A2 by
Moody&#146;s;



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 4%">(ii)&nbsp;the Obligor of which is not an Affiliate of any of the parties hereto and
is not a government or a governmental subdivision or agency;



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 4%">(iii)&nbsp;the Obligor of which, at the time of the transfer of such Receivable
under this Agreement, is a Designated Obligor and is not the Obligor of any
Defaulted Receivables which in the aggregate constitute 10% or more of the aggregate
Outstanding Balance of all Receivables of such Obligor;



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 4%">(iv)&nbsp;which, at the time of the transfer thereof to the Purchaser under this
Agreement, is not a Defaulted Receivable;



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 4%">(v)&nbsp;which, according to the Contract related thereto, is required to be paid in
full either (A)&nbsp;within <U><B>not more than</B></U> 30&nbsp;days of the original billing date
therefor or (B)&nbsp;within more than 30 but no more than 90&nbsp;days of the original billing
date therefor if the aggregate Outstanding Balance of such Receivable and all other
Receivables having similar payments terms does not exceed 25% of the then
outstanding Capital under the Sale Agreement; <U><B>Outstanding Balance of all
Transferred Receivables at such time;</B></U>



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 4%">(vi)&nbsp;which is an obligation representing all or part of the sales price of
merchandise, insurance or services within the meaning of Section&nbsp;3(c)(5) of the
Investment Company Act of 1940, as amended, and the nature of which is such that its
purchase with the proceeds of notes would constitute a &#147;current transaction&#148; within
the meaning of Section&nbsp;3(a)(3) of the Securities Act of 1933, as amended;



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 4%">(vii)&nbsp;which is an &#147;account&#148; within the meaning of Article&nbsp;9 of the UCC of the
applicable jurisdictions;



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 3%">(viii)&nbsp;which is denominated and payable only in United States dollars in the
United States;



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 4%">(ix)&nbsp;which arises under a Contract which, together with such Receivable, is in
full force and effect and constitutes the legal, valid and binding obligation of the
Obligor of such Receivable and is not subject to any <U><B>Adverse Claim or any</B></U>
dispute, offset, counterclaim or defense whatsoever (except the potential discharge
in bankruptcy of such Obligor);



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 4%">(x)&nbsp;which, together with the Contract related thereto, does not contravene in
any material respect any laws, rules or regulations applicable thereto (including,
without limitation, laws, rules and regulations relating to usury, consumer
protection, truth in lending, fair credit billing, fair credit reporting, equal
credit opportunity, fair debt collection practices and privacy) and with respect to
which no party to the Contract related thereto is in violation of any such law, rule
or regulation in any material respect;



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 4%">(xi)&nbsp;which arises under a Contract which (A)&nbsp;does not require the Obligor under
such Contract to consent to the transfer, sale or assignment of the rights and
duties of the relevant Seller under such Contract and (B)&nbsp;does not contain a
confidentiality provision that purports to restrict the ability of the Purchaser and
its assignees to exercise their rights under this Agreement, including, without
limitation, their right to review the Contract;



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 4%">(xii)&nbsp;which was generated in the ordinary course of the relevant Seller&#146;s
business;



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 3%">(xiii)&nbsp;which, at the time of the transfer of such Receivable under this
Agreement, has not been extended, rewritten or otherwise modified from the original
terms thereof;



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 3%">(xiv)&nbsp;the transfer, sale or assignment of which does not contravene any
applicable law, rule or regulation; and



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 4%">(xv)&nbsp;which (A)&nbsp;satisfies all applicable requirements of the Credit and
Collection Policy and (B)&nbsp;complies with such other criteria and requirements (other
than those relating to the collectibility of such Receivable) as the Purchaser or
its designee may from time to time specify to the Sellers upon 30&nbsp;days&#146;
<U><B>days&#146;</B></U> notice.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>ERISA</U>&#148; means the Employee Retirement Income Security Act of 1974, as amended
from time to time, and the regulations promulgated and rulings issued thereunder.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Event of Termination</U>&#148; has the meaning specified in Section&nbsp;7.01.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Facility</U>&#148; means the willingness of the Purchaser to consider making Purchases
of Receivables from the Seller from time to time pursuant to the terms of this Agreement.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Facility Termination Date</U>&#148; means the earliest of (i)&nbsp;the &#147;Facility Termination
Date&#148; (as such term is defined in the Sale Agreement), (ii)&nbsp;the date of termination of the
Facility pursuant to Section&nbsp;7.01 and (iii)&nbsp;the date which the Sellers designate by at least
two Business Days&#146; <U><B>Days&#146;</B></U> notice to the Purchaser.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Federal Funds Rate</U>&#148; means, for any period, a fluctuating interest rate per
annum equal for each day during such period to the weighted average of the rates on
overnight Federal funds transactions with members of the Federal Reserve System arranged by
Federal funds brokers, as published for such day (or, if such day is not a Business Day, for
the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate
is not so published for any day which is a Business Day, the average of the quotations for
such day on such transactions received by Citibank, N.A. from three Federal funds brokers of
recognized standing selected by it.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>General Trial Balance</U>&#148; of either Seller on any date means such Seller&#146;s
<U><B>Seller&#146;s</B></U> accounts receivable trial balance (whether in the form of a computer
printout, magnetic tape or diskette) on such date, listing Obligors and the Receivables
respectively owed by such Obligors on such date together with the aged Outstanding Balances
of such Receivables, in form and substance satisfactory to the Purchaser.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Incipient Event of Termination</U>&#148; means an event that but for notice or lapse of
time or both would constitute an Event of Termination.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Indemnified Amounts</U>&#148; has the meaning specified in Section&nbsp;8.01.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Lock-Box Account</U>&#148; means one or more accounts, under the exclusive ownership
and control of the Purchaser (or its assignees or designees), maintained for the purpose of
receiving Collections.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Lock-Box Agreement</U>&#148; means an agreement among a Seller, the Purchaser (or its
assignees or designees) and any Lock-Box Bank in form and substance satisfactory to the
Purchaser (or its assignees or designees).



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Lock-Box Bank</U>&#148; means any of the banks or other financial institutions holding
one or more Lock-Box Accounts.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Monthly Report</U>&#148; means a report in form and substance satisfactory to the
Purchaser, furnished by the Collection Agent to the Purchaser pursuant to the first sentence
of Section&nbsp;6.02(b).



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Moody&#146;s</U>&#148; means Moody&#146;s Investors Service, Inc.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Non-Investment Grade Event</U>&#148; means any of the long term public senior unsecured
non-credit-enhanced debt securities of Ferro Corporation are rated below BBB- by S&#038;P or Baa3
by Moody&#146;s, or if Ferro Corporation does not have long term public senior unsecured
non-credit-enhanced debt ratings from both S&#038;P and Moody&#146;s, Ferro Corporation is judged by
the Agent, in its sole discretion, to be of credit quality below (with respect to each
missing rating) BBB- by S&#038;P or Baa3 by Moody&#146;s.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Obligor</U>&#148; means a Person obligated to make payments to a Seller pursuant to a
Contract.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Other Approved Jurisdiction</U>&#148; means each of the countries listed on Exhibit&nbsp;E-2
hereto, as such Exhibit may be amended from time to time upon request of Ferro Corporation,
with prior written approval of the Purchaser and the Agent; <U>provided</U>,
<U>however</U>, that at any time that the sovereign long-term debt rating of any country
listed on such Exhibit falls below A- by S&#038;P or below A3 by Moody&#146;s, such country will cease
to be an Other Approved Jurisdiction. Additionally, if the Agent at any time removes any
country from the Schedule of Other Approved Jurisdictions attached to the Sale Agreement,
such country will cease to be an Other Approved Jurisdiction hereunder and the Purchaser
will immediately notify Ferro Corporation thereof.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Outstanding Balance</U>&#148; of any Receivable at any time means the then outstanding
principal balance thereof.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Person</U>&#148; means an individual, partnership, corporation (including a business
trust), limited liability company, joint stock company, trust, unincorporated association,
joint venture or other entity, or a government or any political subdivision or agency
thereof.


<P align="left" style="font-size: 12pt">&#147;Petroleum Additive Business&#148; means the petroleum additive business of Ferro Corporation located in
Hammond, Indiana and the invoices generated thereby which are identified by a seven-digit invoice
number beginning with the number 65.


<P align="left" style="font-size: 12pt">&#147;Powder Coating Division&#148; means the powder coating manufacturing facilities of Ferro Corporation
located in Nashville, Tennessee and Brecksville, Ohio.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Purchase</U>&#148; means a purchase by the Purchaser of Receivables from the Seller
pursuant to Article&nbsp;II.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Purchase Date</U>&#148; means each day on which a Purchase is made pursuant to Article
II.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Purchased Receivable</U>&#148; means any Receivable which is purchased by the Purchaser
pursuant to Section&nbsp;2.02.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Purchase Price</U>&#148; for any Purchase means an amount equal to the Outstanding
Balance of the Receivables that are the subject of such Purchase as set forth in the
relevant Seller&#146;s General Trial Balance, minus the Discount for such Purchase.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Purchaser Loan</U>&#148; means any loan made by the Purchaser, at its option, to a
Seller, upon such Seller&#146;s request, provided that (a)&nbsp;the aggregate principal amount at any
one time outstanding of Purchaser Loans shall not exceed $5,000,000, and (b)&nbsp;no such
Purchaser Loans may be made if an Event of Termination or an Incipient Event of Termination
has occurred and is continuing, or would occur after giving effect thereto, or if any
amounts are outstanding under the Deferred Purchase Price. Purchaser Loans made by the
Purchaser hereunder shall be evidenced by a promissory note of each Seller in substantially
the form of Exhibit&nbsp;D hereto.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Receivable</U>&#148; means the indebtedness of any Obligor under a Contract
<U><B>(whether constituting an account, instrument, chattel paper or general intangible)</B></U>,
and includes the right to payment of any interest or finance charges and other obligations
of such Obligor with respect thereto; <U>provided</U>, <U>however</U>, that &#147;Receivable&#148;
shall not include any APC Receivable until such time as (i)&nbsp;Ferro Corporation has requested,
and the Purchaser and the Agent have approved in writing, the inclusion of the APC
Receivables in the Facility and (ii)&nbsp;Ferro Corporation has directed all Obligors of APC
Receivables to make payments thereon to a Lock-Box or Lock-Box Account specified on Exhibit
B as to which a Lock-Box Agreement is in effect and; provided, further, that from and after
September&nbsp;25, 2002, &#147;Receivable&#148; shall not include any such indebtedness generated by the
Powder Coating Division and; provided, further, that from and after May&nbsp;28, 2003,
&#147;Receivable&#148; shall not include any such indebtedness generated by the Speciality Ceramics
Business and; provided, further, that from and after June&nbsp;27, 2003, &#147;Receivable&#148; shall not
include any such indebtedness generated by the Petroleum Additive Business.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Related Security</U>&#148; means with respect to any Receivable:



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 5%">(i)&nbsp;all of the relevant Seller&#146;s <U><B>Seller&#146;s</B></U> interest in any merchandise
(including returned merchandise) relating to any sale giving rise to such
Receivable;



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 4%">(ii)&nbsp;all security interests or liens and property subject thereto from time to
time purporting to secure payment of such Receivable, whether pursuant to the
Contract related to such Receivable or otherwise, together with all financing
statements signed by <U><B>filed against</B></U> an Obligor describing any collateral
securing such Receivable;



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 4%">(iii)&nbsp;all guaranties, insurance and other agreements or arrangements of
whatever character from time to time supporting or securing payment of such
Receivable whether pursuant to the Contract related to such Receivable or otherwise;
and



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 4%">(iv)&nbsp;the Contract and all other books, records and other information
(including, without limitation, computer programs, tapes, discs, punch cards, data
processing software and related property and rights) relating to such Receivable and
the related Obligor.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>S&#038;P</U>&#148; means Standard &#038; Poor&#146;s <U><B>Poor&#146;s</B></U> Rating Services, a division of
McGraw-Hill Companies, Inc.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Sale Agreement</U>&#148; means that certain Receivables Purchase Agreement, dated as of
the date hereof <U><B>September&nbsp;28, 2000</B></U>, among the Purchaser, as seller, CIESCO L.P., as
purchaser, Citicorp North America, Inc., as agent, Ferro Electronic, as an originator, and
Ferro Corporation, as collection agent and an originator, as amended or restated from time
to time<U><B>, including by that certain Amended and Restated Receivables Purchase Agreement
dated as of June&nbsp;29, 2006, which, inter alia, adds Citibank, N.A. as a party to such Sale
Agreement</B></U>.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Seller Report</U>&#148; means a Monthly Report, a Weekly Report or a Daily Report.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Settlement Date</U>&#148; means the tenth day of each month (or if such day is not a
Business Day, the immediately succeeding Business Day); <U>provided</U>, <U>however</U>,
that following the occurrence of an Event of Termination, Settlement Dates shall occur on
such days as are selected from time to time by the Purchaser or its designee in a written
notice to the Collection Agent.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;Specialty Ceramics Business&#148; means the speciality ceramics business of Ferro
Corporation located in (a)&nbsp;Crooksville, Ohio and the invoices generated thereby which are
identified by a seven-digit invoice number beginning with the number 22, and (b)&nbsp;Shreve,
Ohio and the invoices generated thereby which are identified by a seven-digit invoice number
beginning with the number 59.<U><B>&#147;Tangible Net Worth&#148; means at any time the excess of (i)
the sum of (a)&nbsp;the product of (x)&nbsp;100% minus the Discount multiplied by (y)&nbsp;the Outstanding
Balance of all Transferred Receivables other than Defaulted Receivables plus (b)&nbsp;cash and
cash equivalents of the Purchaser plus (c)&nbsp;the outstanding principal amount of Purchaser
Loans, minus (ii)&nbsp;the sum of (a)&nbsp;Capital (as such term is defined in the Sale Agreement)
plus (b)&nbsp;the Deferred Purchase Price.</B></U>



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Transferred Receivable</U>&#148; means a Purchased Receivable or a Contributed
Receivable.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>UCC</U>&#148; means the Uniform Commercial Code as from time to time in effect in the
specified jurisdiction.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Undertaking Agreement</U>&#148; means the Undertaking Agreement dated as of the date of
this Agreement made by Ferro Corporation in favor of the Purchaser, relating to the
Obligations of Ferro Electronic hereunder, as the same may be amended, modified or restated
from time to time.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Week</U>&#148; means each calendar week beginning on Saturday and ending on (and
including) the following Friday.


<P align="left" style="margin-left:4%; margin-right:4%; font-size: 12pt; text-indent: 4%">&#147;<U>Weekly Report</U>&#148; means a report in form and substance satisfactory to
the Purchaser, furnished by the Collection Agent to the Purchaser pursuant to the
second sentence of Section&nbsp;6.02(b).


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 1.02. <U>Other Terms</U>. All accounting terms not specifically defined herein
shall be construed in accordance with generally accepted accounting principles. All terms used in
Article&nbsp;9 of the UCC in the State of New York, and not specifically defined herein, are used herein
as defined in such Article&nbsp;9.


<P align="center" style="font-size: 12pt">ARTICLE II



<P align="center" style="font-size: 12pt">AMOUNTS AND TERMS OF PURCHASES AND CONTRIBUTIONS



<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 2.01. <U>Facility</U>. On the terms and conditions hereinafter set forth and
without recourse to either Seller (except to the extent specifically provided herein), each Seller
may at its option sell or contribute to the Purchaser all Receivables originated by it from time to
time and the Purchaser may at its option purchase or accept as a contribution from Ferro
Corporation all Receivables of such Seller from time to time, in each case during the period from
the date hereof to the Facility Termination Date.


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 2.02. <U>Making Purchases</U>.


<P align="left" style="font-size: 12pt; text-indent: 8%">(a)&nbsp;<U>Initial Purchase</U>. Each Seller shall give the Purchaser at least one Business
Day&#146;s notice of its request for the initial Purchase hereunder, which request shall specify the
date of such Purchase (which shall be a Business Day) and the proposed Purchase Price for such
Purchase. The Purchaser shall promptly notify such Seller whether it has determined to make such
Purchase. On the date of such Purchase, the Purchaser shall, upon satisfaction of the applicable
conditions set forth in Article&nbsp;III, pay the Purchase Price for such Purchase in the manner
provided in Section&nbsp;2.02(c).


<P align="left" style="font-size: 12pt; text-indent: 8%">(b)&nbsp;<U>Subsequent Purchases</U>. On each Business Day following the initial Purchase, unless
either Seller or the Purchaser shall notify the other parties to the contrary, each Seller shall
sell to the Purchaser and the Purchaser shall purchase from such Seller, upon satisfaction of the
applicable conditions set forth in Article&nbsp;III, all Receivables originated by such Seller which
have not previously been sold or contributed to the Purchaser; <U>provided</U>, <U>however</U>,
that such Seller may, at its option on any Purchase Date, contribute all or any of such Receivables
to the Purchaser pursuant to Section&nbsp;2.06, instead of selling such Receivables to the Purchaser
pursuant to this Section&nbsp;2.02(b). On or within five Business Days after the date of each such
Purchase, the Purchaser shall pay the Purchase Price for such Purchase in the manner provided in
Section&nbsp;2.02(c).


<P align="left" style="font-size: 12pt; text-indent: 8%">(c)&nbsp;<U>Payment of Purchase Price</U>. The Purchase Price for each Purchase shall be paid on
or within five Business Days after the Purchase Date therefor by means of any one or a combination
of the following: (i)&nbsp;a deposit in same day funds to the relevant Seller&#146;s account designated by
such Seller, (ii)&nbsp;an increase in the Deferred Purchase Price (subject at all times to the
limitations contained in the definition thereof), or (iii)&nbsp;a credit against interest and/or
principal owed by the relevant Seller with respect to any Purchaser Loan. The allocation of the
Purchase Price as among such methods of payment shall be subject in each instance to the approval
of the Purchaser and the relevant Seller<U><B>; provided, however, that the Deferred Purchase Price
may not be increased to the extent that, after giving effect to such increase, the Tangible Net
Worth would be less than 10.0% of the Outstanding Balance of the Transferred Receivables</B></U>.


<P align="left" style="font-size: 12pt; text-indent: 8%">(d)&nbsp;<U>Ownership of Receivables and Related Security</U>. On each Purchase Date, after
giving effect to the Purchase (and any contribution of Receivables) on such date, the Purchaser
shall own all Receivables originated by the Sellers as of such date (including Receivables which
have been previously sold or contributed to the Purchaser hereunder). The Purchase or contribution
of any Receivable shall include all Related Security with respect to such Receivable.


<P align="left" style="font-size: 12pt; text-indent: 8%">(e)&nbsp;<U>Assignment of Receivables relating to Obligors located in Germany</U>. In addition to
the transfer of ownership of Receivables stipulated above each Seller, subject to the satisfaction
of the conditions precedent set out in this Agreement hereby assigns by way of a German law
assignment (<I>Abtretung</I>) within the meaning of Section&nbsp;398 German Civil Code (<I>B_rgerliches
Gesetzbuch</I>) to the Purchaser all Receivables (whether now existing or hereafter arising) owed to
the Sellers by an Obligor located in Germany (the &#147;<U>German Obligor Receivables</U>&#148;). The
Purchaser accepts such assignment. The assignment of the German Obligor Receivables shall include
all ancillary rights, priority rights as well as all other rights attached to the German Obligor
Receivables.


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 2.03. <U>Collections</U>. (a)&nbsp;&nbsp;Unless otherwise agreed, the Collection Agent shall,
on each Settlement Date, deposit into an account of the Purchaser or the Purchaser&#146;s assignee all
Collections of Transferred Receivables then held by the Collection Agent.


<P align="left" style="font-size: 12pt; text-indent: 8%">(b)&nbsp;In the event that either Seller believes that Collections which are not Collections of
Transferred Receivables have been deposited into an account of the Purchaser or the Purchaser&#146;s
assignee, such Seller shall so advise the Purchaser and, on the Business Day following such
identification, the Purchaser shall remit, or shall cause to be remitted, all Collections so
deposited which are identified, to the Purchaser&#146;s <U><B>Purchaser&#146;s</B></U> satisfaction, to be
Collections of Receivables which are not Transferred Receivables to such Seller.


<P align="left" style="font-size: 12pt; text-indent: 8%">(c)&nbsp;On each Settlement Date, the Purchaser shall pay to the Sellers accrued interest on the
Deferred Purchase Price and the Purchaser may, at its option, prepay in whole or in part the
principal amount of the Deferred Purchase Price; provided that each such payment shall be made
solely from (i)&nbsp;Collections of Transferred Receivables after all other amounts then due from the
Purchaser under the Sale Agreement have been paid in full and all amounts then required to be set
aside by the Purchaser or the Collection Agent under the Sale Agreement have been so set aside or
(ii)&nbsp;excess cash flow from operations of the Purchaser which is not required to be applied to the
payment of other obligations of the Purchaser; and provided further, that no such payment shall be
made at any time when an Event of Termination shall have occurred and be continuing. At such time
following the Facility Termination Date when all Capital, Yield and other amounts owed by the
Purchaser under the Sale Agreement shall have been paid in full, the Purchaser shall apply, on each
Settlement Date, all Collections of Transferred Receivables received by the Purchaser pursuant to
Section&nbsp;2.03(a) (and not previously distributed) first to the payment of accrued interest on the
Deferred Purchase Price, and then to the reduction of the principal amount of the Deferred Purchase
Price.


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 2.04. <U>Settlement Procedures</U>. (a)&nbsp;&nbsp;If on any day the Outstanding Balance of
any Transferred Receivable is reduced or adjusted as a result of any defective, rejected, returned,
repossessed or foreclosed merchandise or services or any cash discount, discount for quick payment
or other adjustment made by the relevant Seller, or any set-off or dispute in respect of any claim
by the Obligor thereof against such Seller (whether such claim arises out of the same or a related
transaction or an unrelated transaction but <U>excluding</U> adjustments, reductions or
cancellations in respect of such Obligor&#146;s <U><B>Obligor&#146;s</B></U> bankruptcy), such Seller shall be
deemed to have received on such day a Collection of such Transferred Receivable in the amount of
such reduction or adjustment. If such Seller is not the Collection Agent, such Seller shall pay to
the Collection Agent on or prior to the next Settlement Date all amounts deemed to have been
received pursuant to this subsection.


<P align="left" style="font-size: 12pt; text-indent: 8%">(b)&nbsp;Upon discovery by either Seller or the Purchaser of a breach of any of the representations
and warranties made by a Seller in Section&nbsp;4.01(j) with respect to any Transferred Receivable, such
party shall give prompt written notice thereof to the other party, as soon as practicable and in
any event within three Business Days following such discovery. Such Seller shall, upon not less
than two Business Days&#146; notice from the Purchaser or its assignee or designee, repurchase such
Transferred Receivable on the next succeeding Settlement Date for a repurchase price equal to the
Outstanding Balance of such Transferred Receivable. Each repurchase of a Transferred Receivable
shall include the Related Security with respect to such Transferred Receivable. The proceeds of
any such repurchase shall be deemed to be a Collection in respect of such Transferred Receivable.
If such Seller is not the Collection Agent, such Seller shall pay to the Collection Agent on or
prior to the next Settlement Date the repurchase price required to be paid pursuant to this
subsection.


<P align="left" style="font-size: 12pt; text-indent: 8%">(c)&nbsp;Except as stated in subsection&nbsp;(a) or (b)&nbsp;of this Section&nbsp;2.04 or as otherwise required by
law or the underlying Contract, all Collections from an Obligor of any Transferred Receivable shall
be applied to the Receivables of such Obligor in the order of the age of such Receivables, starting
with the oldest such Receivable, unless such Obligor designates its payment for application to
specific Receivables.


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 2.05. <U>Payments and Computations, Etc.</U> (a)&nbsp;&nbsp;All amounts to be paid or
deposited by either Seller or the Collection Agent hereunder shall be paid or deposited no later
than 11:00&nbsp;A.M. (New York City time) on the day when due in same day funds to an account or
accounts designated by the Purchaser from time to time, which accounts, during the existence of the
Sale Agreement, shall be those set forth in the Sale Agreement.


<P align="left" style="font-size: 12pt; text-indent: 8%">(b)&nbsp;Each Seller shall, to the extent permitted by law, pay to the Purchaser interest on any
amount not paid or deposited by such Seller (whether as Collection Agent or otherwise) when due
hereunder at an interest rate per annum equal to 2.0% per annum above the Alternate Base Rate,
payable on demand.


<P align="left" style="font-size: 12pt; text-indent: 8%">(c)&nbsp;All computations of interest and all computations of fees hereunder shall be made on the
basis of a year of 360&nbsp;days for the actual number of days (including the first but excluding the
last day) elapsed. Whenever any payment or deposit to be made hereunder shall be due on a day
other than a Business Day, such payment or deposit shall be made on the next succeeding Business
Day and such extension of time shall be included in the computation of such payment or deposit.


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 2.06. <U>Contributions</U>. Each Seller may from time to time at its option, by
notice to the Purchaser on or prior to the date of the proposed contribution, identify Receivables
which it proposes to contribute to the Purchaser as a capital contribution. On the date of each
such contribution and after giving effect thereto, the Purchaser shall own in fee simple the
Receivables so identified and contributed (collectively, the &#147;<U>Contributed Receivables</U>&#148;) and
all Related Security with respect thereto. The foregoing notwithstanding, on the date of the
initial Purchase hereunder each Seller agrees to contribute to the Purchaser all Receivables which
are not included in such initial Purchase.


<P align="center" style="font-size: 10pt; display: none">5
<!-- PAGEBREAK -->


<P align="left" style="font-size: 12pt">ARTICLE III


<P align="center" style="font-size: 12pt">CONDITIONS OF PURCHASES



<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 3.01. <U>Conditions Precedent to Initial Purchase from the Sellers</U>. The initial
Purchase of Receivables from the Sellers hereunder is subject to the conditions precedent that the
Purchaser shall have received on or before the date of such Purchase the following, each (unless
otherwise indicated) dated such date, in form and substance satisfactory to the Purchaser:



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(a)&nbsp;Evidence that each Seller has taken any necessary corporate action to authorize
this Agreement and certified copies of all documents evidencing other necessary corporate
action and governmental approvals, if any, with respect to this Agreement.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(b)&nbsp;A certificate of the Secretary or Assistant&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Secretary of each Seller certifying
the names and true signatures of the officers of such Seller authorized to sign this
Agreement and the other documents to be delivered by it hereunder.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(c)&nbsp;Acknowledgment copies or time stamped receipt copies of proper financing
statements, duly filed on or before the date of the initial Purchase, naming each Seller as
the seller/debtor and the Purchaser as the purchaser/secured party, or other similar
instruments or documents, as the Purchaser may deem necessary or desirable under the UCC of
all appropriate jurisdictions or other applicable law to perfect the Purchaser&#146;s
<U><B>Purchaser&#146;s</B></U> ownership of and security interest in the Transferred Receivables and
Related Security and Collections with respect thereto.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(d)&nbsp;Acknowledgment copies or time stamped receipt copies of proper financing
statements, if any, necessary to release all security interests and other rights of any
Person in the Transferred Receivables, Contracts or Related Security previously granted by
each Seller.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(e)&nbsp;Completed requests for information, dated on or before the date of such initial
Purchase, listing all effective financing statements filed in the jurisdictions referred to
in subsection (c)&nbsp;above that name either Seller as debtor, together with copies of such
other financing statements (none of which shall cover any Transferred Receivables, Contracts
or Related Security).



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(f)&nbsp;A favorable opinion of Squire, Sanders &#038; Dempsey L.L.P., counsel for the Sellers,
in form and substance satisfactory to the Purchaser, as to such matters as the Purchaser may
reasonably request.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(g)&nbsp;The Undertaking Agreement, duly executed by Ferro Corporation.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(h)&nbsp;Lock-Box Agreements in respect of each Lock-Box Account, duly executed by the
relevant Seller and the Lock-Box Bank holding such Lock-Box Account.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">SECTION 3.02. <U>Conditions Precedent to All Purchases</U>. Each Purchase (including
the initial Purchase) hereunder shall be subject to the further conditions precedent that:



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(a)&nbsp;with respect to any such Purchase, on or prior to the date of such Purchase, the
relevant Seller shall have delivered to the Purchaser, (i)&nbsp;if requested by the Purchaser,
such Seller&#146;s General Trial Balance (which if in magnetic tape or diskette format shall be
compatible with the Purchaser&#146;s computer equipment) as of a date not more than 31&nbsp;days prior
to the date of such Purchase, and (ii)&nbsp;a written report identifying, among other things, the
Receivables to be included in such Purchase and such additional information concerning such
Receivables as may reasonably be requested by the Purchaser;



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(b)&nbsp;with respect to any such Purchase, on or prior to the date of such Purchase, the
Collection Agent shall have delivered to the Purchaser, in form and substance satisfactory
to the Purchaser, a completed Monthly Report, Weekly Report or Daily Report for the most
recently ended reporting period for which information is required pursuant to Section
6.02(b), and containing such additional information as may reasonably be requested by the
Purchaser;



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(c)&nbsp;The relevant Seller shall have marked its master data processing records and, at
the request of the Purchaser, each Contract giving rise to Purchased Receivables and all
other relevant records evidencing the Receivables which are the subject of such Purchase
with a legend, acceptable to the Purchaser, stating that such Receivables, the Related
Security and Collections with respect thereto, have been sold in accordance with this
Agreement; and



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(d)&nbsp;on the date of such Purchase the following statements shall be true (and the
relevant Seller, by accepting the amount of such Purchase, shall be deemed to have certified
that):



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 5%">(i)&nbsp;The representations and warranties contained in Section&nbsp;4.01 are correct on
and as of the date of such Purchase as though made on and as of such date,



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 4%">(ii)&nbsp;No event has occurred and is continuing, or would result from such
Purchase, that constitutes an Event of Termination or would constitute an Incipient
Event of Termination and



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 4%">(iii)&nbsp;The Purchaser shall not have delivered to such Seller a notice that the
Purchaser shall not make any further Purchases hereunder; and



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(e)&nbsp;the Purchaser shall have received such other approvals, opinions or documents as
the Purchaser may reasonably request.


<P align="center" style="font-size: 12pt">ARTICLE IV



<P align="center" style="font-size: 12pt">REPRESENTATIONS AND WARRANTIES



<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 4.01. <U>Representations and Warranties of the Sellers</U>. Each Seller represents
and warrants, as to itself, as follows:



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(a)&nbsp;Such Seller is a corporation duly incorporated, validly existing and in good
standing, with respect to Ferro Corporation, under the laws of Ohio, and, with respect to
Ferro Electronic, under the laws of Delaware, <U><B>in each case under the laws of the
applicable jurisdiction set forth in Exhibit&nbsp;F hereto (as such Exhibit&nbsp;F may be amended from
time to time pursuant to Section&nbsp;5.</B><B>01(b)</B><B>)</B></U> and is duly qualified to do business, and is
in good standing, in every jurisdiction where the nature of its business requires it to be
so qualified, unless the failure to so qualify would not have a material adverse effect on
(i)&nbsp;the interests of the Purchaser hereunder, (ii)&nbsp;the collectibility of the Transferred
Receivables, or (iii)&nbsp;the ability of the Seller or the Collection Agent to perform their
respective obligations hereunder.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(b)&nbsp;The execution, delivery and performance by such Seller of this Agreement and the
other documents to be delivered by it hereunder, including such Seller&#146;s <U><B>Seller&#146;s</B></U>
sale and contribution of Receivables hereunder and such Seller&#146;s <U><B>Seller&#146;s</B></U> use of the
proceeds of Purchases, (i)&nbsp;are within such Seller&#146;s <U><B>Seller&#146;s</B></U> corporate powers,
(ii)&nbsp;have been duly authorized by all necessary corporate action, (iii)&nbsp;do not contravene
(1)&nbsp;such Seller&#146;s <U><B>Seller&#146;s</B></U> charter or by-laws, (2)&nbsp;any law, rule or regulation
applicable to such Seller, (3)&nbsp;any contractual restriction binding on or affecting such
Seller or its property or (4)&nbsp;any order, writ, judgment, award, injunction or decree binding
on or affecting such Seller or its property, and (iv)&nbsp;do not result in or require the
creation of any lien, security interest or other charge or encumbrance upon or with respect
to any of its properties (except for the transfer of such Seller&#146;s <U><B>Seller&#146;s</B></U> interest
in the Transferred Receivables pursuant to this Agreement). This Agreement has been duly
executed and delivered by such Seller.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(c)&nbsp;No authorization or approval or other action by, and no notice to or filing with,
any governmental authority or regulatory body is required for the due execution, delivery
and performance by such Seller of this Agreement or any other document to be delivered by it
hereunder.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(d)&nbsp;This Agreement constitutes the legal, valid and binding obligation of such Seller
enforceable against such Seller in accordance with its terms.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(e)&nbsp;Sales and contributions made pursuant to this Agreement will constitute a valid
sale, transfer, and assignment of the Transferred Receivables to Purchaser, enforceable
against creditors of, and purchasers from, such Seller. Such Seller shall have no remaining
property interest in any Transferred Receivable.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(f)&nbsp;The balance sheets of Ferro Corporation and its subsidiaries as at December&nbsp;31,
1999 <U><B>2004</B></U>, and the related statements of income and retained earnings of Ferro
Corporation and its subsidiaries for the fiscal year then ended, copies of which have been
furnished to the Purchaser, fairly present the financial condition of Ferro Corporation and
its subsidiaries as at such date and the results of the operations of Ferro Corporation and
its subsidiaries for the period ended on such date, all in accordance with generally
accepted accounting principles consistently applied, and since December&nbsp;31, 1999
<U><B>2004</B></U> there has been no material adverse change in the business, operations, property
or financial or other condition of Ferro Corporation.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(g)&nbsp;There is no pending or<U><B>, to the Seller&#146;s knowledge,</B></U> threatened action<U><B>,
investigation</B></U> or proceeding affecting such Seller or any of its subsidiaries before any
court, governmental agency or arbitrator which may materially adversely affect the financial
condition or operations of such Seller or any of its subsidiaries or the ability of such
Seller to perform its obligations under this Agreement or any other document to be delivered
by it hereunder, or which purports to affect the legality, validity or enforceability of
this Agreement or any other document to be delivered by it hereunder.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(h)&nbsp;No proceeds of any Purchase will be used to acquire any equity security of a class
which is registered pursuant to Section&nbsp;12 of the Securities Exchange Act of 1934.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(i)&nbsp;No transaction contemplated hereby requires compliance with any bulk sales act or
similar law.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(j)&nbsp;Each Receivable purported to be sold by such Seller hereunder is an Eligible
Receivable (unless identified by such Seller as not an Eligible Receivable at the time of
sale and in each applicable Seller Report), and each such Receivable and each Transferred
Receivable, together with the Related Security, is owned (prior to its sale or contribution
hereunder) by such Seller free and clear of any Adverse Claim (other than any Adverse Claim
arising solely as the result of any action taken by the Purchaser). When Purchaser makes a
Purchase it shall acquire valid and perfected first priority ownership of each Purchased
Receivable and the Related Security and Collections with respect thereto free and clear of
any Adverse Claim (other than any Adverse Claim arising solely as the result of any action
taken by the Purchaser), and no effective financing statement or other instrument similar in
effect covering any Transferred Receivable, any interest therein, the Related Security or
Collections with respect thereto is on file in any recording office except such as may be
filed in favor of Purchaser in accordance with this Agreement or in connection with any
Adverse Claim arising solely as the result of any action taken by the Purchaser.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(k)&nbsp;Each Seller Report (if prepared by the relevant Seller, or to the extent that
information contained therein is supplied by such Seller), information, exhibit, financial
statement, document, book, record or report furnished or to be furnished at any time by such
Seller to the Purchaser in connection with this Agreement is or will be accurate in all
material respects as of its date or (except as otherwise disclosed to the Purchaser at such
time) as of the date so furnished, and no such document contains or will contain any untrue
statement of a material fact or omits or will omit to state a material fact necessary in
order to make the statements contained therein, in the light of the circumstances under
which they were made, not misleading.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(l)&nbsp;The principal place of business and chief executive office of the <U><B>such</B></U>
Seller and the office where such Seller keeps its records concerning the Transferred
Receivables are located at the address or addresses referred to in Section&nbsp;5.01(b).
<U><B>Such Seller is located in the jurisdiction of organization set forth in Exhibit&nbsp;F hereto
for purposes of Section&nbsp;9-307 of the UCC as in effect in the State of New York; and the
office in the jurisdiction of organization of such Seller in which a UCC financing statement
is required to be filed in order to perfect the security interest granted by such Seller
hereunder is set forth in Exhibit&nbsp;F hereto (in each case as such Exhibit&nbsp;F may be amended
from time to time pursuant to Section&nbsp;5.</B><B>01(b)</B><B>).</B></U>



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(m)&nbsp;The names and addresses of all the Lock-Box Banks, together with the account
numbers of the Lock-Box Accounts at such Lock-Box Banks, are specified in Exhibit&nbsp;B (as the
same may be updated from time to time pursuant to Section&nbsp;5.01(h)).



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(n)&nbsp;Such Seller is not known by and does not use any tradename or doing-business-as
name.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(o)&nbsp;With respect to any programs used by such Seller in the servicing of the
Receivables, no sublicensing agreements are necessary in connection with the designation of
a new Collection Agent pursuant to Section&nbsp;6.01(b) so that such new Collection Agent shall
have the benefit of such programs (<U>it</U> <U>being</U> <U>understood</U> <U>that</U>,
however, the Collection Agent, if other than Ferro Corporation, shall be required to be
bound by a confidentiality agreement reasonably acceptable to such Seller).



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(p)&nbsp;The transfers of Transferred Receivables by such Seller to the Purchaser pursuant
to this Agreement, and all other transactions between such Seller and the Purchaser, have
been and will be made in good faith and without intent to hinder, delay or defraud creditors
of such Seller.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(q)&nbsp;Such Seller has no office or place of business in the province of Quebec, Canada.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(r)&nbsp;Such Seller does not have, and since September&nbsp;28, 2000 has not had, a place of
business in either the United Kingdom or Ireland.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%"><U><B>(s)</B></U> <U><B>Such Seller has (i)&nbsp;timely filed all federal tax returns required to be
filed, (ii)&nbsp;timely filed all other material state and local tax returns and (iii)&nbsp;paid or
made adequate provision for the payment of all taxes, assessments and other governmental
charges (other than any tax, assessment or governmental charge which is being contested in
good faith and by proper proceedings, and with respect to which the obligation to pay such
amount is adequately reserved against in accordance with generally accepted accounting
principles).</B></U>


<P align="center" style="font-size: 12pt">ARTICLE V



<P align="center" style="font-size: 12pt">COVENANTS



<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 5.01. <U>Covenants of the Sellers</U>. From the date hereof until the first day
following the Facility Termination Date on which all of the Transferred Receivables are either
collected in full or become Defaulted Receivables:



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(a) <U>Compliance with Laws, Etc.</U> Each Seller will comply in all material
respects with all applicable laws, rules, regulations and orders and preserve and maintain
its corporate existence, rights, franchises, qualifications and privileges except to the
extent that the failure so to comply with such laws, rules and regulations or the failure so
to preserve and maintain such existence, rights, franchises, qualifications, and privileges
would not materially adversely affect the collectibility of the Transferred Receivables or
the ability of such Seller to perform its obligations under this Agreement.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(b) <U>Offices, Records and Books of Account</U>. Each Seller will keep its principal
place of business and chief executive office and the office where it keeps its records
concerning the Transferred Receivables at the address of such Seller set forth under its
name on the signature page to this Agreement<U><B>,</B></U> or, upon 30&nbsp;days&#146; <U><B>days&#146;</B></U> prior
written notice to the Purchaser, at any other locations in jurisdictions where <U><B>within
the United States. Such Seller will not change its name or its state of organization,
unless (i)&nbsp;the Seller shall have provided the Purchaser with at least 30&nbsp;days&#146; prior written
notice thereof, together with an updated Exhibit&nbsp;F, and (ii)&nbsp;no later than the effective
date of such change,</B></U> all actions required by Section&nbsp;5.01(j) shall have been taken and
completed. <U><B>Upon confirmation by the Purchaser&#146;s assignee during the existence of the
Sale Agreement or, thereafter, the Purchaser of receipt of any such notice (together with an
updated Exhibit&nbsp;F) and the completion, as aforesaid, of all actions required by
Section&nbsp;5.</B><B>01(j)</B><B>, Exhibit&nbsp;F to this Agreement shall, without further action by any party, be
deemed to be amended and replaced by the updated Exhibit&nbsp;F accompanying such notice.</B></U>
Each Seller also will maintain and implement administrative and operating procedures
(including, without limitation, an ability to recreate records evidencing Transferred
Receivables and related Contracts in the event of the destruction of the originals thereof),
and keep and maintain all documents, books, records and other information reasonably
necessary or advisable for the collection of all Transferred Receivables (including, without
limitation, records adequate to permit the daily identification of each new Transferred
Receivable and all Collections of and adjustments to each existing Transferred Receivable).
Each Seller shall make a notation in its books and records, including its computer files, to
indicate which Receivables have been sold or contributed to the Purchaser hereunder.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(c) <U>Performance and Compliance with Contracts and Credit and Collection Policy</U>.
Each Seller will, at its expense, timely and fully perform and comply with all material
provisions, covenants and other promises required to be observed by it under the Contracts
related to the Transferred Receivables, and timely and fully comply in all material respects
with the Credit and Collection Policy in regard to each Transferred Receivable and the
related Contract.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(d) <U>Sales, Liens, Etc.</U> Except for the sales and contributions of Receivables
contemplated herein, each Seller will not sell, assign (by operation of law or otherwise) or
otherwise dispose of, or create or suffer to exist any Adverse Claim upon or with respect
to, any Transferred Receivable, Related Security, related Contract or Collections, or upon
or with respect to any account to which any Collections of any Transferred Receivable are
sent, or assign any right to receive income in respect thereof.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(e) <U>Extension or Amendment of Transferred Receivables</U>. Except as provided in
Section&nbsp;6.02(c), each Seller will not extend, amend or otherwise modify the terms of any
Transferred Receivable, or amend, modify or waive any term or condition of any Contract
related thereto.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(f) <U>Change in Business or Credit and Collection Policy</U>. Each Seller will not
make any change in the character of its business or in the Credit and Collection Policy that
would, in either case, materially adversely affect the collectibility of the Transferred
Receivables or the ability of such Seller to perform its obligations under this Agreement.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(g) <U>Audits</U>. Each Seller will, from time to time during regular business hours
as requested by the Purchaser or its assigns, permit the Purchaser, or its agents,
representatives or assigns, (i)&nbsp;to examine and make copies of and abstracts from all books,
records and documents (including, without limitation, computer tapes and disks) in the
possession or under the control of such Seller relating to Transferred Receivables and the
Related Security, including, without limitation, the related Contracts, and (ii)&nbsp;to visit
the offices and properties of such Seller for the purpose of examining such materials
described in clause (i)&nbsp;above, and to discuss matters relating to Transferred Receivables
and the Related Security or such Seller&#146;s <U><B>Seller&#146;s</B></U> performance hereunder or under
the Contracts with any of the officers or employees of such Seller having knowledge of such
matters.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(h) <U>Change in Payment Instructions to Obligors</U>. Each Seller will not add or
terminate any bank or bank account as a Lock-Box Bank or Lock-Box Account from those listed
in Exhibit&nbsp;B to this Agreement, or make any change in its instructions to Obligors regarding
payments to be made to any Lock-Box Bank, unless the Purchaser shall have received notice of
such addition, termination or change (including an updated Exhibit&nbsp;B) and executed copies of
Lock-Box Agreements with each new Lock-Box Bank or with respect to each new Lock-Box
Account.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(i) <U>Deposits to Lock-Box Accounts</U>. Each Seller will instruct all Obligors to
remit all their payments in respect of Transferred Receivables into Lock-Box Accounts. If
such Seller shall receive any Collections directly, it shall immediately (and in any event
within two Business Days) deposit the same to a Lock-Box Account. Such Seller will not
deposit or otherwise credit, or cause or permit to be so deposited or credited, to any
Lock-Box Account cash or cash proceeds other than Collections of Transferred Receivables.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(j) <U>Further Assurances</U>. (i)&nbsp;&nbsp;Each Seller agrees from time to time, at its
expense, promptly to execute and deliver all further instruments and documents, and to take
all further actions, that may be necessary or desirable, or that the Purchaser or its
assignee may reasonably request, to perfect, protect or more fully evidence the sale and
contribution of Receivables under this Agreement, or to enable the Purchaser or its assignee
to exercise and enforce its respective rights and remedies under this Agreement. Without
limiting the foregoing, such Seller will, upon the request of the Purchaser or its assignee,
(A)&nbsp;execute and file such financing or continuation statements, or amendments thereto, and
such other instruments and documents, that may be necessary or desirable to perfect, protect
or evidence such Transferred Receivables <U><B>and any security interest in other assets of
such Seller granted hereunder</B></U>; and (B)&nbsp;deliver to the Purchaser copies of all Contracts
relating to the Transferred Receivables and all records relating to such Contracts and the
Transferred Receivables, whether in hard copy or in magnetic tape or diskette format (which
if in magnetic tape or diskette format shall be compatible with the Purchaser&#146;s
<U><B>Purchaser&#146;s</B></U> computer equipment).



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 8%">(ii)&nbsp;Each Seller authorizes the Purchaser or its assignee to file financing or
continuation statements, and amendments thereto and assignments thereof, relating to the
Transferred Receivables and the Related Security, the related Contracts and the Collections
with respect thereto without the signature of such Seller where permitted by law. A
photocopy or other reproduction of this Agreement shall be sufficient as a financing
statement where permitted by law. <U><B>and any other assets of the Seller in which a security
interest is granted hereunder.</B></U>



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 8%">(iii)&nbsp;Each Seller shall perform its obligations under the Contracts related to the
Transferred Receivables to the same extent as if the Transferred Receivables had not been
sold or transferred.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(k) <U>Reporting Requirements</U>. Each Seller will provide to the Purchaser the
following:



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 8%">(i)&nbsp;as soon as possible and in any event within five days after the occurrence
of each Event of Termination or Incipient Event of Termination, a statement of the
chief financial officer of such Seller setting forth details of such Event of
Termination or Incipient Event of Termination and the action that such Seller has
taken and proposes to take with respect thereto;



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 8%">(ii)&nbsp;promptly after the filing or receiving thereof, copies of all reports and
notices that such Seller or any Affiliate files under ERISA with the Internal
Revenue Service or the Pension Benefit Guaranty Corporation or the U.S. Department
of Labor or that such Seller or any Affiliate receives from any of the foregoing or
from any multiemployer plan (within the meaning of Section&nbsp;4001(a)(3) of ERISA) to
which such Seller or any Affiliate is or was, within the preceding five years, a
contributing employer, in each case in respect of the assessment of withdrawal
liability or an event or condition which could, in the aggregate, result in the
imposition of liability on such Seller and/or any such Affiliate in excess of
$5,000,000;



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 8%">(iii)&nbsp;at least ten Business Days <U><B>30&nbsp;days</B></U> prior to any change in such
Seller&#146;s name <U><B>Seller&#146;s name or jurisdiction of incorporation</B></U>, a notice
setting forth the new name <U><B>or jurisdiction of incorporation</B></U> and the
effective date thereof; and



<P align="left" style="margin-left:8%; font-size: 12pt; text-indent: 8%">(iv)&nbsp;such other information respecting the Transferred Receivables or the
condition or operations, financial or otherwise, of such Seller as the Purchaser may
from time to time reasonably request.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(l) <U>Separate Conduct of Business</U>. Each Seller will: (i)&nbsp;maintain separate
corporate records and books of account from those of the Purchaser; (ii)&nbsp;conduct its
business from an office separate from that of the Purchaser; (iii)&nbsp;ensure that all oral and
written communications, including without limitation, letters, invoices, purchase orders,
contracts, statements and applications, will be made solely in its own name; (iv)&nbsp;have
stationery and other business forms and a mailing address and a telephone number separate
from those of the Purchaser; (v)&nbsp;not hold itself out as having agreed to pay, or as being
liable for, the obligations of the Purchaser; (vi)&nbsp;not engage in any transaction with the
Purchaser except as contemplated by this Agreement or as permitted by the Sale Agreement;
(vii)&nbsp;continuously maintain as official records the resolutions, agreements and other
instruments underlying the transactions contemplated by this Agreement; and (viii)&nbsp;disclose
on its annual financial statements (A)&nbsp;the effects of the transactions contemplated by this
Agreement in accordance with generally accepted accounting principles and (B)&nbsp;that the
assets of the Purchaser are not available to pay its creditors.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(m) <U>Foreign Offices</U>. Each Seller agrees that it will not take any action to
open a place of business in either the United Kingdom or Ireland without (i)&nbsp;providing the
Purchaser and its assignee with at least ten Business Days&#146; prior written notice, and
(ii)&nbsp;taking all actions that the Purchase <U><B>Purchaser</B></U> or its assignee may reasonably
request pursuant to Section&nbsp;5.01(j) with respect to the laws of the United Kingdom or
Ireland, as applicable.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%"><U><B>(n)</B></U> <U><B>Order Acknowledgments. Ferro Electronic agrees that all order
acknowledgments sent by Ferro Electronic will include an Ohio choice of law provision in the
form set forth in the form of order acknowledgment attached hereto as Exhibit&nbsp;G.</B></U>


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 5.02. <U>Grant of Security Interest</U>. To secure all obligations of each Seller
arising in connection with this Agreement, and each other agreement entered into in connection with
this Agreement, whether now or hereafter existing, due or to become due, direct or indirect, or
absolute or contingent, including, without limitation, Indemnified Amounts, payments on account of
Collections received or deemed to be received, and any other amounts due the Purchaser hereunder,
each Seller hereby assigns and grants to Purchaser a security interest in all of such Seller&#146;s
<U><B>Seller&#146;s</B></U> right, title and interest now or hereafter existing in, to and under all
Receivables which do not constitute Transferred Receivables, the Related Security and all
Collections with regard thereto.


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 5.03. <U>Covenant of each Seller and the Purchaser</U>. Each Seller and the
Purchaser have structured this Agreement with the intention that each Purchase of Receivables
hereunder be treated as a sale of such Receivables by such Seller to the Purchaser for all purposes
and each contribution of Receivables hereunder shall be treated as an absolute transfer of such
Receivables by such Seller to the Purchaser for all purposes. Each Seller and the Purchaser shall
record each Purchase and contribution as a sale or purchase or capital contribution, as the case
may be, on its books and records, and reflect each Purchase and contribution in its financial
statements and tax returns as a sale or purchase or capital contribution, as the case may be. In
the event that, contrary to the mutual intent of each Seller and the Purchaser, any Purchase or
contribution of Receivables hereunder is not characterized as a sale or absolute transfer, such
Seller shall, effective as of the date hereof, be deemed to have granted (and such Seller hereby
does grant) to the Purchaser a first priority security interest in and to any and all Receivables,
the Related Security and the proceeds thereof to secure the repayment of all amounts advanced to
such Seller hereunder with accrued interest thereon, and this Agreement shall be deemed to be a
security agreement.


<P align="center" style="font-size: 12pt">ARTICLE VI



<P align="center" style="font-size: 12pt">ADMINISTRATION AND COLLECTION



<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 6.01. <U>Designation of Collection Agent</U>. The servicing, administration and
collection of the Transferred Receivables shall be conducted by such Person (the &#147;<U>Collection
Agent</U>&#148;) so designated hereunder from time to time. Until the Purchaser or its assignee gives
notice to Ferro Corporation of the designation of a new Collection Agent, Ferro Corporation is
hereby designated as, and hereby agrees to perform the duties and obligations of, the Collection
Agent pursuant to the terms hereof. Ferro Corporation agrees that such notice may be given at any
time in the Purchaser&#146;s or assignee&#146;s <U><B>Purchaser&#146;s or assignee&#146;s</B></U> discretion. Upon receipt
by Ferro Corporation of such notice, Ferro Corporation agrees that it will terminate its activities
as Collection Agent hereunder in a manner which the Purchaser (or its designee) believes will
facilitate the transition of the performance of such activities to the new Collection Agent, and
Ferro Corporation shall use its best efforts to assist the Purchaser (or its designee) to take over
the servicing, administration and collection of the Transferred Receivables, including, without
limitation, providing access to and copies of all computer tapes or disks and other documents or
instruments that evidence or relate to Transferred Receivables maintained in its capacity as
Collection Agent and access to all employees and officers of Ferro Corporation responsible with
respect thereto. The Purchaser at any time after giving such notice may designate as Collection
Agent any Person (including itself) to succeed Ferro Corporation or any successor Collection Agent,
if such Person shall consent and agree to the terms hereof. The Collection Agent may, with the
prior consent of the Purchaser, subcontract with any other Person for the servicing, administration
or collection of Transferred Receivables (and the Purchaser, on behalf of itself and the Agent,
hereby consents to the subcontracting to Ferro Electronic of the servicing, administration and
collection of Transferred Receivables originated by Ferro Electronic). Any such subcontract shall
not affect the Collection Agent&#146;s <U><B>Agent&#146;s</B></U> liability for performance of its duties and
obligations pursuant to the terms hereof<U><B>, and any such subcontract shall automatically
terminate upon designation of a successor Collection Agent</B></U>.


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 6.02. <U>Duties of Collection Agent</U>. (a)&nbsp;&nbsp;The Collection Agent shall take or
cause to be taken all such actions as may be necessary or advisable to collect each Transferred
Receivable from time to time, all in accordance with applicable laws, rules and regulations, with
reasonable care and diligence, and in accordance with the Credit and Collection Policy. The
Purchaser hereby appoints the Collection Agent, from time to time designated pursuant to Section
6.01, as agent to enforce its ownership and other rights in the Transferred Receivables, the
Related Security and the Collections with respect thereto. In performing its duties as Collection
Agent, the Collection Agent shall exercise the same care and apply the same policies as it would
exercise and apply if it owned the Transferred Receivables and shall act in the best interests of
the Purchaser and its assignees.


<P align="left" style="font-size: 12pt; text-indent: 8%">(b)&nbsp;Prior to the tenth Business Day of each month, the Collection Agent shall prepare and
forward to the Purchaser (i)&nbsp;a Monthly Report, relating to all then outstanding Transferred
Receivables, and the Related Security and Collections with respect thereto, in each case, as of the
close of business of the Collection Agent on the last day of the immediately preceding month, and
(ii)&nbsp;if requested by the Purchaser, a listing by Obligor of all Transferred Receivables correlating
Purchased Receivables and Purchases, together with an aging report of such Transferred Receivables.
If a Non-Investment Grade Event (but no BB Downgrade Event ) <U><B>other than the 2005 Downgrade
Event or the 2006 Downgrade Events)</B></U> shall have occurred and be continuing, on or prior to the
close of business on the second Business Day of each Week, the Collection Agent shall prepare and
forward to the Purchaser or its assignee a Weekly Report which shall contain information related to
the Receivables current as of the close of business on the last Business Day of the preceding Week.
If a BB Downgrade Event <U><B>(other than the 2005 Downgrade Event or the 2006 Downgrade Events)</B></U>
shall have occurred and be continuing, by no later than 11:00&nbsp;A.M. (New York City time) on each
Business Day, the Collection Agent shall prepare and forward to the Purchaser or its assignee a
Daily Report which shall contain information relating to the Receivables current as of the close of
business on the immediately prior Business Day.


<P align="left" style="font-size: 12pt; text-indent: 8%">(c)&nbsp;If no Event of Termination or Incipient Event of Termination shall have occurred and be
continuing, Ferro Corporation, while it is the Collection Agent, may, in accordance with the Credit
and Collection Policy, extend the maturity or adjust the Outstanding Balance of any Transferred
Receivable as Ferro Corporation deems appropriate to maximize Collections thereof, or otherwise
amend or modify the terms of any Transferred Receivable.


<P align="left" style="font-size: 12pt; text-indent: 8%">(d)&nbsp;Each Seller shall deliver to the Collection Agent, and the Collection Agent shall hold in
trust for each Seller and the Purchaser in accordance with their respective interests, all
documents, instruments and records (including, without limitation, computer tapes or disks) which
evidence or relate to Transferred Receivables.


<P align="left" style="font-size: 12pt; text-indent: 8%">(e)&nbsp;The Collection Agent shall as soon as practicable following receipt turn over to the
relevant Seller any cash collections or other cash proceeds received with respect to Receivables
not constituting Transferred Receivables, less, in the event such Seller is not the Collection
Agent, all reasonable and appropriate out-of-pocket costs and expenses of the Collection Agent of
servicing, collecting and administering the Receivables to the extent not covered by the Collection
Agent Fee received by it.


<P align="left" style="font-size: 12pt; text-indent: 8%">(f)&nbsp;The Collection Agent also shall perform the other obligations of the &#147;Collection Agent&#148;
set forth in this Agreement with respect to the Transferred Receivables.


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 6.03. <U>Collection Agent Fee</U>. The Purchaser shall pay to the Collection Agent,
so long as it is acting as the Collection Agent hereunder, a periodic collection fee (the
&#147;<U>Collection Agent Fee</U>&#148;) of 0.25% per annum on the average daily aggregate Outstanding
Balance of the Transferred Receivables, payable on the tenth day of each month (or, if such day is
not a Business Day, the immediately succeeding Business Day) or such other day during each calendar
month as the Purchaser and the Collection Agent shall agree.


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 6.04. <U>Certain Rights of the Purchaser</U>. (a)&nbsp;&nbsp;The Purchaser may, at any time,
give notice of ownership and/or direct the Obligors of Transferred Receivables and any Person
obligated on any Related Security, or any of them, that payment of all amounts payable under any
Transferred Receivable shall be made directly to the Purchaser or its designee. Each Seller hereby
transfers to the Purchaser (and its assigns and designees) the exclusive ownership and control of
each Lock-Box Account maintained by such Seller for the purpose of receiving Collections.


<P align="left" style="font-size: 12pt; text-indent: 8%">(b)&nbsp;At any time following the designation of a Collection Agent other than Ferro Corporation
pursuant to Section&nbsp;6.01 or following an Event Termination, a Non-Investment Grade Event <U><B>(other
than the 2005 Downgrade Event or the 2006 Downgrade Events)</B></U> or an Incipient Event of
Termination:



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 5%">(i)&nbsp;Each Seller shall, upon the Purchaser&#146;s <U><B>Purchaser&#146;s</B></U> request and at such
Seller&#146;s <U><B>Seller&#146;s</B></U> expense, give notice of the Purchaser&#146;s ownership to each Obligor
of Transferred Receivables and direct that payments of all amounts payable under such
Transferred Receivables be made directly to the Purchaser or its designee.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(ii)&nbsp;At the Purchaser&#146;s <U><B>Purchaser&#146;s</B></U> request and at the relevant Seller&#146;s
<U><B>Seller&#146;s</B></U> expense, each Seller and the Collection Agent shall (A)&nbsp;assemble all of the
documents, instruments and other records (including, without limitation, computer tapes and
disks) that evidence or relate to the Transferred Receivables, and the related Contracts and
Related Security, or that are otherwise necessary or desirable to collect the Transferred
Receivables, and shall make the same available to the Purchaser at a place selected by the
Purchaser or its designee, and (B)&nbsp;segregate all cash, checks and other instruments received
by it from time to time constituting Collections of Transferred Receivables in a manner
acceptable to the Purchaser and, promptly upon receipt, remit all such cash, checks and
instruments, duly indorsed or with duly executed instruments of transfer, to the Purchaser
or its designee. The Purchaser shall also have the right to make copies of all such
documents, instruments and other records at any time.



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 6%">(iii)&nbsp;Each Seller authorizes the Purchaser to take any and all steps in such Seller&#146;s
<U><B>Seller&#146;s</B></U> name and on behalf of such Seller that are necessary or desirable, in the
determination of the Purchaser, to collect amounts due under the Transferred Receivables,
including, without limitation, endorsing such Seller&#146;s <U><B>Seller&#146;s</B></U> name on checks and
other instruments representing Collections of Transferred Receivables and enforcing the
Transferred Receivables and the Related Security and related Contracts.


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 6.05. <U>Rights and Remedies</U>. (a)&nbsp;&nbsp;If either Seller or the Collection Agent
fails to perform any of its obligations under this Agreement, the Purchaser may (but shall not be
required to) itself perform, or cause performance of, such obligation, and, if such Seller (as
Collection Agent or otherwise) fails to so perform, the costs and expenses of the Purchaser
incurred in connection therewith shall be payable by such Seller as provided in Section&nbsp;8.01 or
Section&nbsp;9.04 as applicable.


<P align="left" style="font-size: 12pt; text-indent: 8%">(b)&nbsp;Each Seller shall perform all of its obligations under the Contracts related to the
Transferred Receivables to the same extent as if such Seller had not sold or contributed
Receivables hereunder and the exercise by the Purchaser of its rights hereunder shall not relieve
such Seller from such obligations or its obligations with respect to the Transferred Receivables.
The Purchaser shall not have any obligation or liability with respect to any Transferred
Receivables or related Contracts, nor shall the Purchaser be obligated to perform any of the
obligations of such Seller thereunder.


<P align="left" style="font-size: 12pt; text-indent: 8%">(c)&nbsp;Each Seller shall cooperate with the Collection Agent in collecting amounts due from
Obligors in respect of the Transferred Receivables.


<P align="left" style="font-size: 12pt; text-indent: 8%">(d)&nbsp;Each Seller hereby grants to Collection Agent an irrevocable power of attorney, with full
power of substitution, coupled with an interest, to take in the name of such Seller all steps
necessary or advisable to endorse, negotiate or otherwise realize on any writing or other right of
any kind held or transmitted by such Seller or transmitted or received by Purchaser (whether or not
from such Seller) in connection with any Transferred Receivable.


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 6.06. <U>Transfer of Records to Purchaser</U>. Each Purchase and contribution of
Receivables hereunder shall include the transfer to the Purchaser of all of the relevant Seller&#146;s
<U><B>Seller&#146;s</B></U> right and title to and interest in the records relating to such Receivables and
shall include an irrevocable non-exclusive license to the use of such Seller&#146;s <U><B>Seller&#146;s</B></U>
computer software system to access and create such records. Such license shall be without royalty
or payment of any kind, is coupled with an interest, and shall be irrevocable until all of the
Transferred Receivables are either collected in full or become Defaulted Receivables.


<P align="left" style="font-size: 12pt; text-indent: 8%">Each Seller shall take such action requested by the Purchaser, from time to time hereafter,
that may be necessary or appropriate to ensure that the Purchaser has an enforceable ownership
interest in the records relating to the Transferred Receivables and rights (whether by ownership,
license or sublicense) to the use of such Seller&#146;s <U><B>Seller&#146;s</B></U> computer software system to
access and create such records.


<P align="left" style="font-size: 12pt; text-indent: 8%">In recognition of each Seller&#146;s <U><B>Seller&#146;s</B></U> need to have access to the records
transferred to the Purchaser hereunder, the Purchaser hereby grants to such Seller an irrevocable
license to access such records in connection with any activity arising in the ordinary course of
such Seller&#146;s <U><B>Seller&#146;s</B></U> business or in performance of its duties as Collection Agent,
provided that (i)&nbsp;such Seller shall not disrupt or otherwise interfere with the Purchaser&#146;s
<U><B>Purchaser&#146;s</B></U> use of and access to such records during such license period and (ii)&nbsp;such
Seller consents to the assignment and delivery of the records (including any information contained
therein relating to such Seller or its operations) to any assignees or transferees of the Purchaser
provided they agree to hold such records confidential.


<P align="center" style="font-size: 12pt">ARTICLE VII



<P align="center" style="font-size: 12pt">EVENTS OF TERMINATION



<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 7.01. <U>Events of Termination</U>. If any of the following events (&#147;<U>Events of
Termination</U>&#148;) shall occur and be continuing:



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(a)&nbsp;The Collection Agent (if it is Ferro Corporation or any of its Affiliates)
(i)&nbsp;shall fail to perform or observe any term, covenant or agreement under this Agreement
(other than as referred to in clauses&nbsp;(ii), (iii), (iv)&nbsp;or (v)&nbsp;of this subsection&nbsp;(a)) and
such failure shall remain unremedied for five Business Days, or (ii)&nbsp;shall fail to make when
due any payment or deposit to be made by it under this Agreement, or (iii)&nbsp;shall fail to
deliver any Monthly Report when due and such failure shall remain unremedied for
three&nbsp;Business Days, or (iv)&nbsp;shall fail to deliver any Weekly Report when due and such
failure shall remain unremedied for more than two Business Days, or (v)&nbsp;shall fail to
deliver any Daily Report when due and such failure shall remain unremedied for more than two
Business Days, or shall fail to deliver when due more than two Daily Reports in any calendar
week; or



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(b)&nbsp;Ferro Corporation shall fail to transfer to the Purchaser when requested any
rights, pursuant to this Agreement, which Ferro Corporation then has as Collection Agent, or
either Seller shall fail to make any payment required under Section&nbsp;2.04(a) or 2.04(b); or



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(c)&nbsp;Any representation or warranty made or deemed made by either Seller (or any of its
officers) under or in connection with this Agreement or any information or report delivered
by such Seller pursuant to this Agreement shall prove to have been incorrect or untrue in
any material respect when made or deemed made or delivered; or



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(d)&nbsp;Either Seller shall fail to perform or observe any other term, covenant or
agreement contained in this Agreement on its part to be performed or observed and any such
failure shall remain unremedied for 10&nbsp;days after written notice thereof shall have been
given to the Seller by the Purchaser; or



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(e)&nbsp;Either Seller shall fail to pay any principal of or premium or interest on any of
its Debt which is outstanding in a principal amount of at least $5,000,000 in the aggregate
when the same becomes due and payable (whether by scheduled maturity, required prepayment,
acceleration, demand or otherwise), and such failure shall continue after the applicable
grace period, if any, specified in the agreement or instrument relating to such Debt; or any
other event shall occur or condition shall exist under any agreement or instrument relating
to any such Debt and shall continue after the applicable grace period, if any, specified in
such agreement or instrument, if the effect of such event or condition is to accelerate, or
to permit the acceleration of, the maturity of such Debt; or any such Debt shall be declared
to be due and payable, or required to be prepaid (other than by a regularly scheduled
required prepayment), redeemed, purchased or defeased, or an offer to repay, redeem,
purchase or defease such Debt shall be required to be made, in each case prior to the stated
maturity thereof; or



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(f)&nbsp;Any Purchase or contribution of Receivables hereunder, the Related Security and the
Collections with respect thereto shall for any reason cease to constitute valid and
perfected ownership of such Receivables, Related Security and Collections free and clear of
any Adverse Claim; or



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(g)&nbsp;Either Seller shall generally not pay its debts as such debts become due, or shall
admit in writing its inability to pay its debts generally, or shall make a general
assignment for the benefit of creditors; or any proceeding shall be instituted by or against
either Seller seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation,
winding up, reorganization, arrangement, adjustment, protection, relief, or composition of
it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief
of debtors, or seeking the entry of an order for relief or the appointment of a receiver,
trustee, custodian or other similar official for it or for any substantial part of its
property and, in the case of any such proceeding instituted against it (but not instituted
by it), either such proceeding shall remain undismissed or unstayed for a period of 30&nbsp;days,
or any of the actions sought in such proceeding (including, without limitation, the entry of
an order for relief against, or the appointment of a receiver, trustee, custodian or other
similar official for, it or for any substantial part of its property) shall occur; or either
Seller or any of its subsidiaries shall take any corporate action to authorize any of the
actions set forth above in this subsection (g); or



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(h)&nbsp;an Event of Termination shall have occurred under the Sale Agreement; or



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(i)&nbsp;There shall have occurred any material adverse change in the financial condition or
operations of Ferro Corporation since December&nbsp;31, 1999 <U><B>2004</B></U>; or there shall have
occurred any event which may materially adversely affect the collectibility of the
Transferred Receivables or the ability of either Seller to collect Transferred Receivables
or otherwise perform its obligations under this Agreement; <U><B>the Purchaser hereby
acknowledges that in the event the capital stock of Ferro Corporation is no longer listed
for trading on the New York Stock Exchange (a &#147;Delisting&#148;), such Delisting shall not, in and
of itself and excluding the circumstances leading to such Delisting or resulting therefrom,
constitute a material adverse change in the business, operations, property or financial or
other condition of Ferro Corporation;</B></U> or



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(j)&nbsp;At least 80% of the outstanding capital stock of Ferro Electronic Materials , Inc.
shall cease to be owned, directly or indirectly, by Ferro Corporation; or



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(k)&nbsp;The Undertaking Agreement shall cease to be in full force and effect, or Ferro
Corporation shall fail to perform or observe any term, covenant or agreement contained in
the Undertaking Agreement on its part to be performed or observed and any such failure
shall remain unremedied for fifteen days after written notice thereof shall have been given
to Ferro Corporation;


<P align="left" style="font-size: 12pt">then, and in any such event, the Purchaser may, by notice to each Seller, take either or both of
the following actions: (x)&nbsp;declare the Facility Termination Date to have occurred (in which case
the Facility Termination Date shall be deemed to have occurred) and (y)&nbsp;without limiting any right
under this Agreement to replace the Collection Agent, designate another Person to succeed Ferro
Corporation as Collection Agent; <U>provided</U>, that, automatically upon the occurrence of any
event (without any requirement for the passage of time or the giving of notice) described in
paragraph&nbsp;(g) of this Section&nbsp;7.01, the Facility Termination Date shall occur, Ferro Corporation
(if it is then serving as the Collection Agent) shall cease to be the Collection Agent, and the
Purchaser (or its assigns or designees) shall become the Collection Agent. Upon any such
declaration or designation or upon such automatic termination, the Purchaser shall have, in
addition to the rights and remedies under this Agreement, all other rights and remedies with
respect to the Receivables provided after default under the UCC and under other applicable law,
which rights and remedies shall be cumulative.


<P align="center" style="font-size: 12pt">ARTICLE VIII



<P align="center" style="font-size: 12pt">INDEMNIFICATION



<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 8.01. <U>Indemnities by the Sellers</U>. Without limiting any other rights which
the Purchaser may have hereunder or under applicable law, each Seller hereby agrees to indemnify
the Purchaser and its assigns and transferees (each, an &#147;<U>Indemnified</U> <U>Party</U>&#148;) from
and against any and all damages, claims, losses, liabilities and related costs and expenses,
including reasonable attorneys&#146; <U><B>attorneys&#146;</B></U> fees and disbursements (all of the foregoing
being collectively referred to as &#147;<U>Indemnified Amounts</U>&#148;), awarded against or incurred by
any Indemnified Party arising out of or as a result of this Agreement or the purchase or
contribution of any Transferred Receivables originated by such Seller or in respect of any
Transferred Receivable or any Contract originated by such Seller, including, without limitation,
arising out of or as a result of:



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 5%">(i)&nbsp;the inclusion, or purported inclusion, in any Purchase of any Receivable that is
not an Eligible Receivable on the date of such Purchase, or the characterization in any
Seller Report or other statement made by such Seller of any Transferred Receivable as an
Eligible Receivable which is not an Eligible Receivable as of the date of such Seller Report
or statement;



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(ii)&nbsp;any representation or warranty or statement made or deemed made by such Seller (or
any of its officers) under or in connection with this Agreement, which shall have been
incorrect in any material respect when made;



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(iii)&nbsp;the failure by such Seller to comply with any applicable law, rule or regulation
with respect to any Transferred Receivable or the related Contract; or the failure of any
Transferred Receivable originated by such Seller or the related Contract to conform to any
such applicable law, rule or regulation;



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(iv)&nbsp;the failure to vest in the Purchaser absolute ownership of the Receivables that
are, or that purport to be, the subject of a Purchase or contribution under this Agreement
and the Related Security and Collections in respect thereof, free and clear of any Adverse
Claim;



<P align="left" style="margin-left:4%; font-size: 12pt">(v)&nbsp;the failure of such Seller to have filed, or any delay in filing, financing
statements or other similar instruments or documents under the UCC of any applicable
jurisdiction or other applicable laws with respect to any Receivables that are, or that
purport to be, the subject of a Purchase or contribution under this Agreement and the
Related Security and Collections in respect thereof, whether at the time of any Purchase or
contribution or at any subsequent time;



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(vi)&nbsp;any dispute, claim, offset or defense (other than discharge in bankruptcy of the
Obligor) of the Obligor to the payment of any Receivable originated by such Seller that is,
or that purports to be, the subject of a Purchase or contribution under this Agreement
(including, without limitation, a defense based on such Receivable or the related Contract
not being a legal, valid and binding obligation of such Obligor enforceable against it in
accordance with its terms), or any other claim resulting from the sale of the merchandise or
services related to such Receivable or the furnishing or failure to furnish such merchandise
or services or relating to collection activities with respect to such Receivable (if such
collection activities were performed by Ferro Corporation acting as Collection Agent);



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(vii)&nbsp;any failure of such Seller, as Collection Agent or otherwise, to perform its
duties or obligations in accordance with the provisions hereof or to perform its duties or
obligations under any Contract related to a Transferred Receivable originated by such
Seller;



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 3%">(viii)&nbsp;any products liability or other claim arising out of or in connection with
merchandise, insurance or services which are the subject of any Contract;



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(ix)&nbsp;the commingling of Collections of Transferred Receivables by such Seller or a
designee of such Seller, as Collection Agent or otherwise, at any time with other funds of
such Seller or an Affiliate of such Seller;



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(x)&nbsp;any investigation, litigation or proceeding related to this Agreement or the use of
proceeds of Purchases or the ownership of Receivables, the Related Security, or Collections
with respect thereto or in respect of any Receivable, Related Security or Contract;



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(xi)&nbsp;any failure of such Seller to comply with its covenants contained in this
Agreement;



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">(xii)&nbsp;any Collection Agent Fees or other costs and expenses payable to any replacement
Collection Agent;



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 3%">(xiii)&nbsp;any claim brought by any Person other than an Indemnified Party arising from any
activity by such Seller or any Affiliate of such Seller in servicing, administering or
collecting any Transferred Receivable; or



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 3%">(xiv)&nbsp;any Dilution with respect to any Transferred Receivable originated by such
Seller.


<P align="left" style="font-size: 12pt">It is expressly agreed and understood by the parties hereto (i)&nbsp;that the foregoing indemnification
is not intended to, and shall not, constitute a guarantee of the collectibility or payment of the
Transferred Receivables and (ii)&nbsp;that nothing in this Section&nbsp;8.01 shall require either Seller to
indemnify any Person (A)&nbsp;for Receivables which are not collected, not paid or uncollectible on
account of the insolvency, bankruptcy, or financial inability to pay of the applicable Obligor,
(B)&nbsp;for damages, losses, claims or liabilities or related costs or expenses resulting from such
Person&#146;s <U><B>to the extent found in a final non-appealable judgment of a court of competent
jurisdiction to have resulted from such Person&#146;s</B></U> gross negligence or willful misconduct, or
(C)&nbsp;for any income taxes or franchise taxes incurred by such Person arising out of or as a result
of this Agreement or in respect of any Transferred Receivable or any Contract.


<P align="center" style="font-size: 12pt">ARTICLE IX



<P align="center" style="font-size: 12pt">MISCELLANEOUS



<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 9.01. <U>Amendments, Etc.</U> No amendment or waiver of any provision of this
Agreement or consent to any departure by either Seller therefrom shall be effective unless in a
writing signed by the Purchaser and, in the case of any amendment, also signed by the Sellers, and
then such amendment, waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given. No failure on the part of the Purchaser to exercise, and no
delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any right hereunder preclude any other or further exercise thereof or the
exercise of any other right.<U> <B>Notwithstanding any other provision of this Section&nbsp;9.01,
Exhibit&nbsp;F hereto may be amended in accordance with the procedures set forth in Section&nbsp;5.</B><B>01(b)</B><B>.</B></U>


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 9.02. <U>Notices, Etc.</U> All notices and other communications hereunder shall,
unless otherwise stated herein, be in writing (which shall include facsimile communication) and be
faxed or delivered, to each party hereto, at its address set forth under its name on the signature
pages hereof or at such other address as shall be designated by such party in a written notice to
the other parties hereto. Notices and communications by facsimile shall be effective when sent
(and shall be followed by hard copy sent by regular mail), and notices and communications sent by
other means shall be effective when received.


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 9.03. <U>Binding Effect; Assignability</U>. (a)&nbsp;&nbsp;This Agreement shall be binding
upon and inure to the benefit of the Sellers, the Purchaser and their respective successors and
assigns; <U>provided</U>, <U>however</U>, that neither Seller may assign its rights or
obligations hereunder or any interest herein without the prior written consent of the Purchaser.
In connection with any sale or assignment by the Purchaser of all or a portion of the Transferred
Receivables, the buyer or assignee, as the case may be, shall, to the extent of its purchase or
assignment, have all rights of the Purchaser under this Agreement (as if such buyer or assignee, as
the case may be, were the Purchaser hereunder) except to the extent specifically provided in the
agreement between the Purchaser and such buyer or assignee, as the case may be.


<P align="left" style="font-size: 12pt; text-indent: 8%">(b)&nbsp;This Agreement shall create and constitute the continuing obligations of the parties
hereto in accordance with its terms, and shall remain in full force and effect until such time,
after the Facility Termination Date, when all of the Transferred Receivables are either collected
in full or become Defaulted Receivables; <U>provided</U>, <U>however</U>, that rights and
remedies with respect to any breach of any representation and warranty made by either Seller
pursuant to Article&nbsp;IV and the provisions of Article&nbsp;VIII and Sections&nbsp;9.04, 9.05 and 9.06 shall be
continuing and shall survive any termination of this Agreement.


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 9.04. <U>Costs, Expenses and Taxes</U>. (a)&nbsp;&nbsp;In addition to the rights of
indemnification granted to the Purchaser pursuant to Article&nbsp;VIII hereof, each Seller agrees to pay
on demand all costs and expenses in connection with the preparation, execution and delivery of this
Agreement and the other documents and agreements to be delivered hereunder, including, without
limitation, the reasonable fees and out-of-pocket expenses of counsel for the Purchaser with
respect thereto and with respect to advising the Purchaser as to its rights and remedies under this
Agreement, and each Seller agrees to pay all costs and expenses, if any (including reasonable
counsel fees and expenses), in connection with the enforcement of this Agreement and the other
documents to be delivered hereunder <U>excluding</U>, <U>however</U>, any costs of enforcement or
collection of Transferred Receivables which are not paid on account of the insolvency, bankruptcy
or financial inability to pay of the applicable Obligor.


<P align="left" style="font-size: 12pt; text-indent: 8%">(b)&nbsp;In addition, each Seller agrees to pay any and all stamp and other taxes and fees payable
in connection with the execution, delivery, filing and recording of this Agreement or the other
documents or agreements to be delivered hereunder, and each Seller agrees to save each Indemnified
Party harmless from and against any liabilities with respect to or resulting from any delay in
paying or omission to pay such taxes and fees.


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 9.05. <U>No Proceedings</U>. Each Seller hereby agrees that it will not institute
against the Purchaser any proceeding of the type referred to in Section&nbsp;7.01(g) so long as there
shall not have elapsed one year plus one day since the later of (i)&nbsp;the Facility Termination Date
and (ii)&nbsp;the date on which all of the Transferred Receivables are either collected in full or
become Defaulted Receivables.


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 9.06. <U>Confidentiality</U>. Each party hereto agrees to maintain the
confidentiality of this Agreement in communications with third parties and otherwise; provided that
this Agreement may be disclosed (i)&nbsp;to third parties to the extent such disclosure is made pursuant
to a written agreement of confidentiality in form and substance reasonably satisfactory to the
other party hereto, and (ii)&nbsp;to such party&#146;s <U><B>party&#146;s</B></U> legal counsel and auditors and the
Purchaser&#146;s <U><B>Purchaser&#146;s</B></U> assignees, if they agree in each case to hold it confidential and
(iii)&nbsp;to the extent required by applicable law or regulation or by any court, regulatory body or
agency having jurisdiction over such party (including, without limitation, the filing of this
Agreement with the SEC as an exhibit to an annual or quarterly report under the Securities Exchange
Act of 1934); and <U>provided</U>, <U>further</U>, that such party shall have no obligation of
confidentiality in respect of any information which may be generally available to the public or
becomes available to the public through no fault of such party.


<P align="left" style="font-size: 12pt; text-indent: 8%"><B>SECTION 9.07. </B><U><B>GOVERNING LAW</B></U><B>. THIS AGREEMENT, IN ACCORDANCE WITH SECTION&nbsp;5-1401 OF
THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ANY CONFLICT OF LAWS
PRINCIPLES THEREOF THAT WOULD CALL FOR THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION,
EXCEPT TO THE EXTENT THAT, PURSUANT TO THE UCC OF THE STATE OF NEW YORK, THE PERFECTION AND THE
EFFECT OF PERFECTION OR NON-PERFECTION OF THE PURCHASER&#146;S </B><U><B>PURCHASER&#146;S</B></U> OWNERSHIP OF OR
SECURITY INTEREST IN THE RECEIVABLES ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE
STATE OF NEW YORK; PROVIDED, HOWEVER, THAT SECTION&nbsp;2.02(e) SHALL BE GOVERNED BY THE LAWS OF THE
FEDERAL REPUBLIC OF GERMANY.


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 9.08. <U>Third Party Beneficiary</U>. Each of the parties hereto hereby acknowledges
that the Purchaser may assign all or any portion of its rights under this Agreement and that such
assignees may (except as otherwise agreed to by such assignees) further assign their rights under
this Agreement, and each Seller hereby consents to any such assignments. All such assignees,
including parties to the Sale Agreement in the case of assignment to such parties, shall be third
party beneficiaries of, and shall be entitled to enforce the Purchaser&#146;s <U><B>Purchaser&#146;s</B></U> rights
and remedies under, this Agreement to the same extent as if they were parties thereto, except to
the extent specifically limited under the terms of their assignment.


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 9.09. <U>Execution in Counterparts</U>. This Agreement may be executed in any
number of counterparts, each of which when so executed shall be deemed to be an original and all of
which when taken together shall constitute one and the same agreement.


<P align="left" style="font-size: 12pt; text-indent: 8%">SECTION 9.10. <U>Judgment</U>. (a)&nbsp;&nbsp;If for the purposes of obtaining judgment in any court
it is necessary to convert a sum due hereunder in U.S. Dollars into another currency, the parties
hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used
shall be that at which in accordance with normal banking procedures the Purchaser could purchase
U.S. Dollars with such other currency at New York, New York on the Business Day preceding that on
which final judgment is given.


<P align="left" style="font-size: 12pt; text-indent: 8%">(b)&nbsp;The obligation of each Seller in respect of any sum due from it to the Purchaser hereunder
shall, notwithstanding any judgment in a currency other than U.S. Dollars, be discharged only to
the extent that on the Business Day following receipt by the Purchaser of any sum adjudged to be so
due in such other currency the Purchaser may in accordance with normal banking procedures purchase
U.S. Dollars with such other currency; if the U.S. Dollars so purchased are less than the sum
originally due to the Purchaser in U.S. Dollars, such Seller agrees, as a separate obligation and
notwithstanding any such judgment, to indemnify the Purchaser against such loss, and if the U.S.
Dollars so purchased exceed the sum originally due to the Purchaser in U.S. Dollars, the Purchaser
shall remit to such Seller such excess.


<P align="center" style="font-size: 10pt; display: none">6
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<P align="center" style="font-size: 12pt">&#091;Remainder of page intentionally left blank&#093;



<P align="left" style="font-size: 12pt; text-indent: 8%">IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective
officers thereunto duly authorized, as of the date first above written.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>SELLERS: FERRO CORPORATION <U><B>CORPORATIONBy:</B></U> <U><U><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></U><B>Treasurer</B></U></TD>
</TR>

</TABLE>



<P align="left" style="margin-left:23%; font-size: 12pt">By: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
Treasurer<BR>


<P align="left" style="font-size: 12pt">1000 Lakeside Avenue
<BR>
Cleveland, OH 44114


<P align="left" style="font-size: 12pt">Attention: Secretary
<BR>
Facsimile <U><B>1000 Lakeside AvenueCleveland, OH 44114Attention: SecretaryFacsimile</B></U> No.:
(216)&nbsp;875-7237



<P align="left" style="margin-left:23%; font-size: 12pt">FERRO ELECTRONIC MATERIALS , INC.


<P align="left" style="font-size: 12pt">By: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
<BR>
Treasurer


<P align="left" style="font-size: 12pt">4511 Hyde Park Blvd.
<BR>
Niagra Falls, NY 14305-0067

<DIV align="center">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Attention: Secretary<BR>
Facsimile No.: (216)875-7275 <B>INC.By:</B><BR>
====================================
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR>
<B><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>Treas<BR>
urer</B></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="margin-left:23%; font-size: 12pt"><U><B>1000 Lakeside AvenueCleveland, OH
44114Attention: SecretaryFacsimile No.: (216)
875-7237</B></U>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>PURCHASER: FERRO FINANCE <U><B>CORPORATIONBy:</B></U> <U><U><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></U><B>Treasurer</B></U>
CORPORATION</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 12pt">By: <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
<BR>
Treasurer



<P align="left" style="margin-left:23%; font-size: 12pt">1000 Lakeside Avenue, Suite&nbsp;<U><B>ACleveland, OH
44114Attention: SecretaryFacsimile No.: (</B><U><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></U><B>)
</B><U><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></U></U>


<P align="center" style="font-size: 10pt; display: none">7
<!-- PAGEBREAK -->


<P align="left" style="font-size: 12pt">A
<BR>
Cleveland, OH 44114


<P align="left" style="font-size: 12pt">Attention: Secretary
<BR>
Facsimile No.: (216)&nbsp;875-6147


<P align="center" style="font-size: 12pt">EXHIBIT A



<P align="center" style="font-size: 12pt">CREDIT AND COLLECTION POLICY



<P align="center" style="font-size: 10pt; display: none">8
<!-- PAGEBREAK -->

<P align="center" style="font-size: 12pt">EXHIBIT B



<P align="center" style="font-size: 12pt">LOCK-BOX BANKS



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Bank</U>: National City Bank, P.O. Box 5756, Cleveland, OH 44101-0756</TD>
</TR>

</TABLE>

<DIV align="center">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Lock-Box No.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="3" align="center" valign="top">Lock-Box Account Number
</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Collections Remitted 5831
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2072964</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 12pt">Receivables originated by Ferro Corporation


<P align="left" style="font-size: 12pt">2.&nbsp;Bank: Mellon Bank, N.A., Three Mellon Bank Center, Room&nbsp;156-3502, Pittsburgh, PA 15259
<BR>
&#223; Lock-Box No.&nbsp;Lock-Box Account Number Collections Remitted 40070 013-7040 Receivables originated
by Ferro Electronic


<P align="center" style="font-size: 10pt; display: none">9
<!-- PAGEBREAK -->


<P align="left" style="font-size: 12pt">EXHIBIT C


<P align="center" style="font-size: 12pt">FORM OF<BR>
DEFERRED PURCHASE PRICE NOTE



<P align="right" style="font-size: 12pt">New York, New York<BR>
September&nbsp;28, 2000



<P align="left" style="font-size: 12pt; text-indent: 8%">FOR VALUE RECEIVED, FERRO FINANCE CORPORATION, an Ohio corporation (the &#147;<U>Purchaser</U>&#148;),
hereby promises to pay to &#091;NAME OF SELLER&#093; (the &#147;<U>Seller</U>&#148;) the principal amount of this
Note, determined as described below, together with interest thereon at a rate per annum equal at
all times to 1.50% per annum above the Eurodollar Rate (as defined in the Sale Agreement) for
periods of one month, in each case in lawful money of the United States of America. Capitalized
terms used herein but not defined herein shall have the meanings assigned to such terms in the
Purchase and Contribution Agreement dated as of September&nbsp;28, 2000 among the Seller, &#091;Name of other
Seller&#093; and the Purchaser (such agreement, as it may from time to time be amended, restated or
otherwise modified in accordance with its terms, the &#147;<U>Purchase and Contribution
Agreement</U>&#148;). This Note is the note referred to in the definition of &#147;Deferred Purchase Price&#148;
in the Purchase and Contribution Agreement.


<P align="left" style="font-size: 12pt; text-indent: 8%">The aggregate principal amount of this Note at any time shall be equal to the difference
between (a)&nbsp;the sum of the aggregate principal amount of this Note on the date of the issuance
hereof and each addition to the principal amount of this Note pursuant to the terms of Section&nbsp;2.02
of the Purchase and Contribution Agreement minus (b)&nbsp;the aggregate amount of all payments made in
respect of the principal amount of this Note, in each case, as recorded on the schedule annexed to
and constituting a part of this Note, but failure to so record shall not affect the obligations of
the Purchaser to the Seller.


<P align="left" style="font-size: 12pt; text-indent: 8%">The entire principal amount of this Note shall be due and payable one year and one day after
the Facility Termination Date or such later date as may be agreed in writing by the Seller and the
Purchaser. The principal amount of this Note may, at the option of the Purchaser, be prepaid in
whole at any time or in part from time to time. Interest on this Note shall be paid in arrears on
each Settlement Date, at maturity and thereafter on demand. All payments hereunder shall be made
by wire transfer of immediately available funds to such account of the Seller as the Seller may
designate in writing.


<P align="left" style="font-size: 12pt; text-indent: 8%">Notwithstanding any other provisions contained in this Note, in no event shall the rate of
interest payable by the Purchaser under this Note exceed the highest rate of interest permissible
under applicable law.


<P align="left" style="font-size: 12pt; text-indent: 8%">The obligations of the Purchaser under this Deferred Purchase Price Note are subordinated in
right of payment, to the extent set forth in Section&nbsp;2.03(c) of the Purchase and Contribution
Agreement, to the prior payment in full of all Capital, Yield, Fees and other obligations of the
Purchaser under the Sale Agreement.


<P align="left" style="font-size: 12pt; text-indent: 8%">Notwithstanding any provision to the contrary in this Deferred Purchase Price Note or
elsewhere, other than with respect to payments specifically permitted by Section&nbsp;2.03(c) of the
Purchase and Contribution Agreement, no demand for any payment may be made hereunder, no payment
shall be due with respect hereto and the Seller shall have no claim for any payment hereunder prior
to the occurrence of the Facility Termination Date and then only on the date, if ever, when all
Capital, Yield, Fees and other obligations owing under the Sale Agreement shall have been paid in
full.


<P align="left" style="font-size: 12pt; text-indent: 8%">In the event that, notwithstanding the foregoing provision limiting such payment, the Seller
shall receive any payment or distribution on this Deferred Purchase Price Note which is not
specifically permitted by Section&nbsp;2.03(c) of the Purchase and Contribution Agreement, such payment
shall be received and held in trust by the Seller for the benefit of the entities to whom the
obligations are owed under the Sale Agreement and shall be promptly paid over to such entities.


<P align="left" style="font-size: 12pt; text-indent: 8%">The Purchaser hereby waives diligence, presentment, demand, protest and notice of any kind
whatsoever.


<P align="left" style="font-size: 12pt; text-indent: 8%">Neither this Note, nor any right of the Seller to receive payments hereunder, shall, without
the prior written consent of the Purchaser and (so long as the Sale Agreement remains in effect or
any amounts remain outstanding thereunder) the Agent under the Sale Agreement, be assigned,
transferred, exchanged, pledged, hypothecated, participated or otherwise conveyed.


<P align="left" style="font-size: 12pt; text-indent: 8%">THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.



<P align="left" style="margin-left:19%; font-size: 12pt">FERRO FINANCE <U><B>CORPORATIONBy</B></U> CORPORATION


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>By: <U> </U>Title: Treasurer</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt; display: none">10
<!-- PAGEBREAK -->

<P align="center" style="font-size: 12pt"><FONT style="font-size: 10pt">SCHEDULE TO DEFERRED PURCHASE PRICE NOTE</FONT>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Addition to</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Amount of Principal</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Unpaid Principal</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" colspan="3" style="border-bottom: 1px solid #000000">Date</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Principal Amount</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Paid or Prepaid</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Balance</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Notation Made By</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
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</TABLE>
</DIV>


<P align="center" style="font-size: 10pt; display: none">11
<!-- PAGEBREAK -->

<P align="center" style="font-size: 10pt"><FONT style="font-size: 12pt">EXHIBIT D</FONT>



<P align="center" style="font-size: 12pt">FORM OF PURCHASER LOAN NOTE



<P align="right" style="font-size: 12pt">New York, New York<BR>
$______________<U> </U>, 2000



<P align="left" style="font-size: 12pt; text-indent: 8%">FOR VALUE RECEIVED,&#091;NAME OF SELLER&#093;, a &#091;State of incorporation&#093; corporation (the
&#147;<U>Company</U>&#148;), hereby promises to pay to FERRO FINANCE CORPORATION (the &#147;<U>Lender</U>&#148;), no
later than twelve (12)&nbsp;months from the date hereof or on demand if sooner made, the principal sum
of <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>Dollars (or such lesser amount as shall equal the aggregate unpaid principal amount
of the Purchaser Loans made by the Lender to the Company under the Purchase and Contribution
Agreement referred to below), and to pay on each Settlement Date interest on the unpaid principal
amount of the Purchaser Loans at a rate per annum equal at all times to 1% per annum above the
Eurodollar Rate (as defined in the Sale Agreement) for periods of one month, in each case in lawful
money of the United States of America and in immediately available funds.


<P align="left" style="font-size: 12pt; text-indent: 8%">The date and amount of each Purchaser Loan made by the Lender to the Company from the date
hereof until the repayment of all sums due hereunder, and each payment made on account of the
principal thereof, shall be recorded by the Lender on its books and, prior to any transfer of this
Note, endorsed by the Lender on the schedule attached hereto or any continuation thereof.


<P align="left" style="font-size: 12pt; text-indent: 8%">This Note is one of the Purchaser Loan Notes referred to in the Purchase and Contribution
Agreement (as amended, restated or otherwise modified from time to time, the &#147;<U>Purchase and
Contribution Agreement</U>&#148;) dated as of September&nbsp;28, 2000 among the Company, &#091;Name of other
Seller&#093; and the Lender, and evidences Purchaser Loans made by the Lender thereunder. Capitalized
terms used in this Note and not defined herein have the respective meanings assigned to them in the
Purchase and Contribution Agreement.


<P align="left" style="font-size: 12pt; text-indent: 8%">The principal amount of this Note may, at the option of the Company, be prepaid in whole at
any time or in part from time to time.


<P align="left" style="font-size: 12pt; text-indent: 8%">Notwithstanding any other provisions contained in this Note, in no event shall the rate of
interest payable by the Company under this Note exceed the highest rate of interest permissible
under applicable law.


<P align="left" style="font-size: 12pt; text-indent: 8%">The Company hereby waives diligence, presentment, demand, protest and notice of any kind
whatsoever with respect to this Note.


<P align="left" style="font-size: 12pt; text-indent: 8%">In the event the Lender shall refer this Note to an attorney for collection, the Company
agrees to pay, in addition to unpaid principal and interest, all the costs and expenses incurred in
attempting or effecting collection hereunder, including reasonable attorney&#146;s fees, whether or not
suit is instituted.


<P align="left" style="font-size: 12pt; text-indent: 8%">THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.



<P align="left" style="margin-left:23%; font-size: 12pt">&#091;NAME OF SELLER&#093;


<P align="left" style="font-size: 12pt">By:<U><U><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></U><B>Name</B></U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
<BR>
Name:Title:
<BR>


<P align="center" style="font-size: 10pt; display: none">12
<!-- PAGEBREAK -->

<P align="center" style="font-size: 12pt"><FONT style="font-size: 10pt">SCHEDULE TO PURCHASER LOAN NOTE</FONT>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="6%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="19%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 10pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amount of Purchaser<BR>
Loan
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amount of Principal<BR>
Paid or Prepaid
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Unpaid Principal<BR>
Balance
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR>
Notation Made By</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt; display: none">13
<!-- PAGEBREAK -->


<P align="center" style="font-size: 10pt"></FONT><FONT style="font-size: 12pt"><U><B>EXHIBIT E-1</B></U></FONT>



<P align="left" style="font-size: 12pt"><U><B>Approved OECD Countries</B></U>



<P align="left" style="margin-left:4%; font-size: 12pt"><U><B>1.</B></U> <U><B>United Kingdom</B></U>
<BR>
<U><B>2.</B></U> <U><B>Germany </B></U>
<BR>
<U><B>3.</B></U> <U><B>Netherlands</B></U>
<BR>
<U><B>4.</B></U> <U><B>Ireland</B></U>
<BR>
<U><B>5.</B></U> <U><B>Belgium</B></U>
<BR>
<U><B>6.</B></U> <U><B>France</B></U>
<BR>
<U><B>7.</B></U> <U><B>Italy</B></U>
<BR>
<U><B>8.</B></U> <U><B>Australia</B></U>
<BR>
<U><B>9.</B></U> <U><B>Japan</B></U>
<BR>
<U><B>10.</B></U> <U><B>Austria</B></U>
<BR>
<U><B>11.</B></U> <U><B>Switzerland</B></U>
<BR>
<U><B>12.</B></U> <U><B>Sweden</B></U>
<BR>
<U><B>13.</B></U> <U><B>Spain</B></U>
<BR>
<U><B>14.</B></U> <U><B>New Zealand</B></U>
<BR>
<U><B>15.</B></U> <U><B>Norway</B></U>
<BR>
<U><B>16.</B></U> <U><B>Denmark</B></U>


<P align="center" style="font-size: 10pt; display: none">14
<!-- PAGEBREAK -->

<P align="center" style="font-size: 12pt"><U><B>EXHIBIT E-2</B></U>



<P align="left" style="font-size: 12pt"><U><B>Other Approved Jurisdictions</B></U>



<P align="left" style="margin-left:4%; font-size: 12pt"><U><B>1.</B></U> <U><B>South Korea</B></U>
<BR>
<U><B>2.</B></U> <U><B>Mexico</B></U>
<BR>
<U><B>3.</B></U> <U><B>Hungary </B></U>
<BR>
<U><B>4.</B></U> <U><B>Czech Republic</B></U>
<BR>
<U><B>5.</B></U> <U><B>Taiwan</B></U>
<BR>
<U><B>6.</B></U> <U><B>Israel</B></U>
<BR>
<U><B>7.</B></U> <U><B>Hong Kong</B></U>
<BR>
<U><B>8.</B></U> <U><B>Singapore</B></U>
<BR>
<U><B>9.</B></U> <U><B>Malaysia</B></U>
<BR>
<U><B>10.</B></U> <U><B>Slovenia</B></U>


<P align="center" style="font-size: 10pt; display: none">15
<!-- PAGEBREAK -->


<P align="center" style="font-size: 12pt"><U><B>EXHIBIT F</B></U>



<P align="center" style="font-size: 12pt"><U><B>SELLER UCC INFORMATION</B></U>



<P align="left" style="font-size: 12pt"><U><B>Name: Ferro Corporation</B></U>


<P align="left" style="font-size: 12pt"><U><B>Address: </B></U> <U><B>1000 Lakeside Avenue</B></U>


<P align="left" style="font-size: 12pt; text-indent: 8%"><U><B>Cleveland, OH 44114</B></U>


<P align="left" style="font-size: 12pt"><U><B>Jurisdiction of Organization: Ohio</B></U>


<P align="left" style="font-size: 12pt"><U><B>UCC Filing Office: Ohio Secretary of State</B></U>


<P align="left" style="font-size: 12pt"><U><B>Name: Ferro Electronic Materials Inc.</B></U>


<P align="left" style="font-size: 12pt"><U><B>Address: </B></U> <U><B>1000 Lakeside Avenue</B></U>


<P align="left" style="font-size: 12pt; text-indent: 8%"><U><B>Cleveland, OH 44114</B></U>


<P align="left" style="font-size: 12pt"><U><B>Jurisdiction of Organization: Delaware</B></U>


<P align="left" style="font-size: 12pt"><U><B>UCC Filing Office: Delaware Secretary of State</B></U>
<BR>


<P align="center" style="font-size: 10pt; display: none">16
<!-- PAGEBREAK -->

<P align="center" style="font-size: 12pt"><U><B>EXHIBIT G</B></U>



<P align="center" style="font-size: 12pt"><U><B>FORM OF FERRO ELECTRONIC ORDER AND ACKNOWLEDGMENT</B></U>



<P align="center" style="font-size: 10pt; display: none">17
<!-- PAGEBREAK -->


<P align="center" style="font-size: 12pt"><U><B>&#091;See attached.&#093;</B></U>



<P align="center" style="font-size: 12pt">&#151;&#151; COMPARISON OF HEADERS &#151;



<P align="center" style="font-size: 12pt">-HEADER 1-<BR>
Page



<P align="center" style="font-size: 12pt">&#151;&#151; COMPARISON OF FOOTERS &#151;



<P align="center" style="font-size: 12pt">-FOOTER 1-




1



<P align="center" style="font-size: 10pt; display: none">18
<!-- PAGEBREAK -->


<P align="center" style="font-size: 12pt">-FOOTER 2-<BR>
DOC #<BR>
This redlined draft, generated by CompareRite &#153; &#151; The Instant Redliner, shows the<BR>
differences between -<BR>
original document : C:\Temp\KDocs\31284213_V10.WPD<BR>
and revised document: C:\Temp\KDocs\31289942_V14.WPD



<P align="center" style="font-size: 12pt">CompareRite found 138 change(s) in the text<BR>
CompareRite found 1 change(s) in the notes



<P align="center" style="font-size: 12pt">Deletions appear as Strikethrough text<BR>
Additions appear as Bold&#043;Dbl Underline text



<P align="center" style="font-size: 10pt; display: none">19
<!-- PAGEBREAK -->


<P align="center" style="font-size: 12pt">EXHIBIT F



<P align="center" style="font-size: 12pt">SELLER UCC INFORMATION


<DIV align="center">
<TABLE style="font-size: 12pt" cellspacing="0" border="0" cellpadding="0" width="95%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="23%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Name:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Ferro Corporation<BR></TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Address:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">1000 Lakeside Avenue</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Cleveland, OH  44114<BR></TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Jurisdiction of Organization:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Ohio<BR></TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">UCC Filing Office:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Ohio Secretary of State<BR></TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Name:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Ferro Electronic Materials Inc.<BR></TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Address:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center">1000 Lakeside Avenue</TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Cleveland, OH  44114<BR></TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Jurisdiction of Organization:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Delaware<BR></TD>
</TR>
<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">UCC Filing Office:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="left">Delaware Secretary of State<BR></TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt; display: none">20
<!-- PAGEBREAK -->


<P align="center" style="font-size: 12pt">EXHIBIT G



<P align="center" style="font-size: 12pt">FORM OF FERRO ELECTRONIC ORDER ACKNOWLEDGMENT



<P align="center" style="font-size: 10pt; display: none">21
<!-- PAGEBREAK -->


<P align="center" style="font-size: 12pt">CONFIRMATION OF UNDERTAKING AGREEMENT



<P align="center" style="font-size: 12pt">June&nbsp;29, 2006



<P align="left" style="font-size: 12pt; text-indent: 8%">The undersigned, as undertaking party under the Undertaking Agreement, dated September&nbsp;28,
2000 (the &#147;Undertaking Agreement&#148;), in favor of Ferro Finance Corporation, hereby consents to the
foregoing Amendment to Purchase and Contribution Agreement dated as of June&nbsp;29, 2006 (the
&#147;Amendment Agreement&#148;) to the Purchase and Contribution Agreement dated as of September&nbsp;28, 2000,
and hereby confirms and agrees that, notwithstanding the effectiveness of such Amendment Agreement,
the Undertaking Agreement heretofore executed and delivered by it is, and shall continue to be, in
full force and effect and shall apply to the Purchase and Contribution Agreement, as heretofore
amended, including as amended by the Amendment Agreement, and the Undertaking Agreement is hereby
ratified and confirmed.



<P align="left" style="margin-left:27%; font-size: 12pt">FERRO CORPORATION



<P align="left" style="margin-left:27%; font-size: 12pt">By:<BR>
Rhonda S. Ferguson<BR>
Assistant Secretary<BR>



<P align="center" style="font-size: 10pt; display: none">22


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