EXHIBIT 10.2

Execution Version

SECURITY AGREEMENT

      THIS SECURITY AGREEMENT dated as of July 30, 2004, among ROCKWOOD
SPECIALTIES INTERNATIONAL, INC., a Delaware corporation ("Holdings"), ROCKWOOD
SPECIALTIES GROUP, INC., a Delaware corporation (the "US Borrower"), each of the
Subsidiaries of the US Borrower listed on Annex A hereto (each such undersigned
Subsidiary being a "Subsidiary Grantor" and collectively the "Subsidiary
Grantors"; the Subsidiary Grantors, Holdings and the US Borrower are referred to
collectively as the "Grantors") and CREDIT SUISSE FIRST BOSTON, acting through
its Cayman Islands Branch, as administrative agent (in such capacity, the
"Administrative Agent") for the lenders ("Lenders") from time to time party to
the Credit Agreement dated as of July 30, 2004 (as the same may be amended,
supplemented or otherwise modified from time to time, the "Credit Agreement"),
among the US Borrower, Rockwood Specialties Limited, a company incorporated
under the laws of England and Wales (the "UK Borrower" and, together with the US
Borrower, the "Borrowers"), Holdings, the Lenders, the Administrative Agent, and
UBS Securities LLC and Goldman Sachs Credit Partners L.P., as co-syndication
agents (in such capacity, the "Co-Syndication Agents") for the Lenders.

W I T N E S S E T H:

        WHEREAS, (a) pursuant to the Credit Agreement, the Lenders have
severally agreed to make Loans to the Borrowers and the Letter of Credit Issuer
has agreed to issue Letters of Credit for the account of the Borrowers
(collectively, the "Extensions of Credit") upon the terms and subject to the
conditions set forth therein and (b) one or more Lenders or Affiliates of
Lenders may from time to time enter into Hedge Agreements with the Borrowers or
any of their Restricted Subsidiaries;

        WHEREAS, pursuant to the Guarantee (the "Guarantee") dated as of the
date hereof, Holdings and each Subsidiary Grantor party thereto has
unconditionally and irrevocably guaranteed, as primary obligor and not merely as
surety, to the Administrative Agent, for the ratable benefit of the Secured
Parties the prompt and complete payment and performance when due (whether at the
stated maturity, by acceleration or otherwise) of the Obligations;

        WHEREAS, each Subsidiary Grantor is a Domestic Subsidiary of the US
Borrower;

        WHEREAS, the proceeds of the Extensions of Credit will be used in part
to enable the Borrowers to make valuable transfers to the Subsidiary Grantors in
connection with the operation of their respective businesses;

        WHEREAS, each Grantor acknowledges that it will derive substantial
direct and indirect benefit from the making of the Extensions of Credit; and

        WHEREAS, it is a condition precedent to the obligation of the Lenders
and the Letter of Credit Issuer to make their respective Extensions of Credit to
the Borrowers under the Credit Agreement that the Grantors shall have executed
and delivered this Security Agreement to the Administrative Agent for the
ratable benefit of the Secured Parties;

        NOW, THEREFORE, in consideration of the premises and to induce the
Administrative Agent, the Co-Syndication Agents, the Lenders and the Letter of
Credit Issuer to enter into the Credit Agreement and to induce the Lenders and
the Letter of Credit Issuer to make their respective Extensions of Credit to the
Borrowers under the Credit Agreement and to induce one or more Lenders or
Affiliates of Lenders to enter into Hedge Agreements with the Borrowers and/or
the Restricted

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Subsidiaries, the Grantors hereby agree with the Administrative Agent, for the
ratable benefit of the Secured Parties, as follows:

        1.    Defined Terms.    

        (a)    Unless otherwise defined herein, terms defined in the Credit
Agreement and used herein shall have the meanings given to them in the Credit
Agreement and all terms defined in the Uniform Commercial Code from time to time
in effect in the State of New York (the "NY UCC") and not defined herein shall
have the meanings specified therein; the term "instrument" shall have the
meaning specified in Article 9 of the NY UCC.

        (b)    The following terms shall have the following meanings:

        "Administrative Agent" shall have the meaning assigned to such term in
the recitals hereto.

        "Closing Time" shall mean 24:00 (German time) on the Closing Date.

        "Collateral" shall have the meaning assigned to such term in Section 2.

        "Collateral Account" shall mean any collateral account established by
the Administrative Agent as provided in Section 5.1.

        "Copyright License" means any written agreement, now or hereafter in
effect, granting any right to any third party under any copyright now or
hereafter owned by any Grantor (including all Copyrights) or that any Grantor
otherwise has the right to license, or granting any right to any Grantor under
any copyright now or hereafter owned by any third party, and all rights of any
Grantor under any such agreement, including those listed on Schedule 1.

        "copyrights" means, with respect to any Person, all of the following now
owned or hereafter acquired by such Person: (i) all copyright rights in any work
subject to the copyright laws of the United States or any other country, whether
as author, assignee, transferee or otherwise, and (ii) all registrations and
applications for registration of any such copyright in the United States or any
other country, including registrations, recordings, supplemental registrations
and pending applications for registration in the United States Copyright Office.

        "Copyrights" means all copyrights now owned or hereafter acquired by any
Grantor, including those listed on Schedule 2.

        "Equipment" shall mean any "equipment," as such term is defined in the
NY UCC, now or hereafter owned by any Grantor and, in any event, shall include
all machinery, equipment, furnishings, movable trade fixtures and vehicles now
or hereafter owned by any Grantor and any and all additions, substitutions and
replacements of any of the foregoing, wherever located, together with all
attachments, components, parts, equipment and accessories installed thereon or
affixed thereto; but excluding Equipment to the extent it is subject to a
Permitted Lien and the terms of the Indebtedness securing such Permitted Lien
prohibit assignment of, or granting of a security interest in, such Grantor's
rights and interests therein, provided, that immediately upon the repayment of
all Indebtedness secured by such Permitted Lien, such Grantor shall be deemed to
have granted a Security Interest in all the rights and interests with respect to
such Equipment.

        "General Intangibles" shall mean all "general intangibles" as such term
is defined in Section 9-102 of the NY UCC and, in any event, including with
respect to any Grantor, all contracts, agreements, instruments and indentures in
any form, and portions thereof, to which such Grantor is a party or under which
such Grantor has any right, title or interest or to which such Grantor or any
property of such Grantor is subject, as the same may from time to time be
amended, supplemented or otherwise modified, including (a) all rights of such
Grantor to receive moneys due and to become due to it thereunder or in
connection therewith, (b) all rights of such Grantor to receive proceeds of any
insurance, indemnity, warranty or guarantee with respect thereto, (c) all claims
of such Grantor for

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damages arising out of any breach thereof or default thereunder and (d) all
rights of such Grantor to terminate, amend, supplement, modify or exercise
rights or options thereunder, to perform thereunder and to compel performance
and otherwise exercise all remedies thereunder, in each case to the extent the
grant by such Grantor of a Security Interest pursuant to this Security Agreement
in its right, title and interest in any such contract, agreement, instrument or
indenture is not prohibited by such contract, agreement, instrument or indenture
without the consent of any other party thereto, would not give any other party
to any such contract, agreement, instrument or indenture the right to terminate
its obligations thereunder or is permitted with consent if all necessary
consents to such grant of a Security Interest have been obtained from the other
parties thereto (it being understood that the foregoing shall not be deemed to
obligate such Grantor to obtain such consents), provided, that the foregoing
limitation shall not affect, limit, restrict or impair the grant by such Grantor
of a Security Interest pursuant to this Security Agreement in any Account or any
money or other amounts due or to become due under any such contract, agreement,
instrument or indenture.

        "Guarantors" shall mean each Grantor other than the US Borrower.

        "Grantor" shall have the meaning assigned to such term in the recitals
hereto.

        "Intellectual Property" shall mean all rights, priorities and privileges
relating to intellectual property, whether arising under United States,
multinational or foreign laws or otherwise now owned or hereafter acquired,
including (a) all information used or useful arising from the business including
all goodwill, trade secrets, trade secret rights, know-how, customer lists,
processes of production, ideas, confidential business information, techniques,
processes, formulas and all other proprietary information, and (b) the
Copyrights, the Patents, the Trademarks and the Licenses and all rights to sue
at law or in equity for any infringement or other impairment thereof, including
the right to receive all proceeds and damages therefrom, in each case to the
extent the grant by such Grantor of a Security Interest pursuant to this
Security Agreement in any such rights, priorities and privileges relating to
intellectual property is not prohibited by any contract, agreement or other
instrument governing such rights, priorities and privileges without the consent
of any other party thereto, would not give any other party to any such contract,
agreement or other instrument the right to terminate its obligations thereunder
or is permitted with consent if all necessary consents to such grant of a
Security Interest have been obtained from the relevant parties (it being
understood that the foregoing shall not be deemed to obligate such Grantor to
obtain such consents).

        "Investment Property" shall mean all Securities (whether certificated or
uncertificated), Security Entitlements, Securities Accounts, Commodity Contracts
and Commodity Accounts of any Grantor, whether now or hereafter acquired by any
Grantor, in each case to the extent the grant by a Grantor of a Security
Interest therein pursuant to this Security Agreement in its right, title and
interest in any such Investment Property is not prohibited by any contract,
agreement, instrument or indenture governing such Investment Property without
the consent of any other party thereto, would not give any other party to any
such contract, agreement, instrument or indenture the right to terminate its
obligations thereunder or is permitted with consent if all necessary consents to
such grant of a Security Interest have been obtained from the other parties
thereto (it being understood that the foregoing shall not be deemed to obligate
such Grantor to obtain such consents).

        "License" shall mean any Patent License, Trademark License, Copyright
License or other license or sublicense to which any Grantor is a party.

        "NY UCC" has the meaning assigned to such term in Section 1(a).

        "Obligations" shall mean the collective reference to (i) the due and
punctual payment of (x) the principal of and premium, if any, and interest at
the applicable rate provided in the Credit Agreement (including interest
accruing during the pendency of any bankruptcy, insolvency, receivership or
other similar proceeding, regardless of whether allowed or allowable in such
proceeding) on the Loans, when

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and as due, whether at maturity, by acceleration, upon one or more dates set for
prepayment or otherwise, (y) each payment required to be made by the Borrowers
under the Credit Agreement in respect of any Letter of Credit, when and as due,
including payments in respect of reimbursement of disbursements, interest
thereon and obligations to provide cash collateral, and (z) all other monetary
obligations, including fees, costs, expenses and indemnities, whether primary,
secondary, direct, contingent, fixed or otherwise (including monetary
obligations incurred during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding), of the Borrowers or any other Credit Party to any
of the Secured Parties under the Credit Agreement and the other Credit
Documents, (ii) the due and punctual performance of all covenants, agreements,
obligations and liabilities of the Borrowers under or pursuant to the Credit
Agreement and the other Credit Documents, (iii) the due and punctual payment and
performance of all the covenants, agreements, obligations and liabilities of
each Credit Party under or pursuant to this Security Agreement or the other
Credit Documents, (iv) the due and punctual payment and performance of all
obligations of each Borrower or Restricted Subsidiary under each Hedge Agreement
that (x) is in effect on the Closing Date with a counterparty that is a Lender
or an Affiliate of a Lender as of the Closing Date or (y) is entered into after
the Closing Date with any counterparty that is a Lender or an Affiliate of a
Lender at the time such Hedge Agreement is entered into and (v) the due and
punctual payment and performance of all obligations in respect of overdrafts and
related liabilities owed to the Administrative Agent or its Affiliates arising
from or in connection with treasury, depositary or cash management services or
in connection with any automated clearinghouse transfer of funds.

        "Patent License" means any written agreement, now or hereafter in
effect, granting to any third party any right to make, use or sell any invention
on which a patent, now or hereafter owned by any Grantor (including all Patents)
or that any Grantor otherwise has the right to license, is in existence, or
granting to any Grantor any right to make, use or sell any invention on which a
patent, now or hereafter owned by any third party, is in existence, and all
rights of any Grantor under any such agreement, including those listed on
Schedule 3.

        "patents" means, with respect to any Person, all of the following now
owned or hereafter acquired by such Person: (a) all letters patent of the United
States or the equivalent thereof in any other country, all registrations and
recordings thereof, and all applications for letters patent of the United States
or the equivalent thereof in any other country, including registrations,
recordings and pending applications in the United States Patent and Trademark
Office or any similar offices in any other country, and (b) all reissues,
continuations, divisions, continuations-in-part, renewals or extensions thereof,
and the inventions disclosed or claimed therein, including the right to make,
use and/or sell the inventions disclosed or claimed therein.

        "Patents" means all patents now owned or hereafter acquired by any
Grantor, including those listed on Schedule 4.

        "Proceeds" shall mean all "proceeds" as such term is defined in
Section 9-102 of the NY UCC and, in any event, shall include with respect to any
Grantor, any consideration received from the sale, exchange, license, lease or
other disposition of any asset or property that constitutes Collateral, any
value received as a consequence of the possession of any Collateral and any
payment received from any insurer or other person or entity as a result of the
destruction, loss, theft, damage or other involuntary conversion of whatever
nature of any asset or property that constitutes Collateral, and shall include
(a) all cash and negotiable instruments received by or held on behalf of the
Administrative Agent, (b) any claim of any Grantor against any third party for
(and the right to sue and recover for and the rights to damages or profits due
or accrued arising out of or in connection with) (i) past, present or future
infringement of any Patent now or hereafter owned by any Grantor, or licensed
under a Patent License, (ii) past, present or future infringement or dilution of
any Trademark now or hereafter owned by any Grantor or licensed under a
Trademark License or injury to the goodwill associated with or

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symbolized by any Trademark now or hereafter owned by any Grantor, (iii) past,
present or future breach of any License and (iv) past, present or future
infringement of any Copyright now or hereafter owned by any Grantor or licensed
under a Copyright License and (c) any and all other amounts from time to time
paid or payable under or in connection with any of the Collateral.

        "Secured Parties" shall mean (i) the Lenders, (ii) the Letter of Credit
Issuer, (iii) the Swingline Lender, (iv) the Administrative Agent, (v) the
Co-Syndication Agents, (vi) each counterparty to a Hedge Agreement the
obligations under which constitute Obligations, (vii) the beneficiaries of each
indemnification obligation undertaken by any Credit Party under any Credit
Document and (viii) any successors, indorsees, transferees and assigns of each
of the foregoing.

        "Security Agreement" shall mean this Security Agreement, as the same may
be amended, supplemented or otherwise modified from time to time.

        "Security Interest" shall have the meaning assigned to such term in
Section 2.

        "Trademark License" means any written agreement, now or hereafter in
effect, granting to any third party any right to use any trademark now or
hereafter owned by any Grantor (including any Trademark) or that any Grantor
otherwise has the right to license, or granting to any Grantor any right to use
any trademark now or hereafter owned by any third party, and all rights of any
Grantor under any such agreement, including those listed on Schedule 5.

        "trademarks" means, with respect to any Person, all of the following now
owned or hereafter acquired by such Person: (i) all trademarks, service marks,
trade names, corporate names, company names, business names, fictitious business
names, trade styles, trade dress, logos, other source or business identifiers,
designs and general intangibles of like nature, now existing or hereafter
adopted or acquired, all registrations and recordings thereof (if any), and all
registration and recording applications filed in connection therewith, including
registrations and registration applications in the United States Patent and
Trademark Office or any similar offices in any State of the United States or any
other country or any political subdivision thereof, and all extensions or
renewals thereof, (ii) all goodwill associated therewith or symbolized thereby
and (iii) all other assets, rights and interests that uniquely reflect or embody
such goodwill.

        "Trademarks" means all trademarks now owned or hereafter acquired by any
Grantor, including those listed on Schedule 6 hereto.

        (c)    The words "hereof", "herein", "hereto" and "hereunder" and words
of similar import when used in this Security Agreement shall refer to this
Security Agreement as a whole and not to any particular provision of this
Security Agreement, and Section and Schedule references are to this Security
Agreement unless otherwise specified. The words "include", "includes" and
"including" shall be deemed to be followed by the phrase "without limitation".

        (d)    The meanings given to terms defined herein shall be equally
applicable to both the singular and plural forms of such terms.

        (e)    Where the context requires, terms relating to the Collateral or
any part thereof, when used in relation to a Grantor, shall refer to such
Grantor's Collateral or the relevant part thereof.

        (f)    References to "Lenders" in this Security Agreement shall be
deemed to include Affiliates of Lenders that may from time to time enter into
Hedge Agreements with the Borrowers.

        2.    Grant of Security Interest.    

        (a)    Each Grantor hereby bargains, sells, conveys, assigns, sets over,
mortgages, pledges, hypothecates and transfers to the Administrative Agent, and
hereby grants to the Administrative Agent, for the ratable benefit of the
Secured Parties, a security interest, which security interest shall attach
immediately upon the Closing Time (the "Security Interest"), in all of the
following property now owned

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or hereafter acquired by such Grantor or in which such Grantor now has or at any
time in future may acquire any right, title or interest (collectively, the
"Collateral"), as collateral security for the prompt and complete payment and
performance when due (whether at the stated maturity, by acceleration or
otherwise) of the Obligations:

          (i)  all Accounts;

         (ii)  all Equipment;

        (iii)  all General Intangibles;

        (iv)  all Intellectual Property;

         (v)  all Inventory;

        (vi)  all cash and cash accounts;

       (vii)  all Investment Property;

      (viii)  all books and records pertaining to the Collateral; and

        (ix)  to the extent not otherwise included, all Proceeds and products of
any and all of the foregoing.

        (b)    Each Grantor hereby irrevocably authorizes the Administrative
Agent at any time and from time to time to file in any relevant jurisdiction any
initial financing statements with respect to the Collateral or any part thereof
and amendments thereto that contain the information required by Article 9 of the
Uniform Commercial Code of each applicable jurisdiction for the filing of any
financing statement or amendment, including whether such Grantor is an
organization, the type of organization and any organizational identification
number issued to such Grantor. Such financing statements may describe the
Collateral as "all assets" or "all property" or such other description as the
Administrative Agent determines in its sole discretion. Each Grantor agrees to
provide such information to the Administrative Agent promptly upon request.

        Each Grantor also ratifies its authorization for the Administrative
Agent to file in any relevant jurisdiction any initial financing statements or
amendments thereto if filed prior to the date hereof.

        The Administrative Agent is further authorized to file with the United
States Patent and Trademark Office or United States Copyright Office (or any
successor office or any similar office in any other country) such documents as
may be necessary or advisable for the purpose of perfecting, confirming,
continuing, enforcing or protecting the Security Interest granted by each
Grantor, without the signature of any Grantor, and naming any Grantor or the
Grantors as debtors and the Administrative Agent as secured party.

        The Security Interests are granted as security only and shall not
subject the Administrative Agent or any other Secured Party to, or in any way
alter or modify, any obligation or liability of any Grantor with respect to or
arising out of the Collateral.

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        3.    Representations And Warranties.    

        Each Grantor hereby represents and warrants to the Administrative Agent
and each Secured Party that:

        3.1.    Title; No Other Liens.    Except for the Security Interest
granted to the Administrative Agent for the ratable benefit of the Secured
Parties pursuant to this Security Agreement, the Liens permitted by the Credit
Agreement and any Liens securing Indebtedness which is no longer outstanding or
any Liens with respect to commitments to lend which have been terminated, such
Grantor owns each item of the Collateral free and clear of any and all Liens or
claims of others. No security agreement, financing statement or other public
notice with respect to all or any part of the Collateral that evidences a Lien
securing any material Indebtedness is on file or of record in any public office,
except such as have been filed in favor of the Administrative Agent, for the
ratable benefit of the Secured Parties, pursuant to this Security Agreement or
are permitted by the Credit Agreement.

        3.2.    Perfected First Priority Liens.    (a)    Subject to the
limitations set forth in clause (b) of this Section 3.2, the Security Interests
granted pursuant to this Security Agreement (i) will constitute valid perfected
Security Interests in the Collateral in favor of the Administrative Agent, for
the ratable benefit of the Secured Parties, as collateral security for the
Obligations, upon (A) completion of all filings, registrations, recordings and
other actions specified in Section 6 of the Perfection Certificate (as such
information is updated pursuant to Section 9.1(d) of the Credit Agreement) to
the extent that a Security Interest may be perfected by the filing of any UCC
financing statement, (B) in the case of Equipment that is covered by a
certificate of title, the filing with the registrar of motor vehicles or other
appropriate authority in the applicable jurisdiction (as specified in the
Perfection Certificate (as such information is updated pursuant to
Section 9.1(d) of the Credit Agreement)) of an application requesting the
notation of the Security Interest created hereunder on such certificate of title
and (C) completion of the filing, registration and recording of a fully executed
agreement in the form hereof (or a supplement hereto) and containing a
description of all Collateral constituting Intellectual Property in the United
Stated Patent and Trademark Office within the three-month period (commencing as
of the date hereof) or, in the case of Collateral constituting Intellectual
Property acquired after the date hereof, thereafter pursuant to 35 USC §261 and
15 USC §1060 and the regulations thereunder with respect to United States
Patents and United States registered Trademarks and in the United States
Copyright Office within the one-month period (commencing as of the date hereof)
or, in the case of Collateral constituting Intellectual Property acquired after
the date hereof, thereafter with respect to United States registered Copyrights
pursuant to 17 USC §205 and the regulations thereunder and otherwise as may be
required pursuant to the laws of any other necessary jurisdiction to the extent
that a security interest may be perfected by such filings, registrations and
recordings, and (ii) are prior to all other Liens on the Collateral other than
Liens permitted pursuant to Section 10.2 of the Credit Agreement.

        (b)    Notwithstanding anything to the contrary herein, no Grantor shall
be required to perfect the Security Interests granted by this Security Agreement
(including Security Interests in cash, cash accounts and Investment Property) by
any means other than by (i) filings pursuant to the Uniform Commercial Codes of
the relevant State(s), (ii) filings with the registrars of motor vehicles or
other appropriate authorities in the relevant jurisdictions, (iii) filings
approved by United States government offices with respect to Intellectual
Property or (iv) when applicable, possession by the Administrative Agent in the
United States. No Grantor shall be required to complete any filings or other
action with respect to the perfection of Security Interests in any jurisdiction
outside the United States.

        (c)    It is understood and agreed that the Security Interests in cash,
cash accounts and Permitted Investments created hereunder shall not prevent the
Grantors from using such assets in the ordinary course of their respective
businesses.

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        4.    Covenants.    

        Each Grantor hereby covenants and agrees with the Administrative Agent
and the Secured Parties that, from and after the date of this Security Agreement
until the Obligations under the Credit Documents are paid in full, the
Commitments are terminated and no Letter of Credit remains outstanding:

        4.1.    Maintenance of Perfected Security Interest; Further
Documentation.    (a)    Such Grantor shall maintain the Security Interest
created by this Security Agreement as a perfected Security Interest having at
least the priority described in Section 3.2 and shall defend such Security
Interest against the claims and demands of all Persons whomsoever, in each case
subject to Section 3.2(b).

        (b)    Such Grantor will furnish to the Administrative Agent and the
Lenders from time to time statements and schedules further identifying and
describing the assets and property of such Grantor and such other reports in
connection therewith as the Administrative Agent may reasonably request. In
addition, within 30 days after the end of each calendar quarter, such Grantor
will deliver to the Administrative Agent (i) copies of all such certificates of
title issued during such calendar quarter with the notation thereon of the
Administrative Agent's Security Interest created hereunder in the items of
Equipment covered hereby and (ii) a written supplement hereto substantially in
the form of Annex 2 hereto with respect to any additional Copyrights, Copyright
Licenses, Patents, Patent Licenses, Trademarks and Trademark Licenses acquired
by such Grantor after the date hereof, all in reasonable detail.

        (c)    Subject to clause (d) below and Section 3.2(b), each Grantor
agrees that at any time and from time to time, at the expense of such Grantor,
it will execute any and all further documents, financing statements, agreements
and instruments, and take all such further actions (including the filing and
recording of financing statements, fixture filings, mortgages, deeds of trust
and other documents), which may be required under any applicable law, or which
the Administrative Agent or the Required Lenders may reasonably request, in
order (x) to grant, preserve, protect and perfect the validity and priority of
the Security Interests created or intended to be created hereby or (y) to enable
the Administrative Agent to exercise and enforce its rights and remedies
hereunder with respect to any Collateral, including the filing of any financing
or continuation statements under the Uniform Commercial Code in effect in any
jurisdiction with respect to the Security Interests created hereby, all at the
expense of such Grantor.

        (d)    Notwithstanding anything in this Section 4.1 to the contrary,
(i) with respect to any assets acquired by such Grantor after the date hereof
that are required by the Credit Agreement to be subject to the Lien created
hereby or (ii) with respect to any Person that, subsequent to the date hereof,
becomes a Subsidiary of the US Borrower that is required by the Credit Agreement
to become a party hereto, the relevant Grantor after the acquisition or creation
thereof shall promptly take all actions required by the Credit Agreement or this
Section 4.1.

        4.2.    Changes in Locations, Name, etc.    Each Grantor will furnish to
the Administrative Agent prompt written notice of any change (i) in its legal
name, (ii) in its jurisdiction of incorporation or organization, (iii) in the
location of its chief executive office, its principal place of business, any
office in which it maintains books or records relating to Collateral owned by it
(including the establishment of any such new office), (iv) in its identity or
type of organization or corporate structure or (v) in its Federal Taxpayer
Identification Number or organizational identification number. Each Grantor
agrees promptly to provide the Administrative Agent with certified
organizational documents reflecting any of the changes described in the first
sentence of this paragraph. Each Grantor agrees not to effect or permit any
change referred to in the preceding sentence unless all filings have been made
under the Uniform Commercial Code or otherwise that are required in order for
the Administrative Agent to continue at all times following such change to have
a valid, legal and perfected security interest in all

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the Collateral having at least the priority described in Section 3.2. Each
Grantor also agrees promptly to notify the Administrative Agent if any material
portion of the Collateral is damaged or destroyed.

        4.3.    Notices.    Each Grantor will advise the Administrative Agent
and the Lenders promptly, in reasonable detail, of any Lien of which it has
knowledge (other than the Security Interests created hereby or Liens permitted
under the Credit Agreement) on any of the Collateral which would adversely
affect, in any material respect, the ability of the Administrative Agent to
exercise any of its remedies hereunder.

        4.4.    Special Covenants with Respect to Equipment.    (a)    Each
Grantor shall, promptly after the acquisition by such Grantor of any item of
Equipment that is covered by a certificate of title under a statute of any
jurisdiction under the law of which indication of a Security Interest on such
certificate is required as a condition of perfection thereof, execute and file
with the registrar of motor vehicles or other appropriate authority in such
jurisdiction an application or other document requesting the notation or other
indication of the Security Interest created hereunder on such certificate of
title.

        (b)    Upon the occurrence and during the continuation of any Event of
Default, all insurance payments in respect of such Equipment shall be paid to
and applied by Administrative Agent as specified in Section 5.5 hereof.

        (c)    At the Administrative Agent's request at any time after the
occurrence and during the continuance of an Event of Default, each Grantor shall
deliver to the Administrative Agent the certificates of title covering each item
of Equipment the perfection of which is governed by the notation on the
certificate of title of the Administrative Agent's Security Interest created
hereunder.

        5.    Remedial Provisions.    

        5.1.    Certain Matters Relating to Accounts.    (a)    At any time
after the occurrence and during the continuance of an Event of Default, the
Administrative Agent shall have the right to make test verifications of the
Accounts in any manner and through any medium that it reasonably considers
advisable, and each Grantor shall furnish all such assistance and information as
the Administrative Agent may require in connection with such test verifications.
The Administrative Agent shall have the absolute right to share any information
it gains from such inspection or verification with any Secured Party.

        (b)    The Administrative Agent hereby authorizes each Grantor to
collect such Grantor's Accounts and the Administrative Agent may curtail or
terminate said authority at any time after the occurrence and during the
continuance of an Event of Default. If required in writing by the Administrative
Agent at any time after the occurrence and during the continuance of an Event of
Default, any payments of Accounts, when collected by any Grantor, (i) shall be
forthwith (and, in any event, within two Business Days) deposited by such
Grantor in the exact form received, duly endorsed by such Grantor to the
Administrative Agent if required, in a Collateral Account maintained under the
sole dominion and control of and on terms and conditions reasonably satisfactory
to the Administrative Agent, subject to withdrawal by the Administrative Agent
for the account of the Secured Parties only as provided in Section 5.5, and
(ii) until so turned over, shall be held by such Grantor in trust for the
Administrative Agent and the Secured Parties, segregated from other funds of
such Grantor. Each such deposit of Proceeds of Accounts shall be accompanied by
a report identifying in reasonable detail the nature and source of the payments
included in the deposit.

        (c)    At the Administrative Agent's request at any time after the
occurrence and during the continuance of an Event of Default, each Grantor shall
deliver to the Administrative Agent all original and other documents evidencing,
and relating to, the agreements and transactions which gave rise to the
Accounts, including all original orders, invoices and shipping receipts.

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        (d)    Upon the occurrence and during the continuance of an Event of
Default, a Grantor shall not grant any extension of the time of payment of any
of the Accounts, compromise, compound or settle the same for less than the full
amount thereof, release, wholly or partly, any person liable for the payment
thereof, or allow any credit or discount whatsoever thereon if the
Administrative Agent shall have instructed the Grantors not to grant or make any
such extension, credit, discount, compromise, or settlement under any
circumstances during the continuance of such Event of Default.

        5.2.    Communications with Obligors; Grantors Remain
Liable.    (a)    The Administrative Agent in its own name or in the name of
others may at any time after the occurrence and during the continuance of an
Event of Default, after giving reasonable notice to the relevant Grantor of its
intent to do so, communicate with obligors under the Accounts to verify with
them to the Administrative Agent's satisfaction the existence, amount and terms
of any Accounts. The Administrative Agent shall have the absolute right to share
any information it gains from such inspection or verification with any Secured
Party.

        (b)    Upon the written request of the Administrative Agent at any time
after the occurrence and during the continuance of an Event of Default, each
Grantor shall notify obligors on the Accounts that the Accounts have been
assigned to the Administrative Agent for the ratable benefit of the Secured
Parties and that payments in respect thereof shall be made directly to the
Administrative Agent.

        (c)    Anything herein to the contrary notwithstanding, each Grantor
shall remain liable under each of the Accounts to observe and perform all the
conditions and obligations to be observed and performed by it thereunder, all in
accordance with the terms of any agreement giving rise thereto. Neither the
Administrative Agent nor any Secured Party shall have any obligation or
liability under any Account (or any agreement giving rise thereto) by reason of
or arising out of this Security Agreement or the receipt by the Administrative
Agent or any Secured Party of any payment relating thereto, nor shall the
Administrative Agent or any Secured Party be obligated in any manner to perform
any of the obligations of any Grantor under or pursuant to any Account (or any
agreement giving rise thereto), to make any payment, to make any inquiry as to
the nature or the sufficiency of any payment received by it or as to the
sufficiency of any performance by any party thereunder, to present or file any
claim, to take any action to enforce any performance or to collect the payment
of any amounts which may have been assigned to it or to which it may be entitled
at any time or times.

        5.3.    Proceeds to be Turned Over To Administrative Agent.    In
addition to the rights of the Administrative Agent and the Secured Parties
specified in Section 5.1 with respect to payments of Accounts, if an Event of
Default shall occur and be continuing and the Administrative Agent so requires
by notice in writing to the relevant Grantor (it being understood that the
exercise of remedies by the Secured Parties in connection with an Event of
Default under Section 11.5 of the Credit Agreement shall be deemed to constitute
a request by the Administrative Agent for the purposes of this sentence and in
such circumstances, no such written notice shall be required), all Proceeds
received by any Grantor consisting of cash, checks and other near-cash items
shall be held by such Grantor in trust for the Administrative Agent and the
Secured Parties, segregated from other funds of such Grantor, and shall,
forthwith upon receipt by such Grantor, be turned over to the Administrative
Agent in the exact form received by such Grantor (duly endorsed by such Grantor
to the Administrative Agent, if required). All Proceeds received by the
Administrative Agent hereunder shall be held by the Administrative Agent in a
Collateral Account maintained under its sole dominion and control and on terms
and conditions reasonably satisfactory to the Administrative Agent. All Proceeds
while held by the Administrative Agent in a Collateral Account (or by such
Grantor in trust for the Administrative Agent and the Secured Parties) shall
continue to be held as collateral security for all the Obligations and shall not
constitute payment thereof until applied as provided in Section 5.5.

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        5.4.    Application of Proceeds.    The Administrative Agent shall apply
the proceeds of any collection or sale of the Collateral as well as any
Collateral consisting of cash, at any time after receipt as follows:

          (i)  first, to the payment of all reasonable and documented costs and
expenses incurred by the Administrative Agent in connection with such collection
or sale or otherwise in connection with this Security Agreement, the other
Credit Documents or any of the Obligations, including all court costs and the
reasonable fees and expenses of its agents and legal counsel, the repayment of
all advances made by the Administrative Agent hereunder or under any other
Credit Document on behalf of any Grantor and any other reasonable and documented
costs or expenses incurred in connection with the exercise of any right or
remedy hereunder or under any other Credit Document;

         (ii)  second, to the Secured Parties, an amount equal to all
Obligations owing to them on the date of any distribution, and, if such moneys
shall be insufficient to pay such amounts in full, then ratably (without
priority of any one over any other) to such Secured Parties in proportion to the
unpaid amounts thereof; and

        (iii)  third, any surplus then remaining shall be paid to the Grantors
or their successors or assigns or to whomsoever may be lawfully entitled to
receive the same or as a court of competent jurisdiction may direct.

Upon any sale of the Collateral by the Administrative Agent (including pursuant
to a power of sale granted by statute or under a judicial proceeding), the
receipt of the Administrative Agent or of the officer making the sale shall be a
sufficient discharge to the purchaser or purchasers of the Collateral so sold
and such purchaser or purchasers shall not be obligated to see to the
application of any part of the purchase money paid over to the Administrative
Agent or such officer or be answerable in any way for the misapplication
thereof.

        5.5.    Code and Other Remedies.    If an Event of Default shall occur
and be continuing, the Administrative Agent may exercise in respect of the
Collateral, in addition to all other rights and remedies provided for herein or
otherwise available to it, all the rights and remedies of a secured party upon
default under the NY UCC or any other applicable law and also may without notice
except as specified below, sell the Collateral or any part thereof in one or
more parcels at public or private sale, at any exchange broker's board or at any
of the Administrative Agent's offices or elsewhere, for cash, on credit or for
future delivery, at such price or prices and upon such other terms as are
commercially reasonable irrespective of the impact of any such sales on the
market price of the Collateral. The Administrative Agent shall be authorized at
any such sale (if it deems it advisable to do so) to restrict the prospective
bidders or purchasers of Collateral to Persons who will represent and agree that
they are purchasing the Collateral for their own account for investment and not
with a view to the distribution or sale thereof, and, upon consummation of any
such sale, the Administrative Agent shall have the right to assign, transfer and
deliver to the purchaser or purchasers thereof the Collateral so sold. Each
purchaser at any such sale shall hold the property sold absolutely free from any
claim or right on the part of any Grantor, and each Grantor hereby waives (to
the extent permitted by law) all rights of redemption, stay and/or appraisal
that it now has or may at any time in the future have under any rule of law or
statute now existing or hereafter enacted. The Administrative Agent or any
Secured Party shall have the right upon any such public sale, and, to the extent
permitted by law, upon any such private sale, to purchase the whole or any part
of the Collateral so sold, and the Administrative Agent or such Secured Party
may subject to (x) the satisfaction in full in cash of all payments due pursuant
to Section 5.4(i), and (y) the ratable satisfaction of the Obligations in
accordance with Section 5.4(ii), pay the purchase price by crediting the amount
thereof against the Obligations. Each Grantor agrees that, to the extent notice
of sale shall be required by law, at least ten days' notice to such Grantor of
the time and place of any public sale or the time after which any private sale
is to be made shall constitute reasonable notification. The Administrative Agent
shall not be obligated to make any sale of Collateral

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regardless of notice of sale having been given. The Administrative Agent may
adjourn any public or private sale from time to time by announcement at the time
and place fixed therefor, and such sale may, without further notice, be made at
the time and place to which it was so adjourned. To the extent permitted by law,
each Grantor hereby waives any claim against the Administrative Agent arising by
reason of the fact that the price at which any Collateral may have been sold at
such a private sale was less than the price that might have been obtained at a
public sale, even if the Administrative Agent accepts the first offer received
and does not offer such Collateral to more than one offeree. Each Grantor
further agrees, at the Administrative Agent's request, to assemble the
Collateral and make it available to the Administrative Agent at places which the
Administrative Agent shall reasonably select, whether at such Grantor's premises
or elsewhere. The Administrative Agent shall apply the net proceeds of any
action taken by it pursuant to this Section 5.5 in accordance with the
provisions of Section 5.4.

        5.6.    Deficiency.    Each Grantor shall remain liable for any
deficiency if the proceeds of any sale or other disposition of the Collateral
are insufficient to pay its Obligations and the fees and disbursements of any
attorneys employed by the Administrative Agent or any Secured Party to collect
such deficiency.

        5.7.    Amendments, etc. with Respect to the Obligations; Waiver of
Rights.    Each Grantor shall remain obligated hereunder notwithstanding that,
without any reservation of rights against any Grantor and without notice to or
further assent by any Grantor, (a) any demand for payment of any of the
Obligations made by the Administrative Agent or any other Secured Party may be
rescinded by such party and any of the Obligations continued, (b) the
Obligations, or the liability of any other party upon or for any part thereof,
or any collateral security or guarantee therefor or right of offset with respect
thereto, may, from time to time, in whole or in part, be renewed, extended,
amended, modified, accelerated, compromised, waived, surrendered or released by
the Administrative Agent or any other Secured Party, (c) the Credit Agreement,
the other Credit Documents, the Letters of Credit and any other documents
executed and delivered in connection therewith and the Hedge Agreements and any
other documents executed and delivered in connection therewith and any documents
entered into with the Administrative Agent or any of its Affiliates in
connection with treasury, depositary or cash management services or in
connection with any automated clearinghouse transfer of funds may be amended,
modified, supplemented or terminated, in whole or in part, as the Administrative
Agent (or the Required Lenders, as the case may be, or, in the case of any Hedge
Agreement or documents entered into with the Administrative Agent or any of its
Affiliates in connection with treasury, depositary or cash management services
or in connection with any automated clearinghouse transfer of funds, the party
thereto) may deem advisable from time to time, and (d) any collateral security,
guarantee or right of offset at any time held by the Administrative Agent or any
other Secured Party for the payment of the Obligations may be sold, exchanged,
waived, surrendered or released. Neither the Administrative Agent nor any other
Secured Party shall have any obligation to protect, secure, perfect or insure
any Lien at any time held by it as security for the Obligations or for this
Security Agreement or any property subject thereto. When making any demand
hereunder against any Grantor, the Administrative Agent or any other Secured
Party may, but shall be under no obligation to, make a similar demand on the US
Borrower or any Grantor or grantor, and any failure by the Administrative Agent
or any other Secured Party to make any such demand or to collect any payments
from the US Borrower or any Grantor or grantor or any release of the US Borrower
or any Grantor or grantor shall not relieve any Grantor in respect of which a
demand or collection is not made or any Grantor not so released of its several
obligations or liabilities hereunder, and shall not impair or affect the rights
and remedies, express or implied, or as a matter of law, of the Administrative
Agent or any other Secured Party against any Grantor. For the purposes hereof
"demand" shall include the commencement and continuance of any legal
proceedings.

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        6.    The Administrative Agent.    

        6.1.    Administrative Agent's Appointment as Attorney-in-Fact,
etc.    (a)    Each Grantor hereby appoints, which appointment is irrevocable
and coupled with an interest, effective upon and during the occurrence of an
Event of Default, the Administrative Agent and any officer or agent thereof,
with full power of substitution, as its true and lawful attorney-in-fact with
full irrevocable power and authority in the place and stead of such Grantor and
in the name of such Grantor or otherwise, for the purpose of carrying out the
terms of this Security Agreement, to take any and all appropriate action and to
execute any and all documents and instruments which may be necessary or
desirable to accomplish the purposes of this Security Agreement, and, without
limiting the generality of the foregoing, each Grantor hereby gives the
Administrative Agent the power and right, on behalf of such Grantor, either in
the Administrative Agent's name or in the name of such Grantor or otherwise,
without assent by such Grantor, to do any or all of the following, in each case
after and during the occurrence of an Event of Default and after written notice
by the Administrative Agent of its intent to do so:

        (i)    take possession of and endorse and collect any checks, drafts,
notes, acceptances or other instruments for the payment of moneys due under any
Account or with respect to any other Collateral and file any claim or take any
other action or proceeding in any court of law or equity or otherwise deemed
appropriate by the Administrative Agent for the purpose of collecting any and
all such moneys due under any Account or with respect to any other Collateral
whenever payable;

        (ii)    in the case of any Intellectual Property, execute and deliver,
and have recorded, any and all agreements, instruments, documents and papers as
the Administrative Agent may request to evidence the Administrative Agent's and
the Secured Parties' Security Interest in such Intellectual Property and the
goodwill and general intangibles of such Grantor relating thereto or represented
thereby;

        (iii)    pay or discharge taxes and Liens levied or placed on or
threatened against the Collateral;

        (iv)    execute, in connection with any sale provided for in
Section 5.5, any endorsements, assignments or other instruments of conveyance or
transfer with respect to the Collateral;

        (v)    obtain and adjust insurance required to be maintained by such
Grantor or paid to the Administrative Agent pursuant to Section 4.4;

        (vi)    direct any party liable for any payment under any of the
Collateral to make payment of any and all moneys due or to become due thereunder
directly to the Administrative Agent or as the Administrative Agent shall
direct;

        (vii)    ask or demand for, collect and receive payment of and receipt
for, any and all moneys, claims and other amounts due or to become due at any
time in respect of or arising out of any Collateral;

        (viii)    sign and endorse any invoices, freight or express bills, bills
of lading, storage or warehouse receipts, drafts against debtors, assignments,
verifications, notices and other documents in connection with any of the
Collateral;

        (ix)    commence and prosecute any suits, actions or proceedings at law
or in equity in any court of competent jurisdiction to collect the Collateral or
any portion thereof and to enforce any other right in respect of any Collateral;

        (x)    defend any suit, action or proceeding brought against such
Grantor with respect to any Collateral (with such Grantor's consent to the
extent such action or its resolution could materially

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affect such Grantor or any of its Affiliates in any manner other than with
respect to its continuing rights in such Collateral);

        (xi)    settle, compromise or adjust any such suit, action or proceeding
and, in connection therewith, give such discharges or releases as the
Administrative Agent may deem appropriate (with such Grantor's consent to the
extent such action or its resolution could materially affect such Grantor or any
of its Affiliates in any manner other than with respect to its continuing rights
in such Collateral);

        (xii)    assign any Copyright, Patent or Trademark (along with the
goodwill of the business to which any such Copyright, Patent or Trademark
pertains), throughout the world for such term or terms, on such conditions, and
in such manner, as the Administrative Agent shall in its sole discretion
determine; and

        (xiii)    generally, sell, transfer, pledge and make any agreement with
respect to or otherwise deal with any of the Collateral as fully and completely
as though the Administrative Agent were the absolute owner thereof for all
purposes, and do, at the Administrative Agent's option and such Grantor's
expense, at any time, or from time to time, all acts and things that the
Administrative Agent deems necessary to protect, preserve or realize upon the
Collateral and the Administrative Agent's and the Secured Parties' Security
Interests therein and to effect the intent of this Security Agreement, all as
fully and effectively as such Grantor might do.

Anything in this Section 6.l(a) to the contrary notwithstanding, the
Administrative Agent agrees that it will not exercise any rights under the power
of attorney provided for in this Section 6.1(a) unless an Event of Default shall
have occurred and be continuing.

        (b)    If any Grantor fails to perform or comply with any of its
agreements contained herein, the Administrative Agent, at its option, but
without any obligation so to do, may perform or comply, or otherwise cause
performance or compliance, with such agreement.

        (c)    The expenses of the Administrative Agent incurred in connection
with actions undertaken as provided in this Section 6.1, together with interest
thereon at a rate per annum equal to the highest rate per annum at which
interest would then be payable on any category of past due ABR Loans under the
Credit Agreement, from the date of payment by the Administrative Agent to the
date reimbursed by the relevant Grantor, shall be payable by such Grantor to the
Administrative Agent on demand.

        (d)    Each Grantor hereby ratifies all that said attorneys shall
lawfully do or cause to be done by virtue hereof. All powers, authorizations and
agencies contained in this Security Agreement are coupled with an interest and
are irrevocable until this Security Agreement is terminated and the Security
Interests created hereby are released.

        6.2.    Duty of Administrative Agent.    The Administrative Agent's sole
duty with respect to the custody, safekeeping and physical preservation of the
Collateral in its possession, under Section 9-207 of the NY UCC or otherwise,
shall be to deal with it in the same manner as the Administrative Agent deals
with similar property for its own account. The Administrative Agent shall be
deemed to have exercised reasonable care in the custody and preservation of any
Collateral in its possession if such Collateral is accorded treatment
substantially equal to that which the Administrative Agent accords its own
property. Neither the Administrative Agent, any Secured Party nor any of their
respective officers, directors, employees or agents shall be liable for failure
to demand, collect or realize upon any of the Collateral or for any delay in
doing so or shall be under any obligation to sell or otherwise dispose of any
Collateral upon the request of any Grantor or any other Person or to take any
other action whatsoever with regard to the Collateral or any part thereof. The
powers conferred on the Administrative Agent and the Secured Parties hereunder
are solely to protect the Administrative Agent's and the Secured Parties'
interests in the Collateral and shall not impose any duty upon the
Administrative Agent or any Secured Party to exercise any such powers. The
Administrative Agent and

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the Secured Parties shall be accountable only for amounts that they actually
receive as a result of the exercise of such powers, and neither they nor any of
their officers, directors, employees or agents shall be responsible to any
Grantor for any act or failure to act hereunder, except for their own gross
negligence or willful misconduct.

        6.3.    Authority of Administrative Agent.    Each Grantor acknowledges
that the rights and responsibilities of the Administrative Agent under this
Security Agreement with respect to any action taken by the Administrative Agent
or the exercise or non-exercise by the Administrative Agent of any option,
voting right, request, judgment or other right or remedy provided for herein or
resulting or arising out of this Security Agreement shall, as between the
Administrative Agent and the Secured Parties, be governed by the Credit
Agreement and by such other agreements with respect thereto as may exist from
time to time among them, but, as between the Administrative Agent and the
Grantors, the Administrative Agent shall be conclusively presumed to be acting
as agent for the Secured Parties with full and valid authority so to act or
refrain from acting, and no Grantor shall be under any obligation, or
entitlement, to make any inquiry respecting such authority.

        6.4.    Security Interest Absolute.    All rights of the Administrative
Agent hereunder, the security interest and all obligations of the Grantors
hereunder shall be absolute and unconditional.

        6.5.    Continuing Security Interest; Assignments Under the Credit
Agreement; Release.    (a)    This Security Agreement shall remain in full force
and effect and be binding in accordance with and to the extent of its terms upon
each Grantor and the successors and assigns thereof and shall inure to the
benefit of the Administrative Agent and the other Secured Parties and their
respective successors, indorsees, transferees and assigns until all Obligations
under the Credit Documents and the obligations of each Grantor under this
Security Agreement shall have been satisfied by payment in full, the Commitments
shall be terminated and no Letters of Credit shall be outstanding,
notwithstanding that from time to time during the term of the Credit Agreement
and any Hedge Agreement the Credit Parties may be free from any Obligations.
This Security Agreement and the security interest granted hereby shall terminate
on the first date on which all the Obligations under the Credit Documents shall
have been satisfied by payment in full, the Commitments shall be terminated and
no Letters of Credit shall be outstanding.

        (b)    A Subsidiary Grantor shall automatically be released from its
obligations hereunder and the Security Interest in the Collateral of such
Subsidiary Grantor shall be automatically released upon the consummation of any
transaction permitted by the Credit Agreement as a result of which such
Subsidiary Grantor ceases to be a Domestic Subsidiary of the US Borrower.

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        (c)    Upon any sale or other transfer by any Grantor of any Collateral
that is permitted under the Credit Agreement, or upon the effectiveness of any
written consent to the release of the security interest granted hereby in any
Collateral pursuant to Section 14.1 of the Credit Agreement, the Security
Interest in such Collateral shall be automatically released and such Collateral
sold free and clear of the Lien and Security Interests created hereby.

        (d)    In connection with any termination or release pursuant to
paragraph (a), (b) or (c), the Administrative Agent shall execute and deliver to
any Grantor, at such Grantor's expense, all documents that such Grantor shall
reasonably request to evidence such termination or release. Any execution and
delivery of documents pursuant to this Section 6.5 shall be without recourse to
or warranty by the Administrative Agent.

        6.6.    Reinstatement.    This Security Agreement shall continue to be
effective, or be reinstated, as the case may be, if at any time payment, or any
part thereof, of any of the Obligations is rescinded or must otherwise be
restored or returned by the Administrative Agent or any other Secured Party upon
the insolvency, bankruptcy, dissolution, liquidation or reorganization of the US
Borrower or any other Credit Party, or upon or as a result of the appointment of
a receiver, intervenor or conservator of, or trustee or similar officer for, the
US Borrower or any other Credit Party or any substantial part of its property,
or otherwise, all as though such payments had not been made.

        7.    Administrative Agent As Agent.    

        (a)    Credit Suisse First Boston has been appointed to act as
Administrative Agent hereunder by the Lenders and, by their acceptance of the
benefits hereof, the other Secured Parties. The Administrative Agent shall be
obligated, and shall have the right hereunder, to make demands, to give notices,
to exercise or refrain from exercising any rights, and to take or refrain from
taking any action (including the release or substitution of Collateral), solely
in accordance with this Security Agreement and the Credit Agreement, provided
that the Administrative Agent shall exercise, or refrain from exercising, any
remedies provided for in Section 5 in accordance with the instructions of
(i) Required Lenders or (ii) after the termination of this Security Agreement.
In furtherance of the foregoing provisions of this Section 7(a), each Secured
Party, by its acceptance of the benefits hereof, agrees that it shall have no
right individually to realize upon any of the Collateral hereunder, it being
understood and agreed by such Secured Party that all rights and remedies
hereunder may be exercised solely by the Administrative Agent for the ratable
benefit of the Lenders and Secured Parties in accordance with the terms of this
Section 7(a).

        (b)    The Administrative Agent shall at all times be the same Person
that is the Administrative Agent under the Credit Agreement. Written notice of
resignation by the Administrative Agent pursuant to Section 12.9 of the Credit
Agreement shall also constitute notice of resignation as Administrative Agent
under this Security Agreement; removal of the Administrative Agent shall also
constitute removal as Administrative Agent under this Security Agreement; and
appointment of a successor Administrative Agent pursuant to Section 12.9 of the
Credit Agreement shall also constitute appointment of a successor Administrative
Agent under this Security Agreement. Upon the acceptance of any appointment as
Administrative Agent under Section 12.9 of the Credit Agreement by a successor
Administrative Agent, that successor Administrative Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring or removed Administrative Agent under this Security Agreement,
and the retiring or removed Administrative Agent under this Security Agreement
shall promptly (i) transfer to such successor Administrative Agent all sums,
securities and other items of Collateral held hereunder, together with all
records and other documents necessary or appropriate in connection with the
performance of the duties of the successor Administrative Agent under this
Security Agreement, and (ii) execute and deliver to such successor
Administrative Agent such amendments to financing statements and take such other
actions, as may be necessary or appropriate in connection with the assignment to
such successor Administrative Agent of

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the Security Interests created hereunder, whereupon such retiring or removed
Administrative Agent shall be discharged from its duties and obligations under
this Security Agreement. After any retiring or removed Administrative Agent's
resignation or removal hereunder as Administrative Agent, the provisions of this
Security Agreement shall inure to its benefit as to any actions taken or omitted
to be taken by it under this Security Agreement while it was Administrative
Agent hereunder.

        (c)    The Administrative Agent shall not be deemed to have any duty
whatsoever with respect to any Secured Party that is a counterparty to a Hedge
Agreement the obligations under which constitute Obligations, until it shall
have received written notice in form and substance satisfactory to the
Administrative Agent from a Grantor or any such Secured Party as to the
existence and terms of the applicable Hedge Agreement.

        8.    Miscellaneous.    

        8.1.    Amendments in Writing.    None of the terms or provisions of
this Security Agreement may be waived, amended, supplemented or otherwise
modified except by a written instrument executed by the affected Grantor and the
Administrative Agent in accordance with Section 14.1 of the Credit Agreement.

        8.2.    Notices.    All notices, requests and demands pursuant hereto
shall be made in accordance with Section 14.2 of the Credit Agreement. All
communications and notices hereunder to any Subsidiary Grantor shall be given to
it in care of the US Borrower at the US Borrower's address set forth in
Section 14.2 of the Credit Agreement.

        8.3.    No Waiver by Course of Conduct; Cumulative Remedies.    Neither
the Administrative Agent nor any Secured Party shall by any act (except by a
written instrument pursuant to Section 8.1 hereof), delay, indulgence, omission
or otherwise be deemed to have waived any right or remedy hereunder or to have
acquiesced in any Default or Event of Default or in any breach of any of the
terms and conditions hereof. No failure to exercise, nor any delay in
exercising, on the part of the Administrative Agent or any other Secured Party,
any right, power or privilege hereunder shall operate as a waiver thereof. No
single or partial exercise of any right, power or privilege hereunder shall
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege. A waiver by the Administrative Agent or any other
Secured Party of any right or remedy hereunder on any one occasion shall not be
construed as a bar to any right or remedy that the Administrative Agent or such
other Secured Party would otherwise have on any future occasion. The rights,
remedies, powers and privileges herein provided are cumulative, may be exercised
singly or concurrently and are not exclusive of any other rights or remedies
provided by law.

        8.4.    Enforcement Expenses; Indemnification.    (a)    Each Grantor
agrees to pay any and all expenses (including all reasonable fees and
disbursements of counsel) that may be paid or incurred by any Secured Party in
enforcing, or obtaining advice of counsel in respect of, any rights with respect
to, or collecting, any or all of the Obligations and/or enforcing any rights
with respect to, or collecting against, such Grantor under this Security
Agreement.

        (b)    Each Grantor agrees to pay, and to save the Administrative Agent
and the Secured Parties harmless from, any and all liabilities with respect to,
or resulting from any delay in paying, any and all stamp, excise, sales or other
taxes which may be payable or determined to be payable with respect to any of
the Collateral or in connection with any of the transactions contemplated by
this Security Agreement.

        (c)    Each Grantor agrees to pay, and to save the Administrative Agent
and the Secured Parties harmless from, any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever with respect to the execution,
delivery, enforcement, performance and administration of this Security Agreement
to the extent either of the Borrowers would be required to do so pursuant to
Section 12.7 of the Credit Agreement.

17

--------------------------------------------------------------------------------

        (d)    The agreements in this Section 8.4 shall survive repayment of the
Obligations and all other amounts payable under the Credit Agreement and the
other Credit Documents.

        8.5.    Successors and Assigns.    The provisions of this Security
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns permitted hereby, except that no
Grantor may assign, transfer or delegate any of its rights or obligations under
this Security Agreement without the prior written consent of the Administrative
Agent except pursuant to a transaction permitted by the Credit Agreement.

        8.6.    Counterparts.    This Security Agreement may be executed by one
or more of the parties to this Security Agreement on any number of separate
counterparts (including by facsimile or other electronic transmission), and all
of said counterparts taken together shall be deemed to constitute one and the
same instrument. A set of the copies of this Security Agreement signed by all
the parties shall be lodged with the Administrative Agent and the US Borrower.

        8.7.    Severability.    Any provision of this Security Agreement that
is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction. The parties
hereto shall endeavor in good-faith negotiations to replace the invalid, illegal
or unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

        8.8.    Section Headings.    The Section headings used in this Security
Agreement are for convenience of reference only and are not to affect the
construction hereof or be taken into consideration in the interpretation hereof.

        8.9.    Integration.    This Security Agreement represents the agreement
of each of the Grantors with respect to the subject matter hereof and there are
no promises, undertakings, representations or warranties by the Administrative
Agent or any other Secured Party relative to the subject matter hereof not
expressly set forth or referred to herein or in the other Credit Documents.

        8.10.    GOVERNING LAW.    THIS SECURITY AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

        8.11.    Submission To Jurisdiction; Waivers.    Each Grantor hereby
irrevocably and unconditionally:

        (a)   submits for itself and its property in any legal action or
proceeding relating to this Security Agreement and the other Credit Documents to
which it is a party, or for recognition and enforcement of any judgment in
respect thereof, to the non-exclusive general jurisdiction of the courts of the
State of New York, the courts of the United States of America for the Southern
District of New York, and appellate courts from any thereof;

        (b)   consents that any such action or proceeding may be brought in such
courts and waives any objection that it may now or hereafter have to the venue
of any such action or proceeding in any such court or that such action or
proceeding was brought in an inconvenient court and agrees not to plead or claim
the same;

        (c)   agrees that service of process in any such action or proceeding
may be effected by mailing a copy thereof by registered or certified mail (or
any substantially similar form of mail), postage prepaid, to such Grantor at its
address referred to in Section 8.2 or at such other address of which the
Administrative Agent shall have been notified pursuant thereto;

18

--------------------------------------------------------------------------------

        (d)   agrees that nothing herein shall affect the right of the
Administrative Agent or any other Secured Party to effect service of process in
any other manner permitted by law or shall limit the right of the Administrative
Agent or any Secured Party to sue in any other jurisdiction; and

        (e)   waives, to the maximum extent not prohibited by law, any right it
may have to claim or recover in any legal action or proceeding referred to in
this Section 8.11 any special, exemplary, punitive or consequential damages.

        8.12.    Acknowledgments.    Each Grantor hereby acknowledges that:

        (a)   it has been advised by counsel in the negotiation, execution and
delivery of this Security Agreement and the other Credit Documents to which it
is a party;

        (b)   neither the Administrative Agent nor any other Secured Party has
any fiduciary relationship with or duty to any Grantor arising out of or in
connection with this Security Agreement or any of the other Credit Documents,
and the relationship between the Grantors, on the one hand, and the
Administrative Agent and the other Secured Parties, on the other hand, in
connection herewith or therewith is solely that of debtor and creditor; and

        (c)   no joint venture is created hereby or by the other Credit
Documents or otherwise exists by virtue of the transactions contemplated hereby
among the Lenders and any other Secured Party or among the Grantors and the
Lenders and any other Secured Party.

        8.13.    Additional Grantors.    Each Subsidiary of the US Borrower that
is required to become a party to this Security Agreement pursuant to
Section 9.11 of the Credit Agreement shall become a Grantor, with the same force
and effect as if originally named as a Grantor herein, for all purposes of this
Agreement upon execution and delivery by such Subsidiary of a Supplement
substantially in the form of Annex 1 hereto. The execution and delivery of any
instrument adding an additional Grantor as a party to this Security Agreement
shall not require the consent of any other Grantor hereunder. The rights and
obligations of each Grantor hereunder shall remain in full force and effect
notwithstanding the addition of any new Grantor as a party to this Security
Agreement.

        8.14.    WAIVER OF JURY TRIAL.    EACH GRANTOR HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING
TO THIS SECURITY AGREEMENT, ANY OTHER CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM
THEREIN.

19

--------------------------------------------------------------------------------

        IN WITNESS WHEREOF, each of the undersigned has caused this Security
Agreement to be duly executed and delivered as of the day and year first above
written.

    ROCKWOOD SPECIALTIES INTERNATIONAL, INC.,
 
 
by
 
/s/  MICHAEL W. VALENTE      

--------------------------------------------------------------------------------

        Name: Michael W. Valente         Title: Assistant Secretary
 
 
ROCKWOOD SPECIALTIES GROUP, INC.,
 
 
by
 
/s/  MICHAEL W. VALENTE      

--------------------------------------------------------------------------------

        Name: Michael W. Valente         Title: Assistant Secretary
 
 
ALPHAGARY CORPORATION,
 
 
by
 
/s/  MICHAEL W. VALENTE      

--------------------------------------------------------------------------------

        Name: Michael W. Valente         Title: Assistant Secretary
 
 
ADVANTIS TECHNOLOGIES, INC.,
 
 
by
 
/s/  MICHAEL W. VALENTE      

--------------------------------------------------------------------------------

        Name: Michael W. Valente         Title: Assistant Secretary
 
 
CERAMTEC NORTH AMERICA INNOVATIVE
CERAMIC ENGINEERING CORPORATION
 
 
by
 
/s/  WALTER DOLLMAN      

--------------------------------------------------------------------------------

        Name: Walter Dollman         Title: President/CEO

--------------------------------------------------------------------------------

    CHEMETALL CHEMICAL PRODUCTS INC.,
 
 
by
 
/s/  PHILIP E. KELLY      

--------------------------------------------------------------------------------

        Name: Philip E. Kelly         Title: President
 
 
CHEMETALL CORP.,
 
 
by
 
/s/  PHILIP E. KELLY      

--------------------------------------------------------------------------------

        Name: Philip E. Kelly         Title: Vice President
 
 
CHEMETALL FOOTE CORP.,
 
 
by
 
/s/  P.J. SEAMAN      

--------------------------------------------------------------------------------

        Name: P.J. Seaman         Title: Vice President
 
 
CHEMICAL SPECIALTIES, INC.,
 
 
by
 
/s/  MICHAEL W. VALENTE      

--------------------------------------------------------------------------------

        Name: Michael W. Valente         Title: Assistant Secretary
 
 
COMPUGRAPHICS U.S.A. INC.,
 
 
by
 
/s/  MICHAEL W. VALENTE      

--------------------------------------------------------------------------------

        Name: Michael W. Valente         Title: Assistant Secretary
 
 
CYANTEK CORPORATION,
 
 
by
 
/s/  MICHAEL W. VALENTE      

--------------------------------------------------------------------------------

        Name: Michael W. Valente         Title: Assistant Secretary

--------------------------------------------------------------------------------

    ELECTROCHEMICALS INC.,
 
 
by
 
/s/  MICHAEL W. VALENTE      

--------------------------------------------------------------------------------

        Name: Michael W. Valente         Title: Assistant Secretary
 
 
EXSIL, INC.,
 
 
by
 
/s/  MICHAEL W. VALENTE      

--------------------------------------------------------------------------------

        Name: Michael W. Valente         Title: Assistant Secretary
 
 
FOOTE CHILE HOLDING COMPANY,
 
 
by
 
/s/  P.J. SEAMAN      

--------------------------------------------------------------------------------

        Name: P.J. Seaman         Title: Vice President
 
 
LUREX, INC.,
 
 
by
 
/s/  MICHAEL W. VALENTE      

--------------------------------------------------------------------------------

        Name: Michael W. Valente         Title: Assistant Secretary
 
 
OAKITE PRODUCTS, INC.,
 
 
by
 
/s/  GREGORY V. POFF      

--------------------------------------------------------------------------------

        Name: Gregory V. Poff         Title: Secretary
 
 
ROCKWOOD AMERICA INC.,
 
 
by
 
/s/  MICHAEL W. VALENTE      

--------------------------------------------------------------------------------

        Name: Michael W. Valente         Title: Assistant Secretary

--------------------------------------------------------------------------------

    ROCKWOOD SPECIALTIES INC.,
 
 
by
 
/s/  MICHAEL W. VALENTE      

--------------------------------------------------------------------------------

        Name: Michael W. Valente         Title: Assistant Secretary
 
 
ROCKWOOD PIGMENTS NA, INC.,
 
 
by
 
/s/  MICHAEL W. VALENTE      

--------------------------------------------------------------------------------

        Name: Michael W. Valente         Title: Assistant Secretary
 
 
RS FUNDING CORPORATION,
 
 
by
 
/s/  MICHAEL W. VALENTE      

--------------------------------------------------------------------------------

        Name: Michael W. Valente         Title: Assistant Secretary
 
 
RW HOLDING CORP.,
 
 
by
 
/s/  MICHAEL W. VALENTE      

--------------------------------------------------------------------------------

        Name: Michael W. Valente         Title: Assistant Secretary
 
 
SACHTLEBEN CORPORATION,
 
 
by
 
/s/  PAUL FRAZIER      

--------------------------------------------------------------------------------

        Name: Paul Frazier         Title: Vice President Plastics & Coatings
Market
 
 
SOUTHERN CLAY PRODUCTS, INC.,
 
 
by
 
/s/  MICHAEL W. VALENTE      

--------------------------------------------------------------------------------

        Name: Michael W. Valente         Title: Assistant Secretary

--------------------------------------------------------------------------------

    SOUTHERN COLOR N.A., INC.,
 
 
by
 
/s/  MICHAEL W. VALENTE      

--------------------------------------------------------------------------------

        Name: Michael W. Valente         Title: Assistant Secretary
 
 
CREDIT SUISSE FIRST BOSTON,
acting through its Cayman Islands Branch,
as Administrative Agent
 
 
by
 
/s/  S. WILLIAM FOX      

--------------------------------------------------------------------------------

        Name: S. William Fox         Title: Director
 
 
by
 
/s/  DAVID DODD      

--------------------------------------------------------------------------------

        Name: David Dodd         Title: Associate

--------------------------------------------------------------------------------

ANNEX A TO THE
SECURITY AGREEMENT

SUBSIDIARY GRANTORS

•    Subsidiary Grantors
AlphaGary Corporation
Advantis Technologies, Inc.
CeramTec North America Innovative Ceramic Engineering Corporation
Chemical Specialties, Inc.
Chemetall Corp.
Chemetall Chemical Products Inc.
Chemetall Foote Corp.
Compugraphics U.S.A. Inc.
Cyantek Corporation
Electrochemicals Inc.
Exsil, Inc.
Foote Chile Holding Company
Lurex, Inc.
Oakite Products, Inc.
Rockwood America Inc.
Rockwood Specialties Inc.
Rockwood Pigments NA, Inc.
RS Funding Corporation
RW Holding Corp.
Sachtleben Corporation
Southern Clay Products, Inc.
Southern Color N.A., Inc.
•    Notice Address for All Grantors
100 Overlook Center
Princeton, NJ 08540

--------------------------------------------------------------------------------

SCHEDULE 1 TO THE
SECURITY AGREEMENT

COPYRIGHT LICENSES

--------------------------------------------------------------------------------

SCHEDULE 2 TO THE
SECURITY AGREEMENT

COPYRIGHTS

Registered Owner/Grantor

--------------------------------------------------------------------------------

  Title

--------------------------------------------------------------------------------

  Registration Number

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

SCHEDULE 3 TO THE
SECURITY AGREEMENT

PATENT LICENSES

--------------------------------------------------------------------------------

SCHEDULE 4 TO THE
SECURITY AGREEMENT

PATENTS

--------------------------------------------------------------------------------

SCHEDULE 5 TO THE
SECURITY AGREEMENT

TRADEMARK LICENSES

--------------------------------------------------------------------------------

SCHEDULE 6 TO THE
SECURITY AGREEMENT

TRADEMARKS

Domestic Trademarks            
Registered Owner/Grantor
 
Trademark
 
Registration No.
 
Application No.
 
 

Foreign Trademarks

 

 

 

 

 

 
Registered Owner/Grantor
 
Trademark
 
Registration No.
 
Application No.
 
Country

--------------------------------------------------------------------------------

ANNEX 1 TO THE
SECURITY AGREEMENT

        SUPPLEMENT NO. [    ] dated as of [                        ], to the
Security Agreement dated as of July 30, 2004, among ROCKWOOD SPECIALTIES
GROUP, INC., a Delaware corporation (the "US Borrower"), ROCKWOOD SPECIALTIES
INTERNATIONAL, INC., a Delaware corporation ("Holdings"), each subsidiary of the
US Borrower listed on Schedule 1 thereto (each such subsidiary individually a
"Subsidiary Grantor" and, collectively, the "Subsidiary Grantors"; the
Subsidiary Grantors, Holdings and the US Borrower are referred to collectively
herein as the "Grantors"), CREDIT SUISSE FIRST BOSTON, acting through its Cayman
Islands Branch, as administrative agent (in such capacity, the "Administrative
Agent") for the lenders (the "Lenders") from time to time parties to the Credit
Agreement referred to below.

        A.    Reference is made to (a) the Credit Agreement dated as of July 30,
2004 (as amended, supplemented or otherwise modified from time to time, the
"Credit Agreement"), among the US Borrower, Rockwood Specialties Limited, a
company incorporated under the laws of England and Wales (the "UK Borrower" and,
together with the US Borrower, the "Borrowers"), Holdings, the Lenders, the
Administrative Agent, UBS Securities LLC and Goldman Sachs Credit Partners L.P.,
as co-syndication agents and (b) the Guarantee dated as of July 30, 2004 (as
amended, supplemented or otherwise modified from time to time, the "Guarantee"),
among the US Borrower, Holdings, the Subsidiary Guarantors party thereto and the
Administrative Agent.

        B.    Capitalized terms used herein and not otherwise defined herein
shall have the meanings assigned to such terms in the Security Agreement.

        C.    The Grantors have entered into the Security Agreement in order to
induce Administrative Agent, the Co-Syndication Agents, the Lenders and the
Letter of Credit Issuer to enter into the Credit Agreement and to induce the
Lenders and the Letter of Credit Issuer to make their respective Extensions of
Credit to the Borrowers under the Credit Agreement and to induce one or more
Lenders or Affiliates of Lenders to enter into Hedge Agreements with the
Borrowers and/or the Restricted Subsidiaries.

        D.    Section 9.11 of the Credit Agreement and Section 8.13 of the
Security Agreement provide that each Subsidiary of the US Borrower that is
required to become a party to the Security Agreement pursuant to Section 9.11 of
the Credit Agreement shall become a Grantor, with the same force and effect as
if originally named as a Grantor therein, for all purposes of the Security
Agreement upon execution and delivery by such Subsidiary of an instrument in the
form of this Supplement. Each undersigned Subsidiary (each a "New Grantor") is
executing this Supplement in accordance with the requirements of the Security
Agreement to become a Subsidiary Grantor under the Security Agreement in order
to induce the Lenders and the Letter of Credit Issuer to make additional
Extensions of Credit and as consideration for Extensions of Credit previously
made.

        Accordingly, the Administrative Agent and the New Grantors agree as
follows:

        SECTION 1.    In accordance with Section 8.13 of the Security Agreement,
each New Grantor by its signature below becomes a Grantor under the Security
Agreement with the same force and effect as if originally named therein as a
Grantor and each New Grantor hereby (a) agrees to all the terms and provisions
of the Security Agreement applicable to it as a Grantor thereunder and
(b) represents and warrants that the representations and warranties made by it
as a Grantor thereunder are true and correct on and as of the date hereof. In
furtherance of the foregoing, each New Grantor, as security for the payment and
performance in full of the Obligations, does hereby bargain, sell, convey,
assign, set over, mortgage, pledge, hypothecate and transfer to the
Administrative Agent, and hereby grants to the Administrative Agent, for the
ratable benefit of the Secured Parties, a Security Interest in all of the
Collateral of such New Grantor. Each reference to a "Grantor" in the Security
Agreement shall be

--------------------------------------------------------------------------------

deemed to include each New Grantor. The Security Agreement is hereby
incorporated herein by reference.

        SECTION 2.    Each New Grantor represents and warrants to the
Administrative Agent and the other Secured Parties that this Supplement has been
duly authorized, executed and delivered by it and constitutes its legal, valid
and binding obligation, enforceable against it in accordance with its terms.

        SECTION 3.    This Supplement may be executed by one or more of the
parties to this Supplement on any number of separate counterparts (including by
facsimile or other electronic transmission), and all of said counterparts taken
together shall be deemed to constitute one and the same instrument. A set of the
copies of this Supplement signed by all the parties shall be lodged with the
Administrative Agent and the US Borrower. This Supplement shall become effective
as to each New Grantor when the Administrative Agent shall have received
counterparts of this Supplement that, when taken together, bear the signatures
of such New Grantor and the Administrative Agent.

        SECTION 4.    Each New Grantor hereby represents and warrants that
(a) set forth on Schedule I attached hereto is a true and correct schedule of
the location of any and all Collateral of such New Grantor, (b) set forth under
its signature hereto is (i) the legal name of such New Grantor, (ii) the
jurisdiction of incorporation or organization of such New Grantor, (iii) the
true and correct location of the chief executive office and principal place of
business and any office in which it maintains books or records relating to
Collateral owned by it, (iv) the identity or type of organization or corporate
structure of such New Grantor and (v) the Federal Taxpayer Identification Number
and organizational number of such New Grantor and (c) as of the date hereof
(i) Schedule II hereto sets forth all of each New Grantor's Copyright Licenses,
(ii) Schedule III hereto sets forth, in proper form for filing with the United
States Copyright Office, all of each New Grantor's Copyrights (and all
applications therefor), (iii) Schedule IV hereto sets forth all of each New
Grantor's Patent Licenses, (iv) Schedule V hereto sets forth, in proper form for
filing with the United States Patent and Trademark Office, all of each New
Grantor's Patents (and all applications therefor), (v) Schedule VI hereto sets
forth all of each New Grantor's Trademark Licenses, (vi) Schedule VII hereto
sets forth, in proper form for filing with the United States Patent and
Trademark Office, all of each New Grantor's Trademarks (and all applications
therefor).

        SECTION 5.    Except as expressly supplemented hereby, the Security
Agreement shall remain in full force and effect.

        SECTION 6.    THIS SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

        SECTION 7.    Any provision of this Supplement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof and in the Security Agreement, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction. The parties
hereto shall endeavor in good-faith negotiations to replace the invalid, illegal
or unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

        SECTION 8.    All notices, requests and demands pursuant hereto shall be
made in accordance with Section 14.2 of the Credit Agreement. All communications
and notices hereunder to each New Grantor shall be given to it in care of the US
Borrower at the US Borrower's address set forth in Section 14.2 of the Credit
Agreement.

2

--------------------------------------------------------------------------------

        SECTION 9.    Each New Grantor agrees to reimburse the Administrative
Agent for its reasonable out-of-pocket expenses in connection with this
Supplement, including the reasonable fees, other charges and disbursements of
counsel for the Administrative Agent.

        IN WITNESS WHEREOF, each New Grantor and the Administrative Agent have
duly executed this Supplement to the Security Agreement as of the day and year
first above written.

    [NAME OF NEW GRANTOR],
 
 
By
       

--------------------------------------------------------------------------------

Name:
Title:
 
 
CREDIT SUISSE FIRST BOSTON,
acting through its Cayman Islands Branch,
as Administrative Agent
 
 
By
       

--------------------------------------------------------------------------------

Name:
Title:
 
 
By
       

--------------------------------------------------------------------------------

Name:
Title:

3

--------------------------------------------------------------------------------

SCHEDULE I
TO SUPPLEMENT NO.    TO THE
SECURITY AGREEMENT

COLLATERAL

Legal Name

--------------------------------------------------------------------------------

  Jurisdiction of
Incorporation or
Organization

--------------------------------------------------------------------------------

  Location of Chief
Executive Office and
Principal Place of
Business

--------------------------------------------------------------------------------

  Type of Organization
or Corporate
Structure

--------------------------------------------------------------------------------

  Federal Taxpayer
Identification Number
and Organizational
Identification Number

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

SCHEDULE II
TO SUPPLEMENT NO.    TO THE
SECURITY AGREEMENT

COPYRIGHT LICENSES

--------------------------------------------------------------------------------

SCHEDULE III
TO SUPPLEMENT NO.    TO THE
SECURITY AGREEMENT

COPYRIGHTS

Registered Owner/Grantor

--------------------------------------------------------------------------------

  Title

--------------------------------------------------------------------------------

  Registration Number

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

SCHEDULE IV
TO SUPPLEMENT NO.    TO THE
SECURITY AGREEMENT

PATENT LICENSES

--------------------------------------------------------------------------------

SCHEDULE V
TO SUPPLEMENT NO.    TO THE
SECURITY AGREEMENT

PATENTS

--------------------------------------------------------------------------------

SCHEDULE VI
TO SUPPLEMENT NO.    TO THE
SECURITY AGREEMENT

TRADEMARK LICENSES

--------------------------------------------------------------------------------

SCHEDULE VII
TO SUPPLEMENT NO.    TO THE
SECURITY AGREEMENT

TRADEMARKS

Domestic Trademarks

Registered Owner/Grantor

--------------------------------------------------------------------------------

  Trademark

--------------------------------------------------------------------------------

  Registration No.

--------------------------------------------------------------------------------

  Application No.

--------------------------------------------------------------------------------

   
   
   
   
    

Foreign Trademarks

Registered Owner/Grantor

--------------------------------------------------------------------------------

  Trademark

--------------------------------------------------------------------------------

  Registration No.

--------------------------------------------------------------------------------

  Application No.

--------------------------------------------------------------------------------

   

--------------------------------------------------------------------------------

ANNEX 2 TO THE
SECURITY AGREEMENT

      SUPPLEMENT NO. [    ] dated as of [            ], to the Security
Agreement dated as of [            ], 2004, among ROCKWOOD SPECIALTIES
GROUP, INC., a Delaware corporation (the "US Borrower"), ROCKWOOD SPECIALTIES
INTERNATIONAL, INC., a Delaware corporation ("Holdings"), each subsidiary of the
US Borrower listed on Schedule 1 thereto (each such subsidiary individually a
"Subsidiary Grantor" and, collectively, the "Subsidiary Grantors"; the
Subsidiary Grantors, Holdings and the US Borrower are referred to collectively
herein as the "Grantors"), CREDIT SUISSE FIRST BOSTON, acting through its Cayman
Islands Branch, as administrative agent (in such capacity, the "Administrative
Agent") for the lenders (the "Lenders") from time to time parties to the Credit
Agreement referred to below.

        A.    Reference is made to (a) the Credit Agreement dated as of July 30,
2004 (as amended, supplemented or otherwise modified from time to time, the
"Credit Agreement"), among the US Borrower, Rockwood Specialties Limited, a
company incorporated under the laws of England and Wales (the "UK Borrower" and,
together with the US Borrower, the "Borrowers"), Holdings, the Lenders, the
Administrative Agent, UBS Securities LLC and Goldman Sachs Credit Partners L.P.,
as co-syndication agents and (b) the Guarantee dated as of July 30, 2004 (as
amended, supplemented or otherwise modified from time to time, the "Guarantee"),
among the US Borrower, Holdings, the Subsidiary Guarantors party thereto and the
Administrative Agent.

        B.    Capitalized terms used herein and not otherwise defined herein
shall have the meanings assigned to such terms in the Security Agreement.

        C.    The Grantors have entered into the Security Agreement in order to
induce the Administrative Agent, the Co-Syndication Agents, the Lenders and the
Letter of Credit Issuer to enter into the Credit Agreement and to induce the
Lenders and the Letter of Credit Issuer to make their respective Extensions of
Credit to the Borrowers under the Credit Agreement and to induce one or more
Lenders or Affiliates of Lenders to enter into Hedge Agreements with the
Borrowers. Pursuant to Section 4.1(b) of the Security Agreement, within 30 days
after the end of each calendar quarter, each Grantor has agreed to deliver to
the Administrative Agent a written supplement substantially in the form of Annex
2 thereto with respect to any additional Copyrights, Copyright Licenses,
Patents, Patent Licenses, Trademarks and Trademark Licenses acquired by such
Grantor after the date of the Credit Agreement. The Grantors have identified the
additional Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks
and Trademark Licenses acquired by such Grantors after the date of the Credit
Agreement set forth on Schedule I, II, III, IV, V and VI hereto. The undersigned
Grantors are executing this Supplement in order to facilitate supplemental
filings to be made by the Administrative Agent with the United States Copyright
Office and the United States Patent and Trademark Office.

        Accordingly, the Administrative Agent and the Grantors agree as follows:

        SECTION 1.    (a) Schedule 1 of the Security Agreement is hereby
supplemented, as applicable, by the information set forth in Schedule I hereto,
(b) Schedule 2 of the Security Agreement is hereby supplemented, as applicable,
by the information set forth in Schedule II hereto, (c) Schedule 3 of the
Security Agreement is hereby supplemented, as applicable, by the information set
forth in Schedule III hereto, (d) Schedule 4 of the Security Agreement is hereby
supplemented, as applicable, by the information set forth in Schedule IV hereto,
(e) Schedule 5 of the Security Agreement is hereby supplemented, as applicable,
by the information set forth in Schedule V hereto, and (f) Schedule 6 of the
Security Agreement is hereby supplemented, as applicable, by the information set
forth in Schedule VI hereto.

        SECTION 3.    Each Grantor hereby represents and warrants that the
information set forth on Schedules I, II, III, IV, V and VI hereto is true and
correct.

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        SECTION 2.    This Supplement may be executed by one or more of the
parties to this Supplement on any number of separate counterparts (including by
facsimile or other electronic transmission), and all of said counterparts taken
together shall be deemed to constitute one and the same instrument. A set of the
copies of this Supplement signed by all the parties shall be lodged with the
Administrative Agent and the US Borrower. This Supplement shall become effective
as to each Grantor when the Administrative Agent shall have received
counterparts of this Supplement that, when taken together, bear the signatures
of such Grantor and the Administrative Agent.

        SECTION 4.    Except as expressly supplemented hereby, the Security
Agreement shall remain in full force and effect.

        SECTION 5.    THIS SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

        SECTION 6.    Any provision of this Supplement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof and in the Security Agreement, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction. The parties
hereto shall endeavor in good-faith negotiations to replace the invalid, illegal
or unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

        SECTION 7.    All notices, requests and demands pursuant hereto shall be
made in accordance with Section 14.2 of the Credit Agreement. All communications
and notices hereunder to each Grantor shall be given to it in care of the US
Borrower at the US Borrower's address set forth in Section 14.2 of the Credit
Agreement.

        SECTION 8.    Each Grantor agrees to reimburse the Administrative Agent
for its reasonable out-of-pocket expenses in connection with this Supplement,
including the reasonable fees, other charges and disbursements of counsel for
the Administrative Agent.

2

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        IN WITNESS WHEREOF, each Grantor and the Administrative Agent have duly
executed this Supplement to the Security Agreement as of the day and year first
above written.

    GRANTOR
 
 
 
By
         

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Name:
Title:
 
 
CREDIT SUISSE FIRST BOSTON,
acting through its Cayman Islands Branch,
as Administrative Agent
 
 
 
By
         

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Name:
Title:
 
 
 
By
         

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Name:
Title:

3

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SCHEDULE I
TO SUPPLEMENT NO.    TO THE
SECURITY AGREEMENT

COPYRIGHT LICENSES

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SCHEDULE II
TO SUPPLEMENT NO.    TO THE
SECURITY AGREEMENT

COPYRIGHTS

Registered Owner/Grantor

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  Title

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  Registration Number

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SCHEDULE III
TO SUPPLEMENT NO.    TO THE
SECURITY AGREEMENT

PATENT LICENSES

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SCHEDULE IV
TO SUPPLEMENT NO.    TO THE
SECURITY AGREEMENT

PATENTS

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SCHEDULE V
TO SUPPLEMENT NO.    TO THE
SECURITY AGREEMENT

TRADEMARK LICENSES

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SCHEDULE VI
TO SUPPLEMENT NO.    TO THE
SECURITY AGREEMENT

TRADEMARKS

Domestic Trademarks

Registered Owner/Grantor

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  Trademark

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  Registration No.

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  Application No.

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Foreign Trademarks

Registered Owner/Grantor

--------------------------------------------------------------------------------

  Trademark

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  Registration No.

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  Application No.

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  Country

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