AK Steel Holding (AKS)

SECTION 7. COLLATERAL

7.1. Grant of Security Interest. To secure the prompt payment and performance of all Obligations, Borrower hereby grants to Agent, for the benefit of Secured Parties, a continuing security interest in and Lien upon all of the following Property of Borrower, whether now owned or hereafter acquired, and wherever located:

(a) all Inventory;

(b) all Receivables;

(c) all contracts for sale, lease, exchange or other disposition of Inventory, whether or not performed and whether or not subject to termination upon a contingency or at the option of any party thereto;

(d) all Documents covering Inventory;

-43-

(e) each Deposit Account (excluding the Concentration Account) in which proceeds of Inventory or Receivables or other Collateral are deposited;

(f) all trademarks, servicemarks, trade names and similar intangible property owned or used by the Borrower in its business, together with the goodwill of the business symbolized thereby and all rights relating thereto; provided that the rights of the Agent, on behalf of the Lenders, shall be limited to the use of such Collateral to manufacture, process and sell the Inventory;

(g) all books and records (including customer lists, credit files, computer programs, printouts and other computer materials and records) of the Borrower pertaining to any of the Collateral; and

(h) all other proceeds of the Collateral described in the foregoing clauses (a) through (g).