|  UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THESECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended SEPTEMBER 30, 2010 Commission File Number: 1-1463UNION CARBIDE CORPORATION(Exact name of registrant as specified in its charter)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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| New York(State or other jurisdiction of     incorporation or organization)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 13-1421730(I.R.S. Employer Identification No.) |
|  1254 Enclave Parkway, Houston, Texas  77077(Address of principal executive offices)          (Zip Code)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|  Registrant's telephone number, including area code:  281-966-2727                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
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| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.       þ Yes    o No                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).                                                                                                                                                                                                                                                        o Yes    o No  |
| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Large accelerated filer o                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Accelerated filer o |
| Non-accelerated filer   þ                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Smaller reporting company o |
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| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).o Yes    þ No                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
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| At September 30, 2010, 1,000 shares of common stock were outstanding, all of which were held by the registrant’s parent, The Dow Chemical Company. The registrant meets the conditions set forth in General Instructions H(1)(a) and (b) for Form 10-Q and is therefore filing this form with a reduced disclosure format.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

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TABLE OF CONTENTS

|                                                                                                            | PAGE     |
|-----------------------------------------------------------------------------------------------------------------|----------|
| PART I - FINANCIAL INFORMATION                                                                                  |     |
|  Item 1.  Financial Statements.                                                                  |  3  |
|  Consolidated Statements of Income                                                                         |  3  |
|  Consolidated Balance Sheets                                                                               |  4  |
|  Consolidated Statements of Cash Flows                                                                     |  5  |
|  Consolidated Statements of Equity                                                                         |  6  |
|  Consolidated Statements of Comprehensive Income                                                           |  6  |
|  Notes to the Consolidated Financial Statements                                                            |  7  |
|  Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations. |  17 |
|  Disclosure Regarding Forward-Looking Information                                                          |  17 |
|  Results of Operations                                                                                     |  17 |
|  Other Matters                                                                                             |  19 |
|  Item 3.  Quantitative and Qualitative Disclosures About Market Risk.                            |  22 |
|  Item 4.  Controls and Procedures.                                                               | 22       |
|  PART II - OTHER INFORMATION                                                                               |     |
|  Item 1.  Legal Proceedings.                                                                     |  22 |
|  Item 1A.  Risk Factors.                                                                         |  22 |
|  Item 6.  Exhibits.                                                                              |  22 |
|  SIGNATURES                                                                                                |  23 |
|  EXHIBIT INDEX                                                                                             |  24 |

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Table of Contents

| PART I - FINANCIAL INFORMATION                       |   |               |   |   |              |   |   |      |   |   |      |   |
|------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|--------|-----------|--------|--------|-----------|--------|
|                                                 |   |               |   |   |              |   |   |      |   |   |      |   |
| ITEM 1. Financial Statements.                        |   |               |   |   |              |   |   |      |   |   |      |   |
|                                                 |   |               |   |   |              |   |   |      |   |   |      |   |
| Union Carbide Corporation and Subsidiaries           |
| Consolidated Statements of Income                    |
|                                                 |   |               |   |   |              |   |   |      |   |   |      |   |
|                                                 |   | Three Months Ended |   |   | Nine Months Ended |   |
|                                                 |   | Sept. 30,          |   |   | Sept. 30,         |   |   | Sept. 30, |   |   | Sept. 30, |   |
| In millions     (Unaudited) |   | 2010               |   |   | 2009              |   |   | 2010      |   |   | 2009      |   |
| Net trade sales                                      |   | $                  | 40     |   |              | $      | 35     |      |   | $      | 131       |   |   | $ | 113 |   |
| Net sales to related companies                       |   |               | 1,663  |   |              |   | 1,322  |      |   |   | 4,781     |   |   |   | 3,573 |   |
| Total Net Sales                                      |   | $                  | 1,703  |   |              | $      | 1,357  |      |   | $      | 4,912     |   |   | $ | 3,686 |   |
| Cost of sales                                        |   |               | 1,453  |   |              |   | 1,145  |      |   |   | 4,518     |   |   |   | 3,224 |   |
| Research and development expenses                    |   |               | 10     |   |              |   | 10     |      |   |   | 33        |   |   |   | 37 |   |
| Selling, general and administrative expenses         |   |               | 3      |   |              |   | 1      |      |   |   | 10        |   |   |   | 7 |   |
| Restructuring charges                                |   |               | -      |   |              |   | -      |      |   |   | 5         |   |   |   | 166 |   |
| Equity in earnings of nonconsolidated affiliates     |   |               | 7      |   |              |   | 14     |      |   |   | 27        |   |   |   | 20 |   |
| Sundry income - net                                  |   |               | 6      |   |              |   | 320    |      |   |   | 2         |   |   |   | 322 |   |
| Interest income                                      |   |               | 12     |   |              |   | 21     |      |   |   | 43        |   |   |   | 31 |   |
| Interest expense and amortization of debt discount   |   |               | 6      |   |              |   | 8      |      |   |   | 28        |   |   |   | 32 |   |
| Income before Income Taxes                           |   | $                  | 256    |   |              | $      | 548    |      |   | $      | 390       |   |   | $ | 593 |   |
| Provision for income taxes                           |   |               | 95     |   |              |   | 222    |      |   |   | 93        |   |   |   | 183 |   |
| Net Income Attributable to Union Carbide Corporation |   | $                  | 161    |   |              | $      | 326    |      |   | $      | 297       |   |   | $ | 410 |   |
|                                                 |   |               |   |   |              |   |   |      |   |   |      |   |   |   |   |   |
|                                                 |   |               |   |   |              |   |   |      |   |   |      |   |   |   |   |   |
|                                                 |   |               |   |   |              |   |   |      |   |   |      |   |   |   |   |   |
| Depreciation                                         |   | $                  | 59     |   |              | $      | 63     |      |   | $      | 185       |   |   | $ | 201 |   |
| Capital Expenditures                                 |   | $                  | 38     |   |              | $      | 21     |      |   | $      | 81        |   |   | $ | 62 |   |
| See Notes to the Consolidated Financial Statements.  |   |               |   |   |              |   |   |      |   |   |      |   |   |   |   |   |

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Table of Contents

| Union Carbide Corporation and Subsidiaries                                                           |
|------------------------------------------------------------------------------------------------------|
| Consolidated Balance Sheets                                                                          |
|                                                                                                 |   |   |   |   |   |   |
|                                                                                                 |   | Sept. 30, |   | Dec. 31, |
| In millions     (Unaudited)                                                 |   | 2010 |   | 2009 |
| Assets                                                                                               |   |   |   |   |   |   |
| Current Assets                                                                                       |   |   |   |   |   |   |
| Cash and cash equivalents                                                                            |   | $ | 25 |   |   | $ | 22 |   |
| Accounts receivable:                                                                                 |   |   |   |   |   |   |   |   |
|      Trade (net of allowance for doubtful receivables - 2010: $1; 2009: $1) |   |   | 22 |   |   |   | 20 |   |
|      Related companies                                                      |   |   | 383 |   |   |   | 371 |   |
|      Other                                                                  |   |   | 155 |   |   |   | 254 |   |
| Notes receivable from related companies                                                              |   |   | 4,377 |   |   |   | 4,150 |   |
| Inventories                                                                                          |   |   | 225 |   |   |   | 207 |   |
| Other current assets and deferred income taxes                                                       |   |   | 70 |   |   |   | 109 |   |
| Total current assets                                                                                 |   |   | 5,257 |   |   |   | 5,133 |   |
| Investments                                                                                          |   |   |   |   |   |   |   |   |
| Investments in related companies                                                                     |   |   | 972 |   |   |   | 972 |   |
| Investments in nonconsolidated affiliates                                                            |   |   | 121 |   |   |   | 116 |   |
| Other investments                                                                                    |   |   | 26 |   |   |   | 21 |   |
| Noncurrent receivables                                                                               |   |   | 46 |   |   |   | 47 |   |
| Noncurrent receivables from related companies                                                        |   |   | 126 |   |   |   | 101 |   |
| Total investments                                                                                    |   |   | 1,291 |   |   |   | 1,257 |   |
| Property                                                                                             |   |   |   |   |   |   |   |   |
| Property                                                                                             |   |   | 7,096 |   |   |   | 7,533 |   |
| Less accumulated depreciation                                                                        |   |   | 5,669 |   |   |   | 5,986 |   |
| Net property                                                                                         |   |   | 1,427 |   |   |   | 1,547 |   |
| Other Assets                                                                                         |   |   |   |   |   |   |   |   |
| Other intangible assets (net of accumulated amortization 2010: $139; 2009: $140)                     |   |   | 7 |   |   |   | 10 |   |
| Deferred income tax assets - noncurrent                                                              |   |   | 573 |   |   |   | 498 |   |
| Asbestos-related insurance receivables - noncurrent                                                  |   |   | 250 |   |   |   | 330 |   |
| Deferred charges and other assets                                                                    |   |   | 66 |   |   |   | 73 |   |
| Total other assets                                                                                   |   |   | 896 |   |   |   | 911 |   |
| Total Assets                                                                                         |   | $ | 8,871 |   |   | $ | 8,848 |   |
| Liabilities and Equity                                                                               |   |   |   |   |   |   |   |   |
| Current Liabilities                                                                                  |   |   |   |   |   |   |   |   |
| Notes payable - related companies                                                                    |   | $ | 3 |   |   | $ | 3 |   |
| Accounts payable:                                                                                    |   |   |   |   |   |   |   |   |
|      Trade                                                                  |   |   | 212 |   |   |   | 225 |   |
|      Related companies                                                      |   |   | 441 |   |   |   | 329 |   |
|      Other                                                                  |   |   | 27 |   |   |   | 28 |   |
| Income taxes payable                                                                                 |   |   | 260 |   |   |   | 119 |   |
| Asbestos-related liabilities - current                                                               |   |   | 78 |   |   |   | 115 |   |
| Accrued and other current liabilities                                                                |   |   | 227 |   |   |   | 195 |   |
| Total current liabilities                                                                            |   |   | 1,248 |   |   |   | 1,014 |   |
| Long-Term Debt                                                                                       |   |   | 571 |   |   |   | 571 |   |
| Other Noncurrent Liabilities                                                                         |   |   |   |   |   |   |   |   |
| Pension and other postretirement benefits - noncurrent                                               |   |   | 817 |   |   |   | 855 |   |
| Asbestos-related liabilities - noncurrent                                                            |   |   | 735 |   |   |   | 734 |   |
| Other noncurrent obligations                                                                         |   |   | 182 |   |   |   | 240 |   |
| Total other noncurrent liabilities                                                                   |   |   | 1,734 |   |   |   | 1,829 |   |
| Stockholder's Equity                                                                                 |   |   |   |   |   |   |   |   |
| Common stock (authorized and issued: 1,000 shares of $0.01 par value each)                           |   |   | - |   |   |   | - |   |
| Additional paid-in capital                                                                           |   |   | 312 |   |   |   | 312 |   |
| Retained earnings                                                                                    |   |   | 5,978 |   |   |   | 6,131 |   |
| Accumulated other comprehensive loss                                                                 |   |   | (974 | ) |   |   | (1,010 | ) |
| Union Carbide Corporation's stockholder's equity                                                     |   |   | 5,316 |   |   |   | 5,433 |   |
| Noncontrolling interests                                                                             |   |   | 2 |   |   |   | 1 |   |
| Total equity                                                                                         |   |   | 5,318 |   |   |   | 5,434 |   |
| Total Liabilities and Equity                                                                         |   | $ | 8,871 |   |   | $ | 8,848 |   |
| See Notes to the Consolidated Financial Statements.                                                  |   |   |   |   |   |   |   |   |

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Table of Contents

| Union Carbide Corporation and Subsidiaries                                                                                      |
|---------------------------------------------------------------------------------------------------------------------------------|
| Consolidated Statements of Cash Flows                                                                                           |
|                                                                                                                            |   | Nine Months Ended |
|                                                                                                                            |   | Sept. 30, |   | Sept. 30, |
| In millions     (Unaudited)                                                                            |   | 2010 |   | 2009 |
| Operating Activities                                                                                                            |   |   |   |   |   |   |
| Net Income                                                                                                                      |   | $ | 297 |   |   | $ | 410 |   |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities:                                     |   |   |   |   |   |   |   |   |
|           Depreciation and amortization                                       |   |   | 205 |   |   |   | 219 |   |
|           Credit for deferred income tax                                      |   |   | (51 | ) |   |   | (9 | ) |
|           Earnings of nonconsolidated affiliates less than dividends received |   |   | - |   |   |   | 7 |   |
|           Net gain on sale of property                                        |   |   | (2 | ) |   |   | (3 | ) |
|           Restructuring charges                                               |   |   | 5 |   |   |   | 166 |   |
|           Pension contributions                                               |   |   | (1 | ) |   |   | (1 | ) |
|           Gain on sale of ownership interest in nonconsolidated affiliates    |   |   | - |   |   |   | (328 | ) |
|           Other gains, net                                                    |   |   | (1 | ) |   |   | (4 | ) |
| Changes in assets and liabilities:                                                                                              |   |   |   |   |   |   |   |   |
|           Accounts and notes receivable                                       |   |   | (10 | ) |   |   | (41 | ) |
|           Related company receivables                                         |   |   | (239 | ) |   |   | (784 | ) |
|           Inventories                                                         |   |   | (18 | ) |   |   | (6 | ) |
|           Accounts payable                                                    |   |   | - |   |   |   | 36 |   |
|           Related company payables                                            |   |   | 112 |   |   |   | (70 | ) |
|           Other assets and liabilities                                        |   |   | 265 |   |   |   | 47 |   |
| Cash provided by (used in) operating activities                                                                                 |   |   | 562 |   |   |   | (361 | ) |
| Investing Activities                                                                                                            |   |   |   |   |   |   |   |   |
| Capital expenditures                                                                                                            |   |   | (81 | ) |   |   | (62 | ) |
| Change in noncurrent receivable from related company                                                                            |   |   | (25 | ) |   |   | (5 | ) |
| Proceeds from sale of ownership interest in nonconsolidated affiliates                                                          |   |   | - |   |   |   | 660 |   |
| Proceeds from sales of property                                                                                                 |   |   | 2 |   |   |   | 6 |   |
| Purchases of investments                                                                                                        |   |   | (22 | ) |   |   | (17 | ) |
| Proceeds from sales of investments                                                                                              |   |   | 17 |   |   |   | 19 |   |
| Cash provided by (used in) investing activities                                                                                 |   |   | (109 | ) |   |   | 601 |   |
| Financing Activities                                                                                                            |   |   |   |   |   |   |   |   |
| Dividends paid to stockholder                                                                                                   |   |   | (450 | ) |   |   | - |   |
| Payments on long-term debt                                                                                                      |   |   | - |   |   |   | (249 | ) |
| Cash used in financing activities                                                                                               |   |   | (450 | ) |   |   | (249 | ) |
| Summary                                                                                                                         |   |   |   |   |   |   |   |   |
| Increase (decrease) in cash and cash equivalents                                                                                |   |   | 3 |   |   |   | (9 | ) |
| Cash and cash equivalents at beginning of year                                                                                  |   |   | 22 |   |   |   | 24 |   |
| Cash and cash equivalents at end of period                                                                                      |   | $ | 25 |   |   | $ | 15 |   |
| See Notes to the Consolidated Financial Statements.                                                                             |   |   |   |   |   |   |   |   |

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Table of Contents

| Union Carbide Corporation and Subsidiaries                          |   |               |   |      |              |   |
|---------------------------------------------------------------------|--------|--------------------|--------|-----------|-------------------|--------|
| Consolidated Statements of Equity                                   |   |               |   |      |              |   |
|                                                                |   | Nine Months Ended  |   |      |              |   |   |   |
|                                                                |   | Sept. 30,          |   | Sept. 30, |              |   |   |   |   |   |
| In millions     (Unaudited)                |   | 2010               |   | 2009      |              |   |   |   |   |   |
| Common Stock                                                        |   |               |   |      |              |   |   |   |   |   |   |   |
| Balance at beginning of year and end of period                      |   |               | -      |      |              |   | - |   |   |   |   |   |   |   |
| Additional Paid-in Capital                                          |   |               |   |      |              |   |   |   |   |   |   |   |   |   |
| Balance at beginning of year and end of period                      |   | $                  | 312    |      |              | $      | 312 |   |   |   |   |   |   |   |
| Retained Earnings                                                   |   |               |   |      |              |   |   |   |   |   |   |   |   |   |
| Balance at beginning of year                                        |   |               | 6,131  |      |              |   | 6,094 |   |   |   |   |   |   |   |
| Net income                                                          |   |               | 297    |      |              |   | 410 |   |   |   |   |   |   |   |
| Dividends declared                                                  |   |               | (450   | )         |              |   | - |   |   |   |   |   |   |   |
| Balance at end of period                                            |   |               | 5,978  |      |              |   | 6,504 |   |   |   |   |   |   |   |
| Accumulated Other Comprehensive Loss, Net of Tax                    |   |               |   |      |              |   |   |   |   |   |   |   |   |   |
| Cumulative Translation Adjustments at beginning of year             |   |               | (61    | )         |              |   | (61 | ) |   |   |   |   |   |   |
| Translation adjustments                                             |   |               | 5      |      |              |   | 1 |   |   |   |   |   |   |   |
| Balance at end of period                                            |   |               | (56    | )         |              |   | (60 | ) |   |   |   |   |   |   |
| Pension and Other Postretirement Benefit Plans at beginning of year |   |               | (950   | )         |              |   | (783 | ) |   |   |   |   |   |   |
| Adjustments to pension and other postretirement benefit plans       |   |               | 31     |      |              |   | - |   |   |   |   |   |   |   |
| Balance at end of period                                            |   |               | (919   | )         |              |   | (783 | ) |   |   |   |   |   |   |
| Accumulated Investment Gain at beginning of year and end of period  |   |               | 1      |      |              |   | 1 |   |   |   |   |   |   |   |
| Accumulated Derivative Loss at beginning of year                    |   |               | -      |      |              |   | (1 | ) |   |   |   |   |   |   |
|         Net hedging results |   |               | -      |      |              |   | 1 |   |   |   |   |   |   |   |
| Balance at end of period                                            |   |               | -      |      |              |   | - |   |   |   |   |   |   |   |
| Total accumulated other comprehensive loss                          |   |               | (974   | )         |              |   | (842 | ) |   |   |   |   |   |   |
| Union Carbide Corporation's Stockholder's Equity                    |   |               | 5,316  |      |              |   | 5,974 |   |   |   |   |   |   |   |
| Noncontrolling Interests                                            |   |               | 2      |      |              |   | 1 |   |   |   |   |   |   |   |
| Total Equity                                                        |   | $                  | 5,318  |      |              | $      | 5,975 |   |   |   |   |   |   |   |
| See Notes to the Consolidated Financial Statements.                 |   |               |   |      |              |   |   |   |   |   |   |   |   |   |
|                                                                |   |               |   |      |              |   |   |   |   |   |   |   |   |   |
|                                                                |   |               |   |      |              |   |   |   |   |   |   |   |   |   |
| Union Carbide Corporation and Subsidiaries                          |
| Consolidated Statements of Comprehensive Income                     |
|                                                                |   | Three Months Ended |   |      | Nine Months Ended |   |
|                                                                |   | Sept. 30,          |   |      | Sept. 30,         |   |   | Sept. 30, |   |   | Sept. 30, |   |
| In millions     (Unaudited)                |   |               | 2010   |      |              |   | 2009 |   |   |   | 2010 |   |   |   | 2009 |   |
| Net Income Attributable to Union Carbide Corporation                |   | $                  | 161    |      |              | $      | 326 |   |   | $ | 297 |   |   | $ | 410 |   |
| Other Comprehensive Income, Net of Tax                              |   |               |   |      |              |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative translation adjustment                                   |   | $                  | 3      |      |              | $      | 4 |   |   | $ | 5 |   |   | $ | 1 |   |
| Pension and other postretirement benefit plans adjustment           |   |               | 10     |      |              |   | 1 |   |   |   | 31 |   |   |   | - |   |
| Net gain on cash flow hedging derivative instruments                |   |               | -      |      |              |   | 1 |   |   |   | - |   |   |   | 1 |   |
| Total other comprehensive income                                    |   |               | 13     |      |              |   | 6 |   |   |   | 36 |   |   |   | 2 |   |
| Comprehensive Income Attributable to Union Carbide Corporation      |   | $                  | 174    |      |              | $      | 332 |   |   | $ | 333 |   |   | $ | 412 |   |
| See Notes to the Consolidated Financial Statements.                 |   |               |   |      |              |   |   |   |   |   |   |   |   |   |   |   |

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Table of Contents

|  Union Carbide Corporation and Subsidiaries     |
|------------------------------------------------------|
|  Notes to the Consolidated Financial Statements |
|  (Unaudited)                                    |

| Note     |   | Page                                      |
|------------------------------|--------|-------------------------------------------|
|                         | A      | Consolidated Financial Statements         | 7 |
|                         | B      | Recent Accounting Guidance                | 7 |
|                         | C      | Restructuring                             | 8 |
|                         | D      | Divestitures                              | 9 |
|                         | E      | Inventories                               | 9 |
|                         | F      | Other Intangible Assets                   | 10 |
|                         | G      | Financial Instruments                     | 10 |
|                         | H      | Fair Value Measurements                   | 11 |
|                         | I      | Commitments and Contingent Liabilities    | 12 |
|                         | J      | Pension and Other Postretirement Benefits | 15 |
|                         | K      | Related Party Transactions                | 16 |

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|  Union Carbide Corporation and Subsidiaries     |
|------------------------------------------------------|
|  Notes to the Consolidated Financial Statements |
|  (Unaudited)                                    |

| 2010 Activities related to 2009 RestructuringIn millions |   | Impairment of Long-lived Assets |   | Severance Costs |   |  Total |
|----------------------------------------------------------|--------|--------------------------------------|--------|-----------------|--------|-------------|
| Reserve balance at December 31, 2009                     |   |                                 | -      |            |   | $           | 1 |   |   | $ | 1 |   |
| Adjustment to reserve                                    |   | $                                    | 5      |            |   |        | - |   |   |   | 5 |   |
| Charges against the reserve                              |   |                                 | (5     | )               |   |        | - |   |   |   | (5 | ) |
| Cash payments                                            |   |                                 | -      |            |   |        | (1 | ) |   |   | (1 | ) |
| Reserve balance at March 31, 2010                        |   |                                 | -      |            |   |        | - |   |   |   | - |   |

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|  Union Carbide Corporation and Subsidiaries     |
|------------------------------------------------------|
|  Notes to the Consolidated Financial Statements |
|  (Unaudited)                                    |

| 2010 Activities related to 2008RestructuringIn millions |   | Costs associated with Exit or Disposal Activities |   |   | Severance Costs |   | Total |
|---------------------------------------------------------|--------|---------------------------------------------------|--------|--------|-----------------|--------|-------|
| Reserve balance at December 31, 2009                    |   | $                                                 | 24     |   |            | $      | 5     |   |   | $ | 29 |   |
| Cash payments                                           |   |                                              | -      |   |            |   | (2    | ) |   |   | (2 | ) |
| Reserve balance at September 30, 2010                   |   | $                                                 | 24     |   |            | $      | 3     |   |   | $ | 27 |   |

| InventoriesIn millions |   | Sept. 30,2010 |   |   | Dec. 31,2009 |   |
|------------------------|--------|---------------|--------|--------|--------------|--------|
| Finished goods         |   | $             | 83     |   |         | $      | 70 |   |
| Work in process        |   |          | 9      |   |         |   | 10 |   |
| Raw materials          |   |          | 53     |   |         |   | 49 |   |
| Supplies               |   |          | 80     |   |         |   | 78 |   |
| Total inventories      |   | $             | 225    |   |         | $      | 207 |   |

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|  Union Carbide Corporation and Subsidiaries     |
|------------------------------------------------------|
|  Notes to the Consolidated Financial Statements |
|  (Unaudited)                                    |

| Other Intangible Assets              |   | September 30, 2010  |   |   | December 31, 2009        |   |
|--------------------------------------|--------|---------------------|--------|--------|--------------------------|--------|
| In millions                          |   | GrossCarryingAmount |   |   | Accumulated Amortization |   | Net |   |   | GrossCarryingAmount |   |   | Accumulated Amortization |   | Net |   |
| Intangible assets with finite lives: |   |                |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Licenses and intellectual property   |   | $                   | 33     |   |                     | $      | (33 | ) |   |   | - |   |   | $ | 33 |   |   | $ | (33 | ) |   |   | - |   |
| Patents                              |   |                | 2      |   |                     |   | (2 | ) |   |   | - |   |   |   | 2 |   |   |   | (1 | ) |   | $ | 1 |   |
| Software                             |   |                | 111    |   |                     |   | (104 | ) |   | $ | 7 |   |   |   | 115 |   |   |   | (106 | ) |   |   | 9 |   |
| Total other intangible assets        |   | $                   | 146    |   |                     | $      | (139 | ) |   | $ | 7 |   |   | $ | 150 |   |   | $ | (140 | ) |   | $ | 10 |   |

| Estimated Amortization Expense for Next Five YearsIn millions |   |
|---------------------------------------------------------------|--------|
| 2010                                                          |   | $ | 4 |   |
| 2011                                                          |   | $ | 2 |   |
| 2012                                                          |   | $ | 1 |   |
| 2013                                                          |   |   | - |   |
| 2014                                                          |   |   | - |   |
| 2015                                                          |   |   | - |   |

| Investing ResultsIn millions                         |   | Nine months endedSeptember 30, 2010 |   |
|------------------------------------------------------|--------|-------------------------------------|--------|
| Proceeds from sales of available-for-sale securities |   |                                | $8     |   |

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|  Union Carbide Corporation and Subsidiaries     |
|------------------------------------------------------|
|  Notes to the Consolidated Financial Statements |
|  (Unaudited)                                    |

| Fair Value of Financial Instruments               |   |
|---------------------------------------------------|--------|
|                                              |   | September 30, 2010 |   | December 31, 2009 |
| In millions                                       |   | Cost |   | Gain |   |   | Loss |   | Fair Value |   | Cost |   | Gain |   |   | Loss |   |   | Fair Value |
| Marketable securities (1):                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Debt securities                                   |   | $ | 21 |   |   | $ | 1 |   |   |   | - |   |   | $ | 22 |   |   | $ | 16 |   |   | $ | 1 |   |   |   | - |   |   | $ | 17 |   |
| Equity securities                                 |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 1 |   |   |   | 1 |   |   |   | - |   |   |   | - |   |   |   | 1 |   |
| Total marketable securities                       |   | $ | 22 |   |   | $ | 1 |   |   |   | - |   |   | $ | 23 |   |   | $ | 17 |   |   | $ | 1 |   |   |   | - |   |   | $ | 18 |   |
| Long-term debt including debt due within one year |   | $ | (571 | ) |   | $ | 18 |   |   | $ | (20 | ) |   | $ | (573 | ) |   | $ | (571 | ) |   | $ | 73 |   |   |   | - |   |   | $ | (498 | ) |

| (1) | Included in “Other investments” in the consolidated balance sheets. |
|-----|---------------------------------------------------------------------------------|

| Basis of Fair Value Measurementson a Recurring Basis  |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Other Observable Inputs (Level 2) |   |
|------------------------------------------------------------|--------|----------------------------------------------------|--------|--------|----------------------------------------------------|--------|
|  In millions                                          |   | Sept. 30, 2010                                |   |   | Dec. 31, 2009                                 |   |
| Assets at fair value:                                      |   |                                               |   |   |                                               |   |
|     Debt securities (1)                |   |                                               | $22    |   |                                               |   | $17 |   |

| (1) | Included in “Other investments” in the consolidated balance sheets. |
|-----|---------------------------------------------------------------------------------|

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|  Union Carbide Corporation and Subsidiaries     |
|------------------------------------------------------|
|  Notes to the Consolidated Financial Statements |
|  (Unaudited)                                    |

| Basis of Fair Value Measurementson a Nonrecurring Basisat September 30, 2009 In millions |   | Significant Other Unobservable Inputs(Level 3) |   |   | Total Losses |
|----------------------------------------------------------------------------------------------------|--------|------------------------------------------------|--------|--------|--------------|
| Assets at fair value:                                                                              |   |                                           |   |   |         |   |
| Long-lived assets                                                                                  |   |                                           | -      |   |         |   | $(159 | ) |
| Total assets at fair value                                                                         |   |                                           | -      |   |         |   | $(159 | ) |

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|  Union Carbide Corporation and Subsidiaries     |
|------------------------------------------------------|
|  Notes to the Consolidated Financial Statements |
|  (Unaudited)                                    |

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|  Union Carbide Corporation and Subsidiaries     |
|------------------------------------------------------|
|  Notes to the Consolidated Financial Statements |
|  (Unaudited)                                    |

| Receivables for Asbestos-Related CostsIn millions                                                          |   | Sept. 30, 2010 |     |   | Dec. 31, 2009 |   |
|------------------------------------------------------------------------------------------------------------|--------|---------------------|----------|--------|--------------------|--------|
| Receivables for defense costs - carriers with settlement agreements                                        |   | $                   | 7        |   |               | $      | 91 |   |
| Receivables for resolution costs - carriers with settlement agreements                                     |   |                | 235      |   |               |   | 357 |   |
| Receivables for insurance recoveries - carriers without settlement     agreements |   |                |  84 |   |               |   |  84 |   |
| Total                                                                                                      |   | $                   | 326      |   |               | $      | 532 |   |

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|  Union Carbide Corporation and Subsidiaries     |
|------------------------------------------------------|
|  Notes to the Consolidated Financial Statements |
|  (Unaudited)                                    |

| Fixed and Determinable Portion of Take-or-Pay Obligationsat December 31, 2009In millions |   |
|-----------------------------------------------------------------------------------------------|--------|
| 2010                                                                                          |   | $ | 14 |   |
| 2011                                                                                          |   |   | 6 |   |
| 2012                                                                                          |   |   | 4 |   |
| 2013                                                                                          |   |   | 4 |   |
| 2014                                                                                          |   |   | 4 |   |
| 2015 and beyond                                                                               |   |   | 10 |   |
| Total                                                                                         |   | $ | 42 |   |

| Net Periodic Benefit Cost (Credit) for All Significant Plans |   | Three Months Ended |   | Nine Months Ended |
|--------------------------------------------------------------|--------|--------------------|--------|-------------------|
| In millions                                                  |   | Sept. 30,2010      |   | Sept. 30,2009     |   | Sept. 30,2010 |   | Sept. 30,2009 |
| Defined Benefit Pension Plans:                               |   |               |   |              |   |   |   |   |   |   |   |   |
| Service cost                                                 |   | $                  | 4      |              |   | $ | 4 |   |   | $ | 12 |   |   | $ | 12 |   |
| Interest cost                                                |   |               | 52     |              |   |   | 56 |   |   |   | 156 |   |   |   | 168 |   |
| Expected return on plan assets                               |   |               | (66    | )                 |   |   | (75 | ) |   |   | (198 | ) |   |   | (225 | ) |
| Amortization of prior service cost                           |   |               | 2      |              |   |   | 2 |   |   |   | 6 |   |   |   | 4 |   |
| Amortization of net loss                                     |   |               | 15     |              |   |   | - |   |   |   | 45 |   |   |   | 2 |   |
| Net periodic benefit cost (credit)                           |   | $                  | 7      |              |   | $ | (13 | ) |   | $ | 21 |   |   | $ | (39 | ) |
|  Other Postretirement Benefits:                         |   |               |   |              |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest cost                                                |   | $                  | 6      |              |   | $ | 8 |   |   | $ | 18 |   |   | $ | 24 |   |
| Net periodic benefit cost                                    |   | $                  | 6      |              |   | $ | 8 |   |   | $ | 18 |   |   | $ | 24 |   |

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|  Union Carbide Corporation and Subsidiaries     |
|------------------------------------------------------|
|  Notes to the Consolidated Financial Statements |
|  (Unaudited)                                    |

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|  Union Carbide Corporation and Subsidiaries  |
|--------------------------------------------------------|

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

DISCLOSURE REGARDING FORWARD-LOOKING INFORMATION

RESULTS OF OPERATIONS

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|  Union Carbide Corporation and Subsidiaries  |
|--------------------------------------------------------|

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|  Union Carbide Corporation and Subsidiaries  |
|--------------------------------------------------------|

OTHER MATTERS

|                                              |   | 2010   |    | 2009   |
|---------------------------------------------------|--------|--------|---------|--------|
| Claims unresolved at January 1                    |   |   | 75,030  |   |   |   | 75,706 |   |
| Claims filed                                      |   |   | 5,525   |   |   |   | 6,379 |   |
| Claims settled, dismissed or otherwise resolved   |   |   | (17,083 | )      |   |   | (6,728 | ) |
| Claims unresolved at September 30                 |   |   | 63,472  |   |   |   | 75,357 |   |
| Claimants with claims against both UCC and Amchem |   |   | 19,844  |   |   |   | 24,328 |   |
| Individual claimants at September 30              |   |   | 43,628  |   |   |   | 51,029 |   |

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|  Union Carbide Corporation and Subsidiaries  |
|--------------------------------------------------------|

| Defense and Resolution Costs |   | Nine Months Ended |   |   | Aggregate Costs to |   |
|------------------------------|--------|-------------------|--------|--------|--------------------|--------|
| In millions                  |   | Sept. 30,2010     |   |   | Sept. 30,2009      |   |   | Date as of Sept. 30,2010 |   |
| Defense costs                |   | $                 | 58     |   |               | $      | 40 |   |   | $ | 745 |   |
| Resolution costs             |   | $                 | 40     |   |               | $      | 77 |   |   | $ | 1,520 |   |

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|  Union Carbide Corporation and Subsidiaries  |
|--------------------------------------------------------|

| Receivables for Asbestos-Related CostsIn millions                                                               |   | Sept. 30, 2010 |     |   | Dec. 31, 2009 |   |
|-----------------------------------------------------------------------------------------------------------------|--------|---------------------|----------|--------|--------------------|--------|
| Receivables for defense costs - carriers with settlement agreements                                             |   | $                   | 7        |   |               | $      | 91 |   |
| Receivables for resolution costs - carriers with settlement agreements                                          |   |                | 235      |   |               |   | 357 |   |
| Receivable for insurance recoveries - carriers without settlement      agreements |   |                |  84 |   |               |   |  84 |   |
| Total                                                                                                           |   | $                   | 326      |   |               | $      | 532 |   |

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|  Union Carbide Corporation and Subsidiaries  |
|--------------------------------------------------------|

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

ITEM 4.  CONTROLS AND PROCEDURES.

ITEM 1.  LEGAL PROCEEDINGS.

ITEM 1A.  RISK FACTORS.

ITEM 6.  EXHIBITS.

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|  Union Carbide Corporation and Subsidiaries |
|--------------------------------------------------|
|  Signatures                            |

|                              |   | UNION CARBIDE CORPORATION     |
|-----------------------------------|--------|-------------------------------|
|                              |   | Registrant                    |
|                              |   |                          |
|                              |   |                          |
| Date:  November 3, 2010 |   |                          |
|                              | By:    | /s/ RONALD C. EDMONDS         |
|                              |   | Ronald C. Edmonds             |
|                              |   | Vice President and Controller |
|                              |   | The Dow Chemical Company      |
|                              |   | Authorized Representative of  |
|                              |   | Union Carbide Corporation     |
|                              |   |                          |
|                              |   |                          |
|                              |   |                          |
|                              |   |                          |
|                              | By:    | /s/ EUDIO GIL                 |
|                              |   | Eudio Gil                     |
|                              |   | Vice President, Treasurer and |
|                              |   | Chief Financial Officer       |

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|  Union Carbide Corporation and Subsidiaries |
|--------------------------------------------------|
|  Exhibit Index                         |

|   |   |
|--------|--------|

| EXHIBIT NO. | DESCRIPTION                                                                                                                                                                                      |
|-------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.5.8      | Eighth Amendment to the Amended and Restated Revolving Credit Agreement, effective as of September 30, 2010, among the Corporation, The Dow Chemical Company and certain Subsidiary Guarantors.  |
| 10.7.3      | Third Amendment to Second Amended and Restated Revolving Loan Agreement, effective as of February 1, 2010, between the Corporation and The Dow Chemical Company.                                 |
| 10.7.4      | Fourth Amendment to Second Amended and Restated Revolving Loan Agreement, effective as of August 1, 2010, between the Corporation and The Dow Chemical Company.                                  |
| 23          | Analysis, Research & Planning Corporation’s Consent.                                                                                                                                   |
| 31.1        | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                         |
| 31.2        | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                         |
| 32.1        | Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                         |
| 32.2        | Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                              |

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