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|   |                                                                                      |
|---|--------------------------------------------------------------------------------------|
| x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

|         |                                                                                          |
|---------|------------------------------------------------------------------------------------------|
| £ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

|                                          |        |                                                 |
|------------------------------------------|--------|-------------------------------------------------|
|                                     |   |                                            |
| New Jersey                               |   | 13-0511250                                      |
| (State of incorporation)                 |   | (I.R.S. Employer Identification No.)            |
|                                     |   |
| 180 East Broad St., Columbus, OH 43215   |   | 614-225-4000                                    |
| (Address of principal executive offices) |   | (Registrant’s telephone number) |

|                                                                             |
|-----------------------------------------------------------------------------|
| Hexion Specialty Chemicals, Inc.                                            |
| (Former name, former address and fiscal year, if changed since last report) |

|                                    |        |                                                                         |
|------------------------------------|--------|-------------------------------------------------------------------------|
| Title of each class |   | Name of each exchange on which registered |
| None                               |   | None                                                                    |

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|                                                                                                                                         |              |        |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------------|--------|
|                                                                                                                                    |         |   |
| PART I                                                                                                                                  |    |   |
| Item 1 – Business                                                                                                            |    | 3      |
| Item 1A – Risk Factors                                                                                                       |    | 12     |
| Item 1B – Unresolved Staff Comments                                                                                          |    | 20     |
| Item 2 – Properties                                                                                                          |    | 20     |
| Item 3 – Legal Proceedings                                                                                                   |    | 21     |
| Item 4 – Reserved                                                                                                            |    | 22     |
|                                                                                                                                    |         |
| PART II                                                                                                                                 |    |   |
| Item  5 – Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |    | 23     |
| Item 6 – Selected Financial Data                                                                                             |    | 24     |
| Item  7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations                        |    | 25     |
| Item 7A – Quantitative and Qualitative Disclosures About Market Risk                                                         |    | 44     |
| Item 8 – Financial Statements and Supplementary Data                                                                         |    | 47     |
| Consolidated Financial Statements of Momentive Specialty Chemicals Inc.                                                                 |    |   |
| Consolidated Statements of Operations, years ended December 31, 2010, 2009 and 2008                                                |    | 48     |
| Consolidated Balance Sheets, December 31, 2010 and 2009                                                                            |    | 49     |
| Consolidated Statements of Cash Flows, years ended December 31, 2010, 2009 and 2008                                                |    | 50     |
| Consolidated Statements of Deficit and Comprehensive (Loss) Income, years ended December  31, 2010, 2009 and 2008                  |    | 51     |
| Notes to Consolidated Financial Statements                                                                                              |    | 52     |
| Report of Independent Registered Public Accounting Firm                                                                                 |    | 97     |
| Item 9 – Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                                |    | 98     |
| Item 9A – Controls and Procedures                                                                                            |    | 98     |
| Item 9B – Other Information                                                                                                  |    | 98     |
|                                                                                                                                    |         |
| PART III                                                                                                                                |    |   |
| Item 10 – Directors, Executive Officers and Corporate Governance                                                             |    | 100    |
| Item 11 – Executive Compensation                                                                                             |    | 103    |
| Item  12 – Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                    |    | 118    |
| Item 13 – Certain Relationships and Related Transactions, and Director Independence                                          |    | 120    |
| Item 14 – Principal Accounting Fees and Services                                                                             |    | 122    |
|                                                                                                                                    |         |
| PART IV                                                                                                                                 |    |   |
| Item 15 – Exhibits and Financial Statement Schedules                                                                         |    | 123    |
| Financial Statement Schedules:                                                                                                          |    |   |
| Schedule II—Valuation and Qualifying Accounts                                                                                     |    | 98     |
| Signatures                                                                                                                              |    | 128    |
| Consolidated Financial Statements of Momentive International Holdings Cooperatief U.A.                                                  |    | 129    |

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|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Utilize Our Integrated Platform Across Product Offerings. We have an opportunity to provide our customers with a broad range of resins products on a global basis. We also continue to review additional opportunities to transition our existing manufacturing capacity toward producing more specialty-oriented products, which deliver higher value to our customers and may generate additional sales and/or earnings compared to commodity-like resins. |

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|                                |                                                                                                                                                                                                                   |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Develop and Market New Products. We will continue to expand our product offerings through internal innovation, joint research and development initiatives with our customers and research partnership formations. |

|                                |                                                                                                                                                                                                                                                                                 |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Expand Our Global Reach In Faster Growing Regions. We have opportunities to grow our business in the Asian-Pacific, Eastern European and Latin American markets, where the use of our products is increasing, while continuing to review opportunities in other global markets. |

|                                |                                                                                                                                                                                                                                                                                          |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Pursue Further Development of “Green Products”. We will continue to develop products that are environmentally advanced and support our customers’ overall sustainability initiatives as they increasingly require products that meet changing environmental standards. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                        |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Accelerate Growth and Improve Cost Structure through Relationship with MPM.  As a result of the Momentive Combination, we are working closely with MPM to benefit from shared services and our complementary technologies, product offerings and global footprint. We believe that our relationship with MPM will enable us to achieve results that otherwise would not be attainable. |

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|                          |              |                                                                                                                                                  |
|--------------------------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
| Products                 |    | Key Applications                                                                                                                                 |
| Adhesive applications    |    |                                                                                                                                             |
| Civil Engineering   |    | Building and bridge construction, concrete enhancement and corrosion protection                                                                  |
|                     |         |
| Adhesives                |    | Automotive: hem flange adhesives and panel reinforcements                                                                                        |
|                     |         |
|                     |    | Construction: ceramic tiles, chemical dowels and marble                                                                                          |
|                     |         |
|                     |    | Aerospace: metal and composite laminates                                                                                                         |
|                     |         |
|                     |    | Electronics: chip adhesives, solder masks                                                                                                        |
| Electrical applications  |    |                                                                                                                                             |
| Electronic Resins   |    | Unclad sheets, paper impregnation and electrical laminates for printed circuit boards                                                            |
|                     |         |                                                                                                                                             |
| Electrical Castings |    | Generators and bushings, transformers, medium and high-voltage switch gear components, post insulators, capacitors and automotive ignition coils |

|                                  |              |                                                                                                                                     |
|----------------------------------|--------------|-------------------------------------------------------------------------------------------------------------------------------------|
| Composites                       |    |                                                                                                                                |
| Composite Epoxy Resins |    | Pipes and tanks, automotive, sports (ski, snowboard, golf), boats, construction, aerospace, wind energy and industrial applications |

|                                                                                          |              |                                                                                                                                                       |
|------------------------------------------------------------------------------------------|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
| Coating applications                                                                     |    |                                                                                                                                                  |
| Floor Coatings (LER, Solutions, Performance Products)                                    |    | Chemically resistant, antistatic and heavy duty flooring used in hospitals, the chemical industry, electronics workshops, retail areas and warehouses |
|                                                                                     |         |
| Ambient Cured Coatings (LER, Solid Epoxy Resin ("SER"), Solutions, Performance Products) |    | Marine (manufacturing and maintenance), shipping containers and large steel structures (such as bridges, pipes, plants and offshore equipment)        |
|                                                                                     |         |
| Waterborne Coatings (EPI-REZTM Epoxy Waterborne Resins)                             |    | Substitutes of solvent-borne products in both heat cured and ambient cured applications                                                               |

|                                             |              |                                                                                                                                                      |
|---------------------------------------------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------|
| Products                                    |    | Key Applications                                                                                                                                     |
| Electrocoat (LER, SER, BPA)       |    | Automotive, general industry and white goods (such as appliances)                                                                                    |
|                                        |         |
| Powder Coatings (SER, Performance Products) |    | White goods, pipes for oil and gas transportation, general industry (such as heating radiators) and automotive (interior parts and small components) |
|                                        |         |
| Heat Cured Coatings (LER, SER)              |    | Metal packaging and coil-coated steel for construction and general industry                                                                          |

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|                                               |              |                                                                                                                        |
|-----------------------------------------------|--------------|------------------------------------------------------------------------------------------------------------------------|
| Products                                      |    | Key Applications                                                                                                       |
| CARDURA®                                  |    | Automotive repair/refinishing, automotive original equipment manufacturing (“OEM”) and industrial coatings |
|                                          |         |
| Versatic Acids and Derivatives |    | Chemical building blocks, peroxides, pharmaceuticals and agrochemicals                                                 |
|                                          |         |
| VEOVA®                                    |    | Architectural coatings and construction                                                                                |

|                                                                                                |              |                                                                                                                                                                                                           |
|------------------------------------------------------------------------------------------------|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Products                                                                                       |    | Key Applications                                                                                                                                                                                          |
| Phenolic Specialty Resins                                                                      |    |                                                                                                                                                                                                      |
| Composites and Electronic Resins                                                |    | Aircraft components, ballistic applications, industrial grating, pipe, jet engine components, electrical laminates, computer chip encasement and photolithography                                         |
|                                                                                           |         |
| Automotive Phenol Formaldehyde Resins                                                          |    | Acoustical insulation, engine filters, brakes, friction materials, interior components, molded electrical parts and assemblies, foundry binders                                                           |
|                                                                                           |         |
| Construction Phenol Formaldehyde Resins, Urea Formaldehyde Resins and Ketone Formaldehyde |    | Fiberglass insulation, floral foam, insulating foam, lamp cement for light bulbs, molded appliance and electrical parts, molding compounds, sandpaper, fiberglass mat, electrical laminates and coatings, |
|                                                                                           |         |
| Molding Compounds                                                                              |    |                                                                                                                                                                                                      |
| Phenolic, Epoxy, unsaturated polyesters                                         |    | High performance automotive transmissions and under-hood components, heat resistant knobs and bases, switches and breaker components, pot handles and ashtrays                                            |
| Glass                                                                                          |    | High load, dimensionally stable automotive underhood parts and commutators                                                                                                                                |

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|                                                 |              |                                                                    |
|-------------------------------------------------|--------------|--------------------------------------------------------------------|
| Products                                        |    | Key Applications                                                   |
| Oil & Gas Stimulation Services Applications |    |                                                               |
| Resin Encapsulated Proppants                    |    | Oil and gas fracturing                                             |
|                                            |         |
| Foundry Applications                            |    |                                                               |
| Refractory Coatings                             |    | Thermal resistant coatings for ferrous and nonferrous applications |
| Resin Coated Sands and Binders                  |    | Sand cores and molds                                               |

|                                    |              |                                                                                                                                                                     |
|------------------------------------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Products                           |    | Key Applications                                                                                                                                                    |
| Forest Products Resins   |    |                                                                                                                                                                |
| Engineered Wood Resins   |    | Softwood and hardwood plywood, OSB, LVL, strand lumber and wood fiber resins (such as particleboard), MDF and finished veneer lumber, decorative laminates          |
|                               |         |
| Specialty Wood Adhesives |    | Laminated beams, structural and nonstructural fingerjoints, wood composite I-beams, cabinets, doors, windows, furniture, molding and millwork and paper laminations |
|                               |         |
| Wax Emulsions                      |    | Moisture resistance for panel boards and other specialty applications                                                                                               |

|                                |              |                                                                                                                                                                                      |
|--------------------------------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Products                       |    | Key Applications                                                                                                                                                                     |
| Formaldehyde Applications |    |                                                                                                                                                                                 |
| Formaldehyde                   |    | Herbicides and fungicides, scavengers for oil and gas production, fabric softeners, Urea Formaldehyde, Melamine Formaldehyde, Phenol Formaldehyde, MDI, hexamine and other catalysts |

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|                                             |              |                                                                                                                                                                                       |
|---------------------------------------------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Products                                    |    | Key Applications                                                                                                                                                                      |
| Powder Polyesters                           |    | Outdoor durable systems for architectural window frames, facades and transport and agricultural machinery; indoor systems for domestic appliances and general industrial applications |
|                                        |         |
| Liquid Polyesters and Polyester Dispersions |    | Automotive, coil and exterior can coating applications                                                                                                                                |

|                                                                    |              |                                                                                                                 |
|--------------------------------------------------------------------|--------------|-----------------------------------------------------------------------------------------------------------------|
| Products                                                           |    | Key Applications                                                                                                |
| Reinforced UPR and Vinyl Ester Resins     |    | Marine, transportation, construction, consumer products, recreational vehicles, spas, bath and shower surrounds |
|                                                               |         |
| Non-reinforced UPR and Vinyl Ester Resins |    | Cultured marble, construction, gel coat and surface coating and automotive putty                                |

|                           |              |                                                                                                                                                           |
|---------------------------|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
| Products                  |    | Key Applications                                                                                                                                          |
| Alkyd and Alkyd Emulsions |    | Architectural: Exterior enamels, interior semi-gloss and trim, interior/exterior stains and wood primers                                                  |
|                      |         |
|                      |    | Industrial: Metal primers, general metal, transportation, machinery and equipment, industrial maintenance and marine, metal containers and wood furniture |
|                      |         |
| Alkyd Copolymer           |    | Architectural: Stain blocking primer, sanding sealers and aerosols                                                                                        |
|                      |         |
|                      |    | Industrial: Machinery and equipment, transportation, general metal and drywall coating                                                                    |
|                      |         |
| Urethane Modified         |    | Architectural: Clear varnishes and floor coatings                                                                                                         |
|                      |         |
|                      |    | Industrial: Wood coatings                                                                                                                                 |
|                      |         |
| Silicone Alkyd            |    | Industrial: Industrial maintenance and marine and heat resistant coatings                                                                                 |

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|                             |              |                                                                                                                                                                                        |
|-----------------------------|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Products                    |    | Key Applications                                                                                                                                                                       |
| Acrylic Dispersions         |    | Architectural: Interior semi-gloss and high gloss, interior and exterior paints, stains and sealers, drywall primer, masonry coatings and general purpose                              |
|                        |         |
|                        |    | Industrial: Automotive OEM, packaging, general metal, wood, plastic coatings, traffic marking paint, industrial maintenance and transportation , adhesives and textiles                |
|                        |         |
| Styrene-Acrylic Dispersions |    | Architectural: Interior matte to high gloss paints, interior and exterior paints, primer, masonry coatings and general purpose                                                         |
|                        |         |
|                        |    | Industrial: Building and Construction, Automotive OEM, general metal, wood, plastic coatings, traffic marking paint, industrial maintenance and transportation, adhesives and textiles |
|                        |         |
| Solution Acrylics           |    | Architectural markets: Aerosols, masonry and tile sealers                                                                                                                         |
|                        |         |
|                        |    | Industrial Markets: Transportation, packaging, aerosols, automotive OEM, appliance, industrial maintenance, marine and road marking                                                    |

|                                       |              |                                                                                                                                                        |
|---------------------------------------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| Products                              |    | Key Applications                                                                                                                                       |
| Vinyl Acetate Homopolymer Dispersions |    | Packaging, paper and wood adhesives and textiles                                                                                                       |
|                                  |         |
| Vinyl Acetate Copolymers              |    | Packaging, wood and paper adhesives and textiles                                                                                                       |
|                                  |         |
| Vinyl Acrylic Dispersion              |    | Architectural applications                                                                                                                             |
|                                  |         |
| Redispersible Powders                 |    | Tile adhesives, external thermal insulation and finishing systems, self leveling underlayments, repair mortars, gypsum compounds, membranes and grouts |

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|                                |                                                                                                            |
|--------------------------------|------------------------------------------------------------------------------------------------------------|
| •     | developing new or improved applications based on our existing product lines and identified customer needs; |

|                                |                                                                                                                        |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------|
| •     | developing new resin products and applications for customers to improve their competitive advantage and profitability; |

|                                |                                                                          |
|--------------------------------|--------------------------------------------------------------------------|
| •     | providing premier technical service for customers of specialty products; |

|                                |                                                                                                                  |
|--------------------------------|------------------------------------------------------------------------------------------------------------------|
| •     | providing technical support for manufacturing locations and assisting in optimizing our manufacturing processes; |

|                                |                                                                                                                                  |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------|
| •     | ensuring that our products are manufactured consistent with our global environmental, health and safety policies and objectives; |

|                                |                                                             |
|--------------------------------|-------------------------------------------------------------|
| •     | developing lower cost manufacturing processes globally; and |

|                                |                                    |
|--------------------------------|------------------------------------|
| •     | expanding our production capacity. |

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|                                |                                                                                                               |
|--------------------------------|---------------------------------------------------------------------------------------------------------------|
| •     | EcoBindTM Resin Technology, an ultra low-emitting binder resin used to produce engineered wood products; |

|                                |                                                                                                                                      |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|
| •     | Albecor-BioTM  Powder Coating Resins which use a bio-based material for low-heat cure resulting in less energy and CO2emissions |

|                                |                                                                                                                                                                                        |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | HexithermTM  which enables small lengths of lumber to be assembled into finger-jointed studs with the same durability and strength as dimensional lumber, with resistance to heat |

|                                |                                                                                                                          |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------|
| •     | Epi-RezTM  Epoxy Waterborne Resins which provide for low or zero volatile organic compounds, reducing air emissions |

|                                |                                                                                                                                                      |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | PropTracTM  Fracture Diagnostics Service which enables oil & gas producers to eliminate use of radioactive tracers in well diagnostics |

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|                                |                                                                                               |
|--------------------------------|-----------------------------------------------------------------------------------------------|
| •     | it may limit our flexibility to plan for, or react to, changes in our operations or business; |

|                                |                                                                                                              |
|--------------------------------|--------------------------------------------------------------------------------------------------------------|
| •     | we are more highly leveraged than some of our competitors, which may place us at a competitive disadvantage; |

|                                |                                                                                |
|--------------------------------|--------------------------------------------------------------------------------|
| •     | it may make us more vulnerable to downturns in our business or in the economy; |

|                                |                                                                                                            |
|--------------------------------|------------------------------------------------------------------------------------------------------------|
| •     | it may make it more difficult for us to satisfy our obligations with respect to our existing indebtedness; |

|                                |                                                                                                                                                                                                                                                                                         |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | it may limit, along with the financial and other restrictive covenants in our indebtedness, among other things, our ability to borrow additional funds (which may already be severely limited by availability and increased cost of credit in the current market) or dispose of assets; |

|                                |                                                                                                                                                                           |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | it would cause a material adverse effect on our business and financial condition if we were unable to service our indebtedness or obtain additional financing, as needed; |

|                                |                                                                                                                                                                   |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | it may cause a substantial portion of our cash flow from operations to be dedicated to the repayment of our indebtedness and not be available for other purposes; |

|                                |                                                                                            |
|--------------------------------|--------------------------------------------------------------------------------------------|
| •     | it may limit our ability to fully achieve cost savings from the Momentive Combination; and |

|                                |                                                                                                                           |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------|
| •     | it may restrict us from making strategic acquisitions, introducing new technologies or exploiting business opportunities. |

|                                |                                     |
|--------------------------------|-------------------------------------|
| •     | incur or guarantee additional debt; |

|                                |                                                                 |
|--------------------------------|-----------------------------------------------------------------|
| •     | pay dividends and make other distributions to our shareholders; |

|                                |                                |
|--------------------------------|--------------------------------|
| •     | create or incur certain liens; |

|                                |                                                                        |
|--------------------------------|------------------------------------------------------------------------|
| •     | make certain loans, acquisitions, capital expenditures or investments; |

|                                |                                                 |
|--------------------------------|-------------------------------------------------|
| •     | engage in sales of assets and subsidiary stock; |

|                                |                                         |
|--------------------------------|-----------------------------------------|
| •     | enter into sale/leaseback transactions; |

|                                |                                              |
|--------------------------------|----------------------------------------------|
| •     | enter into transactions with affiliates; and |

|                                |                                                                                                     |
|--------------------------------|-----------------------------------------------------------------------------------------------------|
| •     | transfer all or substantially all of our assets or enter into merger or consolidation transactions. |

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|                                |                                                             |
|--------------------------------|-------------------------------------------------------------|
| •     | could not be required to lend any additional amounts to us; |

|                                |                                                                                                                                                        |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | could elect to declare all borrowings that are outstanding, together with accrued and unpaid interest and fees, to become immediately due and payable; |

|                                |                                                                                   |
|--------------------------------|-----------------------------------------------------------------------------------|
| •     | could require us to apply all of our available cash to repay these borrowings; or |

|                                |                                                                                                                          |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------|
| •     | could prevent us from making debt service payments on our other indebtedness, which could result in an event of default. |

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|                                 |        |                               |              |                                                 |
|---------------------------------|--------|-------------------------------|--------------|-------------------------------------------------|
| Location                        |   | Nature of Ownership |    | Reporting Segment                          |
| Argo, IL*                       |   | Owned                         |    | Epoxy and Phenolic Resins        |
| Barry, UK*                      |   | Owned                         |    | Epoxy and Phenolic Resins                       |
| Brady, TX                       |   | Owned                         |    | Epoxy and Phenolic Resins                       |
| Deer Park, TX*                  |   | Owned                         |    | Epoxy and Phenolic Resins                       |
| Duisburg-Meiderich, Germany     |   | Owned                         |    | Epoxy and Phenolic Resins                       |
| Iserlohn-Letmathe, Germany      |   | Owned                         |    | Epoxy and Phenolic Resins                       |
| Lakeland, FL                    |   | Owned                         |    | Epoxy and Phenolic Resins                       |
| Louisville, KY                  |   | Owned                         |    | Epoxy and Phenolic Resins                       |
| Moerdijk, Netherlands*          |   | Owned                         |    | Epoxy and Phenolic Resins                       |
| Norco, LA*                      |   | Owned                         |    | Epoxy and Phenolic Resins                       |
| Pernis, Netherlands*            |   | Owned                         |    | Epoxy and Phenolic Resins                       |
| Wesseling, Germany              |   | Leased                        |    | Epoxy and Phenolic Resins                       |
| Onsan, South Korea              |   | Owned                         |    | Epoxy and Phenolic Resins                       |
| Brimbank, Australia             |   | Owned                         |    | Formaldehyde and Forest Products |
| Curitiba, Brazil                |   | Owned                         |    | Formaldehyde and Forest Products                |
| Edmonton, AB, Canada            |   | Owned                         |    | Formaldehyde and Forest Products                |
| Fayetteville, NC                |   | Owned                         |    | Formaldehyde and Forest Products                |
| Geismar, LA                     |   | Owned                         |    | Formaldehyde and Forest Products                |
| Gonzales, LA                    |   | Owned                         |    | Formaldehyde and Forest Products                |
| Hope, AR                        |   | Owned                         |    | Formaldehyde and Forest Products                |
| Kitee, Finland                  |   | Owned                         |    | Formaldehyde and Forest Products                |
| Leuna, Germany                  |   | Owned                         |    | Formaldehyde and Forest Products                |
| Montenegro, Brazil              |   | Owned                         |         | Formaldehyde and Forest Products                |
| Springfield, OR                 |   | Owned                         |    | Formaldehyde and Forest Products                |
| St. Romuald, QC, Canada         |   | Owned                         |    | Formaldehyde and Forest Products                |
| Carpentersville, IL             |   | Owned                         |    | Coatings                                        |
| Forest Park, GA                 |   | Owned                         |    | Coatings                                        |
| Ribecourt, France               |   | Owned                         |    | Coatings                                        |
| Sokolov, Czech Republic         |   | Owned                         |    | Coatings                                        |
| Columbus, OH†            |   | Leased                        |    | Corporate and Other                             |
| Seattleweg, Netherlands† |   | Leased                        |    | Corporate and Other                             |
| Shanghai, China†         |   | Leased                        |    | Corporate and Other                             |

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|                                                                                                      |                                              |         |        |         |        |         |         |        |         |         |        |        |         |        |        |        |   |       |        |
|------------------------------------------------------------------------------------------------------|----------------------------------------------|---------|--------|---------|--------|---------|---------|--------|---------|---------|--------|--------|---------|--------|--------|--------|---|-------|--------|
|                                                                                                 | Year ended December 31,                 |
|                                                                                                 | 2010                                         |    | 2009   |    | 2008   |    | 2007(1) |   | 2006(2) |
|                                                                                                 | (dollars in millions, except per share data) |
| Statements of Operations:                                                                            |                                         |    |   |    |   |    |    |   |    |
| Net sales                                                                                            | $                                            | 4,818   |   |    | $      | 3,751   |    |   | $       | 5,690   |   |   | $       | 5,420  |   |   | $ | 4,874 |   |
| Cost of sales                                                                                        | 4,074                                        |    |   | 3,260   |   |    | 5,091   |   |    | 4,663   |   |   | 4,184   |   |
| Gross profit                                                                                         | 744                                          |    |   | 491     |   |    | 599     |   |    | 757     |   |   | 690     |   |
| Selling, general and administrative expense                                                     | 344                                          |    |   | 320     |   |    | 360     |   |    | 364     |   |   | 363     |   |
| Terminated merger and settlement (income) expense, net(3)                                            | (171                                         | )       |   | (62     | )      |    | 1,027   |   |    | — |   |   | 19      |   |
| Integration and transaction costs                                                                    | —                                      |    |   | — |   |    | 27      |   |    | 35      |   |   | 56      |   |
| Asset impairments                                                                                    | —                                      |    |   | 49      |   |    | 15      |   |    | 21      |   |   | 12      |   |
| Business realignment costs                                                                           | 22                                           |    |   | 41      |   |    | 32      |   |    | 17      |   |   | (3      | )      |
| Other operating expense (income), net(3)                                                             | 5                                            |    |   | 10      |   |    | 9       |   |    | 7       |   |   | (34     | )      |
| Operating income (loss)                                                                              | 544                                          |    |   | 133     |   |    | (871    | )      |    | 313     |   |   | 277     |   |
| Interest expense, net                                                                                | 276                                          |    |   | 223     |   |    | 303     |   |    | 309     |   |   | 242     |   |
| Loss (gain) on extinguishment of debt                                                                | 30                                           |    |   | (224    | )      |    | — |   |    | — |   |   | — |   |
| Other non-operating (income) expense, net                                                            | (5                                           | )       |   | — |   |    | 6       |   |    | 15      |   |   | 120     |   |
| Income (loss) from continuing operations before income tax and earnings from unconsolidated entities | 243                                          |    |   | 134     |   |    | (1,180  | )      |    | (11     | )      |   | (85     | )      |
| Income tax expense (benefit)                                                                         | 35                                           |    |   | (8      | )      |    | (16     | )      |    | 46      |   |   | 13      |   |
| Income (loss) from continuing operations before earnings from unconsolidated entities                | 208                                          |    |   | 142     |   |    | (1,164  | )      |    | (57     | )      |   | (98     | )      |
| Earnings from unconsolidated entities, net of taxes                                                  | 8                                            |    |   | 2       |   |    | 2       |   |    | 4       |   |   | 3       |   |
| Income (loss) from continuing operations                                                             | 216                                          |    |   | 144     |   |    | (1,162  | )      |    | (53     | )      |   | (95     | )      |
| Net loss from discontinued operations, net of taxes(5)                                               | (2                                           | )       |   | (27     | )      |    | (23     | )      |    | (10     | )      |   | (10     | )      |
| Net income (loss)                                                                                    | 214                                          |    |   | 117     |   |    | (1,185  | )      |    | (63     | )      |   | (105    | )      |
| Net income attributable to noncontrolling interest                                                   | —                                      |    |   | (3      | )      |    | (5      | )      |    | (2      | )      |   | (4      | )      |
| Net income (loss) attributable to Momentive Specialty Chemicals Inc.                                 | 214                                          |    |   | 114     |   |    | (1,190  | )      |    | (65     | )      |   | (109    | )      |
| Accretion of redeemable preferred stock                                                              | —                                      |    |   | — |   |    | — |   |    | — |   |   | 33      |   |
| Net income (loss) available to common shareholders                                                   | $                                            | 214     |   |    | $      | 114     |    |   | $       | (1,190  | )      |   | $       | (65    | )      |   | $ | (142  | )      |
| Dividends declared per common share                                                                  | $                                            | — |   |    | $      | — |    |   | $       | — |   |   | $       | 0.01   |   |   | $ | 6.12  |   |
| Cash Flows provided by (used in):                                                                    |                                         |    |   |    |   |    |    |   |    |
| Operating activities                                                                                 | $                                            | 45      |   |    | $      | 355     |    |   | $       | (632    | )      |   | $       | 174    |   |   | $ | 21    |   |
| Investing activities                                                                                 | (99                                          | )       |   | (132    | )      |    | (134    | )      |    | (335    | )      |   | (277    | )      |
| Financing activities                                                                                 | 97                                           |    |   | (222    | )      |    | 706     |   |    | 288     |   |   | 128     |   |
| Balance Sheet Data (at end of period):                                                               |                                         |    |   |    |   |    |    |   |    |
| Cash and cash equivalents                                                                            | $                                            | 186     |   |    | $      | 142     |    |   | $       | 127     |   |   | $       | 199    |   |   | $ | 64    |   |
| Short-term investments                                                                               | 6                                            |    |   | 10      |   |    | 7       |   |    | — |   |   | — |   |
| Working capital(6)                                                                                   | 530                                          |    |   | 205     |   |    | 390     |   |    | 508     |   |   | 367     |   |
| Total assets                                                                                         | 3,137                                        |    |   | 2,973   |   |    | 3,180   |   |    | 4,006   |   |   | 3,508   |   |
| Total long-term debt                                                                                 | 3,588                                        |    |   | 3,424   |   |    | 3,743   |   |    | 3,632   |   |   | 3,324   |   |
| Total net debt(7)                                                                                    | 3,480                                        |    |   | 3,354   |   |    | 3,729   |   |    | 3,522   |   |   | 3,330   |   |
| Total liabilities                                                                                    | 5,156                                        |    |   | 5,022   |   |    | 5,359   |   |    | 5,380   |   |   | 4,909   |   |
| Total deficit                                                                                        | (2,019                                       | )       |   | (2,049  | )      |    | (2,179  | )      |    | (1,374  | )      |   | (1,401  | )      |

|                             |                                                                                                                                                                                                                                               |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)     | Includes data for the adhesive and resins business of Orica Limited and the forest products resins and the formaldehyde business of Arkema Gmbh since February 1, 2007 and November 1, 2007, their respective dates of acquisition. |

|                             |                                                                                                                                               |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| (2)     | Includes data for the decorative coatings and adhesives business unit of The Rhodia Group from January 31, 2006 its date of acquisition. |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3)     | Terminated merger and settlement (income) expense, net for the years ended December 31, 2010 and 2009 includes the non-cash push-down of insurance recoveries by the Company's owner related to the settlement payment made by the Company's owner that had been treated as an expense of the Company for the year ended December 31, 2008 associated with the terminated merger with Huntsman corporation, as well as reductions on certain of the Company's merger related service provider liabilities.  Amount for the year ended December 31, 2008 also represents termination fees, settlement payments, accounting and legal costs paid by the Company as well as the write-off of previously deferred acquisition costs. |

|                             |                                                                                                                                                                                              |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4)     | Other operating income for the year ended December 31, 2006 includes net gains of $39 recognized on the divestiture of our branded consumer adhesives company based in Boituva, Brazil. |

|                             |                                                                                                                                                                                                                                                           |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (5)     | Loss from discontinued operations reflects the results on our IAR business.  Loss from discontinued operations for the year ended December 31, 2006 also reflects the losses on our Italian-based engineering thermoplastics business, Taro Plast, S.p.a. |

|                             |                                                                                                                                                                                 |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (6)     | Working capital is defined as current assets less current liabilities. As of December 31, 2010, the assets and liabilities of the IAR business have been classified as current. |

|                             |                                                                                                                       |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------|
| (7)     | Net debt is defined as long-term debt plus short-term debt less cash and cash equivalents and short-term investments. |

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|                                |                                                 |
|--------------------------------|-------------------------------------------------|
| •     | our inability to achieve expected cost savings, |

|                                |                                                                                                                  |
|--------------------------------|------------------------------------------------------------------------------------------------------------------|
| •     | the outcome of litigation described in footnote 12 to our financial statements on Commitments and Contingencies, |

|                                |                                                                                           |
|--------------------------------|-------------------------------------------------------------------------------------------|
| •     | our failure to comply with financial covenants under our credit facilities or other debt, |

|                                |                                                                                                      |
|--------------------------------|------------------------------------------------------------------------------------------------------|
| •     | the other factors described in the Risk Factors section of this report and in our other SEC filings. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Utilize Our Integrated Platform Across Product Offerings. We have an opportunity to provide our customers with a broad range of resins products on a global basis as one of the world’s largest producers of thermosetting resins. We continue to refine our market strategy of serving as a global, comprehensive solutions provider to our customers rather than simply offering a particular product, selling in a single geography or competing on price. We also continue to review additional opportunities to transition our existing manufacturing capacity toward producing more specialty-oriented products, which deliver higher value to our customers and may generate additional sales and/or earnings compared to commodity-like resins. |

|                                |                                                                                                                                                                                                                   |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Develop and Market New Products. We will continue to expand our product offerings through internal innovation, joint research and development initiatives with our customers and research partnership formations. |

|                                |                                                                                                                                                                                                                                                                                 |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Expand Our Global Reach in Faster Growing Regions. We have opportunities to grow our business in the Asian-Pacific, Eastern European and Latin American markets, where the use of our products is increasing, while continuing to review opportunities in other global markets. |

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|                                |                                                                                                                                                                                                                                                                                                  |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Pursue Further Development of “Green Products”. We will continue to develop products that are environmentally advanced and support our customers’ overall sustainability initiatives as they increasingly require thermoset resins that meet changing environmental standards. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Accelerate Growth and Improve Cost Structure through Relationship with MPM.  As a result of the Momentive Combination, we are working closely with MPM to benefit from shared services and our complementary technologies, product offerings and global footprint. We believe that our relationship with MPM will enable us to achieve results that otherwise would not be attainable. We also expect that the Momentive Combination, including the shared services agreement, will result in significant synergies for us, including shared services and logistics optimization, best-of-source contractual terms, procurement savings, regional site rationalization, and administrative and overhead savings. |

|                                |                                                                                                                                                                                                          |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Epoxy and Phenolic Resins: epoxy specialty resins, oil field product applications, versatic acids and derivatives, basic epoxy resins and intermediates, molding compounds and phenolic specialty resins |

|                                |                                                                                               |
|--------------------------------|-----------------------------------------------------------------------------------------------|
| •     | Formaldehyde and Forest Products Resins: forest products resins and formaldehyde applications |

|                                |                                                             |
|--------------------------------|-------------------------------------------------------------|
| •     | Coatings: polyester resins, alkyd resins and acrylic resins |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Net sales increased 28% in 2010, as compared to 2009 due primarily to higher demand as the global economy experienced modest recovery. The increase was driven by stabilizing and slightly increasing demand in the automotive, housing and durable goods markets, and also due to short-term capacity constraints in certain of our markets. Net sales also increased due to raw material-driven price increases to our customers compared to 2009. |

|                                |                                                                                                                                                                                                                                                                                                                                                        |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | As a percent of sales, gross profit increased by 2% in 2010 as compared to 2009. Gross profit percentage increased due to the positive impact of pricing initiatives, favorable product mix, the positive impact of productivity project initiatives and the impact of increased product volumes that outpaced the increase in fixed processing costs. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | We experienced significantly higher profitability during 2010, as segment EBITDA increased $236, or 64% in 2010 as compared to 2009. This increase was primarily due to the modest recovery in volumes across most of our businesses, the favorable impact of pricing and cost savings initiatives, the favorable impact of product mix, and short-term capacity constraints in certain of our markets. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | In January 2010, we amended our senior secured credit facilities. Under the amendment and restatement, we extended the maturity of approximately $959 of our Senior Secured Credit Facility term loans from May 5, 2013 to May 5, 2015 and increased the interest rate with respect to such term loans from LIBOR plus 2.25% to LIBOR plus 3.75%. In addition to, and in connection with, this amendment agreement, we issued $1,000 aggregate principal amount of 8.875% senior secured notes due 2018. We used the net proceeds of $993 ($1,000 less original issue discount of $7) from the issuance to repay $800 of our U.S. term loans under the Senior Secured Credit Facility, pay certain related transaction costs and expenses and provide incremental liquidity ("January Refinancing Transaction"). |

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|                                |                                                                                                                                                                                                                                                                                                                                                                                   |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | In November 2010 we refinanced $533 in outstanding principal amount of our 9.75% Second-Priority Senior Secured Notes due 2014 through the issuance of $574 aggregate principal amount of 9.00% second-priority senior secured notes due 2020.  As a result, we effectively extended our total weighted average debt maturities by one year ("November Refinancing Transaction"). |

|                                |                                                                          |
|--------------------------------|--------------------------------------------------------------------------|
| •     | We are expanding in markets in which we expect opportunities for growth: |

|                                |                                                                                                                                                |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Completion of a formaldehyde and forest products resins manufacturing complex to serve the engineered wood products market in southern Brazil. |

|                                |                                                                                                                         |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------|
| •     | A joint venture to construct a forest products resins manufacturing facility in Russia, which began operations in 2010. |

|                                |                                                                                                                                    |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------|
| •     | The relocation of a specialty epoxy facility to a larger facility in Esslingen, Germany to support the growing wind energy market. |

|                                |                                                                                                                                                                                                                                    |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | The completion of a new oil field manufacturing plant and the opening of additional transload facilities to provide resin-encapsulated proppants to fracturing service companies and operators in the oil & gas industry. |

|                                |                                                                                                                                                                                                                                                                                                                                                               |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Construction of a versatics manufacturing facility in Korea, which began limited operations at the end of 2010. The new facility will produce Cardura® monomers, a versatic acid derivative, used as a key raw material in environmentally advanced paints and coatings.  The facility is expected to be fully operational in the second quarter of 2011. |

|                                |                                                                                                                                                                                                                                                                                                                                                                                |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | A joint venture to construct a versatics manufacturing facility in China, which is expected to be complete by the second half of 2011. The new facility will produce VeoVa® monomers, a versatic acid derivative, used as a key raw material in environmentally advanced paints and coatings.  The facility is expected to be fully operational in the first half of 2012. |

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|                                                                           |         |        |        |         |        |        |         |         |   |        |        |
|---------------------------------------------------------------------------|---------|--------|--------|---------|--------|--------|---------|---------|---|--------|--------|
|                                                                      | 2010    |   | 2009   |    | 2008   |
| Net sales                                                                 | $       | 4,818  |   |    | $      | 3,751  |    |    | $ | 5,690  |   |
| Cost of sales                                                             | 4,074   |   |   | 3,260   |   |   | 5,091   |    |
| Gross profit                                                              | 744     |   |   | 491     |   |   | 599     |    |
| Gross profit as a percentage of net sales                                 | 15      | %      |   | 13      | %      |   | 11      |  % |
| Selling, general and administrative expense                          | 344     |   |   | 320     |   |   | 360     |    |
| Terminated merger and settlement (income) expense, net                    | (171    | )      |   | (62     | )      |   | 1,027   |    |
| Integration costs                                                         | — |   |   | — |   |   | 27      |    |
| Asset impairments                                                         | — |   |   | 49      |   |   | 15      |    |
| Business realignment costs                                                | 22      |   |   | 41      |   |   | 32      |    |
| Other operating expense, net                                              | 5       |   |   | 10      |   |   | 9       |    |
| Operating income (loss)                                                   | 544     |   |   | 133     |   |   | (871    | )       |
| Operating income (loss) as a percentage of net sales                      | 11      | %      |   | 4       | %      |   | (15     | )%      |
| Interest expense, net                                                     | 276     |   |   | 223     |   |   | 303     |    |
| Loss (gain) on extinguishment of debt                                     | 30      |   |   | (224    | )      |   | — |    |
| Other non-operating (income) expense, net                                 | (5      | )      |   | — |   |   | 6       |    |
| Total non-operating expense (income)                                      | 301     |   |   | (1      | )      |   | 309     |    |
| Income (loss) before income tax and earnings from unconsolidated entities | 243     |   |   | 134     |   |   | (1,180  | )       |
| Income tax expense (benefit)                                              | 35      |   |   | (8      | )      |   | (16     | )       |
| Income (loss) before earnings from unconsolidated entities                | 208     |   |   | 142     |   |   | (1,164  | )       |
| Earnings from unconsolidated entities, net of taxes                       | 8       |   |   | 2       |   |   | 2       |    |
| Income (loss) from continuing operations                                  | 216     |   |   | 144     |   |   | (1,162  | )       |
| Net loss from discontinued operations, net of taxes                       | (2      | )      |   | (27     | )      |   | (23     | )       |
| Net income (loss)                                                         | 214     |   |   | 117     |   |   | (1,185  | )       |
| Net income attributable to noncontrolling interest                        | — |   |   | (3      | )      |   | (5      | )       |
| Net income (loss) attributable to Momentive Specialty Chemicals Inc.      | $       | 214    |   |    | $      | 114    |    |    | $ | (1,190 | )      |

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|                                            |                              |        |        |        |        |        |        |        |   |       |        |
|--------------------------------------------|------------------------------|--------|--------|--------|--------|--------|--------|--------|---|-------|--------|
|                                       | Year Ended December 31, |
|                                       | 2010                         |   | 2009   |   | 2008   |
| Net Sales to Unaffiliated Customers(1)(2): |                         |   |   |   |   |
| Epoxy and Phenolic Resins                  | $                            | 2,530  |   |   | $      | 1,944  |   |   | $ | 2,795 |   |
| Formaldehyde and Forest Products Resins    | 1,607                        |   |   | 1,198  |   |   | 2,049  |   |
| Coatings                                   | 681                          |   |   | 609    |   |   | 846    |   |
|                                       | 4,818                        |   |   | 3,751  |   |   | 5,690  |   |
| Segment EBITDA(2):                         |                         |   |   |   |   |
| Epoxy and Phenolic Resins                  | $                            | 431    |   |   | $      | 267    |   |   | $ | 278   |   |
| Formaldehyde and Forest Products Resins    | 177                          |   |   | 111    |   |   | 198    |   |
| Coatings                                   | 63                           |   |   | 46     |   |   | 23     |   |
| Corporate and Other                        | (62                          | )      |   | (51    | )      |   | (50    | )      |

|                             |                                                                                                 |
|-----------------------------|-------------------------------------------------------------------------------------------------|
| (1)     | Intersegment sales are not significant and, as such, are eliminated within the selling segment. |

|                             |                                                                                                                                                                                                      |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)     | Certain of the Company’s product lines have been realigned, resulting in reclassifications between segments. Prior period balances have been reclassified to conform to current presentations. |

|                                        |        |        |           |        |                     |        |       |         |        |    |   |
|----------------------------------------|--------|--------|-----------|--------|---------------------|--------|-------|---------|--------|----|---|
|                                   | Volume |   | Price/Mix |   | CurrencyTranslation |   | Total |
| Epoxy and Phenolic Resins              | 18     | %      |      | 14     | %                   |   | (2    | )%      |   | 30 | % |
| Formaldehyde and Forest Product Resins | 18     | %      |      | 12     | %                   |   | 4     |  % |   | 34 | % |
| Coatings                               | 3      | %      |      | 12     | %                   |   | (3    | )%      |   | 12 | % |

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|                                        |        |        |           |        |                     |        |       |    |        |     |    |
|----------------------------------------|--------|--------|-----------|--------|---------------------|--------|-------|----|--------|-----|----|
|                                   | Volume |   | Price/Mix |   | CurrencyTranslation |   | Total |
| Epoxy and Phenolic Resins              | (18    | )%     |      | (9     | )%                  |   | (3    | )% |   | (30 | )% |
| Formaldehyde and Forest Product Resins | (16    | )%     |      | (23    | )%                  |   | (3    | )% |   | (42 | )% |
| Coatings                               | (19    | )%     |      | (6     | )%                  |   | (3    | )% |   | (28 | )% |

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|                                                                      |                                        |        |        |         |        |        |         |        |   |        |        |
|----------------------------------------------------------------------|----------------------------------------|--------|--------|---------|--------|--------|---------|--------|---|--------|--------|
|                                                                 | Year Ended December 31, |
|                                                                 | 2010                                   |   | 2009   |    | 2008   |
| Segment EBITDA:                                                      |                                   |   |   |    |   |
| Epoxy and Phenolic Resins                                            | $                                      | 431    |   |    | $      | 267    |    |   | $ | 278    |   |
| Formaldehyde and Forest Products Resins                              | 177                                    |   |   | 111     |   |   | 198     |   |
| Coatings                                                             | 63                                     |   |   | 46      |   |   | 23      |   |
| Corporate and Other                                                  | (62                                    | )      |   | (51     | )      |   | (50     | )      |
|                                                                 |                                   |   |   |    |   |
| Reconciliation:                                                      |                                   |   |   |    |   |
| Items not included in Segment EBITDA                                 |                                   |   |   |    |   |
| Terminated merger and settlement income (expense), net               | 171                                    |   |   | 62      |   |   | (1,027  | )      |
| Integration costs                                                    | —                                |   |   | — |   |   | (27     | )      |
| Non-cash charges                                                     | (5                                     | )      |   | 4       |   |   | (4      | )      |
| Unusual items:                                                       |                                   |   |   |    |   |
| (Loss) gain on divestiture of assets                                 | (2                                     | )      |   | (6      | )      |   | 5       |   |
| Net loss from discontinued operations                                | (2                                     | )      |   | (27     | )      |   | (23     | )      |
| Business realignments                                                | (22                                    | )      |   | (41     | )      |   | (32     | )      |
| Asset impairments                                                    | —                                |   |   | (49     | )      |   | (15     | )      |
| Other                                                                | (28                                    | )      |   | (41     | )      |   | (38     | )      |
| Total unusual items                                                  | (54                                    | )      |   | (164    | )      |   | (103    | )      |
| Total adjustments                                                    | 112                                    |   |   | (98     | )      |   | (1,161  | )      |
| Interest expense, net                                                | (276                                   | )      |   | (223    | )      |   | (303    | )      |
| (Loss) gain on extinguishment of debt                                | (30                                    | )      |   | 224     |   |   | — |   |
| Income tax (expense) benefit                                         | (35                                    | )      |   | 8       |   |   | 16      |   |
| Depreciation and amortization                                        | (166                                   | )      |   | (170    | )      |   | (191    | )      |
| Net income (loss) attributable to Momentive Specialty Chemicals Inc. | 214                                    |   |   | 114     |   |   | (1,190  | )      |
| Net income attributable to noncontrolling interest                   | —                                |   |   | 3       |   |   | 5       |   |
| Net income (loss)                                                    | $                                      | 214    |   |    | $      | 117    |    |   | $ | (1,185 | )      |

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|                                         |        |        |        |        |        |        |        |        |   |      |   |
|-----------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|---|------|---|
|                                    | 2010   |   | 2009   |   | 2008   |
| Sources (uses) of cash:                 |   |   |   |   |   |
| Operating activities                    | $      | 45     |   |   | $      | 355    |   |   | $ | (632 | ) |
| Investing activities                    | (99    | )      |   | (132   | )      |   | (134   | )      |
| Financing activities                    | 97     |   |   | (222   | )      |   | 706    |   |
| Effect of exchange rates on cash flow   | 2      |   |   | 13     |   |   | (18    | )      |
| Net change in cash and cash equivalents | $      | 45     |   |   | $      | 14     |   |   | $ | (78  | ) |

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|                                                                             |         |         |        |         |        |       |        |
|-----------------------------------------------------------------------------|---------|---------|--------|---------|--------|-------|--------|
|                                                                        | 2010    |    | 2009   |
| Cash and cash equivalents                                                   | $       | 186     |   |    | $      | 142   |   |
| Short-term investments                                                      | $       | 6       |   |    | $      | 10    |   |
|                                                                        |    |    |   |
| Non-affiliated debt:                                                        |    |    |   |
| Senior Secured Credit Facilities:                                           |    |    |   |
| Revolving facility due 2011                                                 | $       | — |   |    | $      | 36    |   |
| Floating rate term loans due 2013                                           | 463     |    |   | 2,234   |   |
| Floating rate term loans due 2015                                           | 942     |    |   | — |   |
| Senior Secured Notes:                                                       |    |    |   |
| 8.875% senior secured notes due 2018 (net of original issue discount of $6) | 994     |    |   | — |   |
| Floating rate second-priority senior secured notes due 2014                 | 120     |    |   | 120     |   |
| 9.75% Second-priority senior secured notes due 2014                         | — |    |   | 533     |   |
| 9.00% Second-priority senior secured notes due 2020                         | 574     |    |   | — |   |
| Debentures:                                                                 |    |    |   |
| 9.2% debentures due 2021                                                    | 74      |    |   | 74      |   |
| 7.875% debentures due 2023                                                  | 189     |    |   | 189     |   |
| 8.375% sinking fund debentures due 2016                                     | 62      |    |   | 62      |   |
| Other Borrowings:                                                           |    |    |   |
| Australian Multi-Currency Term/Working Capital Facility due 2011            | 48      |    |   | 54      |   |
| Brazilian bank loans                                                        | 70      |    |   | 65      |   |
| Capital Leases                                                              | 10      |    |   | 11      |   |
| Other                                                                       | 24      |    |   | 24      |   |
| Total non-affiliated debt                                                   | 3,570   |    |   | 3,402   |   |
| Affiliated debt:                                                            |    |    |   |
| Affiliated borrowings due on demand                                         | 2       |    |   | 4       |   |
| Affiliated term loan due 2011                                               | 100     |    |   | 100     |   |
| Total affiliated debt                                                       | 102     |    |   | 104     |   |
| Total debt                                                                  | $       | 3,672   |   |    | $      | 3,506 |   |

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|                                                 |                                   |        |        |
|-------------------------------------------------|-----------------------------------|--------|--------|
|                                            | Year Ended December 31, 2010 |
| Net income                                      | $                                 | 214    |   |
| Income tax expense                              | 35                                |   |
| Loss on extinguishment of debt                  | 30                                |   |
| Interest expense, net                           | 276                               |   |
| Depreciation and amortization expense           | 166                               |   |
| EBITDA                                          | 721                               |   |
| Adjustments to EBITDA:                          |                              |
| Terminated merger and settlement income, net(1) | (171                              | )      |
| Non-cash items(2)                               | 5                                 |   |
| Unusual items:                                  |                              |
| Loss on divestitures of assets                  | 2                                 |   |
| Net loss from discontinued operations(3)        | 2                                 |   |
| Business realignments(4)                        | 22                                |   |
| Other(5)                                        | 43                                |   |
| Total unusual items                             | 69                                |   |
| Productivity program savings(6)                 | 24                                |   |
| Savings from shared services agreement(7)       | 50                                |   |
| Adjusted EBITDA(8)                              | $                                 | 698    |   |
| Fixed Charges(9)                                | $                                 | 246    |   |
| Ratio of Adjusted EBITDA to Fixed Charges(10)   | 2.84                              |   |

|                             |                                                                                                                                                                                                                                                                                                           |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)     | Represents insurance recoveries by our owner in 2010 related to the $200 termination settlement payment that was pushed down and treated as an expense of the Company in 2008. Also represents recognition of insurance settlements related to litigation associated with the terminated Huntsman merger. |

|                             |                                                                                              |
|-----------------------------|----------------------------------------------------------------------------------------------|
| (2)     | Represents stock-based compensation and unrealized foreign exchange and derivative activity. |

|                             |                                             |
|-----------------------------|---------------------------------------------|
| (3)     | Represents the results of the IAR business. |

|                             |                                                                                                                                                           |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4)     | Represents plant rationalization and headcount reduction expenses related to productivity programs and other costs associated with business realignments. |

|                             |                                                                                                                                                                                                                                                                |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (5)     | Primarily includes pension expense related to formerly owned businesses, business optimization expenses, management fees, retention program costs, realized foreign currency activity and debt issuance costs related to the January Refinancing Transactions. |

|                             |                                                                         |
|-----------------------------|-------------------------------------------------------------------------|
| (6)     | Represents pro forma impact of in-process productivity program savings. |

|                             |                                                                                                                                             |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|
| (7)     | Represents pro forma impact of in-process savings from the shared services agreement with MPM in conjunction with the Momentive Combination |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (8)     | Adjusted EBITDA corresponds to the definition of “EBITDA” calculated on a pro forma basis used in certain of the Company's indentures and differs from the calculation of “EBITDA” calculated on a “Pro Forma Basis” used in the Company's credit agreement governing the senior credit facility due primarily to differences in classifications of unrestricted subsidiaries under such agreements.   |

|                             |                                                                                                                                                                                                                                                      |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (9)     | Reflects pro forma interest expense based on interest rates at January 28, 2011 as if the January Refinancing Transaction, November Refinancing Transaction, and the execution of the July 2010 Swap had taken place at the beginning of the period. |

|                              |                                                                                                                                                                                                                                                                                                                                            |
|------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (10)     | We are required to have an Adjusted EBITDA to Fixed Charges ratio of greater than 2.0 to 1.0 to be able to incur additional indebtedness under our indenture for the Second Priority Senior Secured Notes. As of December 31, 2010, the Company was able to satisfy this test and incur additional indebtedness under this indenture. |

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|                                                            |                      |        |        |        |        |        |        |        |        |         |                     |        |        |        |        |         |        |        |        |        |   |       |        |        |   |       |        |
|------------------------------------------------------------|----------------------|--------|--------|--------|--------|--------|--------|--------|--------|---------|---------------------|--------|--------|--------|--------|---------|--------|--------|--------|--------|---|-------|--------|--------|---|-------|--------|
|                                                       | Payments Due By Year |
| Contractual Obligations                                    | 2011                 |   | 2012   |   | 2013   |   | 2014   |   | 2015   |    | 2016 andbeyond |   | Total  |
| Operating activities:                                      |                 |   |   |   |   |   |   |   |   |    |                |   |   |
| Purchase obligations(a)                                    | $                    | 280    |   |   | $      | 203    |   |   | $      | 176     |                |   | $      | 39     |   |    | $      | 24     |   |   | $ | 121   |   |   | $ | 843   |   |
| Interest on fixed rate debt obligations(b)                 | 186                  |   |   | 169    |   |   | 168    |   |   | 167     |                |   | 165    |   |   | 581     |   |   | 1,436  |   |
| Interest on variable rate debt obligations(c)              | 52                   |   |   | 59     |   |   | 51     |   |   | 45      |                |   | 18     |   |   | 6       |   |   | 231    |   |
| Operating lease obligations                                | 29                   |   |   | 21     |   |   | 16     |   |   | 12      |                |   | 10     |   |   | 28      |   |   | 116    |   |
| Funding of pension and other postretirement obligations(d) | 31                   |   |   | 38     |   |   | 36     |   |   | 32      |                |   | 29     |   |   | — |   |   | 166    |   |
| Financing activities:                                      |                 |   |   |   |   |   |   |   |   |    |                |   |   |
| Long-term debt, including current maturities               | 81                   |   |   | 71     |   |   | 474    |   |   | 161     |                |   | 913    |   |   | 1,866   |   |   | 3,566  |   |
| Capital lease obligations                                  | 1                    |   |   | 1      |   |   | 1      |   |   | — |                |   | 1      |   |   | 6       |   |   | 10     |   |
| Total                                                      | $                    | 660    |   |   | $      | 562    |   |   | $      | 922     |                |   | $      | 456    |   |    | $      | 1,160  |   |   | $ | 2,608 |   |   | $ | 6,368 |   |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)     | Purchase obligations are comprised of the fixed or minimum amounts of goods and/or services under long-term contracts and assumes that certain contracts are terminated in accordance with their terms after giving the requisite notice which is generally two to three years for most of these contracts; however, under certain circumstances, some of these minimum commitment term periods could be further reduced which would significantly decrease these contractual obligations. |

|                             |                                                                       |
|-----------------------------|-----------------------------------------------------------------------|
| (b)     | Includes variable rate debt subject to interest rate swap agreements. |

|                             |                                                                         |
|-----------------------------|-------------------------------------------------------------------------|
| (c)     | Based on applicable interest rates in effect at December 31, 2010. |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d)     | Pension and other postretirement contributions have been included in the above table for the next five years. These amounts include estimated benefit payments to be made for unfunded foreign defined benefit pension plans as well as estimated contributions to our funded defined benefit plans. The assumptions used by our actuaries in calculating these projections includes a weighted average annual return on pension assets of approximately 7% for the years 2011 – 2015 and the continuation of current law and plan provisions. These estimated payments may vary based on the actual return on our plan assets or changes in current law or plan provisions. See Note 13 to the Consolidated Financial Statements in Item 8 of Part II of this Annual Report on Form 10-K for more information on our pension and postretirement obligations. |

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|                                |                                                               |
|--------------------------------|---------------------------------------------------------------|
| •     | The weighted average rate used for discounting the liability; |

|                                |                                                                                |
|--------------------------------|--------------------------------------------------------------------------------|
| •     | The weighted average expected long-term rate of return on pension plan assets; |

|                                |                                                                           |
|--------------------------------|---------------------------------------------------------------------------|
| •     | The method used to determine market-related value of pension plan assets; |

|                                |                                                           |
|--------------------------------|-----------------------------------------------------------|
| •     | The weighted average rate of future salary increases; and |

|                                |                                        |
|--------------------------------|----------------------------------------|
| •     | The anticipated mortality rate tables. |

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|                                                |                          |        |                           |        |         |        |                   |        |        |         |        |
|------------------------------------------------|--------------------------|--------|---------------------------|--------|---------|--------|-------------------|--------|--------|---------|--------|
|                                           | Increase / (Decrease) at |   | Increase /(Decrease) |
|                                           | December 31, 2010   |   |
|                                           | PBO                      |   | ABO                       |   | Deficit |   | 2011 Expense |
| Assumption:                                    |                     |   |                      |   |    |   |              |
| Increase in discount rate of 0.5%              | (35                      | )      |                      | (33    | )       |   | 28                |   |   | — |   |
| Decrease in discount rate of 0.5%              | 38                       |   |                      | 36     |    |   | (31               | )      |   | — |   |
| Increase in estimated return on assets of 1.0% | N/A                      |   |                      | N/A    |    |   | N/A               |   |   | (4      | )      |
| Decrease in estimated return on assets of 1.0% | N/A                      |   |                      | N/A    |    |   | N/A               |   |   | 4       |   |

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|                                                         |                             |        |                     |         |                |        |                          |        |                             |         |                     |        |                |        |                          |         |        |         |         |        |        |         |        |        |   |     |   |
|---------------------------------------------------------|-----------------------------|--------|---------------------|---------|----------------|--------|--------------------------|--------|-----------------------------|---------|---------------------|--------|----------------|--------|--------------------------|---------|--------|---------|---------|--------|--------|---------|--------|--------|---|-----|---|
|                                                    | 2010                        |   | 2009                |
| Liability Derivatives                                   | AverageDaysTo Maturity |   | AverageContractRate |    | NotionalAmount |   | Fair ValueLiability |   | AverageDaysto Maturity |    | AverageContractRate |   | NotionalAmount |   | Fair ValueLiability |
| Derivatives designated as hedging instruments           |                        |   |                |    |           |   |                     |   |                        |    |                |   |           |   |                     |
| Interest Rate Swaps                                     |                        |   |                |    |           |   |                     |   |                        |    |                |   |           |   |                     |
| Interest swap – 2007                              | 4                           |   |                | — |           |   | $                        | 375    |                        |    | $                   | (5     | )              |   | 366                      |    |   | — |    |   | $      | 650     |   |   | $ | (28 | ) |
| Interest swap – 2010                              | 732                         |   |                | — |           |   | 350                      |   |                        | (2      | )                   |   | —        |   |                     | — |   |    | — |   |   | — |   |
| Total derivatives designated as hedging instruments     |                        |   |                |    |           |   | $                        | (7     | )                           |    |                |   |           |   |                     |    | $      | (28     | )       |
| Derivatives not designated as hedging instruments       |                        |   |                |    |           |   |                     |   |                        |    |                |   |           |   |                     |
| Foreign Exchange and Interest Rate Swaps                |                        |   |                |    |           |   |                     |   |                        |    |                |   |           |   |                     |
| Cross-Currency and Interest Rate Swap                   | 273                         |   |                | 1.2038  |           |   | $                        | 25     |                        |    | $                   | (3     | )              |   | 638                      |    |   | 1.2038  |    |   | $      | 25      |   |   | $ | (5  | ) |
| Interest Rate Swap                                      |                        |   |                |    |           |   |                     |   |                        |    |                |   |           |   |                     |
| Interest swap - Australia Multi-Currency Term           | 364                         |   |                | — |           |   | 22                       |   |                        | — |                |   | 729            |   |                     | — |   |    | 23      |   |   | (1      | )      |
| Commodity Contracts                                     |                        |   |                |    |           |   |                     |   |                        |    |                |   |           |   |                     |
| Electricity contracts                                   | —                     |   |                | — |           |   | 4                        |   |                        | — |                |   | —        |   |                     | — |   |    | 3       |   |   | (1      | )      |
| Natural gas futures                                     | —                     |   |                | — |           |   | 2                        |   |                        | — |                |   | —        |   |                     | — |   |    | 3       |   |   | — |   |
| Total derivatives not designated as hedging instruments |                        |   |                |    |           |   | $                        | (3     | )                           |    |                |   |           |   |                     |    | $      | (7      | )       |

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|                 |                               |        |                             |        |                 |        |                               |        |                             |        |                 |        |        |        |        |        |        |       |        |  |  |
|-----------------|-------------------------------|--------|-----------------------------|--------|-----------------|--------|-------------------------------|--------|-----------------------------|--------|-----------------|--------|--------|--------|--------|--------|--------|-------|--------|--|--|
|            | 2010                          |   | 2009                        |
| Year            | Non-affiliated DebtMaturities |   | WeightedAverageInterestRate |   | Fair Value |   | Non-affiliated DebtMaturities |   | WeightedAverageInterestRate |   | Fair Value |
| 2010            |                          |   |                        |   |            |   | $                             | 78     |                        |   | 4.5             | %      |   | $      | 75     |   |
| 2011            | $                             | 82     |                        |   | 6.4             | %      |                          | $      | 82                          |   |            | 112    |   |   | 4.5    | %      |   | 104   |   |
| 2012            | 72                            |   |                        | 6.4    | %               |   | 71                            |   |                        | 30     |            |   | 4.5    | %      |   | 27     |   |
| 2013            | 475                           |   |                        | 6.7    | %               |   | 461                           |   |                        | 2,183  |            |   | 5.5    | %      |   | 1,867  |   |
| 2014            | 161                           |   |                        | 7.0    | %               |   | 154                           |   |                        | 678    |            |   | 8.7    | %      |   | 644    |   |
| 2015            | 914                           |   |                        | 7.6    | %               |   | 901                           |   |                        | 25     |            |   | 8.7    | %      |   | 20     |   |
| 2016 and beyond | 1,872                         |   |                        | 7.8    | %               |   | 1,944                         |   |                        | 296    |            |   | 8.4    | %      |   | 214    |   |
|            | $                             | 3,576  |                        |   |            |   | $                             | 3,613  |                        |   | $               | 3,402  |   |   |   |   | $      | 2,951 |   |

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|                                                                                                                                |              |            |
|--------------------------------------------------------------------------------------------------------------------------------|--------------|------------|
|                                                                                                                           |         |       |
|                                                                                                                           |    | PageNumber |
| Consolidated Financial Statements of Momentive Specialty Chemicals Inc.                                                        |    |       |
|                                                                                                                           |         |
| Consolidated Statements of Operations for the years ended December 31, 2010, 2009, and 2008                               |    | 48         |
|                                                                                                                           |         |
| Consolidated Balance Sheets at December 31, 2010 and 2009                                                                 |    | 49         |
|                                                                                                                           |         |
| Consolidated Statements of Cash Flows for the years ended December 31, 2010, 2009, and 2008                               |    | 50         |
|                                                                                                                           |         |
| Consolidated Statements of Deficit and Comprehensive (Loss) Income for the years ended December  31, 2010, 2009, and 2008 |    | 51         |
|                                                                                                                           |         |
| Notes to Consolidated Financial Statements                                                                                     |    | 52         |
|                                                                                                                           |         |
| Report of Independent Registered Public Accounting Firm                                                                        |    | 97         |
|                                                                                                                           |         |
| Schedule II – Valuation and Qualifying Accounts                                                                          |    | 98         |

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|                                                                                                      |        |                              |        |        |         |        |        |         |        |   |        |        |
|------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|--------|---------|--------|--------|---------|--------|---|--------|--------|
|                                                                                                 |   | Year Ended December 31, |
| (In millions)                                                                                        |   | 2010                         |   | 2009   |    | 2008   |
| Net sales                                                                                            |   | $                            | 4,818  |   |    | $      | 3,751  |    |   | $ | 5,690  |   |
| Cost of sales                                                                                        |   | 4,074                        |   |   | 3,260   |   |   | 5,091   |   |
| Gross profit                                                                                         |   | 744                          |   |   | 491     |   |   | 599     |   |
| Selling, general and administrative expense                                                     |   | 344                          |   |   | 320     |   |   | 360     |   |
| Terminated merger and settlement (income) expense, net                                               |   | (171                         | )      |   | (62     | )      |   | 1,027   |   |
| Integration costs (See Note 2)                                                                       |   | —                      |   |   | — |   |   | 27      |   |
| Asset impairments (See Note 2)                                                                       |   | —                      |   |   | 49      |   |   | 15      |   |
| Business realignment costs (See Note 2)                                                              |   | 22                           |   |   | 41      |   |   | 32      |   |
| Other operating expense, net                                                                         |   | 5                            |   |   | 10      |   |   | 9       |   |
| Operating income (loss)                                                                              |   | 544                          |   |   | 133     |   |   | (871    | )      |
| Interest expense, net                                                                                |   | 276                          |   |   | 223     |   |   | 303     |   |
| Loss (gain) on extinguishment of debt (See Note 10)                                                  |   | 30                           |   |   | (224    | )      |   | — |   |
| Other non-operating (income) expense, net                                                            |   | (5                           | )      |   | — |   |   | 6       |   |
| Income (loss) from continuing operations before income tax and earnings from unconsolidated entities |   | 243                          |   |   | 134     |   |   | (1,180  | )      |
| Income tax expense (benefit) (See Note 16)                                                           |   | 35                           |   |   | (8      | )      |   | (16     | )      |
| Income (loss) from continuing operations before earnings from unconsolidated entities                |   | 208                          |   |   | 142     |   |   | (1,164  | )      |
| Earnings from unconsolidated entities, net of taxes                                                  |   | 8                            |   |   | 2       |   |   | 2       |   |
| Net income (loss) from continuing operations                                                         |   | 216                          |   |   | 144     |   |   | (1,162  | )      |
| Net loss from discontinued operations, net of taxes (See Note 3)                                     |   | (2                           | )      |   | (27     | )      |   | (23     | )      |
| Net income (loss)                                                                                    |   | 214                          |   |   | 117     |   |   | (1,185  | )      |
| Net income attributable to noncontrolling interest                                                   |   | —                      |   |   | (3      | )      |   | (5      | )      |
| Net income (loss) attributable to Momentive Specialty Chemicals Inc.                                 |   | $                            | 214    |   |    | $      | 114    |    |   | $ | (1,190 | )      |
| Comprehensive income (loss) attributable to Momentive Specialty Chemicals Inc.                       |   | $                            | 203    |   |    | $      | 211    |    |   | $ | (1,362 | )      |

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|                                                                                                                                                 |        |                        |        |                        |        |        |       |        |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|------------------------|--------|--------|-------|--------|
| (In millions, except share data)                                                                                                                |   | December 31, 2010 |   | December 31, 2009 |
| Assets                                                                                                                                          |   |                   |   |                   |
| Current assets                                                                                                                                  |   |                   |   |                   |
| Cash and cash equivalents (including restricted cash of $6 and $7, respectively) (See Note 2)                                                   |   | $                      | 186    |                   |   | $      | 142   |   |
| Short-term investments                                                                                                                          |   | 6                      |   |                   | 10     |   |
| Accounts receivable (net of allowance for doubtful accounts of $25 and $24, respectively)                                                       |   | 547                    |   |                   | 423    |   |
| Inventories:                                                                                                                                    |   |                   |   |                   |
| Finished and in-process goods                                                                                                                   |   | 279                    |   |                   | 245    |   |
| Raw materials and supplies                                                                                                                      |   | 117                    |   |                   | 95     |   |
|             Other current assets                                                    |   | 80                     |   |                   | 77     |   |
|             Current assets of discontinued operations (See Note 3)                  |   | 180                    |   |                   | 101    |   |
| Total current assets                                                                                                                            |   | 1,395                  |   |                   | 1,093  |   |
| Other assets                                                                                                                                    |   | 153                    |   |                   | 99     |   |
| Property and equipment                                                                                                                          |   |                   |   |                   |
| Land                                                                                                                                            |   | 80                     |   |                   | 88     |   |
| Buildings                                                                                                                                       |   | 305                    |   |                   | 299    |   |
| Machinery and equipment                                                                                                                         |   | 2,268                  |   |                   | 2,314  |   |
|                                                                                                                                            |   | 2,653                  |   |                   | 2,701  |   |
| Less accumulated depreciation                                                                                                                   |   | (1,365                 | )      |                   | (1,321 | )      |
|                                                                                                                                            |   | 1,288                  |   |                   | 1,380  |   |
| Goodwill (See Note 7)                                                                                                                           |   | 169                    |   |                   | 177    |   |
| Other intangible assets, net (See Note 7)                                                                                                       |   | 132                    |   |                   | 151    |   |
| Noncurrent assets of discontinued operations (See Note 3)                                                                                       |   | —                |   |                   | 73     |   |
| Total assets                                                                                                                                    |   | $                      | 3,137  |                   |   | $      | 2,973 |   |
| Liabilities and Deficit                                                                                                                         |   |                   |   |                   |
| Current liabilities                                                                                                                             |   |                   |   |                   |
| Accounts and drafts payable                                                                                                                     |   | $                      | 430    |                   |   | $      | 457   |   |
| Debt payable within one year (See Note 10)                                                                                                      |   | 82                     |   |                   | 78     |   |
| Affiliated loans payable                                                                                                                        |   | 2                      |   |                   | 4      |   |
| Interest payable                                                                                                                                |   | 69                     |   |                   | 36     |   |
| Income taxes payable                                                                                                                            |   | 24                     |   |                   | 35     |   |
| Accrued payroll and incentive compensation                                                                                                      |   | 66                     |   |                   | 47     |   |
| Other current liabilities                                                                                                                       |   | 152                    |   |                   | 191    |   |
| Current liabilities of discontinued operations (See Note 3)                                                                                     |   | 40                     |   |                   | 40     |   |
| Total current liabilities                                                                                                                       |   | 865                    |   |                   | 888    |   |
| Long-term debt (See Note 10)                                                                                                                    |   | 3,488                  |   |                   | 3,324  |   |
| Affiliated long-term debt (See Note 10)                                                                                                         |   | 100                    |   |                   | 100    |   |
| Long-term pension and post employment benefit obligations (See Note 13)                                                                         |   | 208                    |   |                   | 224    |   |
| Deferred income taxes (See Note 16)                                                                                                             |   | 110                    |   |                   | 116    |   |
| Other long-term liabilities                                                                                                                     |   | 160                    |   |                   | 136    |   |
| Advance from affiliates (See Note 6)                                                                                                            |   | 225                    |   |                   | 225    |   |
| Noncurrent liabilities of discontinued operations (See Note 3)                                                                                  |   | —                |   |                   | 9      |   |
| Total liabilities                                                                                                                               |   | 5,156                  |   |                   | 5,022  |   |
| Commitments and contingencies (See Notes 10 and 12)                                                                                             |   |                   |   |                   |
| Deficit                                                                                                                                         |   |                   |   |                   |
| Common stock - $0.01 par value; 300,000,000 shares authorized, 170,605,906 issued and 82,556,847 outstanding at December 31, 2010 and 2009 |   | 1                      |   |                   | 1      |   |
| Paid-in capital                                                                                                                                 |   | 324                    |   |                   | 485    |   |
| Treasury stock, at cost – 88,049,059 shares                                                                                               |   | (296                   | )      |                   | (296   | )      |
| Note receivable from parent                                                                                                                     |   | (24                    | )      |                   | (24    | )      |
| Accumulated other comprehensive income                                                                                                          |   | 88                     |   |                   | 99     |   |
| Accumulated deficit                                                                                                                             |   | (2,115                 | )      |                   | (2,328 | )      |
| Total Momentive Specialty Chemicals Inc. shareholder's deficit                                                                                  |   | (2,022                 | )      |                   | (2,063 | )      |
| Noncontrolling interest                                                                                                                         |   | 3                      |   |                   | 14     |   |
| Total deficit                                                                                                                                   |   | (2,019                 | )      |                   | (2,049 | )      |
| Total liabilities and deficit                                                                                                                   |   | $                      | 3,137  |                   |   | $      | 2,973 |   |

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|                                                                                                    |        |                              |        |        |         |        |        |         |        |   |        |        |
|----------------------------------------------------------------------------------------------------|--------|------------------------------|--------|--------|---------|--------|--------|---------|--------|---|--------|--------|
|                                                                                               |   | Year Ended December 31, |
| (In millions)                                                                                      |   | 2010                         |   | 2009   |    | 2008   |
| Cash flows provided by (used in) operating activities                                              |   |                         |   |   |    |   |
| Net income (loss)                                                                                  |   | $                            | 214    |   |    | $      | 117    |    |   | $ | (1,185 | )      |
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |   |                         |   |   |    |   |
| Depreciation and amortization                                                                      |   | 172                          |   |   | 178     |   |   | 203     |   |
| Loss (gain) on extinguishment of debt (See Note 10)                                                |   | 30                           |   |   | (224    | )      |   | — |   |
| Push-down of (income) expense (recovered) paid by shareholder (See Note 2)                         |   | (163                         | )      |   | (37     | )      |   | 200     |   |
| Write-off of deferred acquisition costs                                                            |   | —                      |   |   | — |   |   | 101     |   |
| Deferred tax provision (benefit)                                                                   |   | (10                          | )      |   | (7      | )      |   | (13     | )      |
| Non-cash impairments and accelerated depreciation                                                  |   | —                      |   |   | 57      |   |   | 33      |   |
| Cash settlement of derivatives                                                                     |   | —                      |   |   | — |   |   | 37      |   |
| Other non-cash adjustments                                                                         |   | 10                           |   |   | (5      | )      |   | (4      | )      |
| Net change in assets and liabilities:                                                              |   |                         |   |   |    |   |
| Accounts receivable                                                                                |   | (142                         | )      |   | 128     |   |   | 231     |   |
| Inventories                                                                                        |   | (65                          | )      |   | 99      |   |   | 99      |   |
| Accounts and drafts payable                                                                        |   | (16                          | )      |   | 95      |   |   | (299    | )      |
| Income taxes payable                                                                               |   | 12                           |   |   | 6       |   |   | (10     | )      |
| Other assets, current and non-current                                                              |   | (16                          | )      |   | 2       |   |   | 8       |   |
| Other liabilities, current and long-term                                                           |   | 19                           |   |   | (54     | )      |   | (33     | )      |
| Net cash provided by (used in) operating activities                                                |   | 45                           |   |   | 355     |   |   | (632    | )      |
| Cash flows used in investing activities                                                            |   |                         |   |   |    |   |
| Capital expenditures                                                                               |   | (119                         | )      |   | (131    | )      |   | (134    | )      |
| Capitalized interest                                                                               |   | (1                           | )      |   | (5      | )      |   | — |   |
| Proceeds from matured debt securities                                                              |   | 4                            |   |   | — |   |   | — |   |
| Change in restricted cash                                                                          |   | 2                            |   |   | 2       |   |   | (6      | )      |
| Deconsolidation of variable interest entities                                                      |   | (4                           | )      |   | — |   |   | — |   |
| Purchases of investments                                                                           |   | —                      |   |   | (2      | )      |   | (7      | )      |
| Proceeds from the sale of assets                                                                   |   | 14                           |   |   | 4       |   |   | 13      |   |
| Investment in unconsolidated affiliates, net                                                       |   | 5                            |   |   | — |   |   | — |   |
| Net cash used in investing activities                                                              |   | (99                          | )      |   | (132    | )      |   | (134    | )      |
| Cash flows provided by (used in) financing activities                                              |   |                         |   |   |    |   |
| Net short-term debt (repayments) borrowings                                                        |   | (7                           | )      |   | (10     | )      |   | 8       |   |
| Borrowings of long-term debt                                                                       |   | 2,356                        |   |   | 1,155   |   |   | 1,092   |   |
| Repayments of long-term debt                                                                       |   | (2,177                       | )      |   | (1,404  | )      |   | (929    | )      |
| (Repayments) borrowings of affiliated debt                                                         |   | (3                           | )      |   | 104     |   |   | — |   |
| Purchase of note receivable due from parent                                                        |   | —                      |   |   | (24     | )      |   | — |   |
| Capital contribution from parent (See Note 14)                                                     |   | —                      |   |   | — |   |   | 325     |   |
| Advance from affiliates (See Note 6)                                                               |   | —                      |   |   | — |   |   | 225     |   |
| Payment of dividends on common stock                                                               |   | —                      |   |   | (10     | )      |   | (2      | )      |
| Long-term debt and credit facility financing fees                                                  |   | (72                          | )      |   | (5      | )      |   | — |   |
| (Deconsolidation) consolidation of noncontrolling interest in variable interest entity             |   | —                      |   |   | (24     | )      |   | 24      |   |
| Payment of dividends to noncontrolling interest holder                                             |   | —                      |   |   | (4      | )      |   | — |   |
| Cash settlement of derivatives                                                                     |   | —                      |   |   | — |   |   | (37     | )      |
| Net cash provided by (used in) financing activities                                                |   | 97                           |   |   | (222    | )      |   | 706     |   |
| Effect of exchange rates on cash and cash equivalents                                              |   | 2                            |   |   | 13      |   |   | (18     | )      |
| Increase (decrease) in cash and cash equivalents                                                   |   | 45                           |   |   | 14      |   |   | (78     | )      |
| Cash and cash equivalents at beginning of year                                                     |   | 135                          |   |   | 121     |   |   | 199     |   |
| Cash and cash equivalents (unrestricted) at end of year                                            |   | $                            | 180    |   |    | $      | 135    |    |   | $ | 121    |   |
| Supplemental disclosures of cash flow information                                                  |   |                         |   |   |    |   |
| Cash paid for:                                                                                     |   |                         |   |   |    |   |
| Interest, net                                                                                      |   | $                            | 235    |   |    | $      | 234    |    |   | $ | 298    |   |
| Income taxes (refunded) paid, net                                                                  |   | 36                           |   |   | (6      | )      |   | 7       |   |

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|                                                                                           |        |             |        |                         |         |               |        |                                |        |                                                      |         |                     |        |                        |         |        |         |        |        |         |        |        |        |        |        |   |    |        |        |        |        |   |
|-------------------------------------------------------------------------------------------|--------|-------------|--------|-------------------------|---------|---------------|--------|--------------------------------|--------|------------------------------------------------------|---------|---------------------|--------|------------------------|---------|--------|---------|--------|--------|---------|--------|--------|--------|--------|--------|---|----|--------|--------|--------|--------|---|
| (In millions)                                                                             |   | CommonStock |   | Paid-inCapital(Deficit) |    | TreasuryStock |   | NoteReceivableFrom Parent |   | AccumulatedOtherComprehensive Income (loss) (a) |    | Accumulated Deficit |   | NoncontrollingInterest |    | Total  |
| Balance at December 31, 2007                                                         |   | $           | 1      |                    |    | $             | (13    | )                              |   | $                                                    | (296    | )                   |   | $                      | — |   |    | $      | 174    |    |   | $      | (1,252 | )      |   | $ | 12 |   |   | (1,374 | )      |
| Net loss                                                                                  |   | —     |   |                    | — |          |   | —                        |   |                                                 | — |                |   | —                |    |   | (1,190  | )      |   | 5       |   |   | (1,185 | )      |
| Translation adjustments                                                                   |   | —     |   |                    | — |          |   | —                        |   |                                                 | — |                |   | (84                    | )       |   | — |   |   | — |   |   | (84    | )      |
| Net deferred losses on cash flow hedges recognized in comprehensive income                |   | —     |   |                    | — |          |   | —                        |   |                                                 | — |                |   | (10                    | )       |   | — |   |   | — |   |   | (10    | )      |
| Loss recognized from pension and postretirement benefits, net of tax                      |   | —     |   |                    | — |          |   | —                        |   |                                                 | — |                |   | (78                    | )       |   | — |   |   | — |   |   | (78    | )      |
| Comprehensive loss                                                                        |   |        |   |                    |    |          |   |                           |   |                                                 |    |                |   |                   |    | (1,357 | )       |
| Dividends declared to noncontrolling interest holder                                      |   | —     |   |                    | — |          |   | —                        |   |                                                 | — |                |   | —                |    |   | — |   |   | (2      | )      |   | (2     | )      |
| Capital contribution from parent (See Note 14)                                            |   | —     |   |                    | 325     |          |   | —                        |   |                                                 | — |                |   | —                |    |   | — |   |   | — |   |   | 325    |   |
| Push-down of expense paid by shareholder (See Note 2)                                     |   | —     |   |                    | 200     |          |   | —                        |   |                                                 | — |                |   | —                |    |   | — |   |   | — |   |   | 200    |   |
| Consolidation of variable interest entity                                                 |   | —     |   |                    | — |          |   | —                        |   |                                                 | — |                |   | —                |    |   | — |   |   | 24      |   |   | 24     |   |
| Stock-based compensation expense                                                          |   | —     |   |                    | 5       |          |   | —                        |   |                                                 | — |                |   | —                |    |   | — |   |   | — |   |   | 5      |   |
| Balance at December 31, 2008                                                         |   | 1           |   |                    | 517     |          |   | (296                           | )      |                                                 | — |                |   | 2                      |    |   | (2,442  | )      |   | 39      |   |   | (2,179 | )      |
| Net income                                                                                |   | —     |   |                    | — |          |   | —                        |   |                                                 | — |                |   | —                |    |   | 114     |   |   | 3       |   |   | 117    |   |
| Translation adjustments                                                                   |   | —     |   |                    | — |          |   | —                        |   |                                                 | — |                |   | 64                     |    |   | — |   |   | 1       |   |   | 65     |   |
| Net deferred losses on cash flow hedges reclassified to income                            |   | —     |   |                    | — |          |   | —                        |   |                                                 | — |                |   | 15                     |    |   | — |   |   | — |   |   | 15     |   |
| Gain recognized from pension and postretirement benefits, net of tax                      |   | —     |   |                    | — |          |   | —                        |   |                                                 | — |                |   | 18                     |    |   | — |   |   | — |   |   | 18     |   |
| Comprehensive income                                                                      |   |        |   |                    |    |          |   |                           |   |                                                 |    |                |   |                   |    | 215    |    |
| Dividends declared to noncontrolling interest holder                                      |   | —     |   |                    | — |          |   | —                        |   |                                                 | — |                |   | —                |    |   | — |   |   | (5      | )      |   | (5     | )      |
| Push-down of recovery of expense paid by shareholder (See Note 2)                    |   | —     |   |                    | (37     | )             |   | —                        |   |                                                 | — |                |   | —                |    |   | — |   |   | — |   |   | (37    | )      |
| Deconsolidation of variable interest entity (See Note 8)                             |   | —     |   |                    | — |          |   | —                        |   |                                                 | — |                |   | —                |    |   | — |   |   | (24     | )      |   | (24    | )      |
| Purchase of note receivable due from parent (See Note 6)                                  |   | —     |   |                    | — |          |   | —                        |   |                                                 | (24     | )                   |   | —                |    |   | — |   |   | — |   |   | (24    | )      |
| Stock-based compensation expense                                                          |   | —     |   |                    | 5       |          |   | —                        |   |                                                 | — |                |   | —                |    |   | — |   |   | — |   |   | 5      |   |
| Balance at December 31, 2009                                                         |   | 1           |   |                    | 485     |          |   | (296                           | )      |                                                 | (24     | )                   |   | 99                     |    |   | (2,328  | )      |   | 14      |   |   | (2,049 | )      |
| Net income                                                                                |   | —     |   |                    | — |          |   | —                        |   |                                                 | — |                |   | —                |    |   | 214     |   |   | — |   |   | 214    |   |
| Translation adjustments                                                                   |   | —     |   |                    | — |          |   | —                        |   |                                                 | — |                |   | (23                    | )       |   | — |   |   | (1      | )      |   | (24    | )      |
| Net deferred losses on cash flow hedges reclassified to income                            |   | —     |   |                    | — |          |   | —                        |   |                                                 | — |                |   | 18                     |    |   | — |   |   | — |   |   | 18     |   |
| Loss recognized from pension and postretirement benefits, net of tax                      |   | —     |   |                    | — |          |   | —                        |   |                                                 | — |                |   | (6                     | )       |   | — |   |   | — |   |   | (6     | )      |
| Comprehensive income                                                                      |   |        |   |                    |    |          |   |                           |   |                                                 |    |                |   |                   |    | 202    |    |
| Push-down of recovery of expense paid by shareholder (See Note 2)                    |   | —     |   |                    | (163    | )             |   | —                        |   |                                                 | — |                |   | —                |    |   | — |   |   | — |   |   | (163   | )      |
| Impact of adoption of new accounting guidance for variable interest entities (See Note 2) |   | —     |   |                    | — |          |   | —                        |   |                                                 | — |                |   | —                |    |   | (1      | )      |   | (10     | )      |   | (11    | )      |
| Stock-based compensation expense                                                          |   | —     |   |                    | 2       |          |   | —                        |   |                                                 | — |                |   | —                |    |   | — |   |   | — |   |   | 2      |   |
| Balance at December 31, 2010                                                         |   | $           | 1      |                    |    | $             | 324    |                           |   | $                                                    | (296    | )                   |   | $                      | (24     | )      |    | $      | 88     |    |   | $      | (2,115 | )      |   | $ | 3  |   |   | $      | (2,019 | ) |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)     | Accumulated other comprehensive income at December 31, 2010 represents $173 of net foreign currency translation gains, net of tax, $2 of net deferred losses on cash flow hedges and a $83 loss, net of tax, relating to net actuarial losses and prior service costs for the Company’s defined benefit pension and postretirement benefit plans (see Note 13).  Accumulated other comprehensive income at December 31, 2009 represents $196 of net foreign currency translation gains, net of tax, $20 of net deferred losses on cash flow hedges and a $77 unrealized loss, net of tax, related to net actuarial losses and prior service costs for the Company’s defined benefit pension and postretirement plans. Accumulated other comprehensive income at December 31, 2008 represents $132 of net foreign currency translation gains, net of tax, $35 of net deferred losses on cash flow hedges and a $95 loss, net of tax, relating to net actuarial losses and prior service costs for the Company’s defined benefit pension and postretirement benefit plans (see Note 13). |

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|                                |                                                                                                                                                  |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | 50% ownership interest in Asia Dekor Borden (Hong Kong) Chemical Company, a joint venture that manufactures     formaldehyde and resins in China |

|                                |                                                                                                                                          |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|
| •     | 49.99% interest in Hexion UV Coatings (Shanghai) Co., Ltd, a joint venture that manufactures UV-curable coatings and adhesives in China. |

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|                                              |        |                   |        |                   |        |        |     |        |
|----------------------------------------------|--------|-------------------|--------|-------------------|--------|--------|-----|--------|
|                                         |   | December 31, 2010 |   | December 31, 2009 |
| Assets:                                      |   |              |   |              |
| Accounts Receivable                          |   | $                 | 69     |              |   | $      | 55  |   |
| Inventories                                  |   | 42                |   |              | 40     |   |
| Other current assets                         |   | 6                 |   |              | 6      |   |
| Total current assets                         |   | 117               |   |              | 101    |   |
| Property and equipment, net                  |   | 54                |   |              | 61     |   |
| Other intangible assets, net                 |   | 6                 |   |              | 7      |   |
| Other assets                                 |   | 3                 |   |              | 5      |   |
| Total noncurrent assets                      |   | 63                |   |              | 73     |   |
| Total assets of discontinued operations      |   | $                 | 180    |              |   | $      | 174 |   |
|                                         |   |              |   |              |
| Liabilities:                                 |   |              |   |              |
| Accounts and drafts payable                  |   | $                 | 24     |              |   | $      | 24  |   |
| Other current liabilities                    |   | 7                 |   |              | 16     |   |
| Total current liabilities                    |   | 31                |   |              | 40     |   |
| Long-term debt                               |   | 4                 |   |              | 4      |   |
| Other long-term liabilities                  |   | 5                 |   |              | 5      |   |
| Total noncurrent liabilities                 |   | 9                 |   |              | 9      |   |
| Total liabilities of discontinued operations |   | $                 | 40     |              |   | $      | 49  |   |

|                                                                        |                     |         |                        |         |               |         |         |        |        |         |        |        |   |         |        |
|------------------------------------------------------------------------|---------------------|---------|------------------------|---------|---------------|---------|---------|--------|--------|---------|--------|--------|---|---------|--------|
|                                                                   | Workforcereductions |    | Site closurecosts |    | Otherprojects |    | Total   |
| Restructuring costs expected to be incurred                            | $                   | 47      |                   |    | $             | 9       |    |   | $      | 5       |   |   | $ | 61      |   |
| Cumulative restructuring costs incurred through December 31, 2010 | $                   | 47      |                   |    | $             | 5       |    |   | $      | 4       |   |   | $ | 56      |   |
|                                                                   |                |    |                   |    |          |    |    |
| Accrued liability at December 31, 2007                            | $                   | — |                   |    | $             | — |    |   | $      | — |   |   | $ | — |   |
| Restructuring charges                                                  | 12                  |    |                   | — |          |    | — |   |   | 12      |   |
| Payments                                                               | (1                  | )       |                   | — |          |    | — |   |   | (1      | )      |
| Accrued liability at December 31, 2008                            | 11                  |    |                   | — |          |    | — |   |   | 11      |   |
| Restructuring charges                                                  | 25                  |    |                   | 2       |          |    | 2       |   |   | 29      |   |
| Payments                                                               | (17                 | )       |                   | (2      | )             |    | (2      | )      |   | (21     | )      |
| Foreign currency translation                                           | 1                   |    |                   | — |          |    | — |   |   | 1       |   |
| Accrued liability at December 31, 2009                            | 20                  |    |                   | — |          |    | — |   |   | 20      |   |
| Restructuring charges                                                  | 10                  |    |                   | 3       |          |    | 2       |   |   | 15      |   |
| Payments                                                               | (23                 | )       |                   | (3      | )             |    | (2      | )      |   | (28     | )      |
| Accrued liability at December 31, 2010                            | $                   | 7       |                   |    | $             | — |    |   | $      | — |   |   | $ | 7       |   |

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|                                                                        |                              |         |                                     |         |          |         |                         |        |        |         |        |        |     |         |        |        |   |         |        |
|------------------------------------------------------------------------|------------------------------|---------|-------------------------------------|---------|----------|---------|-------------------------|--------|--------|---------|--------|--------|-----|---------|--------|--------|---|---------|--------|
|                                                                   | Epoxy andPhenolicResins |    | Formaldehydeand ForestProducts |    | Coatings |    | Corporateand Other |   | Total  |
| Restructuring costs expected to be incurred                            | $                            | 30      |                                |    | $        | 6       |                    |   | $      | 18      |   |   | $   | 7       |   |   | $ | 61      |   |
| Cumulative restructuring costs incurred through December 31, 2010 | $                            | 29      |                                |    | $        | 5       |                    |   | $      | 15      |   |   | $   | 7       |   |   | $ | 56      |   |
|                                                                   |                         |    |                                |    |     |    |                    |   |   |
| Accrued liability at December 31, 2007                            | $                            | — |                                |    | $        | — |                    |   | $      | — |   |   | $   | — |   |   | $ | — |   |
| Restructuring charges                                                  | 7                            |    |                                | 1       |     |    | 1                       |   |   | 3       |   |   | 12  |    |
| Payments                                                               | —                      |    |                                | — |     |    | (1                      | )      |   | — |   |   | (1  | )       |
| Accrued liability at December 31, 2008                            | 7                            |    |                                | 1       |     |    | —                 |   |   | 3       |   |   | 11  |    |
| Restructuring charges                                                  | 15                           |    |                                | 3       |     |    | 7                       |   |   | 4       |   |   | 29  |    |
| Payments                                                               | (9                           | )       |                                | (2      | )        |    | (6                      | )      |   | (4      | )      |   | (21 | )       |
| Foreign currency translation                                           | 1                            |    |                                | — |     |    | —                 |   |   | — |   |   | 1   |    |
| Accrued liability at December 31, 2009                            | 14                           |    |                                | 2       |     |    | 1                       |   |   | 3       |   |   | 20  |    |
| Restructuring charges                                                  | 7                            |    |                                | 1       |     |    | 7                       |   |   | — |   |   | 15  |    |
| Payments                                                               | (17                          | )       |                                | (2      | )        |    | (7                      | )      |   | (2      | )      |   | (28 | )       |
| Accrued liability at December 31, 2010                            | $                            | 4       |                                |    | $        | 1       |                    |   | $      | 1       |   |   | $   | 1       |   |   | $ | 7       |   |

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|                                  |                     |        |                        |         |                                       |         |              |        |                     |         |                        |        |                                       |        |              |         |        |        |         |        |        |         |        |        |   |         |        |        |   |     |        |
|----------------------------------|---------------------|--------|------------------------|---------|---------------------------------------|---------|--------------|--------|---------------------|---------|------------------------|--------|---------------------------------------|--------|--------------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---|---------|--------|--------|---|-----|--------|
|                             | 2010                |   | 2009                   |
|                             | GrossCarryingAmount |   | AccumulatedImpairments |    | AccumulatedForeignCurrencyTranslation |    | NetBookValue |   | GrossCarryingAmount |    | AccumulatedImpairments |   | AccumulatedForeignCurrencyTranslation |   | NetBookValue |
| Epoxy and Phenolic Resins        | $                   | 88     |                   |    | $                                     | — |         |   | $                   | 3       |                   |   | $                                     | 91     |         |    | $      | 95     |    |   | $      | — |   |   | $ | 5       |   |   | $ | 100 |   |
| Formaldehyde and Forest Products | 81                  |   |                   | — |                                  |    | (3           | )      |                | 78      |                   |   | 82                                    |   |         | — |   |   | (5      | )      |   | 77      |   |
| Coatings                         | 7                   |   |                   | (7      | )                                     |    | —      |   |                | — |                   |   | 7                                     |   |         | (7      | )      |   | — |   |   | — |   |
|                             | $                   | 176    |                   |    | $                                     | (7      | )            |   | $                   | — |                   |   | $                                     | 169    |         |    | $      | 184    |    |   | $      | (7      | )      |   | $ | — |   |   | $ | 177 |   |

|                                             |                              |        |                                |         |          |        |         |        |        |         |        |        |   |     |        |
|---------------------------------------------|------------------------------|--------|--------------------------------|---------|----------|--------|---------|--------|--------|---------|--------|--------|---|-----|--------|
|                                        | Epoxy andPhenolicResins |   | Formaldehydeand ForestProducts |    | Coatings |   | Total   |
| Goodwill balance at December 31, 2008  | $                            | 98     |                           |    | $        | 72     |    |   | $      | — |   |   | $ | 170 |   |
| Purchase  accounting adjustments            | —                      |   |                           | 1       |     |   | — |   |   | 1       |   |
| Foreign currency translation                | 2                            |   |                           | 4       |     |   | — |   |   | 6       |   |
| Goodwill balance at December 31, 2009  | 100                          |   |                           | 77      |     |   | — |   |   | 177     |   |
| Deconsolidation of variable interest entity | (7                           | )      |                           | — |     |   | — |   |   | (7      | )      |
| Foreign currency translation                | (2                           | )      |                           | 1       |     |   | — |   |   | (1      | )      |
| Goodwill balance at December 31, 2010  | $                            | 91     |                           |    | $        | 78     |    |   | $      | — |   |   | $ | 169 |   |

|                              |                     |        |                         |        |              |        |                     |        |                         |        |              |        |     |     |        |        |        |     |   |        |   |     |        |
|------------------------------|---------------------|--------|-------------------------|--------|--------------|--------|---------------------|--------|-------------------------|--------|--------------|--------|-----|-----|--------|--------|--------|-----|---|--------|---|-----|--------|
|                         | 2010                |   | 2009                    |
|                         | GrossCarryingAmount |   | AccumulatedAmortization |   | NetBookValue |   | GrossCarryingAmount |   | AccumulatedAmortization |   | NetBookValue |
| Intangible assets:           |                |   |                    |   |         |   |                |   |                    |   |         |
| Patents and technology       | $                   | 110    |                    |   | $            | (53    | )                   |   | $                       | 57     |         |   | $   | 112 |   |   | $      | (46 | ) |   | $ | 66  |   |
| Customer lists and contracts | 91                  |   |                    | (37    | )            |   | 54                  |   |                    | 98     |         |   | (34 | )   |   | 64     |   |
| Other                        | 25                  |   |                    | (4     | )            |   | 21                  |   |                    | 26     |         |   | (5  | )   |   | 21     |   |
|                         | $                   | 226    |                    |   | $            | (94    | )                   |   | $                       | 132    |         |   | $   | 236 |   |   | $      | (85 | ) |   | $ | 151 |   |

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|      |    |        |        |
|------|----|--------|--------|
| 2011 | $  | 14     |   |
| 2012 | 14 |   |
| 2013 | 14 |   |
| 2014 | 13 |   |
| 2015 | 13 |   |

|                                |                                                                                                                                                                                                       |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Level 1: Inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 1 primarily consists of financial instruments traded on exchange or futures markets. |

|                                |                                                                                                                                                                                                                                                                         |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Level 2: Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reported date. Level 2 includes those derivative instruments transacted primarily in over the counter markets. |

|                                |                                                                                                                                                         |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Level 3: Unobservable inputs, for example, inputs derived through extrapolation or interpolation that cannot be corroborated by observable market data. |

|                        |                                                 |         |                                           |        |                                  |        |        |        |   |         |        |        |   |     |   |
|------------------------|-------------------------------------------------|---------|-------------------------------------------|--------|----------------------------------|--------|--------|--------|---|---------|--------|--------|---|-----|---|
|                   | Fair Value Measurements Using                   |    | Total                                     |
|                   | QuotedPrices inActiveMarkets(Level 1) |    | SignificantOtherObservableInputs(Level 2) |   | UnobservableInputs(Level 3) |   |
| December 31, 2010 |                                            |    |                                      |   |                             |   |   |
| Derivative liabilities | $                                               | — |                                      |   | $                                | (10    | )      |   | $ | — |   |   | $ | (10 | ) |
| December 31, 2009 |                                            |    |                                      |   |                             |   |   |
| Derivative liabilities | $                                               | — |                                      |   | $                                | (35    | )      |   | $ | — |   |   | $ | (35 | ) |

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|                                                 |                                   |     |   |
|-------------------------------------------------|-----------------------------------|-----|---|
|                                            | Year ended December 31, 2009 |
| Long-lived assets held and used                 | $                                 | (10 | ) |
| Long-lived assets held for sale                 | (1                                | )   |
| Long-lived assets held for disposal/abandonment | (38                               | )   |
| Total                                           | $                                 | (49 | ) |

|                                                                                                          |                             |        |                     |         |                |        |                          |        |                             |         |                     |        |                |        |                          |         |        |         |         |        |        |         |        |        |   |     |   |
|----------------------------------------------------------------------------------------------------------|-----------------------------|--------|---------------------|---------|----------------|--------|--------------------------|--------|-----------------------------|---------|---------------------|--------|----------------|--------|--------------------------|---------|--------|---------|---------|--------|--------|---------|--------|--------|---|-----|---|
|                                                                                                     | 2010                        |   | 2009                |
| Liability Derivatives                                                                                    | AverageDaysTo Maturity |   | AverageContractRate |    | NotionalAmount |   | Fair ValueLiability |   | AverageDaysto Maturity |    | AverageContractRate |   | NotionalAmount |   | Fair ValueLiability |
| Derivatives designated as hedging instruments                                                            |                        |   |                |    |           |   |                     |   |                        |    |                |   |           |   |                     |
| Interest Rate Swaps                                                                                      |                        |   |                |    |           |   |                     |   |                        |    |                |   |           |   |                     |
|              Interest swap – 2007 | 4                           |   |                | — |           |   | $                        | 375    |                        |    | $                   | (5     | )              |   | 366                      |    |   | — |    |   | $      | 650     |   |   | $ | (28 | ) |
|              Interest swap – 2010 | 732                         |   |                | — |           |   | 350                      |   |                        | (2      | )                   |   | —        |   |                     | — |   |    | — |   |   | — |   |
| Total derivatives designated as hedging instruments                                                      |                        |   |                |    |           |   | $                        | (7     | )                           |    |                |   |           |   |                     |    | $      | (28     | )       |
| Derivatives not designated as hedging instruments                                                        |                        |   |                |    |           |   |                     |   |                        |    |                |   |           |   |                     |
| Foreign Exchange and Interest Rate Swaps                                                                 |                        |   |                |    |           |   |                     |   |                        |    |                |   |           |   |                     |
| Cross-Currency and Interest Rate Swap                                                                    | 273                         |   |                | 1.2038  |           |   | $                        | 25     |                        |    | $                   | (3     | )              |   | 638                      |    |   | 1.2038  |    |   | $      | 25      |   |   | $ | (5  | ) |
| Interest Rate Swap                                                                                       |                        |   |                |    |           |   |                     |   |                        |    |                |   |           |   |                     |
| Interest swap - Australia Multi-Currency Term                                                            | 364                         |   |                | — |           |   | 22                       |   |                        | — |                |   | 729            |   |                     | — |   |    | 23      |   |   | (1      | )      |
| Commodity Contracts                                                                                      |                        |   |                |    |           |   |                     |   |                        |    |                |   |           |   |                     |
| Electricity contracts                                                                                    | —                     |   |                | — |           |   | 4                        |   |                        | — |                |   | —        |   |                     | — |   |    | 3       |   |   | (1      | )      |
| Natural gas futures                                                                                      | —                     |   |                | — |           |   | 2                        |   |                        | — |                |   | —        |   |                     | — |   |    | 3       |   |   | — |   |
| Total derivatives not designated as hedging instruments                                                  |                        |   |                |    |           |   | $                        | (3     | )                           |    |                |   |           |   |                     |    | $      | (7      | )       |

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|                                              |        |                                                                                                                           |         |                                                                                    |         |                                                                                                                                    |         |         |        |        |                       |        |         |                       |        |         |         |        |         |        |     |   |        |   |     |   |
|----------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|---------|------------------------------------------------------------------------------------|---------|------------------------------------------------------------------------------------------------------------------------------------|---------|---------|--------|--------|-----------------------|--------|---------|-----------------------|--------|---------|---------|--------|---------|--------|-----|---|--------|---|-----|---|
| Derivatives in Cash FlowHedging Relationship |   | Amount of LossRecognized in OCI on Derivativefor the year ended December 31: |    | Location of Loss Reclassified from Accumulated OCI into Income |    | Amount of Loss Reclassifiedfrom Accumulated OCI into Incomefor the year ended December 31: |
|                                         |   | 2010                                                                                                                      |    | 2009                                                                               |    | 2008                                                                                                                               |    |    |   | 2010   |                  | 2009   |    | 2008                  |
| Interest Rate Swaps                          |   |                                                                                                                      |    |                                                                               |    |                                                                                                                               |    |    |   |   |                  |   |    |                  |
| Interest swap – 2006                   |   | $                                                                                                                         | — |                                                                               |    | $                                                                                                                                  | — |    |   | $      | (8                    | )      |    | Interest expense, net |   | $       | — |   |    | $      | (8  | ) |   | $ | (10 | ) |
| Interest swap – 2007                   |   | —                                                                                                                   |    |                                                                               | (15     | )                                                                                                                                  |    | (16     | )      |   | Interest expense, net |   | (20     | )                     |   | (22     | )       |   | (4      | )      |
| Interest swap – 2010                   |   | (2                                                                                                                        | )       |                                                                               | — |                                                                                                                               |    | — |   |   | Interest expense, net |   | — |                  |   | — |    |   | — |   |
| Total                                        |   | $                                                                                                                         | (2      | )                                                                                  |    | $                                                                                                                                  | (15     | )       |   | $      | (24                   | )      |    |                  |   | $       | (20     | )      |    | $      | (30 | ) |   | $ | (14 | ) |

|                                                      |        |                                                                                                                                                 |        |                                                           |         |        |        |         |        |        |                                  |        |        |                                  |
|------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|---------|--------|--------|---------|--------|--------|----------------------------------|--------|--------|----------------------------------|
| Derivatives Not Designated as Derivative Instruments |   | Amount of Gain (Loss) Recognized in Income on Derivative for the year ended December 31: |   | Location of Gain (Loss) Recognized inIncome on Derivative |
|                                                 | 2010   |                                                                                                                                            | 2009   |                                                      | 2008    |   |
| Foreign Exchange and Interest Rate Swaps             |   |                                                                                                                                            |   |                                                      |    |   |   |    |
| Cross-Currency and Interest Rate Swap                |   | $                                                                                                                                               | 2      |                                                      |    | $      | (1     | )       |   | $      | 26                               |   |   | Other non-operating expense, net |
| Interest Rate Swap                                   |   |                                                                                                                                            |   |                                                      |    |   |   |    |
| Interest swap – Australia Multi-Currency Term  |   | —                                                                                                                                         |   |                                                      | — |   |   | (2      | )      |   | Other non-operating expense, net |
| Commodity Contracts                                  |   |                                                                                                                                            |   |                                                      |    |   |   |    |
| Electricity contracts                                |   | 1                                                                                                                                               |   |                                                      | (1      | )      |   | — |   |   | Cost of sales                    |
| Natural gas futures                                  |   | (1                                                                                                                                              | )      |                                                      | (3      | )      |   | (3      | )      |   | Cost of sales                    |
| Total                                                |   | $                                                                                                                                               | 2      |                                                      |    | $      | (5     | )       |   | $      | 21                               |   |   |                             |

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|        |                |        |           |        |                |        |           |        |   |       |        |        |   |       |        |
|--------|----------------|--------|-----------|--------|----------------|--------|-----------|--------|---|-------|--------|--------|---|-------|--------|
|   | 2010           |   | 2009      |
|   | CarryingAmount |   | FairValue |   | CarryingAmount |   | FairValue |
| Debt   | $              | 3,672  |      |   | $              | 3,708  |      |   | $ | 3,506 |   |   | $ | 3,055 |   |

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|                                                                                                                                     |        |           |         |                         |         |           |         |                         |        |        |         |        |        |   |         |        |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|---------|-------------------------|---------|-----------|---------|-------------------------|--------|--------|---------|--------|--------|---|---------|--------|
|                                                                                                                                |   | 2010      |    | 2009                    |
|                                                                                                                                |   | Long-Term |    | Due WithinOne Year |    | Long-Term |    | Due WithinOne Year |
| Non-affiliated debt:                                                                                                                |   |      |    |                    |    |      |    |                    |
| Senior Secured Credit Facilities:                                                                                                   |   |      |    |                    |    |      |    |                    |
| Revolving facility due 2011 at 3.0% at December 31, 2009                                                                       |   | $         | — |                    |    | $         | — |                    |   | $      | 36      |   |   | $ | — |   |
| Floating rate term loans due 2013 at 2.6% at December 31, 2010 and 2009                                                        |   | 455       |    |                    | 8       |      |    | 2,211                   |   |   | 23      |   |
| Floating rate term loans due 2015 at 4.1% at December 31, 2010                                                                 |   | 927       |    |                    | 15      |      |    | —                 |   |   | — |   |
| Senior Secured Notes:                                                                                                               |   |      |    |                    |    |      |    |                    |
| 8.875 % senior secured notes due 2018 (includes $6 of unamortized debt discount)                                                    |   | 994       |    |                    | — |      |    | —                 |   |   | — |   |
| Floating rate second-priority senior secured notes due 2014 at 4.8% at December 31, 2010 and 2009                              |   | 120       |    |                    | — |      |    | 120                     |   |   | — |   |
| 9.00% Second-priority senior secured notes due 2020                                                                                 |   | 574       |    |                    | — |      |    | —                 |   |   | — |   |
| 9.75% Second-priority senior secured notes due 2014                                                                                 |   | —   |    |                    | — |      |    | 533                     |   |   | — |   |
| Debentures:                                                                                                                         |   |      |    |                    |    |      |    |                    |
| 9.2% debentures due 2021                                                                                                            |   | 74        |    |                    | — |      |    | 74                      |   |   | — |   |
| 7.875% debentures due 2023                                                                                                          |   | 189       |    |                    | — |      |    | 189                     |   |   | — |   |
| 8.375% sinking fund debentures due 2016                                                                                             |   | 62        |    |                    | — |      |    | 62                      |   |   | — |   |
| Other Borrowings:                                                                                                                   |   |      |    |                    |    |      |    |                    |
| Australia Multi-Currency Term / Working Capital Facility due 2011 at 4.5% and 4.1% at December 31, 2010 and 2009, respectively |   | 38        |    |                    | 10      |      |    | 46                      |   |   | 8       |   |
| Brazilian bank loans at 9.8% and 10.6% at December 31, 2010 and 2009, respectively                                             |   | 33        |    |                    | 37      |      |    | 30                      |   |   | 35      |   |
| Capital Leases                                                                                                                      |   | 9         |    |                    | 1       |      |    | 10                      |   |   | 1       |   |
| Other at 3.5% and 3.7% at December 31, 2010 and 2009, respectively                                                             |   | 13        |    |                    | 11      |      |    | 13                      |   |   | 11      |   |
| Total non-affiliated debt                                                                                                           |   | 3,488     |    |                    | 82      |      |    | 3,324                   |   |   | 78      |   |
| Affiliated debt:                                                                                                                    |   |      |    |                    |    |      |    |                    |
| Affiliated borrowings due on demand at 3.4%                                                                                         |   | —   |    |                    | 2       |      |    | —                 |   |   | 4       |   |
| Affiliated term loan due 2011 at 2.6% at December 31, 2010 and 2009                                                            |   | 100       |    |                    | — |      |    | 100                     |   |   | — |   |
| Total affiliated debt                                                                                                               |   | 100       |    |                    | 2       |      |    | 100                     |   |   | 4       |   |
| Total debt                                                                                                                          |   | $         | 3,588   |                    |    | $         | 84      |                    |   | $      | 3,424   |   |   | $ | 82      |   |

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|                                         |              |                 |              |                                      |              |                 |
|-----------------------------------------|--------------|-----------------|--------------|--------------------------------------|--------------|-----------------|
|                                    |    | OriginationDate |    | InterestPayable                      |    | EarlyRedemption |
| 9.2% debentures due 2021                |    | March 1991 |    | March 15 September 15 |    | None            |
| 7.875% debentures due 2023              |    | May 1993        |    | February 15 August 15 |    | None            |
| 8.375% sinking fund debentures due 2016 |    | April 1986      |    | April 15 October 15   |    | April 2006 |

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|                                    |        |                     |        |                                           |        |                                          |        |        |        |    |        |        |
|------------------------------------|--------|---------------------|--------|-------------------------------------------|--------|------------------------------------------|--------|--------|--------|----|--------|--------|
| Year                               |   | Non-affiliated Debt |   | Minimum RentalsUnder OperatingLeases |   | MinimumPayments UnderCapital Leases |
| 2011                               |   | $                   | 81     |                                      |   | $                                        | 29     |   |   | $  | 2      |   |
| 2012                               |   | 71                  |   |                                      | 21     |                                     |   | 2      |   |
| 2013                               |   | 474                 |   |                                      | 16     |                                     |   | 2      |   |
| 2014                               |   | 161                 |   |                                      | 12     |                                     |   | 1      |   |
| 2015                               |   | 913                 |   |                                      | 10     |                                     |   | 2      |   |
| 2016 and thereafter                |   | 1,866               |   |                                      | 28     |                                     |   | 10     |   |
| Total minimum payments             |   | $                   | 3,566  |                                      |   | $                                        | 116    |   |   | 19 |   |
| Less: Amount representing interest |   |                |   | (9                                        | )      |
| Present value of minimum payments  |   |                |   | $                                         | 10     |                                     |

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|                                                          |        |                        |        |                        |        |                                       |        |                        |        |        |        |        |        |        |        |        |    |        |        |   |    |        |
|----------------------------------------------------------|--------|------------------------|--------|------------------------|--------|---------------------------------------|--------|------------------------|--------|--------|--------|--------|--------|--------|--------|--------|----|--------|--------|---|----|--------|
|                                                     |   | Number of Sites        |   | Liability              |   | Range ofReasonablyPossible Costs |
| Site Description                                         |   | December 31, 2010 |   | December 31, 2009 |   | December 31, 2010                |   | December 31, 2009 |   | Low    |   | High   |
| Geismar, LA                                              |   | 1                      |   |                   | 1      |                                  |   | $                      | 17     |   |   | $      | 17     |   |   | $      | 10 |   |   | $ | 25 |   |
| Superfund and offsite landfills – allocated share: |   |                   |   |                   |   |                                  |   |                   |   |   |   |   |
| Less than 1%                                             |   | 29                     |   |                   | 27     |                                  |   | 1                      |   |   | 1      |   |   | 1      |   |   | 2  |   |
| Equal to or greater than 1%                              |   | 12                     |   |                   | 12     |                                  |   | 7                      |   |   | 7      |   |   | 5      |   |   | 13 |   |
| Currently-owned                                          |   | 21                     |   |                   | 22     |                                  |   | 9                      |   |   | 11     |   |   | 6      |   |   | 16 |   |
| Formerly-owned:                                          |   |                   |   |                   |   |                                  |   |                   |   |   |   |   |
| Remediation                                              |   | 10                     |   |                   | 10     |                                  |   | 1                      |   |   | 2      |   |   | 1      |   |   | 10 |   |
| Monitoring only                                          |   | 7                      |   |                   | 7      |                                  |   | 1                      |   |   | 1      |   |   | 1      |   |   | 2  |   |
|                                                     |   | 80                     |   |                   | 79     |                                  |   | $                      | 36     |   |   | $      | 39     |   |   | $      | 24 |   |   | $ | 68 |   |

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|                                    |                                     |        |        |
|------------------------------------|-------------------------------------|--------|--------|
| Year                               | Minimum Annual Purchase Commitments |
| 2011                               | $                                   | 280    |   |
| 2012                               | 203                                 |   |
| 2013                               | 176                                 |   |
| 2014                               | 39                                  |   |
| 2015                               | 24                                  |   |
| 2016 and beyond                    | 121                                 |   |
| Total minimum payments             | 843                                 |   |
| Less: Amount representing interest | (71                                 | )      |
| Present value of minimum payments  | $                                   | 772    |   |

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|                                                |        |                  |        |                                          |         |           |        |               |        |           |         |               |        |           |        |               |         |        |         |         |        |         |         |        |        |   |     |        |        |   |    |        |
|------------------------------------------------|--------|------------------|--------|------------------------------------------|---------|-----------|--------|---------------|--------|-----------|---------|---------------|--------|-----------|--------|---------------|---------|--------|---------|---------|--------|---------|---------|--------|--------|---|-----|--------|--------|---|----|--------|
|                                           |   | Pension Benefits |   | Non-Pension Postretirement Benefits |
|                                           |   | 2010             |   | 2009                                     |    | 2010      |   | 2009          |
|                                           |   | U.S.Plans        |   | Non-U.S.Plans                            |    | U.S.Plans |   | Non-U.S.Plans |   | U.S.Plans |    | Non-U.S.Plans |   | U.S.Plans |   | Non-U.S.Plans |
| Change in Benefit Obligation                   |   |             |   |                                     |    |      |   |          |   |      |    |          |   |      |   |          |
| Benefit obligation at beginning of year        |   | $                | 271    |                                     |    | $         | 308    |          |   | $         | 276     |          |   | $         | 282    |          |    | $      | 13      |    |   | $       | 5       |   |   | $ | 13  |   |   | $ | 4  |   |
| Service cost                                   |   | 3                |   |                                     | 8       |      |   | 4             |   |      | 8       |          |   | —   |   |          | — |   |    | — |   |    | — |   |
| Interest cost                                  |   | 15               |   |                                     | 15      |      |   | 17            |   |      | 16      |          |   | 1         |   |          | — |   |    | 1       |   |    | — |   |
| Actuarial losses                               |   | 10               |   |                                     | 3       |      |   | 6             |   |      | — |          |   | —   |   |          | 1       |   |    | — |   |    | — |   |
| Foreign currency exchange rate changes         |   | —          |   |                                     | (19     | )         |   | —       |   |      | 10      |          |   | —   |   |          | — |   |    | — |   |    | 1       |   |
| Benefits paid                                  |   | (20              | )      |                                     | (8      | )         |   | (21           | )      |      | (8      | )             |   | (1        | )      |          | — |   |    | (1      | )      |    | — |   |
| Plan curtailments / settlements                |   | (1               | )      |                                     | — |      |   | (11           | )      |      | (1      | )             |   | —   |   |          | — |   |    | — |   |    | — |   |
| Employee contributions                         |   | —          |   |                                     | 1       |      |   | —       |   |      | 1       |          |   | —   |   |          | — |   |    | — |   |    | — |   |
| Benefit obligation at end of year              |   | 278              |   |                                     | 308     |      |   | 271           |   |      | 308     |          |   | 13        |   |          | 6       |   |    | 13      |   |    | 5       |   |
| Change in Plan Assets                          |   |             |   |                                     |    |      |   |          |   |      |    |          |   |      |   |          |
| Fair value of plan assets at beginning of year |   | 185              |   |                                     | 189     |      |   | 156           |   |      | 162     |          |   | —   |   |          | — |   |    | — |   |    | — |   |
| Actual return on plan assets                   |   | 22               |   |                                     | 14      |      |   | 38            |   |      | 7       |          |   |      |   | —       |    |   | — |    |   | — |    |
| Foreign currency exchange rate changes         |   | —          |   |                                     | (12     | )         |   | —       |   |      | 6       |          |   | —   |   |          | — |   |    | — |   |    | — |   |
| Employer contributions                         |   | 20               |   |                                     | 17      |      |   | 12            |   |      | 21      |          |   | 1         |   |          | — |   |    | 1       |   |    | — |   |
| Benefits paid                                  |   | (20              | )      |                                     | (8      | )         |   | (21           | )      |      | (8      | )             |   | (1        | )      |          | — |   |    | (1      | )      |    | — |   |
| Employee contributions                         |   | —          |   |                                     | 1       |      |   | —       |   |      | 1       |          |   | —   |   |          | — |   |    | — |   |    | — |   |
| Fair value of plan assets at end of year       |   | 207              |   |                                     | 201     |      |   | 185           |   |      | 189     |          |   | —   |   |          | — |   |    | — |   |    | — |   |
| Funded status of the plan at end of year       |   | $                | (71    | )                                        |    | $         | (107   | )             |   | $         | (86     | )             |   | $         | (119   | )             |    | $      | (13     | )       |   | $       | (6      | )      |   | $ | (13 | )      |   | $ | (5 | )      |

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|                                                                                                     |        |                  |         |                                          |        |           |        |               |        |           |         |               |        |           |        |               |         |        |         |         |        |        |         |        |        |   |         |        |        |   |         |        |
|-----------------------------------------------------------------------------------------------------|--------|------------------|---------|------------------------------------------|--------|-----------|--------|---------------|--------|-----------|---------|---------------|--------|-----------|--------|---------------|---------|--------|---------|---------|--------|--------|---------|--------|--------|---|---------|--------|--------|---|---------|--------|
|                                                                                                |   | Pension Benefits |    | Non-Pension Postretirement Benefits |
|                                                                                                |   | 2010             |    | 2009                                     |   | 2010      |   | 2009          |
|                                                                                                |   | U.S.Plans        |    | Non-U.S.Plans                            |   | U.S.Plans |   | Non-U.S.Plans |   | U.S.Plans |    | Non-U.S.Plans |   | U.S.Plans |   | Non-U.S.Plans |
| Amounts recognized in the Consolidated Balance Sheets at December 31 consist of:               |   |             |    |                                     |   |      |   |          |   |      |    |          |   |      |   |          |
| Noncurrent assets                                                                                   |   | $                | — |                                     |   | $         | 15     |          |   | $         | — |          |   | $         | 6      |          |    | $      | — |    |   | $      | — |   |   | $ | — |   |   | $ | — |   |
| Other current liabilities                                                                           |   | —          |    |                                     | (4     | )         |   | (1            | )      |      | (4      | )             |   | (1        | )      |          | — |   |    | (1      | )      |   | — |   |
| Long-term pension and post employment benefit obligations                                           |   | (71              | )       |                                     | (118   | )         |   | (85           | )      |      | (121    | )             |   | (12       | )      |          | (6      | )      |    | (12     | )      |   | (5      | )      |
| Accumulated other comprehensive loss (income)                                                       |   | 133              |    |                                     | 16     |      |   | 138           |   |      | 16      |          |   | (25       | )      |          | (2      | )      |    | (35     | )      |   | (2      | )      |
| Net amounts recognized                                                                              |   | $                | 62      |                                     |   | $         | (91    | )             |   | $         | 52      |          |   | $         | (103   | )             |    | $      | (38     | )       |   | $      | (8      | )      |   | $ | (48     | )      |   | $ | (7      | )      |
| Amounts recognized in Accumulated other comprehensive loss (income) at December 31 consist of: |   |             |    |                                     |   |      |   |          |   |      |    |          |   |      |   |          |
| Net actuarial loss (gain)                                                                           |   | $                | 133     |                                     |   | $         | 12     |          |   | $         | 138     |          |   | $         | 11     |          |    | $      | (6      | )       |   | $      | (1      | )      |   | $ | (5      | )      |   | $ | (2      | )      |
| Net prior service cost (benefit)                                                                    |   | —          |    |                                     | 6      |      |   | —       |   |      | 7       |          |   | (19       | )      |          | (1      | )      |    | (30     | )      |   | (1      | )      |
| Deferred income taxes                                                                               |   | —          |    |                                     | (2     | )         |   | —       |   |      | (2      | )             |   | —   |   |          | — |   |    | — |   |   | 1       |   |
| Net amounts recognized                                                                              |   | $                | 133     |                                     |   | $         | 16     |          |   | $         | 138     |          |   | $         | 16     |          |    | $      | (25     | )       |   | $      | (2      | )      |   | $ | (35     | )      |   | $ | (2      | )      |
| Accumulated benefit obligation                                                                      |   | $                | 278     |                                     |   | $         | 293    |          |   | $         | 270     |          |   | $         | 295    |          |    |   |    |    |   |   |    |   |
| Accumulated benefit obligation for funded plans                                                     |   | 275              |    |                                     | 181    |      |   | 268           |   |      | 179     |          |   |      |   |          |    |   |    |    |
| Pension plans with underfunded or non-funded accumulated benefit obligations at December 31:   |   |             |    |                                     |   |      |   |          |   |      |    |          |   |      |   |          |
| Aggregate projected benefit obligation                                                              |   | $                | 278     |                                     |   | $         | 129    |          |   | $         | 271     |          |   | $         | 131    |          |    |   |    |    |   |   |    |   |
| Aggregate accumulated benefit obligation                                                            |   | 278              |    |                                     | 123    |      |   | 270           |   |      | 125     |          |   |      |   |          |    |   |    |    |
| Aggregate fair value of plan assets                                                                 |   | 207              |    |                                     | 8      |      |   | 185           |   |      | 7       |          |   |      |   |          |    |   |    |    |
| Pension plans with projected benefit obligations in excess of plan assets at December 31:      |   |             |    |                                     |   |      |   |          |   |      |    |          |   |      |   |          |
| Aggregate projected benefit obligation                                                              |   | $                | 278     |                                     |   | $         | 135    |          |   | $         | 271     |          |   | $         | 137    |          |    |   |    |    |   |   |    |   |
| Aggregate fair value of plan assets                                                                 |   | 207              |    |                                     | 13     |      |   | 185           |   |      | 12      |          |   |      |   |          |    |   |    |    |

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Table of Contents

|                                               |                  |        |                |         |        |        |         |        |        |         |        |        |     |        |        |         |        |    |        |        |   |    |        |
|-----------------------------------------------|------------------|--------|----------------|---------|--------|--------|---------|--------|--------|---------|--------|--------|-----|--------|--------|---------|--------|----|--------|--------|---|----|--------|
|                                          | Pension Benefits |
|                                          | U.S. Plans       |   | Non-U.S. Plans |
|                                          | 2010             |   | 2009           |    | 2008   |   | 2010    |   | 2009   |    | 2008   |
| Service cost                                  | $                | 3      |           |    | $      | 4      |    |   | $      | 6       |   |   | $   | 8      |   |    | $      | 8  |   |   | $ | 8  |   |
| Interest cost on projected benefit obligation | 15               |   |           | 17      |   |   | 16      |   |   | 15      |   |   | 16  |   |   | 16      |   |
| Expected return on assets                     | (16              | )      |           | (14     | )      |   | (18     | )      |   | (11     | )      |   | (10 | )      |   | (9      | )      |
| Amortization of prior service cost            | —          |   |           | — |   |   | — |   |   | 1       |   |   | 1   |   |   | 1       |   |
| Recognized actuarial loss (gain)              | 8                |   |           | 9       |   |   | 8       |   |   | — |   |   | (1  | )      |   | — |   |
| Curtailment (gain) loss                       | —          |   |           | (1      | )      |   | — |   |   | — |   |   | 1   |   |   | — |   |
| Net expense                                   | $                | 10     |           |    | $      | 15     |    |   | $      | 12      |   |   | $   | 13     |   |    | $      | 15 |   |   | $ | 16 |   |

|                                               |                                     |         |                |         |        |         |         |        |        |         |        |        |         |         |        |         |        |         |        |        |   |         |        |
|-----------------------------------------------|-------------------------------------|---------|----------------|---------|--------|---------|---------|--------|--------|---------|--------|--------|---------|---------|--------|---------|--------|---------|--------|--------|---|---------|--------|
|                                          | Non-Pension Postretirement Benefits |
|                                          | U.S. Plans                          |    | Non-U.S. Plans |
|                                          | 2010                                |    | 2009           |    | 2008   |    | 2010    |   | 2009   |    | 2008   |
| Service cost                                  | $                                   | — |           |    | $      | — |    |   | $      | — |   |   | $       | — |   |    | $      | — |   |   | $ | — |   |
| Interest cost on projected benefit obligation | 1                                   |    |           | 1       |   |    | 1       |   |   | — |   |   | — |    |   | — |   |
| Amortization of prior service benefit         | (11                                 | )       |           | (11     | )      |    | (11     | )      |   | — |   |   | — |    |   | — |   |
| Recognized actuarial gain                     | —                             |    |           | (1      | )      |    | — |   |   | — |   |   | — |    |   | (1      | )      |
| Settlement gain                               | —                             |    |           | — |   |    | — |   |   | — |   |   | (1      | )       |   | — |   |
| Net benefit                                   | $                                   | (10     | )              |    | $      | (11     | )       |   | $      | (10     | )      |   | $       | — |   |    | $      | (1      | )      |   | $ | (1      | )      |

|                                                                  |                  |        |                                          |         |                   |        |               |        |            |         |               |        |         |        |        |         |        |
|------------------------------------------------------------------|------------------|--------|------------------------------------------|---------|-------------------|--------|---------------|--------|------------|---------|---------------|--------|---------|--------|--------|---------|--------|
|                                                             | Pension Benefits |   | Non-Pension Postretirement Benefits |    | Total   |
|                                                             | U.S. Plans       |   | Non-U.S.Plans                            |    | U.S. Plans        |   | Non-U.S.Plans |   | U.S. Plans |    | Non-U.S.Plans |
| Net actuarial losses (gains) arising during the year             | 3                |   |                                     | 1       |              |   | (1            | )      |       | 1       |          |   | 2       |   |   | 2       |   |
| Amortization of prior service (cost) benefit                     | —          |   |                                     | (1      | )                 |   | 11            |   |       | — |          |   | 11      |   |   | (1      | )      |
| Amortization of net (losses) gains                               | (8               | )      |                                     | — |              |   | —       |   |       | — |          |   | (8      | )      |   | — |   |
| (Gain) loss recognized in other comprehensive income             | (5               | )      |                                     | — |              |   | 10            |   |       | 1       |          |   | 5       |   |   | 1       |   |
| Deferred income taxes                                            | —          |   |                                     | — |              |   | —       |   |       | (1      | )             |   | — |   |   | (1      | )      |
| (Gain) loss recognized in other comprehensive income, net of tax | (5               | )      |                                     | — |              |   | 10            |   |       | — |          |   | 5       |   |   | — |   |

|                              |                  |         |                                          |         |            |        |               |        |            |         |               |        |   |         |        |         |        |     |   |        |   |   |        |
|------------------------------|------------------|---------|------------------------------------------|---------|------------|--------|---------------|--------|------------|---------|---------------|--------|---|---------|--------|---------|--------|-----|---|--------|---|---|--------|
|                         | Pension Benefits |    | Non-Pension Postretirement Benefits |    | Total      |
|                         | U.S. Plans       |    | Non-U.S.Plans                            |    | U.S. Plans |   | Non-U.S.Plans |   | U.S. Plans |    | Non-U.S.Plans |
| Prior service cost (benefit) | $                | — |                                     |    | $          | 1      |          |   | $          | (11     | )             |   | $ | — |   |    | $      | (11 | ) |   | $ | 1 |   |
| Net actuarial loss (gain)    | 7                |    |                                     | — |       |   | (1            | )      |       | — |          |   | 6 |    |   | — |   |

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Table of Contents

|                                                                                               |                  |        |                                          |         |           |        |               |        |           |         |               |        |           |        |               |         |        |        |         |        |        |         |        |
|-----------------------------------------------------------------------------------------------|------------------|--------|------------------------------------------|---------|-----------|--------|---------------|--------|-----------|---------|---------------|--------|-----------|--------|---------------|---------|--------|--------|---------|--------|--------|---------|--------|
|                                                                                          | Pension Benefits |   | Non-Pension Postretirement Benefits |
|                                                                                          | 2010             |   | 2009                                     |    | 2010      |   | 2009          |
|                                                                                          | U.S.Plans        |   | Non-U.S.Plans                            |    | U.S.Plans |   | Non-U.S.Plans |   | U.S.Plans |    | Non-U.S.Plans |   | U.S.Plans |   | Non-U.S.Plans |
| Discount rate                                                                                 | 5.1              | %      |                                     | 5.5     | %         |   | 5.7           | %      |      | 5.5     | %             |   | 4.9       | %      |          | 5.6     | %      |   | 5.4     | %      |   | 6.3     | %      |
| Rate of increase in future compensation levels                                                | —          |   |                                     | 3.3     | %         |   | 4.0           | %      |      | 3.3     | %             |   | —   |   |          | — |   |   | — |   |   | — |   |
| The weighted average assumed health care cost trend rates are as follows at December 31: |             |   |                                     |    |      |   |          |   |      |    |          |   |      |   |          |
| Health care cost trend rate assumed for next year                                             | —          |   |                                     | — |      |   | —       |   |      | — |          |   | 7.9       | %      |          | 7.2     | %      |   | 8.1     | %      |   | 7.4     | %      |
| Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)             | —          |   |                                     | — |      |   | —       |   |      | — |          |   | 4.5       | %      |          | 4.5     | %      |   | 5.1     | %      |   | 4.4     | %      |
| Year that the rate reaches the ultimate trend rate                                            | —          |   |                                     | — |      |   | —       |   |      | — |          |   | 2029      |   | 2030          |    | 2026   |   |    | 2029   |   |

|                                                  |                                     |        |                |        |      |        |      |        |        |        |      |        |     |   |        |     |   |
|--------------------------------------------------|-------------------------------------|--------|----------------|--------|------|--------|------|--------|--------|--------|------|--------|-----|---|--------|-----|---|
|                                             | Pension Benefits                    |
|                                             | U.S. Plans                          |   | Non-U.S. Plans |
|                                             | 2010                                |   | 2009           |   | 2008 |   | 2010 |   | 2009   |   | 2008 |
| Discount rate                                    | 5.7                                 | %      |           | 6.1    | %    |   | 6.1  | %      |   | 5.5    | %    |   | 5.8 | % |   | 5.5 | % |
| Rate of increase in future compensation levels   | 4.0                                 | %      |           | 4.0    | %    |   | 4.0  | %      |   | 3.3    | %    |   | 3.3 | % |   | 3.3 | % |
| Expected long-term rate of return on plan assets | 8.0                                 | %      |           | 8.2    | %    |   | 8.3  | %      |   | 5.8    | %    |   | 5.8 | % |   | 5.8 | % |
|                                             |                                |
|                                             | Non-Pension Postretirement Benefits |
|                                             | U.S. Plans                          |   | Non-U.S. Plans |
|                                             | 2010                                |   | 2009           |   | 2008 |   | 2010 |   | 2009   |   | 2008 |
| Discount rate                                    | 5.4                                 | %      |           | 6.1    | %    |   | 6.1  | %      |   | 6.3    | %    |   | 7.1 | % |   | 5.5 | % |

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Table of Contents

|                                                                                   |        |        |            |         |        |        |         |        |
|-----------------------------------------------------------------------------------|--------|--------|------------|---------|--------|--------|---------|--------|
|                                                                              | Actual |   | Target2011 |
|                                                                              | 2010   |   | 2009       |    |
| Weighted average allocations of U.S. pension plan assets at December 31:     |   |   |       |    |   |
| Equity securities                                                                 | 63     | %      |       | 64      | %      |   | 60      | %      |
| Debt securities                                                                   | 30     | %      |       | 28      | %      |   | 40      | %      |
| Cash, short-term investments and other                                            | 7      | %      |       | 8       | %      |   | — |   |
|                                                                              | 100    | %      |       | 100     | %      |   | 100     | %      |
| Weighted average allocations of non-U.S. pension plan assets at December 31: |   |   |       |    |   |
| Equity securities                                                                 | 14     | %      |       | 13      | %      |   | 21      | %      |
| Debt securities                                                                   | 82     | %      |       | 87      | %      |   | 79      | %      |
| Cash, short-term investments and other                                            | 4      | %      |       | — |   |   | — |   |
|                                                                              | 100    | %      |       | 100     | %      |   | 100     | %      |

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Table of Contents

|                                 |                                                                               |        |                                           |         |                                  |        |         |        |                                                                               |         |                                           |        |                                  |        |        |        |        |        |         |        |        |     |        |        |   |         |        |        |   |     |        |
|---------------------------------|-------------------------------------------------------------------------------|--------|-------------------------------------------|---------|----------------------------------|--------|---------|--------|-------------------------------------------------------------------------------|---------|-------------------------------------------|--------|----------------------------------|--------|--------|--------|--------|--------|---------|--------|--------|-----|--------|--------|---|---------|--------|--------|---|-----|--------|
|                            | Fair Value Measurements Using                                                 |
|                            | 2010                                                                          |   | 2009                                      |
|                            | QuotedPrices inActiveMarkets forIdenticalAssets(Level 1)  |   | SignificantOtherObservableInputs(Level 2) |    | UnobservableInputs(Level 3) |   | Total   |   | QuotedPrices inActiveMarkets forIdenticalAssets(Level 1)  |    | SignificantOtherObservableInputs(Level 2) |   | UnobservableInputs(Level 3) |   | Total  |
| Large cap equity funds(a)(b)    | $                                                                             | 37     |                                      |    | $                                | 17     |    |   | $                                                                             | — |                                      |   | $                                | 54     |   |   | $      | 26     |    |   | $      | 33  |   |   | $ | — |   |   | $ | 59  |   |
| Small/mid cap equity funds (b)  | 45                                                                            |   |                                      | — |                             |   | — |   |                                                                          | 45      |                                      |   | 31                               |   |   | 6      |   |   | — |   |   | 37  |   |
| Other international equity (b)  | —                                                                       |   |                                      | 32      |                             |   | — |   |                                                                          | 32      |                                      |   | —                          |   |   | 23     |   |   | — |   |   | 23  |   |
| Debt securities/fixed income(c) | 2                                                                             |   |                                      | 60      |                             |   | — |   |                                                                          | 62      |                                      |   | —                          |   |   | 52     |   |   | — |   |   | 52  |   |
| Cash, money market and other(d) | 1                                                                             |   |                                      | 13      |                             |   | — |   |                                                                          | 14      |                                      |   | —                          |   |   | 14     |   |   | — |   |   | 14  |   |
| Total                           | $                                                                             | 85     |                                      |    | $                                | 122    |    |   | $                                                                             | — |                                      |   | $                                | 207    |   |   | $      | 57     |    |   | $      | 128 |   |   | $ | — |   |   | $ | 185 |   |

|                                                          |                                                                               |         |                                           |         |                                  |        |         |        |                                                                               |         |                                           |        |                                  |        |        |         |        |         |         |        |        |         |        |        |   |         |        |        |   |     |        |
|----------------------------------------------------------|-------------------------------------------------------------------------------|---------|-------------------------------------------|---------|----------------------------------|--------|---------|--------|-------------------------------------------------------------------------------|---------|-------------------------------------------|--------|----------------------------------|--------|--------|---------|--------|---------|---------|--------|--------|---------|--------|--------|---|---------|--------|--------|---|-----|--------|
|                                                     | Fair Value Measurements Using                                                 |
|                                                     | 2010                                                                          |    | 2009                                      |
|                                                     | QuotedPrices inActiveMarkets forIdenticalAssets(Level 1)  |    | SignificantOtherObservableInputs(Level 2) |    | UnobservableInputs(Level 3) |   | Total   |   | QuotedPrices inActiveMarkets forIdenticalAssets(Level 1)  |    | SignificantOtherObservableInputs(Level 2) |   | UnobservableInputs(Level 3) |   | Total  |
| U.S. equity(b)                                           | $                                                                             | — |                                      |    | $                                | 19     |    |   | $                                                                             | — |                                      |   | $                                | 19     |   |    | $      | — |    |   | $      | 9       |   |   | $ | — |   |   | $ | 9   |   |
| European equity(b)                                       | —                                                                       |    |                                      | — |                             |   | — |   |                                                                          | — |                                      |   | —                          |   |   | 7       |   |    | — |   |   | 7       |   |
| Other international equity(b)                            | —                                                                       |    |                                      | 5       |                             |   | — |   |                                                                          | 5       |                                      |   | —                          |   |   | 5       |   |    | — |   |   | 5       |   |
| Debt securities/fixed income(b)                          | —                                                                       |    |                                      | 106     |                             |   | — |   |                                                                          | 106     |                                      |   | —                          |   |   | 111     |   |    | — |   |   | 111     |   |
| Liability driven investments(c)(e)                       | —                                                                       |    |                                      | 56      |                             |   | — |   |                                                                          | 56      |                                      |   | —                          |   |   | 45      |   |    | — |   |   | 45      |   |
| Balanced pooled funds(b)(f)                              | —                                                                       |    |                                      | 8       |                             |   | — |   |                                                                          | 8       |                                      |   | —                          |   |   | 7       |   |    | — |   |   | 7       |   |
| Pooled insurance products with fixed income guarantee(b) | —                                                                       |    |                                      | 5       |                             |   | — |   |                                                                          | 5       |                                      |   | —                          |   |   | 5       |   |    | — |   |   | 5       |   |
| Cash, money market and other(d)                          | —                                                                       |    |                                      | 2       |                             |   | — |   |                                                                          | 2       |                                      |   | —                          |   |   | — |   |    | — |   |   | — |   |
| Total                                                    | $                                                                             | — |                                      |    | $                                | 201    |    |   | $                                                                             | — |                                      |   | $                                | 201    |   |    | $      | — |    |   | $      | 189     |   |   | $ | — |   |   | $ | 189 |   |

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Table of Contents

|           |                  |        |                                               |        |           |        |               |        |        |         |        |        |   |         |        |
|-----------|------------------|--------|-----------------------------------------------|--------|-----------|--------|---------------|--------|--------|---------|--------|--------|---|---------|--------|
|      | Pension Benefits |   | Non-PensionPostretirement Benefits  |
| Year      | U.S.Plans        |   | Non-U.S.Plans                                 |   | U.S.Plans |   | Non-U.S.Plans |
| 2011      | $                | 22     |                                          |   | $         | 8      |          |   | $      | 1       |   |   | $ | — |   |
| 2012      | 22               |   |                                          | 9      |      |   | 1             |   |   | — |   |
| 2013      | 21               |   |                                          | 9      |      |   | 1             |   |   | 1       |   |
| 2014      | 20               |   |                                          | 11     |      |   | 1             |   |   | — |   |
| 2015      | 28               |   |                                          | 11     |      |   | 1             |   |   | 1       |   |
| 2016-2020 | 89               |   |                                          | 72     |      |   | 5             |   |   | 2       |   |

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Table of Contents

|                                                                |        |                    |        |                 |               |               |                                                                            |                  |                  |                             |                  |  |
|----------------------------------------------------------------|--------|--------------------|--------|-----------------|---------------|---------------|----------------------------------------------------------------------------|------------------|------------------|-----------------------------|------------------|--|
| Plan name                                                      |   | Shares outstanding |   | Plan expiration |          | Vesting Terms |                                                                       | Option term      |             | Number of shares authorized |
| Resolution Performance 2000 Stock Option Plan                  |   |               |   | November 2010   |          |          |                                                                       | 8 yrs 30 days(1) |             | n/a plan expired            |
|   Tranche A options                                  |   | 26,476             |   |            |          |          | Vest ratably over 5 years                                                  |             |             |                        |             |
|   Tranche B performance options                      |   | 51,316             |   |            |          |          | Cliff vest on 8th anniversary                                              |             |             |                        |             |
| Resolution Performance 2000 Non-Employee Directors Option Plan |   | 302,433            |   |            | November 2010 |          | Fully vested upon Hexion Formation                                         |             | 8 yrs 30 days(2) |                        | n/a plan expired |
| Resolution Specialty Materials 2004 Stock Option Plan          |   |               |   |            |          |          |                                                                       | 8 yrs 30 days    |             | 1,027,197                   |             |
| Tranche A options                                              |   | 47,359             |   |            | October 2014  |          | Vest ratably over 5 years                                                  |             |             |                        |             |
| Tranche B performance options                                  |   | 93,202             |   |            |          |          | Performance-based vested due to attainment of target upon Hexion Formation |             |             |                        |             |
| Director options                                               |   | 142,664            |   |            |          |          | Fully vested upon Hexion Formation                                         |             |             |                        |             |
| BHI Acquisition Corp. 2004 Stock Incentive Plan                |   |               |   | August 2014     |          |          |                                                                       | 10 years         |             | 3,670,635                   |             |
| Tranche A options                                              |   | 951,616            |   |            |          |          | Vest ratably over 5 years                                                  |             |             |                        |             |
| Tranche B performance options                                  |   | 951,616            |   |            |          |          | Cliff vest on earlier of 8th anniversary or change in control              |             |             |                        |             |
| Director options                                               |   | 84,423             |   |            |          |          | Director grants vest upon IPO / Change in Control                          |             |             |                        |             |
| Director options                                               |   | 28,141             |   |            |          |          | Director grants vested upon grant                                          |             |             |                        |             |
| Hexion LLC 2007 Long-Term Incentive Plan                       |   |               |   | April 2017      |          |          |                                                                       |             |             | 1,700,000                   |             |
| Options to purchase units                                      |   | 422,500            |   |            |          |          | Vest upon attainment of performance targets upon change in control         |             | 8 years          |                        |             |
| Restricted stock units                                         |   | 100,000            |   |            |          |          | 50% vest on third and fourth anniversaries of grant                        |             | n/a              |                        |             |

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Table of Contents

|                                               |        |                              |        |                              |   |         |        |
|-----------------------------------------------|--------|------------------------------|--------|------------------------------|---|---------|--------|
|                                          |   | Momentive Holdco CommonUnits |   | WeightedAverageExercisePrice |
| Options outstanding at December 31, 2009 |   | 3,300,253                    |   |                         | $ | 7.07    |   |
| Options granted                               |   | —                      |   |                         | $ | — |   |
| Options exercised                             |   | (59,767                      | )      |                         | $ | 5.64    |   |
| Options forfeited                             |   | (138,740                     | )      |                         | $ | 7.09    |   |
| Options outstanding at December 31, 2010 |   | 3,101,746                    |   |                         | $ | 7.05    |   |
| Exercisable at December 31, 2010         |   | 1,627,491                    |   |                         | $ | 6.52    |   |
| Expected to vest at December 31, 2010    |   | 3,031,789                    |   |                         | $ | 7.06    |   |

|                                     |        |                              |        |                                          |         |        |        |
|-------------------------------------|--------|------------------------------|--------|------------------------------------------|---------|--------|--------|
|                                |   | Momentive Holdco CommonUnits |   | WeightedAverageGrant DateFair Value |
| Nonvested at December 31, 2009 |   | 116,000                      |   |                                     | $       | 10.81  |   |
| Restricted units granted            |   | —                      |   |                                     | — |   |
| Restricted units vested             |   | (55,000                      | )      |                                     | $       | 10.81  |   |
| Restricted units forfeited          |   | (11,000                      | )      |                                     | $       | 10.81  |   |
| Nonvested at December 31, 2010 |   | 50,000                       |   |                                     | $       | 10.81  |   |

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Table of Contents

|                              |        |         |         |        |         |        |         |         |        |   |     |   |
|------------------------------|--------|---------|---------|--------|---------|--------|---------|---------|--------|---|-----|---|
|                         |   | 2010    |    | 2009   |    | 2008   |
| Current                      |   |    |    |   |    |   |
| Federal                      |   | $       | — |   |    | $      | — |    |   | $ | (6  | ) |
| State and local         |   | 2       |    |   | 2       |   |    | (4      | )      |
| Foreign                      |   | 45      |    |   | 2       |   |    | 5       |   |
| Total current                |   | 47      |    |   | 4       |   |    | (5      | )      |
| Deferred                     |   |    |    |   |    |   |
| Federal                      |   | 1       |    |   | (7      | )      |    | 1       |   |
| State and local         |   | — |    |   | — |   |    | — |   |
| Foreign                      |   | (13     | )       |   | (5      | )      |    | (12     | )      |
| Total deferred               |   | (12     | )       |   | (12     | )      |    | (11     | )      |
| Income tax expense (benefit) |   | $       | 35      |   |    | $      | (8      | )       |   | $ | (16 | ) |

|                                                                        |        |      |        |        |        |        |        |         |        |   |      |   |
|------------------------------------------------------------------------|--------|------|--------|--------|--------|--------|--------|---------|--------|---|------|---|
|                                                                   |   | 2010 |   | 2009   |   | 2008   |
| Income tax benefit computed at federal statutory tax rate              |   | $    | 85     |   |   | $      | 47     |    |   | $ | (413 | ) |
| State tax provision, net of federal benefits                           |   | 2    |   |   | 2      |   |   | 2       |   |
| Foreign tax rate differential                                          |   | 48   |   |   | (9     | )      |   | — |   |
| Foreign source income subject to U.S. taxation                         |   | 25   |   |   | 1      |   |   | 3       |   |
| Losses and other (income) expenses not deductible for tax              |   | (69  | )      |   | (7     | )      |   | 116     |   |
| (Decrease) increase in the taxes due to changes in valuation allowance |   | (55  | )      |   | (34    | )      |   | 289     |   |
| Additional tax (benefit) on foreign unrepatriated earnings             |   | 1    |   |   | (1     | )      |   | (1      | )      |
| Changes in enacted tax rates                                           |   | (1   | )      |   | (2     | )      |   | (1      | )      |
| Adjustments of prior year estimates and other                          |   | (1   | )      |   | (5     | )      |   | (11     | )      |
| Income tax expense (benefit)                                           |   | $    | 35     |   |   | $      | (8     | )       |   | $ | (16  | ) |

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Table of Contents

|          |        |      |        |        |        |        |        |        |        |   |        |   |
|----------|--------|------|--------|--------|--------|--------|--------|--------|--------|---|--------|---|
|     |   | 2010 |   | 2009   |   | 2008   |
| Domestic |   | $    | 296    |   |   | $      | 128    |   |   | $ | (1,022 | ) |
| Foreign  |   | (53  | )      |   | 6      |   |   | (158   | )      |
|     |   | $    | 243    |   |   | $      | 134    |   |   | $ | (1,180 | ) |

|                                                |        |         |        |        |        |        |     |        |
|------------------------------------------------|--------|---------|--------|--------|--------|--------|-----|--------|
|                                           |   | 2010    |   | 2009   |
| Assets                                         |   |    |   |   |
| Non-pension post-employment                    |   | $       | 7      |   |   | $      | 8   |   |
| Accrued and other expenses                     |   | 76      |   |   | 99     |   |
| Loss and credit carryforwards                  |   | 557     |   |   | 712    |   |
| Pension liabilities                            |   | 31      |   |   | 38     |   |
| Gross deferred tax assets                      |   | 671     |   |   | 857    |   |
| Valuation allowance                            |   | (483    | )      |   | (583   | )      |
| Net deferred tax asset                         |   | 188     |   |   | 274    |   |
| Liabilities                                    |   |    |   |   |
| Property, plant and equipment                  |   | (164    | )      |   | (181   | )      |
| Unrepatriated earnings of foreign subsidiaries |   | (88     | )      |   | (73    | )      |
| Intangibles                                    |   | (17     | )      |   | (32    | )      |
| Deferred income from extinguishment of debt    |   | — |   |   | (76    | )      |
| Gross deferred tax liabilities                 |   | (269    | )      |   | (362   | )      |
| Net deferred tax liability                     |   | $       | (81    | )      |   | $      | (88 | )      |

|                                                           |        |         |        |        |        |        |     |        |
|-----------------------------------------------------------|--------|---------|--------|--------|--------|--------|-----|--------|
|                                                      |   | 2010    |   | 2009   |
| Assets                                                    |   |    |   |   |
| Current deferred income taxes (Other current assets)      |   | $       | 24     |   |   | $      | 17  |   |
| Long-term deferred income taxes (Other assets)            |   | 5       |   |   | 15     |   |
| Liabilities                                               |   |    |   |   |
| Current deferred income taxes (Other current liabilities) |   | — |   |   | (4     | )      |
| Long-term deferred income taxes                           |   | (110    | )      |   | (116   | )      |
| Net deferred tax liability                                |   | $       | (81    | )      |   | $      | (88 | )      |

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Table of Contents

|                                             |        |                                   |        |                                                                      |        |                |        |                             |        |        |     |        |        |   |     |        |
|---------------------------------------------|--------|-----------------------------------|--------|----------------------------------------------------------------------|--------|----------------|--------|-----------------------------|--------|--------|-----|--------|--------|---|-----|--------|
|                                        |   | Balance atBeginningof Period |   | Changes inrelated GrossDeferred TaxAssets/Liabilities |   | Charge/Release |   | Balance atEnd ofPeriod |
| Valuation allowance on Deferred tax assets: |   |                              |   |                                                                 |   |           |   |                        |
| Year ended December 31, 2008           |   | $                                 | 356    |                                                                 |   | $              | (31    | )                           |   | $      | 298 |   |   | $ | 623 |   |
| Year ended December 31, 2009           |   | 623                               |   |                                                                 | (15    | )              |   | (25                         | )      |   | 583 |   |
| Year ended December 31, 2010           |   | 583                               |   |                                                                 | 53     |           |   | (153                        | )      |   | 483 |   |

|                                                              |        |         |        |        |        |        |    |        |
|--------------------------------------------------------------|--------|---------|--------|--------|--------|--------|----|--------|
|                                                         |   | 2010    |   | 2009   |
| Balance at beginning of year                                 |   | $       | 60     |   |   | $      | 57 |   |
| Additions based on tax positions related to the current year |   | 22      |   |   | 7      |   |
| Additions for tax positions of prior years                   |   | 3       |   |   | 2      |   |
| Reductions for tax positions of prior years                  |   | — |   |   | (6     | )      |
| Balance at end of year                                       |   | $       | 85     |   |   | $      | 60 |   |

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|                                |                                                                                                                                                                                                 |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Epoxy and Phenolic Resins: epoxy specialty resins, oil field products, versatic acids and derivatives, basic epoxy resins and intermediates and phenolic specialty resins and molding compounds |

|                                |                                                                                               |
|--------------------------------|-----------------------------------------------------------------------------------------------|
| •     | Formaldehyde and Forest Products Resins: forest products resins and formaldehyde applications |

|                                |                                                                              |
|--------------------------------|------------------------------------------------------------------------------|
| •     | Coatings: polyester resins, alkyds resins, acrylic resins and vinylic resins |

|                                         |        |       |        |        |        |        |        |        |        |   |       |        |
|-----------------------------------------|--------|-------|--------|--------|--------|--------|--------|--------|--------|---|-------|--------|
|                                    |   | 2010  |   | 2009   |   | 2008   |
| Epoxy and Phenolic Resins               |   | $     | 2,530  |   |   | $      | 1,944  |   |   | $ | 2,795 |   |
| Formaldehyde and Forest Products Resins |   | 1,607 |   |   | 1,198  |   |   | 2,049  |   |
| Coatings                                |   | 681   |   |   | 609    |   |   | 846    |   |
| Total                                   |   | $     | 4,818  |   |   | $      | 3,751  |   |   | $ | 5,690 |   |

|                                            |        |      |        |        |        |        |        |        |        |   |     |        |
|--------------------------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|---|-----|--------|
|                                       |   | 2010 |   | 2009   |   | 2008   |
| Epoxy and Phenolic Resins(3)               |   | $    | 431    |   |   | $      | 267    |   |   | $ | 278 |   |
| Formaldehyde and Forest Products Resins(4) |   | 177  |   |   | 111    |   |   | 198    |   |
| Coatings(5)                                |   | 63   |   |   | 46     |   |   | 23     |   |
| Corporate and Other                        |   | (62  | )      |   | (51    | )      |   | (50    | )      |

|                                         |        |      |        |        |        |        |        |        |        |   |     |        |
|-----------------------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|---|-----|--------|
|                                    |   | 2010 |   | 2009   |   | 2008   |
| Epoxy and Phenolic Resins               |   | $    | 98     |   |   | $      | 101    |   |   | $ | 110 |   |
| Formaldehyde and Forest Products Resins |   | 47   |   |   | 45     |   |   | 48     |   |
| Coatings                                |   | 15   |   |   | 16     |   |   | 21     |   |
| Corporate and Other                     |   | 6    |   |   | 7      |   |   | 12     |   |
| Total                                   |   | $    | 166    |   |   | $      | 169    |   |   | $ | 191 |   |

|                                         |        |      |        |        |        |        |       |        |
|-----------------------------------------|--------|------|--------|--------|--------|--------|-------|--------|
|                                    |   | 2010 |   | 2009   |
| Epoxy and Phenolic Resins               |   | $    | 1,598  |   |   | $      | 1,653 |   |
| Formaldehyde and Forest Products Resins |   | 849  |   |   | 819    |   |
| Coatings                                |   | 277  |   |   | 295    |   |
| Corporate and Other                     |   | 233  |   |   | 32     |   |
| Discontinued Operations                 |   | 180  |   |   | 174    |   |
| Total                                   |   | $    | 3,137  |   |   | $      | 2,973 |   |

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Table of Contents

|                                         |        |      |        |        |        |        |        |        |        |   |     |        |
|-----------------------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|---|-----|--------|
|                                    |   | 2010 |   | 2009   |   | 2008   |
| Epoxy and Phenolic Resins               |   | $    | 67     |   |   | $      | 47     |   |   | $ | 64  |   |
| Formaldehyde and Forest Products Resins |   | 34   |   |   | 70     |   |   | 46     |   |
| Coatings                                |   | 12   |   |   | 8      |   |   | 12     |   |
| Corporate and Other                     |   | 3    |   |   | 4      |   |   | 5      |   |
| Total                                   |   | $    | 116    |   |   | $      | 129    |   |   | $ | 127 |   |

|                             |                                                                                                 |
|-----------------------------|-------------------------------------------------------------------------------------------------|
| (1)     | Intersegment sales are not significant and, as such, are eliminated within the selling segment. |

|                             |                                                                                                                                                    |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)     | The Company changed its segment reporting in 2010. Prior period balances have been recast to conform to the Company's current reportable segments. |

|                             |                                                                                                                                                               |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3)     | Included in the Epoxy and Phenolic Resins Segment EBITDA are Earnings from unconsolidated affiliates, net of taxes of $7 for the year ended December 31, 2010 |

|                             |                                                                                                                                                                                                                                          |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4)     | Included in Formaldehyde and Forest Products Resins Segment EBITDA are Earnings from unconsolidated entities, net of taxes of less than $1, less than $1 and $1 for the years ended December 31, 2010, 2009 and 2008, respectively. |

|                             |                                                                                                                                                                                           |
|-----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (5)     | Included in the Coatings Segment EBITDA are Earnings from unconsolidated entities, net of taxes of $1, $2 and $1 for the years ended December 31, 2010, 2009 and 2008, respectively. |

|                             |                                                                                                                                                                     |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (6)     | Excludes capital expenditures of discontinued operations.  Includes capitalized interest costs that are incurred during the construction of property and equipment. |

|                                                                      |        |                                        |        |        |         |        |        |         |        |   |        |        |
|----------------------------------------------------------------------|--------|----------------------------------------|--------|--------|---------|--------|--------|---------|--------|---|--------|--------|
|                                                                 |   | Year Ended December 31, |
|                                                                 |   | 2010                                   |   | 2009   |    | 2008   |
| Segment EBITDA:                                                      |   |                                   |   |   |    |   |
| Epoxy and Phenolic Resins                                            |   | $                                      | 431    |   |    | $      | 267    |    |   | $ | 278    |   |
| Formaldehyde and Forest Products Resins                              |   | 177                                    |   |   | 111     |   |   | 198     |   |
| Coatings                                                             |   | 63                                     |   |   | 46      |   |   | 23      |   |
| Corporate and Other                                                  |   | (62                                    | )      |   | (51     | )      |   | (50     | )      |
|                                                                 |   |                                   |   |   |    |   |
| Reconciliation:                                                      |   |                                   |   |   |    |   |
| Items not included in Segment EBITDA                                 |   |                                   |   |   |    |   |
| Terminated merger and settlement income (expense), net               |   | 171                                    |   |   | 62      |   |   | (1,027  | )      |
| Integration costs                                                    |   | —                                |   |   | — |   |   | (27     | )      |
| Non-cash charges                                                     |   | (5                                     | )      |   | 4       |   |   | (4      | )      |
| Unusual items:                                                       |   |                                   |   |   |    |   |
| (Loss) gain on divestiture of assets                                 |   | (2                                     | )      |   | (6      | )      |   | 5       |   |
| Net loss from discontinued operations                                |   | (2                                     | )      |   | (27     | )      |   | (23     | )      |
| Business realignments                                                |   | (22                                    | )      |   | (41     | )      |   | (32     | )      |
| Asset impairments                                                    |   | —                                |   |   | (49     | )      |   | (15     | )      |
| Other                                                                |   | (28                                    | )      |   | (41     | )      |   | (38     | )      |
| Total unusual items                                                  |   | (54                                    | )      |   | (164    | )      |   | (103    | )      |
| Total adjustments                                                    |   | 112                                    |   |   | (98     | )      |   | (1,161  | )      |
| Interest expense, net                                                |   | (276                                   | )      |   | (223    | )      |   | (303    | )      |
| (Loss) gain on extinguishment of debt                                |   | (30                                    | )      |   | 224     |   |   | — |   |
| Income tax (expense) benefit                                         |   | (35                                    | )      |   | 8       |   |   | 16      |   |
| Depreciation and amortization                                        |   | (166                                   | )      |   | (170    | )      |   | (191    | )      |
| Net income (loss) attributable to Momentive Specialty Chemicals Inc. |   | 214                                    |   |   | 114     |   |   | (1,190  | )      |
| Net income attributable to noncontrolling interest                   |   | —                                |   |   | 3       |   |   | 5       |   |
| Net income (loss)                                                    |   | $                                      | 214    |   |    | $      | 117    |    |   | $ | (1,185 | )      |

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|                     |        |       |        |        |        |        |        |        |        |   |       |        |
|---------------------|--------|-------|--------|--------|--------|--------|--------|--------|--------|---|-------|--------|
|                |   | 2010  |   | 2009   |   | 2008   |
| United States       |   | $     | 2,082  |   |   | $      | 1,568  |   |   | $ | 2,467 |   |
| Netherlands         |   | 938   |   |   | 846    |   |   | 1,222  |   |
| Germany             |   | 347   |   |   | 282    |   |   | 494    |   |
| Canada              |   | 244   |   |   | 165    |   |   | 276    |   |
| Other international |   | 1,207 |   |   | 890    |   |   | 1,231  |   |
| Total               |   | $     | 4,818  |   |   | $      | 3,751  |   |   | $ | 5,690 |   |

|                             |                                                                                              |
|-----------------------------|----------------------------------------------------------------------------------------------|
| (1)     |  Sales are attributed to the country in which the individual business locations reside. |

|                     |        |      |        |        |        |        |       |        |
|---------------------|--------|------|--------|--------|--------|--------|-------|--------|
|                |   | 2010 |   | 2009   |
| United States       |   | $    | 518    |   |   | $      | 545   |   |
| Netherlands         |   | 251  |   |   | 289    |   |
| Germany             |   | 118  |   |   | 135    |   |
| Canada              |   | 70   |   |   | 70     |   |
| Other international |   | 331  |   |   | 341    |   |
| Total               |   | $    | 1,288  |   |   | $      | 1,380 |   |

|                                |        |       |        |        |        |        |        |        |        |   |       |        |
|--------------------------------|--------|-------|--------|--------|--------|--------|--------|--------|--------|---|-------|--------|
|                           |   | 2010  |   | 2009   |   | 2008   |
| Epoxy resins and intermediates |   | $     | 1,412  |   |   | $      | 1,092  |   |   | $ | 1,501 |   |
| Forest products resins         |   | 1,205 |   |   | 927    |   |   | 1,534  |   |
| Coating products               |   | 681   |   |   | 608    |   |   | 846    |   |
| Phenolic specialty resins      |   | 488   |   |   | 325    |   |   | 545    |   |
| All other(1)                   |   | 1,032 |   |   | 799    |   |   | 1,264  |   |
| Total                          |   | $     | 4,818  |   |   | $      | 3,751  |   |   | $ | 5,690 |   |

|                             |                                                                                                               |
|-----------------------------|---------------------------------------------------------------------------------------------------------------|
| (1)     |  Net sales of other product lines that individually account for less than 10% of consolidated Net sales. |

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Table of Contents

|                                                                     |        |                                 |        |                   |         |                              |         |                                   |        |              |         |              |        |         |        |        |         |        |      |        |        |   |       |        |
|---------------------------------------------------------------------|--------|---------------------------------|--------|-------------------|---------|------------------------------|---------|-----------------------------------|--------|--------------|---------|--------------|--------|---------|--------|--------|---------|--------|------|--------|--------|---|-------|--------|
|                                                                |   | MomentiveSpecialtyChemicalsInc. |   | SubsidiaryIssuers |    | CombinedSubsidiaryGuarantors |    | CombinedNon-GuarantorSubsidiaries |   | Eliminations |    | Consolidated |
| Net sales                                                           |   | $                               | 2,223  |              |    | $                            | — |                              |   | $            | — |         |   | $       | 2,934  |   |    | $      | (339 | )      |   | $ | 4,818 |   |
| Cost of sales                                                       |   | 1,826                           |   |              | — |                         |    | —                           |   |         | 2,587   |         |   | (339    | )      |   | 4,074   |   |
| Gross profit                                                        |   | 397                             |   |              | — |                         |    | —                           |   |         | 347     |         |   | — |   |   | 744     |   |
| Selling, general and administrative expense                    |   | 129                             |   |              | — |                         |    | —                           |   |         | 215     |         |   | — |   |   | 344     |   |
| Terminated merger and settlement (income) expense, net              |   | (171                            | )      |              | — |                         |    | —                           |   |         | — |         |   | — |   |   | (171    | )      |
| Business realignment costs                                          |   | 7                               |   |              | — |                         |    | —                           |   |         | 15      |         |   | — |   |   | 22      |   |
| Other operating expense (income), net                               |   | 7                               |   |              | — |                         |    | —                           |   |         | (2      | )            |   | — |   |   | 5       |   |
| Operating income                                                    |   | 425                             |   |              | — |                         |    | —                           |   |         | 119     |         |   | — |   |   | 544     |   |
| Interest expense, net                                               |   | 92                              |   |              | 144     |                         |    | —                           |   |         | 40      |         |   | — |   |   | 276     |   |
| Loss on extinguishment of debt                                      |   | 7                               |   |              | 5       |                         |    | —                           |   |         | 18      |         |   | — |   |   | 30      |   |
| Intercompany interest expense (income)                              |   | 123                             |   |              | (169    | )                            |    | (1                                | )      |         | 47      |         |   | — |   |   | — |   |
| Other non-operating (income) expense, net                           |   | (19                             | )      |              | 8       |                         |    | —                           |   |         | 6       |         |   | — |   |   | (5      | )      |
| Income before income tax, earnings from unconsolidated entities     |   | 222                             |   |              | 12      |                         |    | 1                                 |   |         | 8       |         |   | — |   |   | 243     |   |
| Income tax (benefit) expense                                        |   | (11                             | )      |              | 10      |                         |    | —                           |   |         | 36      |         |   | — |   |   | 35      |   |
| Income (loss) before earnings from unconsolidated entities          |   | 233                             |   |              | 2       |                         |    | 1                                 |   |         | (28     | )            |   | — |   |   | 208     |   |
| Earnings from unconsolidated entities, net of taxes                 |   | (13                             | )      |              | — |                         |    | (5                                | )      |         | — |         |   | 26      |   |   | 8       |   |
| Net income (loss) from continuing operations                        |   | 220                             |   |              | 2       |                         |    | (4                                | )      |         | (28     | )            |   | 26      |   |   | 216     |   |
| Net (loss) income from discontinued operations, net of tax          |   | (6                              | )      |              | — |                         |    | —                           |   |         | 4       |         |   | — |   |   | (2      | )      |
| Net income (loss) attributable toMomentive Specialty Chemicals Inc. |   | $                               | 214    |              |    | $                            | 2       |                              |   | $            | (4      | )            |   | $       | (24    | )      |    | $      | 26   |   |   | $ | 214   |   |

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|                                                                        |        |                                 |        |                   |         |                              |         |                                   |        |              |         |              |        |         |        |        |         |        |      |   |        |   |       |        |
|------------------------------------------------------------------------|--------|---------------------------------|--------|-------------------|---------|------------------------------|---------|-----------------------------------|--------|--------------|---------|--------------|--------|---------|--------|--------|---------|--------|------|---|--------|---|-------|--------|
|                                                                   |   | MomentiveSpecialtyChemicalsInc. |   | SubsidiaryIssuers |    | CombinedSubsidiaryGuarantors |    | CombinedNon-GuarantorSubsidiaries |   | Eliminations |    | Consolidated |
| Net sales                                                              |   | $                               | 1,620  |              |    | $                            | — |                              |   | $            | — |         |   | $       | 2,475  |   |    | $      | (344 | ) |   | $ | 3,751 |   |
| Cost of sales                                                          |   | 1,431                           |   |              | — |                         |    | —                           |   |         | 2,173   |         |   | (344    | )      |   | 3,260   |   |
| Gross profit                                                           |   | 189                             |   |              | — |                         |    | —                           |   |         | 302     |         |   | — |   |   | 491     |   |
| Selling, general and administrative expense                       |   | 96                              |   |              | — |                         |    | —                           |   |         | 224     |         |   | — |   |   | 320     |   |
| Terminated merger and settlement (income) expense, net                 |   | (64                             | )      |              | — |                         |    | —                           |   |         | 2       |         |   | — |   |   | (62     | )      |
| Asset impairments                                                      |   | 37                              |   |              | — |                         |    | —                           |   |         | 12      |         |   | — |   |   | 49      |   |
| Business realignment costs                                             |   | 18                              |   |              | — |                         |    | —                           |   |         | 23      |         |   | — |   |   | 41      |   |
| Other operating expense (income), net                                  |   | 10                              |   |              | — |                         |    | (1                                | )      |         | 1       |         |   | — |   |   | 10      |   |
| Operating income                                                       |   | 92                              |   |              | — |                         |    | 1                                 |   |         | 40      |         |   | — |   |   | 133     |   |
| Interest expense, net                                                  |   | 130                             |   |              | 62      |                         |    | —                           |   |         | 31      |         |   | — |   |   | 223     |   |
| Gain on extinguishment of debt                                         |   | (76                             | )      |              | (148    | )                            |    | —                           |   |         | — |         |   | — |   |   | (224    | )      |
| Intercompany interest expense (income)                                 |   | 67                              |   |              | (82     | )                            |    | (1                                | )      |         | 16      |         |   | — |   |   | — |   |
| Other non-operating (income) expense, net                              |   | (6                              | )      |              | 7       |                         |    | 1                                 |   |         | (2      | )            |   | — |   |   | — |   |
| (Loss) income before income tax, earnings from unconsolidated entities |   | (23                             | )      |              | 161     |                         |    | 1                                 |   |         | (5      | )            |   | — |   |   | 134     |   |
| Income tax (benefit) expense                                           |   | (4                              | )      |              | 6       |                         |    | —                           |   |         | (10     | )            |   | — |   |   | (8      | )      |
| (Loss) income before earnings from unconsolidated entities             |   | (19                             | )      |              | 155     |                         |    | 1                                 |   |         | 5       |         |   | — |   |   | 142     |   |
| Earnings from unconsolidated entities, net of taxes                    |   | 145                             |   |              | — |                         |    | 2                                 |   |         | 2       |         |   | (147    | )      |   | 2       |   |
| Net income from continuing operations                                  |   | 126                             |   |              | 155     |                         |    | 3                                 |   |         | 7       |         |   | (147    | )      |   | 144     |   |
| Net loss from discontinued operations, net of tax                      |   | (9                              | )      |              | — |                         |    | —                           |   |         | (18     | )            |   | — |   |   | (27     | )      |
| Net income attributable to noncontrolling interest                     |   | (3                              | )      |              | — |                         |    | —                           |   |         | — |         |   | — |   |   | (3      | )      |
| Net income (loss) attributable to Momentive Specialty Chemicals Inc.   |   | $                               | 114    |              |    | $                            | 155     |                              |   | $            | 3       |         |   | $       | (11    | )      |    | $      | (147 | ) |   | $ | 114   |   |

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Table of Contents

|                                                                        |        |                                 |        |                   |         |                              |         |                                   |        |              |         |              |        |         |        |        |         |        |      |        |        |   |        |        |
|------------------------------------------------------------------------|--------|---------------------------------|--------|-------------------|---------|------------------------------|---------|-----------------------------------|--------|--------------|---------|--------------|--------|---------|--------|--------|---------|--------|------|--------|--------|---|--------|--------|
|                                                                   |   | MomentiveSpecialtyChemicalsInc. |   | SubsidiaryIssuers |    | CombinedSubsidiaryGuarantors |    | CombinedNon-GuarantorSubsidiaries |   | Eliminations |    | Consolidated |
| Net sales                                                              |   | $                               | 2,565  |              |    | $                            | — |                              |   | $            | — |         |   | $       | 3,592  |   |    | $      | (467 | )      |   | $ | 5,690  |   |
| Cost of sales                                                          |   | 2,327                           |   |              | — |                         |    | —                           |   |         | 3,231   |         |   | (467    | )      |   | 5,091   |   |
| Gross profit                                                           |   | 238                             |   |              | — |                         |    | —                           |   |         | 361     |         |   | — |   |   | 599     |   |
| Selling, general and administrative expense                       |   | 104                             |   |              | — |                         |    | —                           |   |         | 256     |         |   | — |   |   | 360     |   |
| Terminated merger and settlement expense, net                          |   | 872                             |   |              | — |                         |    | —                           |   |         | 155     |         |   | — |   |   | 1,027   |   |
| Integration costs                                                      |   | 13                              |   |              | — |                         |    | —                           |   |         | 14      |         |   | — |   |   | 27      |   |
| Asset impairments                                                      |   | 2                               |   |              | — |                         |    | —                           |   |         | 13      |         |   | — |   |   | 15      |   |
| Business realignment costs                                             |   | 5                               |   |              | — |                         |    | —                           |   |         | 27      |         |   | — |   |   | 32      |   |
| Other operating expense (income), net                                  |   | 7                               |   |              | 1       |                         |    | (1                                | )      |         | 2       |         |   | — |   |   | 9       |   |
| Operating (loss) income                                                |   | (765                            | )      |              | (1      | )                            |    | 1                                 |   |         | (106    | )            |   | — |   |   | (871    | )      |
| Interest expense, net                                                  |   | 160                             |   |              | 77      |                         |    | —                           |   |         | 66      |         |   | — |   |   | 303     |   |
| Intercompany interest expense (income)                                 |   | 93                              |   |              | (90     | )                            |    | (1                                | )      |         | (2      | )            |   | — |   |   | — |   |
| Other non-operating (income) expense, net                              |   | (4                              | )      |              | 10      |                         |    | —                           |   |         | — |         |   | — |   |   | 6       |   |
| (Loss) income before income tax, earnings from unconsolidated entities |   | (1,014                          | )      |              | 2       |                         |    | 2                                 |   |         | (170    | )            |   | — |   |   | (1,180  | )      |
| Income tax benefit                                                     |   | (13                             | )      |              | (1      | )                            |    | —                           |   |         | (2      | )            |   | — |   |   | (16     | )      |
| (Loss) income before earnings from unconsolidated entities             |   | (1,001                          | )      |              | 3       |                         |    | 2                                 |   |         | (168    | )            |   | — |   |   | (1,164  | )      |
| Earnings from unconsolidated entities, net of taxes                    |   | (175                            | )      |              | — |                         |    | 6                                 |   |         | 2       |         |   | 169     |   |   | 2       |   |
| Net (loss) income from continuing operations                           |   | (1,176                          | )      |              | 3       |                         |    | 8                                 |   |         | (166    | )            |   | 169     |   |   | (1,162  | )      |
| Net loss from discontinued operations, net of tax                      |   | (9                              | )      |              | — |                         |    | —                           |   |         | (14     | )            |   | — |   |   | (23     | )      |
| Net income attributable to noncontrolling interest                     |   | (5                              | )      |              | — |                         |    | —                           |   |         | — |         |   | — |   |   | (5      | )      |
| Net (loss) income attributable to Momentive Specialty Chemicals Inc.   |   | $                               | (1,190 | )                 |    | $                            | 3       |                              |   | $            | 8       |         |   | $       | (180   | )      |    | $      | 169  |   |   | $ | (1,190 | )      |

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Table of Contents

|                                                                                  |        |                                 |        |                   |         |                              |         |                                   |        |              |         |              |        |         |        |        |         |        |         |        |        |   |       |        |
|----------------------------------------------------------------------------------|--------|---------------------------------|--------|-------------------|---------|------------------------------|---------|-----------------------------------|--------|--------------|---------|--------------|--------|---------|--------|--------|---------|--------|---------|--------|--------|---|-------|--------|
|                                                                             |   | MomentiveSpecialtyChemicalsInc. |   | SubsidiaryIssuers |    | CombinedSubsidiaryGuarantors |    | CombinedNon-GuarantorSubsidiaries |   | Eliminations |    | Consolidated |
| Assets                                                                           |   |                            |   |              |    |                         |    |                              |   |         |    |         |
| Current assets                                                                   |   |                            |   |              |    |                         |    |                              |   |         |    |         |
| Cash and cash equivalents (including restricted cash of $0 and $6, respectively) |   | $                               | 56     |              |    | $                            | — |                              |   | $            | — |         |   | $       | 130    |   |    | $      | — |   |   | $ | 186   |   |
| Short-term investments                                                           |   | —                         |   |              | — |                         |    | —                           |   |         | 6       |         |   | — |   |   | 6       |   |
| Accounts receivable, net                                                         |   | 135                             |   |              | — |                         |    | —                           |   |         | 412     |         |   | — |   |   | 547     |   |
| Inventories:                                                                     |   |                            |   |              |    |                         |    |                              |   |         |    |         |
| Finished and in-process goods                                                    |   | 135                             |   |              | — |                         |    | —                           |   |         | 144     |         |   | — |   |   | 279     |   |
| Raw materials and supplies                                                       |   | 43                              |   |              | — |                         |    | —                           |   |         | 74      |         |   | — |   |   | 117     |   |
| Discontinued operations                                                          |   | 39                              |   |              | — |                         |    | —                           |   |         | 141     |         |   | — |   |   | 180     |   |
| Other current assets                                                             |   | 32                              |   |              | — |                         |    | —                           |   |         | 48      |         |   | — |   |   | 80      |   |
| Total current assets                                                             |   | 440                             |   |              | — |                         |    | —                           |   |         | 955     |         |   | — |   |   | 1,395   |   |
| Other assets                                                                     |   |                            |   |              |    |                         |    |                              |   |         |    |         |
| Other assets                                                                     |   | 6                               |   |              | 41      |                         |    | 30                                |   |         | 73      |         |   | 3       |   |   | 153     |   |
| Property and equipment, net                                                      |   | 518                             |   |              | — |                         |    | —                           |   |         | 770     |         |   | — |   |   | 1,288   |   |
| Goodwill                                                                         |   | 93                              |   |              | — |                         |    | —                           |   |         | 76      |         |   | — |   |   | 169     |   |
| Other intangible assets, net                                                     |   | 62                              |   |              | — |                         |    | —                           |   |         | 70      |         |   | — |   |   | 132     |   |
| Total assets                                                                     |   | $                               | 1,119  |              |    | $                            | 41      |                              |   | $            | 30      |         |   | $       | 1,944  |   |    | $      | 3       |   |   | $ | 3,137 |   |
| Liabilities and (Deficit) Equity                                                 |   |                            |   |              |    |                         |    |                              |   |         |    |         |
| Current liabilities                                                              |   |                            |   |              |    |                         |    |                              |   |         |    |         |
| Accounts and drafts payable                                                      |   | $                               | 153    |              |    | $                            | — |                              |   | $            | — |         |   | $       | 277    |   |    | $      | — |   |   | $ | 430   |   |
| Intercompany accounts (receivable) payable                                       |   | (140                            | )      |              | (46     | )                            |    | —                           |   |         | 186     |         |   | — |   |   | — |   |
| Debt payable within one year                                                     |   | 25                              |   |              | — |                         |    | —                           |   |         | 57      |         |   | — |   |   | 82      |   |
| Intercompany loans (receivable) payable                                          |   | (97                             | )      |              | — |                         |    | —                           |   |         | 97      |         |   | — |   |   | — |   |
| Loans payable to affiliates                                                      |   | 2                               |   |              | — |                         |    | —                           |   |         | — |         |   | — |   |   | 2       |   |
| Interest payable                                                                 |   | 21                              |   |              | 46      |                         |    | —                           |   |         | 2       |         |   | — |   |   | 69      |   |
| Income taxes payable                                                             |   | 7                               |   |              | — |                         |    | —                           |   |         | 17      |         |   | — |   |   | 24      |   |
| Accrued payroll and incentive compensation                                       |   | 29                              |   |              | — |                         |    | —                           |   |         | 37      |         |   | — |   |   | 66      |   |
| Discontinued operations                                                          |   | 18                              |   |              | — |                         |    | —                           |   |         | 22      |         |   | — |   |   | 40      |   |
| Other current liabilities                                                        |   | 92                              |   |              | — |                         |    | —                           |   |         | 60      |         |   | — |   |   | 152     |   |
| Total current liabilities                                                        |   | 110                             |   |              | — |                         |    | —                           |   |         | 755     |         |   | — |   |   | 865     |   |
| Long-term debt                                                                   |   | 1,152                           |   |              | 1,687   |                         |    | —                           |   |         | 649     |         |   | — |   |   | 3,488   |   |
| Affiliated long-term debt                                                        |   | 80                              |   |              | — |                         |    | —                           |   |         | 20      |         |   | — |   |   | 100     |   |
| Intercompany loans payable (receivable)                                          |   | 1,352                           |   |              | (1,887  | )                            |    | (15                               | )      |         | 550     |         |   | — |   |   | — |   |
| Long-term pension and post employment benefit obligations                        |   | 83                              |   |              | — |                         |    | —                           |   |         | 125     |         |   | — |   |   | 208     |   |
| Deferred income taxes                                                            |   | 35                              |   |              | 2       |                         |    | —                           |   |         | 73      |         |   | — |   |   | 110     |   |
| Other long-term liabilities                                                      |   | 104                             |   |              | 6       |                         |    | —                           |   |         | 50      |         |   | — |   |   | 160     |   |
| Advance from affiliates                                                          |   | 225                             |   |              | — |                         |    | —                           |   |         | — |         |   | — |   |   | 225     |   |
| Total liabilities                                                                |   | 3,141                           |   |              | (192    | )                            |    | (15                               | )      |         | 2,222   |         |   | — |   |   | 5,156   |   |
| Total Momentive Specialty Chemicals Inc. shareholder's (deficit) equity          |   | (2,022                          | )      |              | 233     |                         |    | 45                                |   |         | (281    | )            |   | 3       |   |   | (2,022  | )      |
| Noncontrolling interest                                                          |   | —                         |   |              | — |                         |    | —                           |   |         | 3       |         |   | — |   |   | 3       |   |
| Shareholder’s (deficit) equity                                             |   | (2,022                          | )      |              | 233     |                         |    | 45                                |   |         | (278    | )            |   | 3       |   |   | (2,019  | )      |
| Total liabilities and (deficit) equity                                           |   | $                               | 1,119  |              |    | $                            | 41      |                              |   | $            | 30      |         |   | $       | 1,944  |   |    | $      | 3       |   |   | $ | 3,137 |   |

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Table of Contents

|                                                                                  |        |                                 |        |                   |         |                              |         |                                   |        |              |         |              |        |         |        |        |         |        |         |        |        |   |       |        |
|----------------------------------------------------------------------------------|--------|---------------------------------|--------|-------------------|---------|------------------------------|---------|-----------------------------------|--------|--------------|---------|--------------|--------|---------|--------|--------|---------|--------|---------|--------|--------|---|-------|--------|
|                                                                             |   | MomentiveSpecialtyChemicalsInc. |   | SubsidiaryIssuers |    | CombinedSubsidiaryGuarantors |    | CombinedNon-GuarantorSubsidiaries |   | Eliminations |    | Consolidated |
| Assets                                                                           |   |                            |   |              |    |                         |    |                              |   |         |    |         |
| Current assets                                                                   |   |                            |   |              |    |                         |    |                              |   |         |    |         |
| Cash and cash equivalents (including restricted cash of $0 and $7, respectively) |   | $                               | 22     |              |    | $                            | — |                              |   | $            | — |         |   | $       | 120    |   |    | $      | — |   |   | $ | 142   |   |
| Short-term investments                                                           |   | —                         |   |              | — |                         |    | —                           |   |         | 10      |         |   | — |   |   | 10      |   |
| Accounts receivable, net                                                         |   | 35                              |   |              | — |                         |    | —                           |   |         | 388     |         |   | — |   |   | 423     |   |
| Inventories:                                                                     |   |                            |   |              |    |                         |    |                              |   |         |    |         |
| Finished and in-process goods                                                    |   | 125                             |   |              | — |                         |    | —                           |   |         | 120     |         |   | — |   |   | 245     |   |
| Raw materials and supplies                                                       |   | 37                              |   |              | — |                         |    | —                           |   |         | 58      |         |   | — |   |   | 95      |   |
| Discontinued operations                                                          |   | 22                              |   |              | — |                         |    | —                           |   |         | 79      |         |   | — |   |   | 101     |   |
| Other current assets                                                             |   | 22                              |   |              | — |                         |    | —                           |   |         | 55      |         |   | — |   |   | 77      |   |
| Total current assets                                                             |   | 263                             |   |              | — |                         |    | —                           |   |         | 830     |         |   | — |   |   | 1,093   |   |
| Other assets                                                                     |   |                            |   |              |    |                         |    |                              |   |         |    |         |
| Investment in subsidiaries                                                       |   | 831                             |   |              | — |                         |    | 23                                |   |         | — |         |   | (854    | )      |   | — |   |
| Other assets                                                                     |   | 33                              |   |              | 6       |                         |    | —                           |   |         | 60      |         |   | — |   |   | 99      |   |
|                                                                             |   | 864                             |   |              | 6       |                         |    | 23                                |   |         | 60      |         |   | (854    | )      |   | 99      |   |
| Property and equipment, net                                                      |   | 538                             |   |              | — |                         |    | —                           |   |         | 842     |         |   | — |   |   | 1,380   |   |
| Goodwill                                                                         |   | 94                              |   |              | — |                         |    | —                           |   |         | 83      |         |   | — |   |   | 177     |   |
| Other intangible assets, net                                                     |   | 68                              |   |              | — |                         |    | —                           |   |         | 83      |         |   | — |   |   | 151     |   |
| Discontinued operations                                                          |   | 17                              |   |              | — |                         |    | —                           |   |         | 56      |         |   | — |   |   | 73      |   |
| Total assets                                                                     |   | $                               | 1,844  |              |    | $                            | 6       |                              |   | $            | 23      |         |   | $       | 1,954  |   |    | $      | (854    | )      |   | $ | 2,973 |   |
| Liabilities and (Deficit) Equity                                                 |   |                            |   |              |    |                         |    |                              |   |         |    |         |
| Current liabilities                                                              |   |                            |   |              |    |                         |    |                              |   |         |    |         |
| Accounts and drafts payable                                                      |   | $                               | 157    |              |    | $                            | — |                              |   | $            | — |         |   | $       | 300    |   |    | $      | — |   |   | $ | 457   |   |
| Intercompany accounts (receivable) payable                                       |   | (13                             | )      |              | (4      | )                            |    | —                           |   |         | 17      |         |   | — |   |   | — |   |
| Debt payable within one year                                                     |   | 22                              |   |              | — |                         |    | —                           |   |         | 56      |         |   | — |   |   | 78      |   |
| Intercompany loans payable (receivable)                                          |   | 360                             |   |              | — |                         |    | (5                                | )      |         | (355    | )            |   | — |   |   | — |   |
| Loans payable to affiliates                                                      |   | 4                               |   |              | — |                         |    | —                           |   |         | — |         |   | — |   |   | 4       |   |
| Interest payable                                                                 |   | 27                              |   |              | 7       |                         |    | —                           |   |         | 2       |         |   | — |   |   | 36      |   |
| Income taxes payable                                                             |   | 9                               |   |              | — |                         |    | —                           |   |         | 26      |         |   | — |   |   | 35      |   |
| Accrued payroll and incentive compensation                                       |   | 19                              |   |              | — |                         |    | —                           |   |         | 28      |         |   | — |   |   | 47      |   |
| Discontinued operations                                                          |   | 16                              |   |              | — |                         |    | —                           |   |         | 24      |         |   | — |   |   | 40      |   |
| Other current liabilities                                                        |   | 95                              |   |              | — |                         |    | —                           |   |         | 96      |         |   | — |   |   | 191     |   |
| Total current liabilities                                                        |   | 696                             |   |              | 3       |                         |    | (5                                | )      |         | 194     |         |   | — |   |   | 888     |   |
| Long-term debt                                                                   |   | 1,969                           |   |              | 653     |                         |    | —                           |   |         | 702     |         |   | — |   |   | 3,324   |   |
| Affiliated long-term debt                                                        |   | 80                              |   |              | — |                         |    | —                           |   |         | 20      |         |   | — |   |   | 100     |   |
| Intercompany loans payable (receivable)                                          |   | 683                             |   |              | (868    | )                            |    | (14                               | )      |         | 199     |         |   | — |   |   | — |   |
| Long-term pension and post employment benefit obligations                        |   | 98                              |   |              | — |                         |    | —                           |   |         | 126     |         |   | — |   |   | 224     |   |
| Deferred income taxes                                                            |   | 39                              |   |              | — |                         |    | —                           |   |         | 77      |         |   | — |   |   | 116     |   |
| Other long-term liabilities                                                      |   | 106                             |   |              | — |                         |    | —                           |   |         | 30      |         |   | — |   |   | 136     |   |
| Advance from affiliates                                                          |   | 225                             |   |              | — |                         |    | —                           |   |         | — |         |   | — |   |   | 225     |   |
| Discontinued operations                                                          |   | —                         |   |              |    |                         |    | —                           |   |         | 9       |         |   |    |   |   | 9       |   |
| Total liabilities                                                                |   | 3,896                           |   |              | (212    | )                            |    | (19                               | )      |         | 1,357   |         |   | — |   |   | 5,022   |   |
| Total Momentive Specialty Chemicals Inc. shareholder's (deficit) equity          |   | (2,063                          | )      |              | 218     |                         |    | 42                                |   |         | 594     |         |   | (854    | )      |   | (2,063  | )      |
| Noncontrolling interest                                                          |   | 11                              |   |              | — |                         |    | —                           |   |         | 3       |         |   | — |   |   | 14      |   |
| Shareholder’s (deficit) equity                                             |   | (2,052                          | )      |              | 218     |                         |    | 42                                |   |         | 597     |         |   | (854    | )      |   | (2,049  | )      |
| Total liabilities and (deficit) equity                                           |   | $                               | 1,844  |              |    | $                            | 6       |                              |   | $            | 23      |         |   | $       | 1,954  |   |    | $      | (854    | )      |   | $ | 2,973 |   |

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Table of Contents

|                                                                    |        |                                 |        |                   |         |                              |         |                                   |        |              |         |              |           |         |        |        |         |        |         |        |        |   |     |        |
|--------------------------------------------------------------------|--------|---------------------------------|--------|-------------------|---------|------------------------------|---------|-----------------------------------|--------|--------------|---------|--------------|-----------|---------|--------|--------|---------|--------|---------|--------|--------|---|-----|--------|
|                                                               |   | MomentiveSpecialtyChemicalsInc. |   | SubsidiaryIssuers |    | CombinedSubsidiaryGuarantors |    | CombinedNon-GuarantorSubsidiaries |   | Eliminations |    | Consolidated |
| Cash flows (used in) provided by operating activities              |   | $                               | (465   | )                 |    | $                            | 19      |                              |   | $            | — |         |      | $       | 491    |   |    | $      | — |   |   | $ | 45  |   |
| Cash flows provided by (used in) investing activities              |   |                            |   |              |    |                         |    |                              |   |         |    |         |
| Capital expenditures                                               |   | (52                             | )      |              | — |                         |    | —                           |   |         | (67     | )            |      | — |   |   | (119    | )      |
| Capitalized interest                                               |   | —                         |   |              | — |                         |    | —                           |   |         | (1      | )            |      | — |   |   | (1      | )      |
| Change in restricted cash                                          |   | —                         |   |              | — |                         |    | —                           |   |         | 2       |         |      | — |   |   | 2       |   |
| Proceeds from the return of capital from subsidiary                |   | 367                             |   | (a)          | — |                         |    | —                           |   |         | — |         |      | (367    | )      |   | — |   |
| Dividend from subsidiary                                           |   | 18                              |   |              | — |                         |    | 1                                 |   |         | — |         |      | (19     | )      |   | — |   |
| Proceeds from the sale of assets                                   |   | 6                               |   |              | — |                         |    | —                           |   |         | 8       |         |      | — |   |   | 14      |   |
| Deconsolidation of variable interest entity                        |   | —                         |   |              | — |                         |    | —                           |   |         | (4      | )            |      | — |   |   | (4      | )      |
| Investment in unconsolidated affiliates, net                       |   | —                         |   |              | — |                         |    | 4                                 |   |         | 1       |         |      | — |   |   | 5       |   |
| Proceeds from matured debt securities                              |   | —                         |   |              | — |                         |    | —                           |   |         | 4       |         |      | — |   |   | 4       |   |
|                                                               |   | 339                             |   |              | — |                         |    | 5                                 |   |         | (57     | )            |      | (386    | )      |   | (99     | )      |
| Cash flows provided by (used in) financing activities              |   |                            |   |              |    |                         |    |                              |   |         |    |         |
| Net short-term debt (repayments) borrowings                        |   | 3                               |   |              | — |                         |    | —                           |   |         | (10     | )            |      | — |   |   | (7      | )      |
| Borrowings of long-term debt                                       |   | 290                             |   |              | 1,433   |                         |    | —                           |   |         | 633     |         |      | — |   |   | 2,356   |   |
| Repayments of long-term debt                                       |   | (1,108                          | )      |              | (406    | )                            |    | —                           |   |         | (663    | )            |      | — |   |   | (2,177  | )      |
| Repayments of affiliated debt                                      |   | (3                              | )      |              | — |                         |    | —                           |   |         | — |         |      | — |   |   | (3      | )      |
| Return of capital to parent                                        |   | —                         |   |              | — |                         |    | —                           |   |         | (367    | )            | (a)  | 367     |   |   | — |   |
| Net intercompany loan borrowings (repayments)                      |   | 987                             |   |              | (973    | )                            |    | —                           |   |         | (14     | )            |      | — |   |   | — |   |
| Long-term debt and credit facility financing fees                  |   | (9                              | )      |              | (63     | )                            |    | —                           |   |         | — |         |      | — |   |   | (72     | )      |
| Payments of dividends on common stock                              |   | —                         |   |              | (10     | )                            |    | (5                                | )      |         | (4      | )            |      | 19      |   |   | — |   |
|                                                               |   | 160                             |   |              | (19     | )                            |    | (5                                | )      |         | (425    | )            |      | 386     |   |   | 97      |   |
| Effect of exchange rates on cash and cash equivalents              |   | —                         |   |              | — |                         |    | —                           |   |         | 2       |         |      | — |   |   | 2       |   |
| Increase in cash and cash equivalents                              |   | 34                              |   |              | — |                         |    | —                           |   |         | 11      |         |      | — |   |   | 45      |   |
| Cash and cash equivalents (unrestricted) at beginning of year |   | 22                              |   |              | — |                         |    | —                           |   |         | 113     |         |      | — |   |   | 135     |   |
| Cash and cash equivalents (unrestricted) at end of year       |   | $                               | 56     |              |    | $                            | — |                              |   | $            | — |         |      | $       | 124    |   |    | $      | — |   |   | $ | 180 |   |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)     | In March, June, September and December 2010, Momentive Specialty Chemicals Inc. contributed receivables of $100, $100, $107 and $67, respectively to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the year ended December 31, 2010, the non-guarantor subsidiary sold $374 of the contributed receivables to affiliates of Apollo for net cash of $367 (see Note 8). The cash proceeds were returned to Momentive Specialty Chemicals Inc. by the non-guarantor subsidiary as a return of capital. The sale of receivables has been included within cash flows from operating activities on the Combined non-guarantor subsidiaries. The return of the cash proceeds from the sale of receivables has been included as a financing outflow and an investing inflow on the Combined Non-Guarantor Subsidiaries and Momentive Specialty Chemicals Inc., respectively. |

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|                                                                        |        |                                 |        |                   |         |                              |         |                                   |        |              |         |              |           |         |        |        |         |        |         |        |        |   |     |        |
|------------------------------------------------------------------------|--------|---------------------------------|--------|-------------------|---------|------------------------------|---------|-----------------------------------|--------|--------------|---------|--------------|-----------|---------|--------|--------|---------|--------|---------|--------|--------|---|-----|--------|
|                                                                   |   | MomentiveSpecialtyChemicalsInc. |   | SubsidiaryIssuers |    | CombinedSubsidiaryGuarantors |    | CombinedNon-GuarantorSubsidiaries |   | Eliminations |    | Consolidated |
| Cash flows (used in) provided by operating activities                  |   | $                               | (197   | )                 |    | $                            | (16     | )                                 |   | $            | — |         |      | $       | 568    |   |    | $      | — |   |   | $ | 355 |   |
| Cash flows provided by (used in) investing activities                  |   |                            |   |              |    |                         |    |                              |   |         |    |         |
| Capital expenditures                                                   |   | (38                             | )      |              | — |                         |    | —                           |   |         | (93     | )            |      | — |   |   | (131    | )      |
| Capitalized interest                                                   |   | —                         |   |              | — |                         |    | —                           |   |         | (5      | )            |      | — |   |   | (5      | )      |
| Change in restricted cash                                              |   | —                         |   |              | — |                         |    | —                           |   |         | 2       |         |      | — |   |   | 2       |   |
| Purchases of investments                                               |   | —                         |   |              | — |                         |    | —                           |   |         | (2      | )            |      | — |   |   | (2      | )      |
| Proceeds from the return of capital from subsidiary                    |   | 392                             |   | (a)          | — |                         |    | —                           |   |         | — |         |      | (392    | )      |   | — |   |
| Dividend from subsidiary                                               |   | 6                               |   |              | — |                         |    | 5                                 |   |         | — |         |      | (11     | )      |   | — |   |
| Proceeds from the sale of assets                                       |   | 4                               |   |              | — |                         |    | —                           |   |         | — |         |      | — |   |   | 4       |   |
|                                                                   |   | 364                             |   |              | — |                         |    | 5                                 |   |         | (98     | )            |      | (403    | )      |   | (132    | )      |
| Cash flows (used in) provided by financing activities                  |   |                            |   |              |    |                         |    |                              |   |         |    |         |
| Net short-term debt repayments                                         |   | (2                              | )      |              | — |                         |    | —                           |   |         | (8      | )            |      | — |   |   | (10     | )      |
| Borrowings of long-term debt                                           |   | 587                             |   |              | — |                         |    | —                           |   |         | 568     |         |      | — |   |   | 1,155   |   |
| Repayments of long-term debt                                           |   | (690                            | )      |              | (24     | )                            |    | —                           |   |         | (690    | )            |      | — |   |   | (1,404  | )      |
| Borrowings of affiliated debt                                          |   | 84                              |   |              | — |                         |    | —                           |   |         | 20      |         |      | — |   |   | 104     |   |
| Purchase of note receivable due from parent                            |   | —                         |   |              | — |                         |    | —                           |   |         | (24     | )            |      | — |   |   | (24     | )      |
| Deconsolidation of noncontrolling interest in variable interest entity |   | (24                             | )      |              | — |                         |    | —                           |   |         | — |         |      | — |   |   | (24     | )      |
| Return of capital to parent                                            |   | —                         |   |              | — |                         |    | —                           |   |         | (392    | )            | (a)  | 392     |   |   | — |   |
| Net intercompany loan (repayments) borrowings                          |   | (108                            | )      |              | 40      |                         |    | —                           |   |         | 68      |         |      | — |   |   | — |   |
| Payment of dividends to non-controlling interest                       |   | —                         |   |              | — |                         |    | —                           |   |         | (4      | )            |      | — |   |   | (4      | )      |
| Long-term debt and credit facility financing fees                      |   | (5                              | )      |              | — |                         |    | —                           |   |         | — |         |      | — |   |   | (5      | )      |
| Payments of dividends on common stock                                  |   | (10                             | )      |              | — |                         |    | (5                                | )      |         | (6      | )            |      | 11      |   |   | (10     | )      |
|                                                                   |   | (168                            | )      |              | 16      |                         |    | (5                                | )      |         | (468    | )            |      | 403     |   |   | (222    | )      |
| Effect of exchange rates on cash and cash equivalents                  |   | —                         |   |              | — |                         |    | —                           |   |         | 13      |         |      | — |   |   | 13      |   |
| (Decrease) increase in cash and cash equivalents                       |   | (1                              | )      |              | — |                         |    | —                           |   |         | 15      |         |      | — |   |   | 14      |   |
| Cash and cash equivalents (unrestricted) at beginning of year     |   | 23                              |   |              | — |                         |    | —                           |   |         | 98      |         |      | — |   |   | 121     |   |
| Cash and cash equivalents (unrestricted) at end of year           |   | $                               | 22     |              |    | $                            | — |                              |   | $            | — |         |      | $       | 113    |   |    | $      | — |   |   | $ | 135 |   |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)     | In March, June, September, November and December 2009, Momentive Specialty Chemicals Inc. contributed receivables of $70, $85, $110, $33 and $104, respectively to a non-guarantor subsidiary as capital contributions, resulting in a non-cash transaction. During the year ended December 31, 2009, the non-guarantor subsidiary sold $402 of the contributed receivables to affiliates of Apollo for net cash of $392 (see Note 8). The cash proceeds were returned to Momentive Specialty Chemicals Inc. by the non-guarantor subsidiary as a return of capital. The sale of receivables has been included within cash flows from operating activities on the Combined non-guarantor subsidiaries. The return of the cash proceeds from the sale of receivables has been included as a financing outflow and an investing inflow on the Combined Non-Guarantor Subsidiaries and Momentive Specialty Chemicals Inc., respectively. |

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|                                                                    |        |                                 |        |                   |         |                              |         |                                   |        |              |         |              |        |         |        |        |         |        |         |        |        |   |      |        |
|--------------------------------------------------------------------|--------|---------------------------------|--------|-------------------|---------|------------------------------|---------|-----------------------------------|--------|--------------|---------|--------------|--------|---------|--------|--------|---------|--------|---------|--------|--------|---|------|--------|
|                                                               |   | MomentiveSpecialtyChemicalsInc. |   | SubsidiaryIssuers |    | CombinedSubsidiaryGuarantors |    | CombinedNon-GuarantorSubsidiaries |   | Eliminations |    | Consolidated |
| Cash flows (used in) provided by operating activities              |   | $                               | (825   | )                 |    | $                            | 3       |                              |   | $            | (7      | )            |   | $       | 197    |   |    | $      | — |   |   | $ | (632 | )      |
| Cash flows (used in) provided by investing activities              |   |                            |   |              |    |                         |    |                              |   |         |    |         |
| Capital expenditures                                               |   | (59                             | )      |              | — |                         |    | —                           |   |         | (75     | )            |   | — |   |   | (134    | )      |
| Change in restricted cash                                          |   | —                         |   |              | — |                         |    | —                           |   |         | (6      | )            |   | — |   |   | (6      | )      |
| Purchases of investments                                           |   | —                         |   |              | — |                         |    | —                           |   |         | (7      | )            |   | — |   |   | (7      | )      |
| Dividend from subsidiary                                           |   | 8                               |   |              | — |                         |    | —                           |   |         | — |         |   | (8      | )      |   | — |   |
| Proceeds from the sale of assets                                   |   | —                         |   |              | — |                         |    | 5                                 |   |         | 8       |         |   | — |   |   | 13      |   |
|                                                               |   | (51                             | )      |              | — |                         |    | 5                                 |   |         | (80     | )            |   | (8      | )      |   | (134    | )      |
| Cash flows provided by (used in) financing activities              |   |                            |   |              |    |                         |    |                              |   |         |    |         |
| Net short-term debt (repayments) borrowings                        |   | (5                              | )      |              | — |                         |    | —                           |   |         | 13      |         |   | — |   |   | 8       |   |
| Borrowings of long-term debt                                       |   | 389                             |   |              | — |                         |    | —                           |   |         | 703     |         |   | — |   |   | 1,092   |   |
| Repayments of long-term debt                                       |   | (396                            | )      |              | — |                         |    | —                           |   |         | (533    | )            |   | — |   |   | (929    | )      |
| Payments of dividends on common stock                              |   | (2                              | )      |              | — |                         |    | (5                                | )      |         | (3      | )            |   | 8       |   |   | (2      | )      |
| Affiliated loan borrowings (repayments)                            |   | 232                             |   |              | (3      | )                            |    | 7                                 |   |         | (236    | )            |   | — |   |   | — |   |
| Capital contribution from parent                                   |   | 325                             |   |              | — |                         |    | —                           |   |         | — |         |   | — |   |   | 325     |   |
| Contingent affiliate advance                                       |   | 225                             |   |              | — |                         |    | —                           |   |         | — |         |   | — |   |   | 225     |   |
| Noncontrolling interest in variable interest entity                |   | 24                              |   |              | — |                         |    | —                           |   |         | — |         |   | — |   |   | 24      |   |
| Cash settlement of derivatives                                     |   | —                         |   |              | — |                         |    | —                           |   |         | (37     | )            |   | — |   |   | (37     | )      |
|                                                               |   | 792                             |   |              | (3      | )                            |    | 2                                 |   |         | (93     | )            |   | 8       |   |   | 706     |   |
| Effect of exchange rates on cash and cash equivalents              |   | —                         |   |              | — |                         |    | —                           |   |         | (18     | )            |   | — |   |   | (18     | )      |
| (Decrease) increase in cash and cash equivalents                   |   | (84                             | )      |              | — |                         |    | —                           |   |         | 6       |         |   | — |   |   | (78     | )      |
| Cash and cash equivalents (unrestricted) at beginning of year |   | 107                             |   |              | — |                         |    | —                           |   |         | 92      |         |   | — |   |   | 199     |   |
| Cash and cash equivalents (unrestricted) at end of year       |   | $                               | 23     |              |    | $                            | — |                              |   | $            | — |         |   | $       | 98     |   |    | $      | — |   |   | $ | 121  |   |

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|                                         |        |                                        |        |           |        |            |        |                                  |        |        |         |        |        |    |        |   |        |   |    |        |
|-----------------------------------------|--------|----------------------------------------|--------|-----------|--------|------------|--------|----------------------------------|--------|--------|---------|--------|--------|----|--------|---|--------|---|----|--------|
| Column A                                |   | Column B                               |   | Column C  |   | Column D   |   | Column E                         |
| Description                             |   | Balance atBeginningof Period |   | Additions |   | Deductions |   | Balance atEnd ofPeriod |
| Chargedto cost andexpenses(1) |   | Chargedto otheraccounts           |   |
| Allowance for Doubtful Accounts:        |   |                                   |   |      |   |       |   |                             |   |   |
| Year ended December 31, 2010       |   | $                                      | 24     |      |   | $          | 6      |                             |   | $      | — |   |   | $  | (5     | ) |   | $ | 25 |   |
| Year ended December 31, 2009       |   | 23                                     |   |      | 7      |       |   | —                          |   |   | (6      | )      |   | 24 |   |
| Year ended December 31, 2008       |   | 22                                     |   |      | 2      |       |   | —                          |   |   | (1      | )      |   | 23 |   |
| Reserve for Obsolete Inventory:         |   |                                   |   |      |   |       |   |                             |   |   |
| Year ended December 31, 2010       |   | $                                      | 10     |      |   | $          | 9      |                             |   | $      | — |   |   | $  | (10    | ) |   | $ | 9  |   |
| Year ended December 31, 2009       |   | 8                                      |   |      | 5      |       |   | —                          |   |   | (3      | )      |   | 10 |   |
| Year ended December 31, 2008       |   | 12                                     |   |      | 8      |       |   | —                          |   |   | (12     | )      |   | 8  |   |

|                             |                                                           |
|-----------------------------|-----------------------------------------------------------|
| (1)     |  Includes the impact of foreign currency translation |

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|                               |        |     |        |          |                                                                                          |
|-------------------------------|--------|-----|--------|----------|------------------------------------------------------------------------------------------|
| Name                          |   | Age |   | Position |
| Craig O. Morrison             |   | 55  |   |     | Director, Chairman, President and Chief Executive Officer                                |
| William H. Carter             |   | 57  |   |     | Director, Executive Vice President and Chief Financial Officer                           |
| Robert V. Seminara  |   | 39  |   |     | Director                                                                                 |
| Jordan C. Zaken               |   | 36  |   |     | Director                                                                                 |
| David B. Sambur               |   | 30  |   |     | Director                                                                                 |
| Joseph P. Bevilaqua |   | 55  |   |     | Executive Vice President, President – Epoxy, Phenolic and Coatings Resins Division |
| Dale N. Plante                |   | 53  |   |     | Executive Vice President, President – Forest Products Division                     |
| Judith A. Sonnett             |   | 54  |   |     | Executive Vice President, Human Resources                                                |
| Kevin W. McGuire              |   | 51  |   |     | Executive Vice President – Business Processes and IT                               |
| Nathan E. Fisher              |   | 45  |   |     | Executive Vice President - Procurement                                                   |
| Anthony B. Greene             |   | 51  |   |     | Executive Vice President - Business Development and Strategy                             |
| Douglas A. Johns              |   | 53  |   |     | Executive Vice President and General Counsel                                             |
| George F. Knight              |   | 53  |   |     | Senior Vice President – Finance and Treasurer                                      |

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|                                |                                                                                                                                                   |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | The compensation program should be designed to support the business with a balance between critical short-term objectives and long-term strategy; |

|                                |                                                                                                                                                                         |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Each executive's total compensation should have a correlation to the scope of his or her responsibilities and relative contributions to the Company's performance; and, |

|                                |                                                                                                                                                                              |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | A significant portion of each executive's total compensation should be variable and contingent upon the achievement of specific financial and operational performance goals. |

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|              |              |                                     |              |                                            |                      |                                         |                                                                                           |              |              |
|--------------|--------------|-------------------------------------|--------------|--------------------------------------------|----------------------|-----------------------------------------|-------------------------------------------------------------------------------------------|--------------|--------------|
| Name         |    | Incentive Target (% of Base Salary) |    | Award Payout Range (% of Incentive Target) |            | Performance Components Individual Goals |                                                                                 | Weight       |
| C. Morrison  |    | 100                                 | %            |                                  | 50% - 200% |                               | MSC Segment EBITDAGlobal EH&S GoalsMSC Cash Flow Targets                              |    | 50%10%40%    |
| W. Carter    |    | 80                                  | %            |                                  | 50% - 200% |                               | MSC Segment EBITDAGlobal EH&S GoalsMSC Cash Flow Targets                              |    | 50%10%40%    |
| J. Bevilaqua |    | 80                                  | %            |                                  | 50% - 200% |                               | MSC Segment EBITDADivision Segment EBITDADivision EH&S GoalsDivision Cash Flow Target |    | 10%40%10%40% |
| J. Sonnett   |    | 60                                  | %            |                                  | 50% - 200% |                               | MSC Segment EBITDAGlobal EH&S GoalsMSC Cash Flow Targets                              |    | 50%10%40%    |
| D. Plante    |    | 70                                  | %            |                                  | 50% - 200% |                               | MSC Segment EBITDADivision Segment EBITDADivision EH&S GoalsDivision Cash Flow Target |    | 10%40%10%40% |

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|                                                                                |
|--------------------------------------------------------------------------------|
| Compensation Committee of the Board of Directors |
|                                                                           |
| Jordan C. Zaken (Chairman)                                                     |
| Scott M. Kleinman (through September 2010)                                     |
| David B. Sambur (from October 1, 2010)                                         |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)     | SEC filings sometimes “incorporate information by reference.” This means the Company is referring you to information that has previously been filed with the SEC, and that this information should be considered as part of the filing you are reading. Unless the Company specifically states otherwise, this report shall not be deemed to be incorporated by reference and shall not constitute soliciting material or otherwise be considered filed under the Securities Act or the Securities Exchange Act. |

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|                                                                                                               |        |         |         |              |        |             |           |                    |         |                     |        |                                                     |         |                                                                                       |         |                                   |        |             |        |        |         |         |        |           |           |        |
|---------------------------------------------------------------------------------------------------------------|--------|---------|---------|--------------|--------|-------------|-----------|--------------------|---------|---------------------|--------|-----------------------------------------------------|---------|---------------------------------------------------------------------------------------|---------|-----------------------------------|--------|-------------|--------|--------|---------|---------|--------|-----------|-----------|--------|
| Name andPrincipal Position(a)                                                                                 |   | Year(b) |    | Salary($)(c) |   | Bonus($)(d) |      | StockAwards($) (e) |    | OptionsAwards($)(f) |   | Non-EquityIncentive PlanCompensation ($)(1)(g) |    | Change in Pension Valueand Nonqualified DeferredCompensation Earnings ($) (2)(h) |    | All Other Compensation($) (3) (i) |   | Total($)(j) |
| Craig O. Morrison President and Chief Executive Officer                                                       |   | 2010    |    | 906,250      |   |        | 3,250,000 |               |    | —             |   |                                                | — |                                                                                  |    | 4,034,800                         |   |        | 33,839 |   |    | 7,350   |   |      | 8,232,239 |   |
|                                                                                                          | 2009   |    | 810,048 |         |   | —     |      |               | — |                |   | —                                             |    |                                                                                  | — |                              |   | 19,002      |   |   | 19,561  |    |   | 848,611   |      |
|                                                                                                          | 2008   |    | 847,956 |         |   | —     |      |               | — |                |   | —                                             |    |                                                                                  | — |                              |   | 107,804     |   |   | 75,916  |    |   | 1,031,676 |      |
|                                                                                                          |   |    |    |         |   |        |      |               |    |                |   |                                                |    |                                                                                  |    |                              |   |        |
| William H. CarterExecutive Vice President and Chief Financial Officer                                         |   | 2010    |    | 659,241      |   |        | 1,750,000 |               |    | —             |   |                                                | — |                                                                                  |    | 2,696,534                         |   |        | 46,601 |   |    | 12,250  |   |      | 5,164,626 |   |
|                                                                                                          | 2009   |    | 604,492 |         |   | —     |      |               | — |                |   | —                                             |    |                                                                                  | 365,659 |                              |   | 21,150      |   |   | 31,075  |    |   | 1,022,376 |      |
|                                                                                                          | 2008   |    | 646,683 |         |   | —     |      |               | — |                |   | —                                             |    |                                                                                  | — |                              |   | 86,824      |   |   | 66,431  |    |   | 799,938   |      |
|                                                                                                          |   |    |    |         |   |        |      |               |    |                |   |                                                |    |                                                                                  |    |                              |   |        |
| Joseph P. BevilaquaExecutive Vice President, President, Epoxy, Phenolic and Coating Resins Division |   | 2010    |    | 510,577      |   |        | —   |               |    | —             |   |                                                | — |                                                                                  |    | 2,271,250                         |   |        | 14,432 |   |    | 520,051 |   |      | 3,316,310 |   |
|                                                                                                          | 2009   |    | 462,885 |         |   | —     |      |               | — |                |   | —                                             |    |                                                                                  | 156,660 |                              |   | 15,665      |   |   | 542,819 |    |   | 1,178,029 |      |
|                                                                                                          | 2008   |    | 459,203 |         |   | 98,000      |      |               | — |                |   | —                                             |    |                                                                                  | — |                              |   | 51,317      |   |   | 19,473  |    |   | 627,993   |      |
|                                                                                                          |   |    |    |         |   |        |      |               |    |                |   |                                                |    |                                                                                  |    |                              |   |        |
| Judith A. SonnettExecutive Vice President, Human Resources                                                    |   | 2010    |    | 363,738      |   |        | —   |               |    | —             |   |                                                | — |                                                                                  |    | 1,397,781                         |   |        | 13,706 |   |    | 9,800   |   |      | 1,785,025 |   |
|                                                                                                          | 2009   |    | 327,352 |         |   | —     |      |               | — |                |   | —                                             |    |                                                                                  | 169,728 |                              |   | 15,178      |   |   | 11,719  |    |   | 523,977   |      |
|                                                                                                          | 2008   |    | 350,200 |         |   | 106,111     |      |               | — |                |   | —                                             |    |                                                                                  | — |                              |   | 33,950      |   |   | 12,295  |    |   | 502,556   |      |
|                                                                                                          |   |    |    |         |   |        |      |               |    |                |   |                                                |    |                                                                                  |    |                              |   |        |
| Dale N. Plante Executive Vice President, President, Forest Products Division                                  |   | 2010    |    | 316,038      |   |        | —   |               |    | —             |   |                                                | — |                                                                                  |    | 893,247                           |   |        | 59,975 |   |    | 39,543  |   |      | 1,308,803 |   |

|                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.     | The amounts shown in column (g) reflect the amounts awarded under our 2010 ICP and 2009 LTIP.   The material terms of the 2010 ICP and 2009 LTIP are described in detail within the Compensation Discussion & Analysis above.  Amounts are reflected in column (g) for the 2009 LTIP since the relevant performance measures were achieved by the end of 2010;  however, half of the earned award under the 2009 LTIP is payable to the Named Executive Officer in 2011 with the remainder payable in 2012, provided the employee is still employed by the Company at that time.  The aggregate amounts earned for each Named Executive Officer under the 2009 LTIP are: Morrison—$2,625,000; Carter—$1,958,886; Bevilaqua—$1,500,000; Sonnett—$1,060,800; and Plante—$640,380. |

|                            |                                                                                                                                                                                                                                                                                                                                                                    |
|----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.     | The amounts shown in column (h) reflect the actuarial increase in the present value of each Named Executive Officers’ benefits under the MSC Pension Plan and MSC Supplemental Pension Plan.  For Mr. Plante, the amount also reflects the actuarial increase in the present value for benefits under the MSC Canada Employees' Retirement Income Plan. |

|                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.     | The amounts shown in column (i) include company matching contributions and annual retirement contributions to our Retirement Savings Plan.  For Mr. Plante, these matching contributions totaled $21,983.  For Mr. Bevilaqua, the amount shown includes allowances for international assignment of $512,701, which includes goods and services allowances of $57,700 and payment of Dutch income taxes on Mr. Bevilaqua’s U.S. salary of $282,575.  Also included in Mr. Bevilaqua’s international assignment compensation are tax gross-ups of $107,693. |

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|                             |        |              |        |                                                                                    |         |        |        |         |        |        |           |        |
|-----------------------------|--------|--------------|--------|------------------------------------------------------------------------------------|---------|--------|--------|---------|--------|--------|-----------|--------|
| Name (a)                    |   | GrantDate(b) |   | Estimated Future Payouts Under Non-EquityIncentive Plan Awards |
| Threshold($)(c)             |   | Target($)(d) |   | Maximum($)(e)                                                                      |
| Craig O. Morrison |   |         |   |                                                                               |    |   |   |    |
| 2010 ICP                    |   | —      |   |                                                                               | 190,000 |   |   | 950,000 |   |   | 1,900,000 |   |
| William H. Carter           |   |         |   |                                                                               |    |   |   |    |
| 2010 ICP                    |   | —      |   |                                                                               | 99,413  |   |   | 497,067 |   |   | 994,135   |   |
| Joseph P. Bevilaqua         |   |         |   |                                                                               |    |   |   |    |
| 2010 ICP                    |   | —      |   |                                                                               | 19,281  |   |   | 385,625 |   |   | 771,250   |   |
| Judith A. Sonnett           |   |         |   |                                                                               |    |   |   |    |
| 2010 ICP                    |   | —      |   |                                                                               | 45,415  |   |   | 227,076 |   |   | 454,152   |   |
| Dale N. Plante              |   |         |   |                                                                               |    |   |   |    |
| 2010 ICP                    |   | —      |   |                                                                               | 11,655  |   |   | 233,100 |   |   | 466,200   |   |

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|                                                           |        |                                                                  |        |                                                                        |         |                                                                                         |        |                           |        |                         |         |                                                                    |        |                                                                           |        |        |         |        |        |         |        |
|-----------------------------------------------------------|--------|------------------------------------------------------------------|--------|------------------------------------------------------------------------|---------|-----------------------------------------------------------------------------------------|--------|---------------------------|--------|-------------------------|---------|--------------------------------------------------------------------|--------|---------------------------------------------------------------------------|--------|--------|---------|--------|--------|---------|--------|
|                                                      |   | Options Awards                                                   |   | Stock Awards                                                           |
| Name (a)                                                  |   | Number ofSecuritiesUnderlyingUnexercisedOptions(#)Exercisable(b) |   | Number ofSecuritiesUnderlyingUnexercisedOptions(#)Unexercisable(c) (1) |    | EquityIncentivePlanAwards:Number ofSecuritiesUnderlyingUnexercisedUnearnedOptions(#)(d) |   | OptionExercisePrice($)(e) |   | OptionExpirationDate(f) |    | Number ofShares orUnits ofStock ThatHave NotVested(#)(g) |   | MarketValue ofShares orUnits ofStockThatHaveNotVested($)(h) (1) |
| Craig O. Morrison                                         |   |                                                             |   |                                                                   |    |                                                                                    |   |                      |   |                    |    |                                                               |   |                                                                      |
| 2004 Stock Plan Tranche A                            |   | 301,514                                                          |   |                                                                   | — |                                                                                    |   | —                   |   |                    | 6.22    |                                                               |   | 8/12/2014                                                                 |   |   | — |   |   | — |   |
| 2004 Stock Plan Tranche B                            |   | —                                                          |   |                                                                   | 301,514 |                                                                                    |   | —                   |   |                    | 6.22    |                                                               |   | 8/12/2014                                                                 |   |   | — |   |   | — |   |
| William H. Carter                                         |   |                                                             |   |                                                                   |    |                                                                                    |   |                      |   |                    |    |                                                               |   |                                                                      |
| 2004 Stock Plan Tranche A                            |   | 241,211                                                          |   |                                                                   | — |                                                                                    |   | —                   |   |                    | 6.22    |                                                               |   | 8/12/2014                                                                 |   |   | — |   |   | — |   |
| 2004 Stock Plan Tranche B                            |   | —                                                          |   |                                                                   | 241,211 |                                                                                    |   | —                   |   |                    | 6.22    |                                                               |   | 8/12/2014                                                                 |   |   | — |   |   | — |   |
| Joseph P. Bevilaqua                                       |   |                                                             |   |                                                                   |    |                                                                                    |   |                      |   |                    |    |                                                               |   |                                                                      |
| 2004 Stock Plan Tranche A                            |   | 100,504                                                          |   |                                                                   | — |                                                                                    |   | —                   |   |                    | 6.22    |                                                               |   | 8/12/2014                                                                 |   |   | — |   |   | — |   |
| 2004 Stock Plan Tranche B                            |   | —                                                          |   |                                                                   | 100,504 |                                                                                    |   | —                   |   |                    | 6.22    |                                                               |   | 8/12/2014                                                                 |   |   | — |   |   | — |   |
| Judith A. Sonnett                                         |   |                                                             |   |                                                                   |    |                                                                                    |   |                      |   |                    |    |                                                               |   |                                                                      |
| 2007 Long-Term Plan Options (with performance conditions) |   | —                                                          |   |                                                                   | — |                                                                                    |   | 18,000                    |   |                    | 10.81   |                                                               |   | 4/30/2015                                                                 |   |   | — |   |   | — |   |
| 2007 Long-Term Plan 4 Year Vest RSUs                      |   | —                                                          |   |                                                                   | — |                                                                                    |   | —                   |   |                    | — |                                                               |   | —                                                                   |   |   | 3,000   |   |   | 14,550  |   |
| Dale N. Plante                                            |   |                                                             |   |                                                                   |    |                                                                                    |   |                      |   |                    |    |                                                               |   |                                                                      |
| 2007 Long-Term Plan Options (with performance conditions) |   | —                                                          |   |                                                                   | — |                                                                                    |   | 15,000                    |   |                    | 10.81   |                                                               |   | 4/30/2015                                                                 |   |   | — |   |   | — |   |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|-----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)     | Since equity interests in our ultimate parent, Momentive Holdco, are not publicly traded, there is no closing market price at the completion of the fiscal year. The market values shown in column (h) are based on the most recent value of a unit of Momentive Holdco as determined by Momentive Holdco board of managers for management equity transaction purposes. In light of differences between the companies, including differences in capitalization, a value of a unit in Momentive Holdco does not necessarily equal the value of a share of the Company’s common stock. |

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|                                      |        |                                          |        |                                   |         |                                              |        |                                 |        |        |         |        |
|--------------------------------------|--------|------------------------------------------|--------|-----------------------------------|---------|----------------------------------------------|--------|---------------------------------|--------|--------|---------|--------|
|                                 |   | Options Awards                           |   | Stock Awards                      |
| Name (a)                             |   | Number of Shares Acquired on Exercise(b) |   | Value Realized on Exercise(c) (1) |    | Number of Shares Acquired on Vesting (#) (d) |   | Value Realized on Vesting($)(e) |
| Craig O. Morrison                    |   | —                                  |   |                              | — |                                         |   | —                         |   |   | — |   |
| William H. Carter                    |   | —                                  |   |                              | — |                                         |   | —                         |   |   | — |   |
| Joseph P. Bevilaqua                  |   | —                                  |   |                              | — |                                         |   | —                         |   |   | — |   |
| Judith A. Sonnett                    |   |                                     |   |                              |    |                                         |   |                            |
| 2007 Long-Term Plan 3 Year Vest RSUs |   | —                                  |   |                              | — |                                         |   | 3,000                           |   |   | 4,680   |   |
| Dale N. Plante                       |   | —                                  |   |                              | — |                                         |   | —                         |   |   | — |   |

|                     |        |                               |        |                                                |        |                                                          |         |                                           |        |         |        |
|---------------------|--------|-------------------------------|--------|------------------------------------------------|--------|----------------------------------------------------------|---------|-------------------------------------------|--------|---------|--------|
| Name(a)             |   | Plan Name(b)             |   | Number ofYears CreditedService(#)(c) |   | Present Value ofAccumulated Benefit($)(d) |    | PaymentsDuring LastFiscal Year($)(e) |
| Craig O. Morrison   |   | MSC U.S. Pension Plan         |   | 8.75                                           |   |                                                     | 99,586  |                                      |   | — |   |
|                |   | MSC Supplemental Pension Plan |   | 8.75                                           |   |                                                     | 400,898 |                                      |   | — |   |
| William H. Carter   |   | MSC U.S. Pension Plan         |   | 15.75                                          |   |                                                     | 193,848 |                                      |   | — |   |
|                |   | MSC Supplemental Pension Plan |   | 15.75                                          |   |                                                     | 527,957 |                                      |   | — |   |
| Joseph P. Bevilaqua |   | MSC U.S. Pension Plan         |   | 8.75                                           |   |                                                     | 95,383  |                                      |   | — |   |
|                |   | MSC Supplemental Pension Plan |   | 8.75                                           |   |                                                     | 121,322 |                                      |   | — |   |
| Judith A. Sonnett   |   | MSC U.S. Pension Plan         |   | 12.17                                          |   |                                                     | 133,807 |                                      |   | — |   |
|                |   | MSC Supplemental Pension Plan |   | 12.17                                          |   |                                                     | 78,956  |                                      |   | — |   |
| Dale N. Plante      |   | MSC Canada Pension Plan       |   | 29.70                                          |   |                                                     | 233,889 |                                      |   | — |   |
|                |   | MSC U.S. Pension Plan         |   | 29.70                                          |   |                                                     | 5,531   |                                      |   | — |   |
|                |   | MSC Supplemental Pension Plan |   | 29.70                                          |   |                                                     | 6,781   |                                      |   | — |   |

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|                     |        |                                            |        |                                            |         |                                             |        |                                                |        |                                   |         |        |         |           |        |
|---------------------|--------|--------------------------------------------|--------|--------------------------------------------|---------|---------------------------------------------|--------|------------------------------------------------|--------|-----------------------------------|---------|--------|---------|-----------|--------|
| Name (a)       |   | ExecutiveContributionsin Last FY($) (1)(b) |   | RegistrantContributionsin Last FY($)(1)(c) |    | AggregateEarnings in LastFY($)(d) |   | Aggregate Withdrawals/Distributions($)(e) |   | AggregateBalance atLast FYE($)(f) |
| Craig O. Morrison   |   |                                       |   |                                       |    |                                        |   |                                           |   |                              |
| ESPP                |   | —                                    |   |                                       | — |                                        |   | 20,455                                         |   |                              | — |   |    | 853,496   |   |
| 2004 DC Plan        |   | —                                    |   |                                       | — |                                        |   | —                                        |   |                              | — |   |    | 1,169,875 |   |
| William H. Carter   |   |                                       |   |                                       |    |                                        |   |                                           |   |                              |
| ESPP                |   | —                                    |   |                                       | — |                                        |   | 39,183                                         |   |                              | — |   |    | 1,634,940 |   |
| 2004 DC Plan        |   | —                                    |   |                                       | — |                                        |   | —                                        |   |                              | — |   |    | 935,900   |   |
| Joseph P. Bevilaqua |   |                                       |   |                                       |    |                                        |   |                                           |   |                              |
| ESPP                |   | —                                    |   |                                       | — |                                        |   | 8,023                                          |   |                              |    |   | 334,771 |      |
| 2004 DC Plan        |   | —                                    |   |                                       | — |                                        |   | —                                        |   |                              | — |   |    | 389,958   |   |
| Judith A. Sonnett   |   |                                       |   |                                       |    |                                        |   |                                           |   |                              |
| ESPP                |   | —                                    |   |                                       | — |                                        |   | 1,832                                          |   |                              | — |   |    | 76,459    |   |
| Dale N. Plante      |   | —                                    |   |                                       | — |                                        |   | —                                        |   |                              | — |   |    | —   |   |

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|                     |        |                         |        |                               |         |                                     |        |        |        |
|---------------------|--------|-------------------------|--------|-------------------------------|---------|-------------------------------------|--------|--------|--------|
| Name                |   | Cash Severance ($) |   | Continued Health Benefits ($) |    | Outplacement Services Allowance ($) |
| Craig O. Morrison   |   | 1,425,000               |   |                          | 26,794  |                                |   | 25,000 |   |
| William H. Carter   |   | 1,371,200               |   |                          | 19,674  |                                |   | 25,000 |   |
| Joseph P. Bevilaqua |   | 825,000                 |   |                          | 14,472  |                                |   | 25,000 |   |
| Judith A. Sonnett   |   | 400,000                 |   |                          | — |                                |   | 25,000 |   |
| Dale N. Plante      |   | 499,500                 |   |                          | 18,399  |                                |   | 25,000 |   |

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|                            |        |                                |        |                     |         |                     |        |                                              |        |                                                                            |         |                               |        |                 |        |        |         |        |        |         |        |
|----------------------------|--------|--------------------------------|--------|---------------------|---------|---------------------|--------|----------------------------------------------|--------|----------------------------------------------------------------------------|---------|-------------------------------|--------|-----------------|--------|--------|---------|--------|--------|---------|--------|
| Name (a)                   |   | Fees Earned or Paid in Cash(b) |   | Stock Awards(c) (1) |    | Option Awards(#)(d) |   | Non-Equity Incentive Plan Compensation($)(e) |   | Change in Pension Value and Nonqualified Deferred Compensation Earnings(f) |    | All Other Compensation(#) (g) |   | Total($)(h) (1) |
| Joshua J. Harris*     |   | 34,500                         |   |                | — |                |   | —                                      |   |                                                                       | — |                          |   | —         |   |   | — |   |   | 34,500  |   |
| Scott M. Kleinman*    |   | 41,500                         |   |                | — |                |   | —                                      |   |                                                                       | — |                          |   | —         |   |   | — |   |   | 41,500  |   |
| Marvin O. Schlanger*  |   | 37,500                         |   |                | — |                |   | —                                      |   |                                                                       | — |                          |   | —         |   |   | — |   |   | 37,500  |   |
| Jan Secher*           |   | 36,500                         |   |                | — |                |   | —                                      |   |                                                                       | — |                          |   | —         |   |   | — |   |   | 36,500  |   |
| David Sambur*         |   | —                        |   |                | — |                |   | —                                      |   |                                                                       | — |                          |   | —         |   |   | — |   |   | — |   |
| Robert V. Seminara         |   | 38,500                         |   |                | — |                |   | —                                      |   |                                                                       | — |                          |   | —         |   |   | — |   |   | 38,500  |   |
| Jordan C. Zaken       |   | 39,500                         |   |                | — |                |   | —                                      |   |                                                                       | — |                          |   | —         |   |   | — |   |   | 39,500  |   |

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|                                |                                                                                             |
|--------------------------------|---------------------------------------------------------------------------------------------|
| •     | each person known to beneficially own more than 5% of the common units of Momentive Holdco: |

|                                |                                                              |
|--------------------------------|--------------------------------------------------------------|
| •     | each of Momentive Specialty's 2010 Named Executive Officers; |

|                                |                                                                   |
|--------------------------------|-------------------------------------------------------------------|
| •     | each member of the Board of Directors of Momentive Specialty, and |

|                                |                                                                                                        |
|--------------------------------|--------------------------------------------------------------------------------------------------------|
| •     | all of the executive officers and members of the Board of Directors of Momentive Specialty as a group. |

|                                                                        |        |                                          |        |                  |       |        |
|------------------------------------------------------------------------|--------|------------------------------------------|--------|------------------|-------|--------|
|                                                                   |   | Beneficial Ownershipof Equity Securities |
| Name of Beneficial Owner                                               |   | Amount of Benefitial Ownership           |   | Percent of Class |
| Apollo Management and affiliates(1)                                    |   | 249,755,890                              |   |             | 89.50 | %      |
| GE Capital Equity Investments, Inc.(2)                                 |   | 25,491,297                               |   |             | 8.9   | %      |
| Robert V. Seminara (3)                                            |   | —                                  |   |             | *     |   |
| Jordan C. Zaken (3) (4)                                      |   | 28,141                                   |   |             | *     |   |
| David B. Sambur (3)                                               |   | —                                  |   |             | *     |   |
| Craig O. Morrison (5) (8)                                         |   | 301,514                                  |   |             | *     |   |
| William H. Carter (6) (8)                                         |   | 241,211                                  |   |             | *     |   |
| Joseph P. Bevilaqua (7)                                           |   | 100,504                                  |   |             | *     |   |
| Dale N. Plante (8)                                                |   | —                                  |   |             | *     |   |
| Judy Sonnett (8) (9)                                              |   | 3,000                                    |   |             | *     |   |
| All Directors and Executive Officers as a group (13 persons) (10) |   | 1,091,924                                |   |             | *     |   |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)     | Includes (i) 90,845,490 common units owned by Apollo Investment Fund VI, L.P. (“AIF VI”); (ii) 83,755,612 common units owned by AP Momentive Holdings LLC (“AP Momentive Holdings”); and (iii) 75,154,788 common units owned by AIF Hexion Holdings, L.P. (“AIF Hexion Holdings” and together with AIF VI and AP Momentive Holdings, the “Apollo Holders”).  Apollo Advisors VI, L.P. (“Advisors VI”) is the general partner of AIF VI, and Apollo Capital Management VI, LLC (“ACM VI”) is the general partner of Advisors VI.  Apollo Management VI, L.P. (“Management VI”) is the manager of AP Momentive Holdings, and AIF VI Management, LLC (“AIF VI Management”) is the general partner of Management VI.  Apollo Management, L.P. (“Apollo Management”) is the sole member and manager of AIF VI Management, and Apollo Management GP, LLC (“Management GP”) is the general partner of Apollo Management.  Apollo Management Holdings, L.P. (“Management Holdings”) is the sole member and manager of Management GP, and Apollo Management Holdings GP, LLC (“Management Holdings GP”) is the general partner of Management Holdings.  AIF IV Hexion GP, LLC (“AIF IV Hexion GP”) and AIF V Hexion GP, LLC (“AIF V Hexion GP”) are the general partners of AIF Hexion Holdings.  Apollo Investment Fund IV, L.P. and its parallel investment vehicle (collectively, “AIF IV”) are the members of AIF IV Hexion GP, Apollo Advisors IV, L.P. (“Advisors IV”) is the general partner of AIF IV, and Apollo Capital Management IV, Inc. (“ACM IV”) is the general partner of Advisors IV.  Apollo Investment Fund V, L.P. and its parallel investment vehicles (collectively, “AIF V”) are the members of AIF V Hexion GP, Apollo Advisors V, L.P. (“Advisors V”) is the general partner of AIF V, and Apollo Capital Management V, Inc. (“ACM V”) is the general partner of Advisors V.  Apollo Principal Holdings I, L.P. (“Principal Holdings I”) is the sole member or sole stockholder, as applicable, of each of ACM IV, ACM V and ACM VI, and Apollo Principal Holdings I GP, LLC (“Principal Holdings I GP”) is the general partner of Principal Holdings I.  Leon Black, Joshua Harris and Marc Rowan are the principal executive officers and managers of each of Management Holdings GP and Principal Holdings I GP.  Each of Advisors VI, ACM VI, Management VI, AIF VI Management, Apollo Management, Management GP, Management Holdings, Management Holdings GP, AIF IV Hexion GP, AIF V Hexion GP, AIF IV, Advisors IV, ACM IV, AIF V, Advisors V, ACM V, Principal Holdings I, Principal Holdings I GP, and Messrs. Black, Harris and Rowan disclaims beneficial ownership of any common units of Momentive Holdco owned of record by the Apollo Holders, except to the extent of any pecuniary interest therein.  Apollo also has voting power pursuant to proxies granted by certain unitholders. The address of each of the Apollo Holders, AIF IV Hexion GP, AIF V Hexion GP, AIF IV, Advisors IV, ACM IV, AIF V, Advisors V, ACM V, Advisors VI, ACM VI, Principal Holdings I, and Principal Holdings I GP is 1 Manhattanville Road, Suite 201, Purchase, New York 10577. The address of each of Management VI, AIF VI Management, Apollo Management, Management GP, Management Holdings, Management Holdings GP, and Messrs. Black, Harris and Rowan is 9 West 57th Street, 43rd Floor, New York, New York 10019. |

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|                             |                                                                                                                                                                                                                                                                                              |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)     | Includes 6,003,363 shares issuable upon exercise of a warrant issued on December 4, 2006.  Also includes 77,103 common units issuable upon the exercise of an option that is currently exercisable. The address of GE Capital Equity Investments, Inc. is 299 Park Ave., New York, NY 10171. |

|                             |                                                                                                                                |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------|
| (3)     | The address for Messrs Seminara, Zaken and Sambur is c/o Apollo Management L.P., 9 West 57th Street, New York, New York 10019. |

|                             |                                                                                                |
|-----------------------------|------------------------------------------------------------------------------------------------|
| (4)     | Represents common units issuable upon the exercise of an option that is currently exercisable. |

|                             |                                                                                                                                                          |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| (5)     | Represents 301,514 units subject to option currently exercisable. Does not include 241,211 deferred units credited to Mr. Morrison’s account. |

|                             |                                                                                                                                                        |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| (6)     | Represents 241,211 units subject to option currently exercisable. Does not include 192,969 deferred units credited to Mr. Carter’s account. |

|                             |                                                                                                                                                                                                                                                                               |
|-----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (7)     | Represents 100,504 units subject to option currently exercisable. Does not include 80,403 deferred units credited to Mr. Bevilaqua’s account. Mr. Bevilaqua's address is c/o momentive Specialty Chemicals BV, Seattleweg 17, Pernis-Rotterdam, The Netherlands 319SND. |

|                             |                                                                                                                                                        |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| (8)     | The address for Messrs. Morrison, Carter and Plante and Ms. Sonnett is c/o Momentive Specialty Chemicals Inc., 180 E. Broad St., Columbus, Ohio 43215. |

|                             |                                                                             |
|-----------------------------|-----------------------------------------------------------------------------|
| (9)     | Represents 3,000 vested restricted units credited to Ms. Sonnett's account. |

|                              |                                                                                                                                                                                                                            |
|------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (10)     | Includes 915,440 units of common stock issuable upon the exercise of options granted to our directors and executive officers that were vested as of the date hereof. Does not include 611,122 deferred common stock units. |

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|               |        |         |        |        |        |        |   |        |
|---------------|--------|---------|--------|--------|--------|--------|---|--------|
|          |   | PwC     |
|          |   | 2010    |   | 2009   |
| Audit fees(a) |   | $       | 4      |   |   | $      | 6 |   |
| Tax fees(b)   |   | — |   |   | 1      |   |
| Total fees    |   | $       | 4      |   |   | $      | 7 |   |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|-----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)     | Audit Fees. This category includes fees and expenses billed by PwC for the audits of the Company’s financial statements and for the reviews of the financial statements included in the Company’s Quarterly Reports on Form 10-Q. This category includes audit fees and expenses for engagements performed at U.S. and international locations, including stand-alone audits of Momentive International Holdings Cooperatief U.A. for the fiscal years ended December 31, 2010, 2009 and 2008 and Momentive Specialty Chemicals Canada, Inc., for the fiscal year ended December 31, 2009.  |

|                             |                                                                                                                                                      |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)     | Tax Fees. This category includes fees and expenses billed by PwC for domestic and international tax compliance and planning services and tax advice. |

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|                             |                                                                                                                                                                                                                                            |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)     | Consolidated Financial Statements – The financial statements and related notes of Momentive Specialty Chemicals, Inc., and the reports of independent registered public accounting firms are included at Item 8 of this report. |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)     | Financial Statement Schedules – Schedule II – Valuation and Qualifying Accounts and Reserves. Also included are the financial statements and related notes of Momentive International Holdings Cooperatief U.A., as its securities collateralize an issue being registered, as defined by Rule 3-16 of Regulation S-X under the Securities Act of 1933, and the reports of independent registered public accounting firms. All other schedules are omitted because they are not applicable or not required, or because that required information is shown in either the Consolidated Financial Statements or in the notes thereto. |

|                             |                                                                                                                                |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------|
| (3)     | Exhibits Required by SEC Regulation S-K – The following Exhibits are filed herewith or incorporated herein by reference: |

|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                           |                  |                    |            |               |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|------------------|--------------------|------------|---------------|
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Incorporated by Reference |             |
| ExhibitNumber | Exhibit Description                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Form                      | File Number | Exhibit            | FilingDate | FiledHerewith |
| 2.1†   | Transaction Agreement dated as of April 22, 2005 among RPP Holdings, Resolution Specialty Materials Holdings LLC, BHI Acquisition Corp., BHI Merger Sub One, BHI Merger Sub Two Inc. and Borden Chemical Inc.                                                                                                                                                                                                                                                              | S-1                       | 333-124287       | 2.1                | 7/15/2005  |          |
| 2.2†*  | SOC Resins Master Sale Agreement dated July 10, 2000 among Shell Oil Company, Resin Acquisition, LLC and Shell Epoxy Resins Inc.                                                                                                                                                                                                                                                                                                                                                | S-4                       | 333-57170        | 2.1                | 3/16/2001  |          |
| 2.3†*  | SPNV Resins Sale Agreement dated as of September 11, 2000 between Shell Petroleum N.V. and Shell Epoxy Resins Inc.                                                                                                                                                                                                                                                                                                                                                         | S-4                       | 333-57170        | 2.2                | 3/16/2001  |          |
| 2.4*          | Assignment and Assumption Agreement dated November 13, 2000 between Shell Epoxy Resins Inc. and Shell Epoxy Resins LLC                                                                                                                                                                                                                                                                                                                                                     | S-4                       | 333-57170        | 2.3                | 3/16/2001  |          |
| 2.5*          | Assignment and Assumption Agreement dated November 14, 2000 between Resin Acquisition, LLC and RPP Holdings LLC                                                                                                                                                                                                                                                                                                                                                            | S-4                       | 333-57170        | 2.4                | 3/16/2001  |          |
| 2.6           | Agreement and Plan of Merger dated July 12, 2007 among Hexion Specialty Chemicals, Inc., Nimbus Merger Sub Inc. and Huntsman Corporation                                                                                                                                                                                                                                                                                                                                   | 8-K                       | 001-00071        | 2.1                | 7/17/2007  |          |
| 3.1           | Restated Certificate of Incorporation of Hexion Specialty Chemicals, Inc. dated as of July 18, 2006                                                                                                                                                                                                                                                                                                                                                                        | S-4                       | 333-135482       | 3.5                | 8/1/2006   |          |
| 3.2           | Amended and Restated Bylaws of Hexion Specialty Chemicals, Inc. dated July 18, 2006                                                                                                                                                                                                                                                                                                                                                                                        | S-4                       | 333-135482       | 3.6                | 8/1/2006   |          |
| 3.3           | Agreement of Combination with Momentive Performance Material Holdings Inc on September 11, 2010                                                                                                                                                                                                                                                                                                                                                                                 | 8-K                       | 001-00071        | 99.1               | 9/13/2010  |          |
| 3.4           | Certificate of Amendment to the Certificate of Incorporation, dated October 1, 2010 changing the name of the corporation to Momentive Specialty Chemicals Inc.                                                                                                                                                                                                                                                                                                                  | 8-K                       | 001-00071        | 3.1                | 10/1/2010  |          |
| 4.1           | Form of Indenture between the registrant and The First National Bank of Chicago, as Trustee, dated as of January 15, 1983, as supplemented by the First Supplemental Indenture dated as of March 31, 1986, and the Second Supplemental Indenture, dated as of June 26, 1996, relating to the $200,000,000 8  3/8% Sinking Fund Debentures due 2016                                                                                                          | S-3                       | 33-4381          | (4)(a)and (b) |       |          |
|          | 10-Q                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 001-00071                 | (4)(iv)          | 8/14/1996          |       |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                      |             |               |       |
| 4.2           | Form of Indenture between the registrant and The Bank of New York, as Trustee, dated as of December 15, 1987, as supplemented by the First Supplemental Indenture dated as of December 15, 1987, the Second Supplemental Indenture dated as of February 1, 1993 and the Third Supplemental Indenture dated as of June 26, 1996, relating to the following Debentures and Notes:                                                                             | S-3                       | 33-45770         | 4(a)thru 4(d) |       |          |
|          | 10-Q                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 001-00071                 | (4)(iii)         | 8/14/1996          |       |
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                      |             |               |       |
| 4.3           |  Indenture dated as of November 3, 2006 among Hexion U.S. Finance Corp., Hexion Nova Scotia Finance, ULC, the Company, the guarantors named therein and Wilmington Trust Company, as trustee, related to the $200,000,000 second-priority senior secured floating rate notes due 2014 and the $625,000,000 9  3/4% second-priority senior secured notes due 2014.                                                                                                | 10-Q                      | 001-00071        | 4.3                | 11/14/2006 |          |
| 4.4           | First Supplemental Indenture, dated as of October 23, 2008, by and among Hexion U.S. Finance Corp., Hexion Nova Scotia Finance, ULC, Hexion Specialty Chemicals, Inc., the guarantors party thereto and Wilmington Trust Company, supplementing that certain Indenture dated as of November 3, 2006, pursuant to which the Second-Priority Senior Secured Floating Rate Notes Due 2014 and the 9  3/4% Second Priority Senior Secured Notes due 2014 were issued | 8-K                       | 001-0071         | 4.1                | 10/24/2008 |          |

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Table of Contents

|               |                                                                                                                                                                                                                                                                                                 |                           |                  |          |            |               |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|------------------|----------|------------|---------------|
|          |                                                                                                                                                                                                                                                                                            | Incorporated by Reference |             |
| ExhibitNumber | Exhibit Description                                                                                                                                                                                                                                                                             | Form                      | File Number | Exhibit  | FilingDate | FiledHerewith |
| 4.5           | Indenture, dated as of January 29, 2010, by and among Hexion Finance Escrow LLC, Hexion Escrow Corporation and Wilmington Trust FSB, as trustee.                                                                                                                                           | 8-K                       | 001-00071        | 4.1      | 2/4/2010   |          |
| 4.6           | Supplemental Indenture, dated as of January 29, 2010, by and among Hexion U.S. Finance Corp., Hexion Nova Scotia Finance, ULC, the guarantors party thereto and Wilmington Trust FSB, as trustee.                                                                                          | 8-K                       | 001-00071        | 4.2      | 2/4/2010   |          |
| 4.7           | Supplemental Indenture, dated as of June 04, 2010, by and among NL COOP Holdings LLC,Hexion U.S. Finance Corp., Hexion Nova Scotia Finance, ULC, the guarantors party thereto and Wilmington Trust FSB, as trustee.                                                                        | 8-K                       | 001-00071        | 4.1      | 6/9/2010   |          |
| 4.8           | Supplemental Indenture, dated as of June 04, 2010, by and among NL COOP Holdings LLC,Hexion U.S. Finance Corp., Hexion Nova Scotia Finance, ULC, the guarantors party thereto and Wilmington Trust FSB, as trustee.                                                                        | 8-K                       | 001-00071        | 4.2      | 6/9/2010   |          |
| 4.9           | Indenture dated as of November 5, 2010 among Hexion U.S. Finance Corp., Hexion Nova Scotia Finance, ULC, the Company, the guarantors named therein and Wilmington Trust Company, as trustee, related to the $574,016,000 9.0% second-priority senior secured floating rate notes due 2020. | 8-K                       | 001-00071        | 4.1      | 11/12/2010 |          |
| 10.1‡  | BHI Acquisition Corp. 2004 Deferred Compensation Plan                                                                                                                                                                                                                                           | 10-Q                      | 001-00071        | 10(iv)   | 11/15/2004 |          |
| 10.2‡  | BHI Acquisition Corp. 2004 Stock Incentive Plan                                                                                                                                                                                                                                                 | 10-Q                      | 001-00071        | 10(v)    | 11/15/2004 |          |
| 10.3*‡ | Resolution Performance Products Inc. 2000 Stock Option Plan                                                                                                                                                                                                                                     | S-4                       | 333-57170        | 10.26    | 3/16/2001  |          |
| 10.4*‡ | Resolution Performance Products Inc. 2000 Non - Employee Directors Stock Option Plan                                                                                                                                                                                                            | S-4                       | 333-57170        | 10.27    | 3/16/2001  |          |
| 10.5‡  | Amended and Restated Resolution Performance Products, Inc. Restricted Unit Plan                                                                                                                                                                                                                 | S-1                       | 333-124287       | 10.34    | 9/19/2005  |          |
| 10.6‡  | Form of Non-Qualified Stock Option Agreement between BHI Acquisition Corp. and certain optionees                                                                                                                                                                                                | S-4                       | 333-122826       | 10.12    | 2/14/2005  |          |
| 10.7‡  | Resolution Specialty Materials Inc. 2004 Stock Option Plan                                                                                                                                                                                                                                      | S-1                       | 333-124287       | 10.52    | 7/15/2005  |          |
| 10.8‡  | Form of Nonqualified Stock Option Agreement for Resolution Specialty Materials Inc. 2004 Stock Option Plan                                                                                                                                                                                      | S-1                       | 333-124287       | 10.53    | 7/15/2005  |          |
| 10.9‡  | Form of Nonqualified Stock Option Agreement for Resolution Performance Products Inc. 2000 Stock Option Plan                                                                                                                                                                                     | S-1                       | 333-124287       | 10.54    | 7/15/2005  |          |
| 10.10‡ | Form of Nonqualified Stock Option Agreement for Resolution Performance Products Inc. 2000 Non-Employee Director Stock Option Plan                                                                                                                                                               | S-1                       | 333-124287       | 10.55    | 7/15/2005  |          |
| 10.11‡ | Hexion LLC 2007 Long-Term Incentive Plan dated April 30, 2007                                                                                                                                                                                                                              | 10-Q                      | 001-00071        | 10.1     | 8/14/2007  |          |
| 10.12         | Amended and Restated Investor Rights Agreement dated as of May 31, 2005 between Hexion LLC, Hexion Specialty Chemicals, Inc. and the holders that are party thereto                                                                                                                        | S-1                       | 333-124287       | 10.63    | 7/15/2005  |          |
| 10.13         | Registration Rights Agreement dated as of May 31, 2005 between Hexion Specialty Chemicals, Inc. and Hexion LLC                                                                                                                                                                             | S-1                       | 333-124287       | 10.64    | 7/15/2005  |          |
| 10.14‡ | Amended and Restated Executives' Supplemental Pension Plan, dated as of September 7, 2005                                                                                                                                                                                                  | 8-K                       | 001-00071        | 10       | 9/12/2005  |          |
| 10.15         | Advisory Directors Plan                                                                                                                                                                                                                                                                         | 10-K                      |             | 10(viii) |       |          |
| 10.16‡ | Hexion Specialty Chemicals, Inc. 2009 Leadership Long-Term Cash Incentive Plan                                                                                                                                                                                                                  | 10-K                      | 001-00071        | 10.21    | 3/11/2009  |          |
| 10.18‡ | Hexion Specialty Chemicals, Inc. 2009 Incentive Compensation Plan                                                                                                                                                                                                                               | 10-K                      | 001-00071        | 10.25    | 3/11/2009  |          |
| 10.19‡ | Hexion Specialty Chemicals, Inc. 2010 Incentive Compensation Plan                                                                                                                                                                                                                               | 10-K                      | 001-00071        | 10.2     | 3/9/2010   |          |
| 10.21‡ | Amended and Restated Employment Agreement dated as of August 12, 2004 between the Company and Craig O. Morrison                                                                                                                                                                            | 10-Q                      | 001-00071        | 10(i)    | 11/15/2004 |          |
| 10.22‡ | Amended and Restated Employment Agreement dated as of August 12, 2004 between the Company and Joseph P. Bevilaqua                                                                                                                                                                          | 10-Q                      | 001-00071        | 10(ii)   | 11/15/2004 |          |
| 10.23‡ | Summary of Terms of Employment between Hexion Specialty Chemicals, Inc. and Joseph P. Bevilaqua dated August 10, 2008                                                                                                                                                                      | 10-K                      | 001-00071        | 10.23    | 3/9/2010   |          |
| 10.24‡ | International assignment agreement dated as of November 13, 2008 between the Company and Joseph P. Bevilaqua                                                                                                                                                                               | 10-K                      | 001-00071        | 10.28    | 3/11/2009  |          |

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Table of Contents

|               |                                                                                                                                                                                                                                                                            |                           |                  |             |            |               |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|------------------|-------------|------------|---------------|
|          |                                                                                                                                                                                                                                                                       | Incorporated by Reference |             |
| ExhibitNumber | Exhibit Description                                                                                                                                                                                                                                                        | Form                      | File Number | Exhibit     | FilingDate | FiledHerewith |
| 10.25‡ | Amended and Restated Employment Agreement dated as of August 12, 2004 between the Company and William H. Carter.                                                                                                                                                      | 10-Q                      | 001-00071        | 10(iii)     | 11/15/2004 |          |
| 10.26‡ | Summary of Terms of Employment between Hexion Specialty Chemicals, Inc. and Judith A. Sonnett dated September 21, 2007                                                                                                                                                | 10-K                      | 001-00071        | 10.29       | 3/9/2010   |          |
| 10.27‡ | Addition of Terms of Employment between Hexion Specialty Chemicals, Inc. and Dale N. Plante, Supplement to August 2008 Promotional Employment Offer dated as of July 16, 2009                                                                                              | 10-K                      | 001-00071        | 10.27       | 2/25/2011  | X             |
| 10.28         | Master Asset Conveyance and Facility Support Agreement, dated as of December 20, 2002, between Borden Chemical and Borden Chemicals and Plastics Operating Limited Partnership                                                                                        | 10-K                      | 001-00071        | (10)(xxvi)  | 3/28/2003  |          |
| 10.29         | Environmental Servitude Agreement, dated as of December 20, 2002, between Borden Chemical and Borden Chemicals and Plastics Operating Limited Partnership                                                                                                             | 10-K                      | 001-00071        | (10)(xxvii) | 3/28/2003  |          |
| 10.30*        | Intellectual Property Transfer and License Agreement and Contribution Agreement dated as of November 14, 2000 between Shell Oil Company and Shell Epoxy Resins LLC                                                                                                    | S-4                       | 333-57170        | 10.13       | 3/16/2001  |          |
| 10.31*        | Intellectual Property Transfer and License Agreement and Contribution Agreement dated as of November 14, 2000 between Shell Internationale Research Maatschappij B.V. and Shell Epoxy Resins Research B.V                                                             | S-4                       | 333-57170        | 10.14       | 3/16/2001  |          |
| 10.32*        | First Amended and Restated Deer Park Site Services, Utilities, Materials and Facilities Agreement dated November 1, 2000 between Shell Chemical Company, for itself and as agent for Shell Oil Company, and Shell Epoxy Resins LLC                                    | S-4                       | 333-57170        | 10.19       | 3/16/2001  |          |
| 10.33*        | First Amended and Restated Pernis Site Services, Utilities, Materials and Facilities Agreement dated November 1, 2000 between Resolution Europe B.V. (f/k/a Resolution Nederland B.V., f/k/a Shell Epoxy Resins Nederland B.V.) and Shell Nederland Raffinaderij B.V. | S-4                       | 333-57170        | 10.21       | 3/16/2001  |          |
| 10.34*        | First Amended and Restated Pernis Site Services, Utilities, Materials and Facilities Agreement dated November 1, 2000 between Resolution Europe B.V. (f/k/a Resolution Nederland B.V., f/k/a Shell Epoxy Resins Nederland B.V.) and Shell Nederland Chemie B.V.       | S-4                       | 333-57170        | 10.22       | 3/16/2001  |          |
| 10.35† | Second Amended and Restated Norco Site Services, Utilities, Materials and Facilities Agreement dated November 1, 2004 between Shell Chemical L.P. and Resolution Performance Products LLC.                                                                            | 10-K                      | 001-00071        | 10.45       | 3/22/2007  |          |
| 10.36*        | Deer Park Ground Lease and Grant of Easements dated as of November 1, 2000 between Shell Oil Company and Shell Epoxy Resins LLC                                                                                                                                       | S-4                       | 333-57170        | 10.23       | 3/16/2001  |          |
| 10.37*        | Norco Ground Lease and Grant of Servitudes dated as of November 1, 2000 between Shell Oil Company and Shell Epoxy Resins LLC                                                                                                                                          | S-4                       | 333-57170        | 10.24       | 3/16/2001  |          |
| 10.38*        | Amended and Restated Agreement of Sub-Lease (Pernis) dated as of November 1, 2000 between Resolution Europe B.V. (f/k/a Resolution Nederland B.V., f/k/a Shell Epoxy Resins Nederland B.V.) and Shell Nederland Raffinaderij B.V.                                     | S-4                       | 333-57170        | 10.25       | 3/16/2001  |          |
| 10.39         | Amended and Restated Management Consulting Agreement dated as of May 31, 2005 between Borden Chemical, Inc. and Apollo Management V, L.P.                                                                                                                             | S-1                       | 333-124287       | 10.66       | 7/15/2005  |          |
| 10.40         | Intercreditor Agreement dated as of November 3, 2006 among the Company, Hexion LLC, the subsidiary parties thereto, Wilmington Trust Company as trustee and JPMorgan Chase Bank, N.A. as intercreditor agent                                                          | 10-Q                      | 001-00071        | 10.1        | 11/14/2006 |          |
| 10.41         | Registration Rights Agreement dated as of November 3, 2006 among Hexion U.S. Finance Corp., Hexion Nova Scotia Finance ULC, the Company and subsidiary parties thereto and Credit Suisse Securities (USA) LLC and JPMorgan Securities, Inc. as initial purchasers.    | 10-Q                      | 001-00071        | 10.2        | 11/14/2006 |          |
| 10.42         | Collateral Agreement dated as of November 3, 2006 among the Company and subsidiary parties thereto, and Wilmington Trust Company, as Collateral Agent.                                                                                                                | 10-K                      | 001-00071        | 10.57       | 3/11/2009  |          |
| 10.43         | Second Amended and Restated Collateral Agreement dated as of November 3, 2006 among Hexion LLC, the Company and subsidiary parties thereto and JPMorgan Chase Bank, N.A., as Administrative Agent.                                                                    | 10-K                      | 001-00071        | 10.58       | 3/11/2009  |          |

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Table of Contents

|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                           |                  |         |            |               |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|------------------|---------|------------|---------------|
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Incorporated by Reference |             |
| ExhibitNumber |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Form                      | File Number | Exhibit | FilingDate | FiledHerewith |
| 10.46         | Second Amended and Restated Credit Agreement with exhibits and schedules dated as of November 3, 2006 among Hexion LLC, Hexion Specialty Chemicals, Inc., Hexion Specialty Chemicals Canada, Inc., Hexion Specialty Chemicals B.V., Hexion Specialty Chemicals UK Limited, Borden Chemical UK Limited, the lenders party thereto and JP Morgan Chase Bank, N.A., as Administrative Agent, Credit Suisse, as Syndication Agent and J.P. Morgan Securities Inc. and Credit Suisse Securities (USA) LLC, as Joint Lead Arrangers and Joint Bookrunners. | 10-Q                      | 001-00071        | 10.1    | 8/13/2009  |          |
| 10.47         | Incremental Facility Amendment and Amendment No. 1 with exhibits and schedules to the Second Amended and Restated Credit Agreement dated as of June 15, 2007 among Hexion LLC, Hexion Specialty Chemicals, Inc., Hexion Specialty Chemicals Canada, Inc., Hexion Specialty Chemicals B.V., Hexion Specialty Chemicals UK Limited, Borden Chemical UK Limited, the lenders party thereto and JP Morgan Chase Bank, N.A., as Administrative Agent                                                                                                      | 10-Q                      | 001-00071        | 10.2    | 8/13/2009  |          |
| 10.46         | Second Incremental Facility Amendment with exhibits and schedules to the Second Amended and Restated Credit Agreement dated as of August 7, 2007 among Hexion LLC, Hexion Specialty Chemicals, Inc., Hexion Specialty Chemicals Canada, Inc., Hexion Specialty Chemicals B.V., Hexion Specialty Chemicals UK Limited, Borden Chemical UK Limited, the lenders party thereto and JP Morgan Chase Bank, N.A., as Administrative Agent                                                                                                                  | 10-Q                      | 001-00071        | 10.3    | 8/13/2009  |          |
| 10.47         | Settlement Agreement and Release, dated December 14, 2008, among Huntsman Corporation, Jon M. Huntsman, Peter R. Huntsman, Hexion Specialty Chemicals, Inc., Hexion LLC, Nimbus Merger Sub, Inc., Craig O. Morrison, Leon Black, Joshua J. Harris and Apollo Global Management, LLC and certain of its affiliates                                                                                                                                                                                                                                    | 8-K                       | 001-00071        | 10.1    | 12/15/2008 |          |
| 10.48         | Commitment Letter dated as of March 3, 2009 among the Hexion Specialty Chemicals, Inc., Hexion LLC, Euro VI (BC) S.a.r.l., Euro V (BC) S.a.r.l. and AAA Co-Invest VI (EHS-BC) S.a.r.l. a                                                                                                                                                                                                                                                                                                                                                             | 8-K                       | 001-00071        | 10.1    | 3/3/2009   |          |
| 10.49         | Credit Agreement with exhibits and schedules dated as of March 3, 2009 among Hexion Specialty Chemicals, Inc., Borden Luxembourg S.a.r.l., Euro V (BC) S.a.r.l., Euro VI (BC) S.a.r.l. and AAA Co-Invest VI (EHS-BC) S.a.r.l.                                                                                                                                                                                                                                                                                                                        | 10-Q                      | 001-00071        | 10.4    | 8/13/2009  |          |
| 10.50         | Indemnification Agreement dated as of March 3, 2009 among Apollo Management, L.P. and subsidiary parties thereto, Hexion LLC, Hexion Specialty Chemicals, Inc. and Nimbus Merger Sub Inc.                                                                                                                                                                                                                                                                                                                                                            | 8-K                       | 001-00071        | 10.3    | 3/3/2009   |          |
| 10.51         | Amendment Agreement to Credit Agreement, dated as of January 25, 2010, among Hexion LLC, Hexion Specialty Chemicals, Inc., Hexion Specialty Chemicals Canada, Inc., Hexion Specialty Chemicals B.V., Hexion Specialty Chemicals UK Limited, Borden Chemical UK Limited, the Subsidiary Loan Parties party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A. as administrative agent.                                                                                                                                                  | 8-K/A                     | 001-00071        | 10.1    | 2/4/2010   |          |
| 10.52         | Registration Rights Agreement, dated as of January 29, 2010, by and among Hexion U.S. Finance Corp., Hexion Nova Scotia Finance, ULC, the guarantors party thereto and Credit Suisse Securities (USA) LLC, as representative of the initial purchasers.                                                                                                                                                                                                                                                                                              | 8-K                       | 001-00071        | 4.3     | 2/4/2010   |          |
| 10.53         | Third Amended and Restated Credit Agreement, dated as of January 29, 2010, among Hexion LLC, the Registrant, each subsidiary of the Registrant from time to time party thereto, the lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent. (Incorporated by reference to the exhibit to the Registrant's Current Report on Form 8-K/A filed February 4, 2010.)                                                                                                                                         | 8-K/A                     | 001-00071        | 10.1    | 2/4/2010   |          |
| 10.54         | Intercreditor Agreement, dated as of January 29, 2010, by and among JPMorgan Chase Bank, as intercreditor agent, Wilmington Trust FSB, as trustee and collateral agent, Hexion LLC, the Registrant and certain subsidiaries of the Registrant. (Incorporated by reference to the exhibit to the Registrant's Current Report on Form 8-K/A filed February 4, 2010.)                                                                                                                                                                         | 8-K/A                     | 001-00071        | 10.1    | 2/4/2010   |          |
| 10.55         | Joinder and Supplement to Intercreditor Agreement, by and among Wilmington Trust FSB, as trustee under the Indenture, JPMorgan Chase Bank, as intercreditor agent, Hexion LLC, the Registrant and each subsidiary of the Registrant from time to time party thereto. (Exhibit A thereto incorporated by reference to exhibit 10.1 to the Registrant's Report on Form 10-Q filed November 14, 2006.)                                                                                                                                                  | 8-K                       | 001-00071        | 10.3    | 2/4/2010   |          |
| 10.56         | Notes Collateral Agreement dated and effective as of January 29, 2010, among the Registrant, each Subsidiary Party thereto and Wilmington Trust FSB, as collateral agent.                                                                                                                                                                                                                                                                                                                                                                            | 8-K                       | 001-00071        | 10.4    | 2/4/2010   |          |
| 10.57         | SUPPLEMENT dated as of June 4, 2010, to the U.S. Guarantee Agreement dated as of May 31, 2005, among HEXION LLC, a Delaware limited liability company, HEXION SPECIALTY CHEMICALS, INC., a New Jersey corporation, each Foreign Subsidiary Loan Party party thereto and JPMORGAN CHASE BANK, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”) for the Lenders (as defined therein).                                                                                                                               | 8-K                       | 001-00071        | 10.1    | 6/9/2010   |          |

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Table of Contents

|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                           |                  |         |            |               |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|------------------|---------|------------|---------------|
|          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Incorporated by Reference |             |
| ExhibitNumber | Exhibit Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Form                      | File Number | Exhibit | FilingDate | FiledHerewith |
| 10.58         | SUPPLEMENT dated as of June 4, 2010, to the Foreign Guarantee Agreement dated as of May 31, 2005, among HEXION LLC, a Delaware limited liability company, HEXION SPECIALTY CHEMICALS, INC., a New Jersey corporation, each Foreign Subsidiary Loan Party party thereto and JPMORGAN CHASE BANK, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”) for the Lenders (as defined therein).                                                                                                                                       | 8-K                       | 001-00071        | 10.2    | 6/9/2010   |          |
| 10.59         | SUPPLEMENT dated as of June 4, 2010, to the Third Amended and Restated Collateral Agreement dated as of January 29, 2010, among HEXION LLC, a Delaware limited liability company, HEXION SPECIALTY CHEMICALS, INC., a New Jersey corporation, each Subsidiary Party party thereto and JPMORGAN CHASE BANK, N.A., as Applicable First Lien Representative (in such capacity, the “Applicable First Lien Representative”) for the Secured Parties (as defined therein).                                                                                    | 8-K                       | 001-00071        | 10.3    | 6/9/2010   |          |
| 10.60         | SUPPLEMENT dated as of June 4, 2010, to the Collateral Agreement dated as of January 29, 2010, among HEXION SPECIALTY CHEMICALS, INC., a New Jersey corporation, each Subsidiary Party party thereto and WILMINGTON TRUST FSB, as Collateral Agent (in such capacity, the “Collateral Agent”) for the Secured Parties (as defined therein).                                                                                                                                                                                                              | 8-K                       | 001-00071        | 10.4    | 6/9/2010   |          |
| 10.61         | SUPPLEMENT dated as of June 4, 2010, to the Collateral Agreement dated as of November 3, 2006, among HEXION SPECIALTY CHEMICALS, INC., a New Jersey corporation, each Subsidiary Party party thereto and WILMINGTON TRUST COMPANY, as Collateral Agent (in such capacity, the “Collateral Agent”) for the Secured Parties (as defined therein).                                                                                                                                                                                                          | 8-K                       | 001-00071        | 10.5    | 6/9/2010   |          |
| 10.62         | Registration Rights Agreement dated as of November 5, 2010 among Hexion U.S. Finance Corp., Hexion Nova Scotia Finance ULC, the Company and subsidiary parties thereto and Credit Suisse Securities (USA) LLC, UBS Secutiries LLC, Deutsche Bank Securities Inc, Goldman Sachs & Co., BMO Capital Markets Corp and JPMorgan Securities, Inc. as initial purchasers.                                                                                                                                                                                         | 8-K                       | 001-00071        | 4.2     | 11/12/2010 |          |
| 10.63         | Registration Rights Agreement among Hexion U.S. Finance Corp. and Hexion Nova Scotia Finance, ULC and the Guarantors, propose to enter into a transaction pursuant to which Euro VI (BC) S.à r.l., a société à responsabilité limitée organized and existing under the laws of the Grand Duchy of Luxembourg (the “Holder”) will exchange its 9.75% Second-Priority Senior Secured Notes due 2014 for U.S. $134,016,000 principal amount of 9.00% Second-Priority Senior Secured Notes Due 2020 of the Issuers | 8-K                       | 001-00071        | 4.3     | 11/12/2010 |          |
| 10.64         | Supplement to Intercreditor Agreement, dated as of January 29, 2010, by and among JPMorgan Chase Bank, as intercreditor agent, Wilmington Trust FSB, as trustee and collateral agent, Hexion LLC, the Registrant and certain subsidiaries of the Registrant.                                                                                                                                                                                                                                                                                                    | 8-K                       | 001-00071        | 10.1    | 11/12/2010 |          |
| 10.65         | Joinder and Supplement to Collateral Agreement dated November 3, 2006 among the Company and subsidiary parties thereto, and Wilmington Trust Company, as Collateral Agent.                                                                                                                                                                                                                                                                                                                                                                                           | 8-K                       | 001-00071        | 10.2    | 11/12/2010 |          |
| 10.66         | Supplement, dated as of December 15, 2010 to the Foreign Guarantee Agreement, dated as of May 31, 2005 among Momentive Specialty Chemicals Holdings LLC, Momentive Specialty Chemicals Inc., each Foreign Subsidiary Loan Party party thereto and JP Morgan Chase Bank, as administrative agent for the Lenders.                                                                                                                                                                                                                                                     | 8-K                       | 001-00071        | 10.1    | 12/15/2010 |          |
| 10.67         | Shared Services agreement, dated as of October 1, 2010, by and amongHexion Specialty Chemicals, Inc. and Momentive Performance Materials Inc.,andthe other Persons party hereto                                                                                                                                                                                                                                                                                                                                                                                      | 10-K                      | 001-00071        | 18.1    |       | X             |
| 10.68         | Purchase and Sale Agreement, dated November 30, 2010, by and between Momentive Specialty Chemicals Inc. and Harima Chemicals, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                   | 8-K                       | 001-00071        | 2.01    | 2/4/2011   |          |
| 18.1          | Letter from PricewaterhouseCoopers, dated February 28, 2011 regarding preferability of a change in accounting principle                                                                                                                                                                                                                                                                                                                                                                                                                                              | 10-K                      | 001-00071        | 18.1    |       | X             |
| 21.1          | List of Subsidiaries of the registrant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                      |             |    |       | X             |
| 31.1          | Rule 13a-14 Certifications                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                      |             |    |       |          |
|          | (a) Certificate of the Chief Executive Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                      |             |    |       | X             |
|          | (b) Certificate of the Chief Financial Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                      |             |    |       | X             |
| 32.1          | Section 1350 Certifications                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                      |             |    |       | X             |

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|                                    |                                                                                    |
|------------------------------------|------------------------------------------------------------------------------------|
| MOMENTIVE SPECIALTY CHEMICALS INC. |
|                               |                                                                               |
| By                       | /s/ William H. Carter                                                              |
|                               | William H. Carter                                                                  |
|                               | Executive Vice President and Chief Financial Officer |

|                              |              |                                                                                                                      |              |                        |              |                        |
|------------------------------|--------------|----------------------------------------------------------------------------------------------------------------------|--------------|------------------------|--------------|------------------------|
| Name                         |    | Title                                                                                                                |    | Signature              |    | Date                   |
| Craig O. Morrison  |    | Director, President and Chief Executive Officer(Principal Executive Officer)                                         |    | /s/ Craig O. Morrison  |    | February 28, 2011 |
|                         |         |                                                                                                                 |         |
| William H. Carter            |    | Director, Executive Vice President and Chief Financial Officer(Principal Financial and Principal Accounting Officer) |    | /s/ William H. Carter  |    | February 28, 2011 |
|                         |         |                                                                                                                 |         |
| Robert V. Seminara |    | Director                                                                                                             |    | /s/ Robert V. Seminara |    | February 28, 2011 |
|                         |         |                                                                                                                 |         |
| Jordan C. Zaken              |    | Director                                                                                                             |    | /s/ Jordan C. Zaken    |    | February 28, 2011 |
|                         |         |                                                                                                                 |         |
| David B. Sambur              |    | Director                                                                                                             |    | /s/ David B. Sambur    |    | February 28, 2011 |

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|                                                                                               |        |                              |        |        |         |        |        |         |        |   |       |        |
|-----------------------------------------------------------------------------------------------|--------|------------------------------|--------|--------|---------|--------|--------|---------|--------|---|-------|--------|
|                                                                                          |   | Year ended December 31, |
| (In millions)                                                                                 |   | 2010                         |   | 2009   |    | 2008   |
| Net sales                                                                                     |   | $                            | 2,714  |   |    | $      | 2,237  |    |   | $ | 3,362 |   |
| Cost of sales                                                                                 |   | 2,367                        |   |   | 1,992   |   |   | 3,033   |   |
| Gross profit                                                                                  |   | 347                          |   |   | 245     |   |   | 329     |   |
| Selling, general and administrative expense                                              |   | 256                          |   |   | 209     |   |   | 247     |   |
| Terminated merger costs (See Note 2)                                                          |   | —                      |   |   | 2       |   |   | 159     |   |
| Integration costs (See Note 2)                                                                |   | —                      |   |   | — |   |   | 10      |   |
| Asset impairments (See Note 2)                                                                |   | —                      |   |   | 11      |   |   | 13      |   |
| Business realignment costs (See Note 2)                                                       |   | 15                           |   |   | 22      |   |   | 27      |   |
| Other operating (income) expense, net                                                         |   | (3                           | )      |   | (1      | )      |   | 8       |   |
| Operating income (loss)                                                                       |   | 79                           |   |   | 2       |   |   | (135    | )      |
| Interest expense, net                                                                         |   | 39                           |   |   | 31      |   |   | 65      |   |
| Affiliated interest expense, net (See Note 10)                                                |   | 47                           |   |   | 16      |   |   | 2       |   |
| Other non-operating expense (income), net                                                     |   | 24                           |   |   | 1       |   |   | (3      | )      |
| Loss from continuing operations before income taxes and earnings from unconsolidated entities |   | (31                          | )      |   | (46     | )      |   | (199    | )      |
| Income tax expense (benefit) (See Note 15)                                                    |   | 14                           |   |   | (16     | )      |   | (5      | )      |
| Loss from continuing operations before earnings from unconsolidated entities                  |   | (45                          | )      |   | (30     | )      |   | (194    | )      |
| Loss from unconsolidated entities, net of taxes                                               |   | (1                           | )      |   | — |   |   | — |   |
| Loss from continuing operations                                                               |   | (46                          | )      |   | (30     | )      |   | (194    | )      |
| Net income (loss) from discontinued operations, net of taxes                                  |   | 4                            |   |   | (13     | )      |   | (10     | )      |
| Net loss                                                                                 |   | (42                          | )      |   | (43     | )      |   | (204    | )      |
| Net income attributable to noncontrolling interest                                            |   | —                      |   |   | — |   |   | (1      | )      |
| Net loss attributable to Momentive International Holdings Cooperatief U.A.                    |   | $                            | (42    | )      |    | $      | (43    | )       |   | $ | (205  | )      |
| Comprehensive loss attributable to Momentive International Holdings Cooperatief U.A.          |   | $                            | (94    | )      |    | $      | (61    | )       |   | $ | (194  | )      |

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|                                                                                               |        |                       |        |                       |        |        |       |        |
|-----------------------------------------------------------------------------------------------|--------|-----------------------|--------|-----------------------|--------|--------|-------|--------|
| (In millions)                                                                                 |   | December 31,2010 |   | December 31,2009 |
| Assets                                                                                        |   |                  |   |                  |
| Current assets                                                                                |   |                  |   |                  |
| Cash and cash equivalents (including restricted cash of $6 and $7, respectively) (See Note 2) |   | $                     | 84     |                  |   | $      | 65    |   |
| Short-term investments                                                                        |   | 6                     |   |                  | 10     |   |
| Accounts receivable (net of allowance for doubtful accounts of $20 and $18, respectively)     |   | 388                   |   |                  | 323    |   |
| Accounts receivable from affiliates (See Note 5)                                              |   | 63                    |   |                  | 65     |   |
| Loans receivable from affiliates (See Note 10)                                                |   | 33                    |   |                  | 24     |   |
| Inventories:                                                                                  |   |                  |   |                  |
| Finished and in-process goods                                                                 |   | 128                   |   |                  | 111    |   |
| Raw materials and supplies                                                                    |   | 71                    |   |                  | 56     |   |
| Other current assets                                                                          |   | 49                    |   |                  | 48     |   |
| Current assets of discontinued operations (See Note 3)                                        |   | 145                   |   |                  | 77     |   |
| Total current assets                                                                          |   | 967                   |   |                  | 779    |   |
| Long-term loans receivable from affiliates (See Note 10)                                      |   | 20                    |   |                  | 424    |   |
| Other assets                                                                                  |   | 70                    |   |                  | 59     |   |
| Property and equipment                                                                        |   |                  |   |                  |
| Land                                                                                          |   | 49                    |   |                  | 56     |   |
| Buildings                                                                                     |   | 194                   |   |                  | 181    |   |
| Machinery and equipment                                                                       |   | 1,238                 |   |                  | 1,250  |   |
|                                                                                          |   | 1,481                 |   |                  | 1,487  |   |
| Less accumulated depreciation                                                                 |   | (714                  | )      |                  | (656   | )      |
|                                                                                          |   | 767                   |   |                  | 831    |   |
| Goodwill (See Note 7)                                                                         |   | 114                   |   |                  | 118    |   |
| Other intangibles assets, net (See Note 7)                                                    |   | 112                   |   |                  | 132    |   |
| Noncurrent assets of discontinued operations (See Note 3)                                     |   | —               |   |                  | 61     |   |
| Total assets                                                                                  |   | $                     | 2,050  |                  |   | $      | 2,404 |   |
| Liabilities and (Deficit) Equity                                                              |   |                  |   |                  |
| Current liabilities                                                                           |   |                  |   |                  |
| Accounts and drafts payable                                                                   |   | $                     | 246    |                  |   | $      | 264   |   |
| Accounts payable to affiliates (See Note 5)                                                   |   | 189                   |   |                  | 42     |   |
| Debt payable within one year (See Note 9)                                                     |   | 57                    |   |                  | 62     |   |
| Affiliated debt payable within one year (See Note 10)                                         |   | 79                    |   |                  | 92     |   |
| Income taxes payable                                                                          |   | 20                    |   |                  | 22     |   |
| Other current liabilities                                                                     |   | 116                   |   |                  | 107    |   |
| Current liabilities of discontinued operations (See Note 3)                                   |   | 32                    |   |                  | 34     |   |
| Total current liabilities                                                                     |   | 739                   |   |                  | 623    |   |
| Long-term debt (See Note 9)                                                                   |   | 649                   |   |                  | 701    |   |
| Affiliated long-term debt (See Note 10)                                                       |   | 746                   |   |                  | 771    |   |
| Deferred income taxes (See Note 15)                                                           |   | 103                   |   |                  | 116    |   |
| Long-term pension and post employment benefit obligations (See Note 13)                       |   | 125                   |   |                  | 126    |   |
| Other long-term liabilities                                                                   |   | 54                    |   |                  | 32     |   |
| Noncurrent liabilities of discontinued operations (See Note 3)                                |   | —               |   |                  | 8      |   |
| Total liabilities                                                                             |   | 2,416                 |   |                  | 2,377  |   |
| Commitments and contingencies (See Notes 9, 11 and 12)                                        |   |                  |   |                  |
| (Deficit) Equity                                                                              |   |                  |   |                  |
| Paid-in (deficit) capital                                                                     |   | (132                  | )      |                  | 629    |   |
| Loans receivable from parent                                                                  |   | (87                   | )      |                  | (549   | )      |
| Accumulated other comprehensive (loss) income                                                 |   | (16                   | )      |                  | 36     |   |
| Accumulated deficit                                                                           |   | (134                  | )      |                  | (92    | )      |
| Total Momentive International Holdings Cooperatief U.A. shareholder's (deficit) equity        |   | (369                  | )      |                  | 24     |   |
| Noncontrolling interest                                                                       |   | 3                     |   |                  | 3      |   |
| Total (deficit) equity                                                                        |   | (366                  | )      |                  | 27     |   |
| Total liabilities and deficit                                                                 |   | $                     | 2,050  |                  |   | $      | 2,404 |   |

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|                                                                                                                                                                                                        |        |                                        |        |        |         |        |        |         |        |   |      |        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|--------|--------|---------|--------|--------|---------|--------|---|------|--------|
|                                                                                                                                                                                                   |   | Year ended December 31, |
| (In millions)                                                                                                                                                                                |   | 2010                                   |   | 2009   |    | 2008   |
| Cash flows provided by operating activities                                                                                                                                                            |   |                                   |   |   |    |   |
| Net loss                                                                                                                                                                                               |   | $                                      | (42    | )      |    | $      | (43    | )       |   | $ | (204 | )      |
| Adjustments to reconcile net loss to net cash provided by operating activities:                                                                                                                        |   |                                   |   |   |    |   |
| Depreciation and amortization                                                                                                                                                                          |   | 101                                    |   |   | 109     |   |   | 124     |   |
| Allocations of corporate overhead, net (See Note 5)                                                                                                                                                    |   | 14                                     |   |   | 16      |   |   | 16      |   |
| Loss (gain) on disposal of assets, net of taxes                                                                                                                                                        |   | —                                |   |   | 3       |   |   | (3      | )      |
| Settlement of foreign exchange guarantee agreement with parent (See Note 5)                                                                                                                            |   | 13                                     |   |   | — |   |   | — |   |
| Terminated merger expenses billed by parent (See Note 5)                                                                                                                                               |   | —                                |   |   | — |   |   | 140     |   |
| Deferred tax benefit                                                                                                                                                                                   |   | (15                                    | )      |   | (7      | )      |   | (15     | )      |
| Impairments and accelerated depreciation                                                                                                                                                               |   | 2                                      |   |   | 13      |   |   | 27      |   |
| Cash settlement of derivatives                                                                                                                                                                         |   | —                                |   |   | — |   |   | 37      |   |
| Other non-cash adjustments                                                                                                                                                                             |   | 29                                     |   |   | (12     | )      |   | (20     | )      |
| Net change in assets and liabilities:                                                                                                                                                                  |   |                                   |   |   |    |   |
| Accounts receivable                                                                                                                                                                                    |   | (85                                    | )      |   | 47      |   |   | 182     |   |
| Inventories                                                                                                                                                                                            |   | (41                                    | )      |   | 70      |   |   | 44      |   |
| Accounts and drafts payable                                                                                                                                                                            |   | 117                                    |   |   | 12      |   |   | (159    | )      |
| Income taxes payable                                                                                                                                                                                   |   | 15                                     |   |   | 6       |   |   | (6      | )      |
| Other assets                                                                                                                                                                                           |   | 2                                      |   |   | (12     | )      |   | 3       |   |
| Other liabilities                                                                                                                                                                                      |   | 27                                     |   |   | (29     | )      |   | (41     | )      |
| Net cash provided by operating activities                                                                                                                                                              |   | 137                                    |   |   | 173     |   |   | 125     |   |
| Cash flows used in investing activities                                                                                                                                                                |   |                                   |   |   |    |   |
| Capital expenditures                                                                                                                                                                                   |   | (66                                    | )      |   | (92     | )      |   | (73     | )      |
| Capitalized interest                                                                                                                                                                                   |   | (1                                     | )      |   | (5      | )      |   | — |   |
| Proceeds from the sale of assets                                                                                                                                                                       |   | 7                                      |   |   | — |   |   | 7       |   |
| Change in restricted cash                                                                                                                                                                              |   | 2                                      |   |   | 7       |   |   | (9      | )      |
| Proceeds from the sale of (purchases of) investments                                                                                                                                                   |   | 4                                      |   |   | (2      | )      |   | 2       |   |
| Net cash used in investing activities                                                                                                                                                                  |   | (54                                    | )      |   | (92     | )      |   | (73     | )      |
| Cash flows used in financing activities                                                                                                                                                                |   |                                   |   |   |    |   |
| Net short-term debt (repayments) borrowings                                                                                                                                                            |   | (8                                     | )      |   | (15     | )      |   | 18      |   |
| Borrowings of long-term debt                                                                                                                                                                           |   | 633                                    |   |   | 568     |   |   | 701     |   |
| Repayments of long-term debt                                                                                                                                                                           |   | (663                                   | )      |   | (692    | )      |   | (531    | )      |
| Affiliated loan (repayments) borrowings, net                                                                                                                                                           |   | (18                                    | )      |   | 15      |   |   | (162    | )      |
| Deferred financing fees paid                                                                                                                                                                           |   | (8                                     | )      |   | — |   |   | — |   |
| Cash settlement of derivatives                                                                                                                                                                         |   | —                                |   |   | — |   |   | (37     | )      |
| Common stock dividends paid                                                                                                                                                                            |   | —                                |   |   | — |   |   | (2      | )      |
| Net cash used in financing activities                                                                                                                                                                  |   | (64                                    | )      |   | (124    | )      |   | (13     | )      |
| Effect of exchange rates on cash and cash equivalents                                                                                                                                                  |   | 1                                      |   |   | 19      |   |   | (20     | )      |
| Increase (decrease) in cash and cash equivalents                                                                                                                                                       |   | 20                                     |   |   | (24     | )      |   | 19      |   |
| Cash and cash equivalents at beginning of year                                                                                                                                                         |   | 58                                     |   |   | 82      |   |   | 63      |   |
| Cash and cash equivalents (unrestricted) at end of year                                                                                                                                                |   | $                                      | 78     |   |    | $      | 58     |    |   | $ | 82   |   |
| Supplemental disclosures of cash flow information                                                                                                                                                      |   |                                   |   |   |    |   |
| Cash paid for:                                                                                                                                                                                         |   |                                   |   |   |    |   |
| Interest, net                                                                                                                                                                                          |   | $                                      | 78     |   |    | $      | 38     |    |   | $ | 50   |   |
| Income taxes paid (refunded), net                                                                                                                                                                      |   | 25                                     |   |   | (9      | )      |   | 6       |   |
| Non-cash investing and financing activity:                                                                                                                                                             |   |                                   |   |   |    |   |
| Distribution to parent—acquisition of subsidiaries previously combined (See Note 1)                                                                                                              |   | (697                                   | )      |   | — |   |   | — |   |
| Affiliate note assumed to acquire subsidiaries (See Note 1)                                                                                                                                            |   | 697                                    |   |   | — |   |   | — |   |
| Distribution to parent—Settlement of foreign exchange guarantee agreement with parent                                                                                                            |   | (78                                    | )      |   | — |   |   | — |   |
|                      Accounts payable to affiliates reclassified to affiliated long-term debt |   | —                                |   |   | 140     |   |   | — |   |

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|                                                                                                                                                    |        |                |        |                              |         |                                         |        |                     |        |                         |         |        |        |         |        |        |        |        |   |        |        |   |      |        |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|------------------------------|---------|-----------------------------------------|--------|---------------------|--------|-------------------------|---------|--------|--------|---------|--------|--------|--------|--------|---|--------|--------|---|------|--------|
| (In millions)                                                                                                                                      |   | Paid-inCapital |   | Loans Receivable from Parent |    | AccumulatedOtherComprehensiveIncome (a) |   | Accumulated Deficit |   | Noncontrolling Interest |    | Total  |
| Balance at December 31, 2007                                                                                                                  |   | $              | 597    |                         |    | $                                       | (238   | )                   |   | $                       | 43      |   |   | $       | 158    |   |   | $      | 4 |   |   | $ | 564  |   |
| Net (loss) income                                                                                                                                  |   | —        |   |                         | — |                                    |   | —             |   |                    | (205    | )      |   | 1       |   |   | (204   | )      |
| Loss recognized in comprehensive income from pension and postretirement benefits, net of tax                                                       |   | —        |   |                         | — |                                    |   | (1                  | )      |                    | — |   |   | — |   |   | (1     | )      |
| Translation adjustments                                                                                                                            |   | —        |   |                         | — |                                    |   | 12                  |   |                    | — |   |   | — |   |   | 12     |   |
|           Comprehensive loss                                                                     |   |           |   |                         |    |                                    |   |                |   |                    |    | (193   | )      |
| Dividends declared                                                                                                                                 |   | —        |   |                         | — |                                    |   | —             |   |                    | (2      | )      |   | — |   |   | (2     | )      |
| Net repayments from parent                                                                                                                         |   | —        |   |                         | 30      |                                    |   | —             |   |                    | — |   |   | — |   |   | 30     |   |
| Translation adjustment and other non-cash changes in principal                                                                                     |   | —        |   |                         | (7      | )                                       |   | —             |   |                    | — |   |   | — |   |   | (7     | )      |
| Interest purchased from noncontrolling interest holder                                                                                             |   | —        |   |                         | — |                                    |   | —             |   |                    | — |   |   | (2      | )      |   | (2     | )      |
| Allocations of corporate overhead (See Note 5)                                                                                                     |   | 16             |   |                         | — |                                    |   | —             |   |                    | — |   |   | — |   |   | 16     |   |
| Balance at December 31, 2008                                                                                                                  |   | 613            |   |                         | (215    | )                                       |   | 54                  |   |                    | (49     | )      |   | 3       |   |   | 406    |   |
| Net loss                                                                                                                                           |   | —        |   |                         | — |                                    |   | —             |   |                    | (43     | )      |   | — |   |   | (43    | )      |
| Loss recognized in comprehensive income from pension and postretirement benefits, net of tax                                                       |   | —        |   |                         | — |                                    |   | (7                  | )      |                    | — |   |   | — |   |   | (7     | )      |
| Translation adjustments                                                                                                                            |   | —        |   |                         | — |                                    |   | (11                 | )      |                    | — |   |   | — |   |   | (11    | )      |
| Comprehensive loss                                                                                                                                 |   |           |   |                         |    |                                    |   |                |   |                    |    | (61    | )      |
| Net borrowings to parent                                                                                                                           |   | —        |   |                         | (319    | )                                       |   | —             |   |                    | — |   |   | — |   |   | (319   | )      |
| Translation adjustment and other non-cash changes in principal                                                                                     |   | —        |   |                         | (15     | )                                       |   | —             |   |                    | — |   |   | — |   |   | (15    | )      |
| Allocations of corporate overhead (See Note 5)                                                                                                     |   | 16             |   |                         | — |                                    |   | —             |   |                    | — |   |   | — |   |   | 16     |   |
| Balance at December 31, 2009                                                                                                                  |   | 629            |   |                         | (549    | )                                       |   | 36                  |   |                    | (92     | )      |   | 3       |   |   | 27     |   |
| Net loss                                                                                                                                           |   | —        |   |                         | — |                                    |   | —             |   |                    | (42     | )      |   | — |   |   | (42    | )      |
| Translation adjustments                                                                                                                            |   | —        |   |                         | — |                                    |   | (52                 | )      |                    | — |   |   | — |   |   | (52    | )      |
| Comprehensive loss                                                                                                                                 |   |           |   |                         |    |                                    |   |                |   |                    |    | (94    | )      |
| Distribution to parent—acquisition of subsidiaries previously combined through assumption of note payable to parent (See Note 1 and Note 10) |   | (697           | )      |                         | 466     |                                    |   | —             |   |                    | — |   |   | — |   |   | (231   | )      |
| Translation adjustment and other non-cash changes in principal                                                                                     |   | —        |   |                         | (4      | )                                       |   | —             |   |                    | — |   |   | — |   |   | (4     | )      |
| Distribution to parent—settlement of foreign exchange guarantee agreement with parent (See Note 5)                                           |   | (78            | )      |                         | — |                                    |   | —             |   |                    | — |   |   | — |   |   | (78    | )      |
| Allocations of corporate overhead (See Note 5)                                                                                                     |   | 14             |   |                         | — |                                    |   | —             |   |                    | — |   |   | — |   |   | 14     |   |
| Balance at December 31, 2010                                                                                                                  |   | $              | (132   | )                            |    | $                                       | (87    | )                   |   | $                       | (16     | )      |   | $       | (134   | )      |   | $      | 3 |   |   | $ | (366 | )      |

|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)     | Accumulated other comprehensive income at December 31, 2010 represents $2 of net foreign currency translation losses and a $14 loss, net of tax, relating to net actuarial gains and prior service costs for the Company’s defined benefit pension and postretirement benefit plans (see Note 13). Accumulated other comprehensive income at December 31, 2009 represents $50 of net foreign currency translation gains and a $14 loss, net of tax, relating to net actuarial gains and prior service costs for the Company’s defined benefit pension and postretirement benefit plans (see Note 13). |

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|                                              |        |                   |        |                   |        |        |     |        |
|----------------------------------------------|--------|-------------------|--------|-------------------|--------|--------|-----|--------|
|                                         |   | December 31, 2010 |   | December 31, 2009 |
| Assets:                                      |   |              |   |              |
| Accounts Receivable                          |   | $                 | 51     |              |   | $      | 41  |   |
| Inventories                                  |   | 34                |   |              | 30     |   |
| Other current assets                         |   | 5                 |   |              | 6      |   |
| Total current assets                         |   | 90                |   |              | 77     |   |
| Property and equipment, net                  |   | 45                |   |              | 49     |   |
| Other intangible assets, net                 |   | 6                 |   |              | 7      |   |
| Other assets                                 |   | 4                 |   |              | 5      |   |
| Total noncurrent assets                      |   | 55                |   |              | 61     |   |
| Total assets of discontinued operations      |   | $                 | 145    |              |   | $      | 138 |   |
|                                         |   |              |   |              |
| Liabilities:                                 |   |              |   |              |
| Accounts and drafts payable                  |   | $                 | 18     |              |   | $      | 20  |   |
| Other current liabilities                    |   | 6                 |   |              | 14     |   |
| Total current liabilities                    |   | 24                |   |              | 34     |   |
| Long-term debt                               |   | 4                 |   |              | 4      |   |
| Other long-term liabilities                  |   | 4                 |   |              | 4      |   |
| Total noncurrent liabilities                 |   | 8                 |   |              | 8      |   |
| Total liabilities of discontinued operations |   | $                 | 32     |              |   | $      | 42  |   |

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|                                                                   |        |                     |         |                    |         |               |         |         |        |        |         |        |        |   |         |        |
|-------------------------------------------------------------------|--------|---------------------|---------|--------------------|---------|---------------|---------|---------|--------|--------|---------|--------|--------|---|---------|--------|
|                                                              |   | Workforcereductions |    | Site closure costs |    | Otherprojects |    | Total   |
| Restructuring costs expected to be incurred                       |   | $                   | 34      |               |    | $             | 8       |    |   | $      | 5       |   |   | $ | 47      |   |
| Cumulative restructuring costs incurred at December 31, 2010 |   | $                   | 34      |               |    | $             | 3       |    |   | $      | 4       |   |   | $ | 41      |   |
|                                                              |   |                |    |               |    |          |    |    |
| Accrued liability at December 31, 2007                            |   | $                   | — |               |    | $             | — |    |   | $      | — |   |   | $ | — |   |
| Restructuring charges                                             |   | 10                  |    |               | — |          |    | — |   |   | 10      |   |
| Accrued liability at December 31, 2008                       |   | 10                  |    |               | — |          |    | — |   |   | 10      |   |
| Restructuring charges                                             |   | 16                  |    |               | — |          |    | 2       |   |   | 18      |   |
| Payments                                                          |   | (9                  | )       |               | — |          |    | (2      | )      |   | (11     | )      |
| Accrued liability at December 31, 2009                       |   | 17                  |    |               | — |          |    | — |   |   | 17      |   |
| Restructuring charges                                             |   | 8                   |    |               | 3       |          |    | 2       |   |   | 13      |   |
| Payments                                                          |   | (18                 | )       |               | (3      | )             |    | (2      | )      |   | (23     | )      |
| Foreign currency translation                                      |   | (1                  | )       |               | — |          |    | — |   |   | (1      | )      |
| Accrued liability at December 31, 2010                       |   | $                   | 6       |               |    | $             | — |    |   | $      | — |   |   | $ | 6       |   |

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|                                           |        |      |        |        |        |        |        |        |        |   |    |        |
|-------------------------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|---|----|--------|
|                                      |   | 2010 |   | 2009   |   | 2008   |
| Executive group                           |   | $    | 6      |   |   | $      | 4      |   |   | $ | 2  |   |
| Environmental, health and safety services |   | 3    |   |   | 2      |   |   | 3      |   |
| Finance                                   |   | 5    |   |   | 10     |   |   | 11     |   |
| Total                                     |   | $    | 14     |   |   | $      | 16     |   |   | $ | 16 |   |

|                     |        |                        |        |                                             |        |              |        |                     |        |                        |        |                                             |        |              |        |   |     |        |        |   |    |   |        |   |    |        |        |   |     |        |
|---------------------|--------|------------------------|--------|---------------------------------------------|--------|--------------|--------|---------------------|--------|------------------------|--------|---------------------------------------------|--------|--------------|--------|---|-----|--------|--------|---|----|---|--------|---|----|--------|--------|---|-----|--------|
| 2010                |   | 2009                   |
| GrossCarryingAmount |   | AccumulatedImpairments |   | AccumulatedForeign CurrencyTranslation |   | NetBookValue |   | GrossCarryingAmount |   | AccumulatedImpairments |   | AccumulatedForeign CurrencyTranslation |   | NetBookValue |
| $                   | 106    |                   |   | $                                           | (5     | )            |   | $                   | 13     |                   |   | $                                           | 114    |         |   | $ | 106 |   |   | $ | (5 | ) |   | $ | 17 |   |   | $ | 118 |   |

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|                                            |       |        |        |
|--------------------------------------------|-------|--------|--------|
|                                       | Total |
| Goodwill balance at December 31, 2008 | $     | 110    |   |
| Purchase accounting adjustments            | 1     |   |
| Foreign currency translation               | 7     |   |
| Goodwill balance at December 31, 2009 | $     | 118    |   |
| Foreign currency translation               | (4    | )      |
| Goodwill balance at December 31, 2010 | $     | 114    |   |

|                              |        |                     |        |                         |        |              |        |                     |        |                         |        |              |        |         |        |        |        |        |     |   |        |   |     |        |
|------------------------------|--------|---------------------|--------|-------------------------|--------|--------------|--------|---------------------|--------|-------------------------|--------|--------------|--------|---------|--------|--------|--------|--------|-----|---|--------|---|-----|--------|
|                         |   | 2010                |   | 2009                    |
|                         |   | GrossCarryingAmount |   | AccumulatedAmortization |   | NetBookValue |   | GrossCarryingAmount |   | AccumulatedAmortization |   | NetBookValue |
| Intangible assets:           |   |                |   |                    |   |         |   |                |   |                    |   |         |
| Patents and technology       |   | $                   | 65     |                    |   | $            | (22    | )                   |   | $                       | 43     |         |   | $       | 65     |   |   | $      | (13 | ) |   | $ | 52  |   |
| Customer lists and contracts |   | 78                  |   |                    | (26    | )            |   | 52                  |   |                    | 82     |         |   | (21     | )      |   | 61     |   |
| Other                        |   | 19                  |   |                    | (2     | )            |   | 17                  |   |                    | 19     |         |   | — |   |   | 19     |   |
|                         |   | $                   | 162    |                    |   | $            | (50    | )                   |   | $                       | 112    |         |   | $       | 166    |   |   | $      | (34 | ) |   | $ | 132 |   |

|      |    |        |        |
|------|----|--------|--------|
| 2011 | $  | 11     |   |
| 2012 | 10 |   |
| 2013 | 10 |   |
| 2014 | 10 |   |
| 2015 | 10 |   |

|                                |                                                                                                                                                                                                       |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Level 1: Inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 1 primarily consists of financial instruments traded on exchange or futures markets. |

|                                |                                                                                                                                                                                                                                                                         |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Level 2: Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reported date. Level 2 includes those derivative instruments transacted primarily in over the counter markets. |

|                                |                                                                                                                                                         |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Level 3: Unobservable inputs, for example, inputs derived through extrapolation or interpolation that cannot be corroborated by observable market data. |

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|                        |        |                                                 |         |                                           |        |                                        |        |        |        |   |         |        |        |   |    |   |
|------------------------|--------|-------------------------------------------------|---------|-------------------------------------------|--------|----------------------------------------|--------|--------|--------|---|---------|--------|--------|---|----|---|
|                   |   | Fair Value Measurements Using                   |    |                                      |
|                   |   | QuotedPrices inActiveMarkets(Level 1) |    | SignificantOtherObservableInputs(Level 2) |   | UnobservableInputs (Level 3) |   | Total  |
| December 31, 2010      |   |                                            |    |                                      |   |                                   |   |   |
| Derivative liabilities |   | $                                               | — |                                      |   | $                                      | (3     | )      |   | $ | — |   |   | $ | (3 | ) |
| December 31, 2009      |   |                                            |    |                                      |   |                                   |   |   |
| Derivative liabilities |   | $                                               | — |                                      |   | $                                      | (6     | )      |   | $ | — |   |   | $ | (6 | ) |

|                                                 |                                   |     |   |
|-------------------------------------------------|-----------------------------------|-----|---|
|                                            | Year ended December 31, 2009 |
| Long-lived assets held and used                 | $                                 | (9  | ) |
| Long-lived assets held for sale                 | (1                                | )   |
| Long-lived assets held for disposal/abandonment | (1                                | )   |
| Total                                           | $                                 | (11 | ) |

|                                          |        |                        |        |                     |         |                |        |                                 |        |                        |         |                     |        |                |        |                                 |         |        |        |        |        |        |    |        |        |   |    |   |
|------------------------------------------|--------|------------------------|--------|---------------------|---------|----------------|--------|---------------------------------|--------|------------------------|---------|---------------------|--------|----------------|--------|---------------------------------|---------|--------|--------|--------|--------|--------|----|--------|--------|---|----|---|
|                                     |   | 2010                   |   | 2009                |
|                                     |   | AverageDays toMaturity |   | AverageContractRate |    | NotionalAmount |   | Fair ValueAsset(Liability) |   | AverageDays toMaturity |    | AverageContractRate |   | NotionalAmount |   | Fair ValueAsset(Liability) |
| Foriegn Exchange and Interest Rate Swaps |   |                   |   |                |    |           |   |                            |   |                   |    |                |   |           |   |                            |
| Cross-currency and Interest Rate Swap    |   | 273                    |   |                | 1.2038  |           |   | $                               | 25     |                   |    | $                   | (3     | )              |   | 638                             |    |   | 1.2038 |   |   | $      | 25 |   |   | $ | (5 | ) |
| Interest Rate Swap                       |   |                   |   |                |    |           |   |                            |   |                   |    |                |   |           |   |                            |
| Australia Multi-Currency Term            |   | 364                    |   |                | — |           |   | 22                              |   |                   | — |                |   | 729            |   |                            | — |   |   | 23     |   |   | (1 | )      |
| Total                                    |   |                   |   |                |    |           |   | $                               | (3     | )                      |    |                |   |           |   |                            |    | $      | (6     | )      |

|                                                     |                                                                                                                         |        |                                                           |         |        |        |        |        |        |                                  |        |        |                                  |
|-----------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|---------|--------|--------|--------|--------|--------|----------------------------------|--------|--------|----------------------------------|
|                                                | Amount of Gain (Loss) Recognized in Income for the year ended December 31: |   | Location of Gain (Loss) Recognized inIncome on Derivative |
| 2010                                                |                                                                                                                    | 2009   |                                                      | 2008    |   |
| Foreign Exchange and Interest Rate Swaps            |                                                                                                                    |   |                                                      |    |   |   |   |
| Cross-Currency and Interest Rate Swap               | $                                                                                                                       | 2      |                                                      |    | $      | (1     | )      |   | $      | 26                               |   |   | Other non-operating expense, net |
| Interest Rate Swap                                  |                                                                                                                    |   |                                                      |    |   |   |   |
| Interest swap – Australia Multi-Currency Term | —                                                                                                                 |   |                                                      | — |   |   | (2     | )      |   | Other non-operating expense, net |
| Total                                               | $                                                                                                                       | 2      |                                                      |    | $      | (1     | )      |   | $      | 24                               |   |   |                             |

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|        |                            |        |                       |        |                            |        |                       |        |   |     |        |        |   |     |        |
|--------|----------------------------|--------|-----------------------|--------|----------------------------|--------|-----------------------|--------|---|-----|--------|--------|---|-----|--------|
|   | 2010             |   | 2009        |
|   | CarryingAmount   |   | FairValue   |   | CarryingAmount   |   | FairValue   |
| Debt   | $                          | 706    |                  |   | $                          | 696    |                  |   | $ | 763 |   |   | $ | 686 |   |

|                                                                                                                                           |        |                |         |                         |        |                |         |                         |        |        |         |        |        |   |         |        |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|-------------------------|--------|----------------|---------|-------------------------|--------|--------|---------|--------|--------|---|---------|--------|
|                                                                                                                                      |   | 2010           |    | 2009                    |
|                                                                                                                                      |   | Long Term |    | Due WithinOne Year |   | Long Term |    | Due WithinOne Year |
| MSC Senior Secured Credit Facilities:                                                                                                     |   |           |    |                    |   |           |    |                    |
| Revolving facility due 2011 at 3.0% at December 31, 2009                                                                             |   | $              | — |                    |   | $              | — |                    |   | $      | 36      |   |   | $ | — |   |
| Floating rate term loans due 2013 at 2.7% and 2.6% at December 31, 2010 and 2009, respectively                                            |   | 189            |    |                    | 1      |           |    | 574                     |   |   | 6       |   |
| Floating rate term loans due 2015 at 4.1% at December 31, 2010                                                                            |   | 373            |    |                    | 5      |           |    | —                 |   |   | — |   |
| Other Borrowings:                                                                                                                         |   |           |    |                    |   |           |    |                    |
| Australia Multi-Currency Term / Working Capital Facility due 2012 at 4.5% and 4.1% at December 31, 2010 and 2009, respectively       |   | 38             |    |                    | 10     |           |    | 44                      |   |   | 9       |   |
| Brazilian bank loans, various maturities through 2017, variable interest, 9.8% and 10.6% at December 31, 2010 and 2009, respectively |   | 33             |    |                    | 37     |           |    | 30                      |   |   | 35      |   |
| Capital Leases and Other                                                                                                                  |   | 16             |    |                    | 3      |           |    | 17                      |   |   | 4       |   |
| Secured borrowings (See Note 6)                                                                                                           |   | —        |    |                    | 1      |           |    | —                 |   |   | 8       |   |
| Total debt                                                                                                                                |   | $              | 649     |                    |   | $              | 57      |                    |   | $      | 701     |   |   | $ | 62      |   |

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|                 |        |                     |        |                                                |        |        |    |        |
|-----------------|--------|---------------------|--------|------------------------------------------------|--------|--------|----|--------|
| Year            |   | Non-affiliated Debt |   | MinimumRentals UnderOperating Leases |
| 2011            |   | $                   | 57     |                                           |   | $      | 9  |   |
| 2012            |   | 53                  |   |                                           | 7      |   |
| 2013            |   | 201                 |   |                                           | 6      |   |
| 2014            |   | 10                  |   |                                           | 5      |   |
| 2015            |   | 374                 |   |                                           | 5      |   |
| 2016 and beyond |   | 11                  |   |                                           | 16     |   |
|            |   | $                   | 706    |                                           |   | $      | 48 |   |

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|                                                                                                      |        |                |         |                          |         |                           |         |                |        |                         |         |                           |        |         |        |        |         |        |         |        |        |   |     |        |
|------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------------------------|---------|---------------------------|---------|----------------|--------|-------------------------|---------|---------------------------|--------|---------|--------|--------|---------|--------|---------|--------|--------|---|-----|--------|
|                                                                                                 |   | 2010           |    | 2009                     |
|                                                                                                 |   | Long Term |    | Due Within One Year |    | Interest expense (income) |    | Long Term |   | Due WithinOne Year |    | Interest expense (income) |
| Affiliated debt payable:                                                                             |   |           |    |                     |    |                      |    |           |   |                    |    |                      |
| Loan payable to MSC due 2010 at 7.5% at December 31, 2009                                            |   | $              | — |                     |    | $                         | — |           |   | $                       | 5       |                      |   | $       | 165    |   |    | $      | — |   |   | $ | 6   |   |
| Loan payable to MSC due 2020 at 9.0% at December 31, 2010                                            |   | 340            |    |                     | — |                      |    | 1              |   |                    | — |                      |   | — |   |   | — |   |
| Loan payable due to Hexion NSF due 2018 at 10% and 10.8% at December 31, 2010 and 2009, respectively |   | 102            |    |                     | — |                      |    | 54             |   |                    | 509     |                      |   | — |   |   | 50      |   |
| Other loans due to MSC and affiliates at 4.68% and 4.76% at December 31, 2010 and 2009, respectively |   | 304            |    |                     | 79      |                      |    | 6              |   |                    | 97      |                      |   | 92      |   |   | 8       |   |
| Total affiliated debt payable                                                                        |   | $              | 746     |                     |    | $                         | 79      |           |   | $                       | 66      |                      |   | $       | 771    |   |    | $      | 92      |   |   | $ | 64  |   |
|                                                                                                 |   |           |    |                     |    |                      |    |           |   |                    |    |                      |
| Affiliated debt receivable:                                                                          |   |           |    |                     |    |                      |    |           |   |                    |    |                      |
| Loan receivable from MSC due 2011 at a weighted average interest rate of 3.8% at December 31, 2009   |   | $              | — |                     |    | $                         | — |           |   | $                       | (12     | )                         |   | $       | 793    |   |    | $      | — |   |   | $ | (40 | )      |
| Loan receivable from MSC due 2012 at 3.9%                                                            |   | 64             |    |                     | — |                      |    | (4             | )      |                    | 133     |                      |   | — |   |   | (6      | )      |
| Other loans due from MSC and affiliates at 4.1% and at 5.2% December 31, 2010 and 2009, respectively |   | 43             |    |                     | 33      |                      |    | (3             | )      |                    | 47      |                      |   | 24      |   |   | (2      | )      |
| Total affiliated debt receivable                                                                     |   | $              | 107     |                     |    | $                         | 33      |           |   | (19                     | )       |                      | $      | 973     |   |   | $       | 24     |    |   | (48    | ) |

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|                  |                       |        |                   |        |                                                   |        |                   |        |        |         |        |        |         |        |        |         |        |        |   |   |        |
|------------------|-----------------------|--------|-------------------|--------|---------------------------------------------------|--------|-------------------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---|---|--------|
|             | Number of Sites  |   | Liability         |   | Range ofReasonablyPossible Costs   |
| Site Description | December 31, 2010     |   | December 31, 2009 |   | December 31, 2010                                 |   | December 31, 2009 |   | Low    |    | High   |
| Currently-owned  | 10                    |   |              | 11     |                                              |   | $                 | 5      |   |    | $      | 7      |    |   | $      | 3       |   |   | $ | 8 |   |
| Formerly-owned:  |                  |   |              |   |                                              |   |              |   |   |    |   |
| Remediation      | 1                     |   |              | 1      |                                              |   | —           |   |   | — |   |   | — |   |   | — |   |
| Monitoring only  | 2                     |   |              | 2      |                                              |   | —           |   |   | — |   |   | — |   |   | 1       |   |
|             | 13                    |   |              | 14     |                                              |   | $                 | 5      |   |    | $      | 7      |    |   | $      | 3       |   |   | $ | 9 |   |

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|                                    |        |                                           |        |        |
|------------------------------------|--------|-------------------------------------------|--------|--------|
| Year                               |   | Minimum Annual Purchase Commitments  |
| 2011                               |   | $                                         | 178    |   |
| 2012                               |   | 114                                       |   |
| 2013                               |   | 95                                        |   |
| 2014                               |   | 32                                        |   |
| 2015                               |   | 17                                        |   |
| 2016 and beyond                    |   | 87                                        |   |
| Total minimum payments             |   | 523                                       |   |
| Less: Amount representing interest |   | (57                                       | )      |
| Present value of minimum payments  |   | $                                         | 466    |   |

|                                                |        |                  |        |                        |         |        |        |         |        |        |         |        |        |   |    |        |
|------------------------------------------------|--------|------------------|--------|------------------------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---|----|--------|
|                                           |   | Pension Benefits |   | PostretirementBenefits |
|                                           |   | 2010             |   | 2009                   |    | 2010   |   | 2009    |
| Change in Benefit Obligation                   |   |             |   |                   |    |   |   |    |
| Benefit obligation at beginning of year        |   | $                | 308    |                   |    | $      | 282    |    |   | $      | 5       |   |   | $ | 4  |   |
| Service cost                                   |   | 8                |   |                   | 8       |   |   | — |   |   | — |   |
| Interest cost                                  |   | 15               |   |                   | 16      |   |   | — |   |   | — |   |
| Actuarial losses (gains)                       |   | 3                |   |                   | — |   |   | 1       |   |   | — |   |
| Foreign currency exchange rate changes         |   | (19              | )      |                   | 10      |   |   | — |   |   | 1       |   |
| Benefits paid                                  |   | (8               | )      |                   | (8      | )      |   | — |   |   | — |   |
| Plan curtailments/settlements                  |   | —          |   |                   | (1      | )      |   | — |   |   | — |   |
| Employee contributions                         |   | 1                |   |                   | 1       |   |   | — |   |   | — |   |
| Transfers in                                   |   | —          |   |                   | — |   |   | — |   |   | — |   |
| Benefit obligation at end of year              |   | 308              |   |                   | 308     |   |   | 6       |   |   | 5       |   |
| Change in Plan Assets                          |   |             |   |                   |    |   |   |    |
| Fair value of plan assets at beginning of year |   | 189              |   |                   | 162     |   |   | — |   |   | — |   |
| Actual return on plan assets                   |   | 14               |   |                   | 7       |   |   | — |   |   | — |   |
| Employer contribution                          |   | 17               |   |                   | 21      |   |   | — |   |   | — |   |
| Foreign currency exchange rate changes         |   | (12              | )      |                   | 6       |   |   | — |   |   | — |   |
| Benefits paid                                  |   | (8               | )      |                   | (8      | )      |   | — |   |   | — |   |
| Employee contributions                         |   | 1                |   |                   | 1       |   |   | — |   |   | — |   |
| Transfers in                                   |   | —          |   |                   | — |   |   | — |   |   | — |   |
| Fair value of plan assets at end of year       |   | 201              |   |                   | 189     |   |   | — |   |   | — |   |
| Funded status of the plan at end of year       |   | $                | (107   | )                      |    | $      | (119   | )       |   | $      | (6      | )      |   | $ | (5 | )      |

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|                                                                                                   |        |                  |        |                        |        |        |        |         |        |        |         |        |        |   |         |        |
|---------------------------------------------------------------------------------------------------|--------|------------------|--------|------------------------|--------|--------|--------|---------|--------|--------|---------|--------|--------|---|---------|--------|
|                                                                                              |   | Pension Benefits |   | PostretirementBenefits |
|                                                                                              |   | 2010             |   | 2009                   |   | 2010   |   | 2009    |
| Amounts recognized in the Consolidated Balance Sheets at December 31 consist of:             |   |             |   |                   |   |   |   |    |
| Noncurrent assets                                                                                 |   | $                | 15     |                   |   | $      | 6      |    |   | $      | — |   |   | $ | — |   |
| Other current liabilities                                                                         |   | (4               | )      |                   | (4     | )      |   | — |   |   | — |   |
| Long-term pension obligations                                                                     |   | (118             | )      |                   | (121   | )      |   | (6      | )      |   | (5      | )      |
| Accumulated other comprehensive (income) loss                                                     |   | 16               |   |                   | 16     |   |   | (2      | )      |   | (2      | )      |
| Net amounts recognized                                                                            |   | $                | (91    | )                      |   | $      | (103   | )       |   | $      | (8      | )      |   | $ | (7      | )      |
| Amounts recognized in Accumulated other comprehensive loss at December 31 consist of:        |   |             |   |                   |   |   |   |    |
| Net actuarial (gain) loss                                                                         |   | $                | 12     |                   |   | $      | 11     |    |   | $      | (1      | )      |   | $ | (2      | )      |
| Net prior service cost (benefit)                                                                  |   | 6                |   |                   | 7      |   |   | (1      | )      |   | (1      | )      |
| Deferred income taxes                                                                             |   | (2               | )      |                   | (2     | )      |   | — |   |   | 1       |   |
| Net amounts recognized                                                                            |   | $                | 16     |                   |   | $      | 16     |    |   | $      | (2      | )      |   | $ | (2      | )      |
| Accumulated benefit obligation                                                                    |   | $                | 293    |                   |   | $      | 295    |    |   |   |    |   |
| Accumulated benefit obligation for funded plans                                                   |   | $                | 181    |                   |   | $      | 179    |    |   |   |    |   |
| Pension plans with underfunded or non-funded accumulated benefit obligations at December 31: |   |             |   |                   |   |   |   |    |
| Aggregate projected benefit obligation                                                            |   | $                | 129    |                   |   | $      | 131    |    |   |   |    |   |
| Aggregate accumulated benefit obligation                                                          |   | 123              |   |                   | 125    |   |   |    |   |   |
| Aggregate fair value of plan assets                                                               |   | 8                |   |                   | 7      |   |   |    |   |   |
| Pension plans with projected benefit obligations in excess of plan assets at December 31:         |   |             |   |                   |   |   |   |    |
| Aggregate projected benefit obligation                                                            |   | $                | 135    |                   |   | $      | 137    |    |   |   |    |   |
| Aggregate fair value of plan assets                                                               |   | $                | 13     |                   |   | $      | 12     |    |   |   |    |   |

|                                               |        |                  |        |                         |         |        |        |         |        |        |         |        |        |         |         |        |         |        |         |        |        |   |         |        |
|-----------------------------------------------|--------|------------------|--------|-------------------------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|---------|--------|---------|--------|---------|--------|--------|---|---------|--------|
|                                          |   | Pension Benefits |   | Postretirement benefits |
|                                          |   | 2010             |   | 2009                    |    | 2008   |   | 2010    |   | 2009   |    | 2008   |
| Service cost                                  |   | $                | 8      |                    |    | $      | 8      |    |   | $      | 8       |   |   | $       | — |   |    | $      | — |   |   | $ | — |   |
| Interest cost on projected benefit obligation |   | 15               |   |                    | 16      |   |   | 16      |   |   | — |   |   | — |    |   | — |   |
| Expected return on assets                     |   | (11              | )      |                    | (10     | )      |   | (9      | )      |   | — |   |   | — |    |   | — |   |
| Amortization of prior service cost            |   | 1                |   |                    | 1       |   |   | 1       |   |   | — |   |   | — |    |   | — |   |
| Recognized actuarial gain                     |   | —          |   |                    | (1      | )      |   | — |   |   | — |   |   | — |    |   | (1      | )      |
| Curtailment loss                              |   | —          |   |                    | 1       |   |   | — |   |   | — |   |   | — |    |   | — |   |
| Settlement gain                               |   | —          |   |                    | — |   |   | — |   |   | — |   |   | (1      | )       |   | — |   |
| Net expense                                   |   | $                | 13     |                    |    | $      | 15     |    |   | $      | 16      |   |   | $       | — |   |    | $      | (1      | )      |   | $ | (1      | )      |

|                                                           |        |                 |         |                        |         |        |         |         |        |   |         |        |
|-----------------------------------------------------------|--------|-----------------|---------|------------------------|---------|--------|---------|---------|--------|---|---------|--------|
|                                                      |   | PensionBenefits |    | PostretirementBenefits |    | Total  |
| Net actuarial losses arising during the year              |   | $               | 1       |                   |    | $      | 1       |    |   | $ | 2       |   |
| Amortization of prior service (cost) benefit              |   | (1              | )       |                   | — |   |    | (1      | )      |
| Amortization of net gains                                 |   | —         |    |                   | — |   |    | — |   |
| Loss recognized in other comprehensive income             |   | —         |    |                   | 1       |   |    | 1       |   |
| Deferred income taxes                                     |   | —         |    |                   | (1      | )      |    | (1      | )      |
| Loss recognized in other comprehensive income, net of tax |   | $               | — |                   |    | $      | — |    |   | $ | — |   |

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|                    |                             |        |                                    |         |             |         |         |        |   |   |        |
|--------------------|-----------------------------|--------|------------------------------------|---------|-------------|---------|---------|--------|---|---|--------|
|               | PensionBenefits   |   | PostretirementBenefits   |    | Total  |
| Prior service cost | $                           | 1      |                               |    | $           | — |    |   | $ | 1 |   |
| Net actuarial gain | —                     |   |                               | — |        |    | — |   |

|                                                                                               |        |                 |        |                        |         |        |        |         |        |        |         |        |
|-----------------------------------------------------------------------------------------------|--------|-----------------|--------|------------------------|---------|--------|--------|---------|--------|--------|---------|--------|
|                                                                                          |   | PensionBenefits |   | PostretirementBenefits |
|                                                                                          |   | 2010            |   | 2009                   |    | 2010   |   | 2009    |
| Discount rate                                                                                 |   | 5.5             | %      |                   | 5.5     | %      |   | 5.6     | %      |   | 6.3     | %      |
| Rate of increase in future compensation levels                                                |   | 3.3             | %      |                   | 3.3     | %      |   | — |   |   | — |   |
| The weighted average assumed health care cost trend rates are as follows at December 31: |   |            |   |                   |    |   |   |    |
| Health care cost trend rate assumed for next year                                             |   | —         |   |                   | — |   |   | 7.2     | %      |   | 7.4     | %      |
| Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)             |   | —         |   |                   | — |   |   | 4.5     | %      |   | 4.4     | %      |
| Year that the rate reaches the ultimate trend rate                                            |   | —         |   |                   | — |   |   | 2030    |   |   | 2029    |   |

|                                                  |        |                  |        |                              |        |      |        |      |        |        |        |        |        |        |        |        |     |   |
|--------------------------------------------------|--------|------------------|--------|------------------------------|--------|------|--------|------|--------|--------|--------|--------|--------|--------|--------|--------|-----|---|
|                                             |   | Pension Benefits |   | Postretirement Benefits |
|                                             |   | 2010             |   | 2009                         |   | 2008 |   | 2010 |   | 2009   |   | 2008   |
| Discount rate                                    |   | 5.5              | %      |                         | 5.8    | %    |   | 5.5  | %      |   | 6.3    | %      |   | 7.1    | %      |   | 5.5 | % |
| Rate of increase in future compensation levels   |   | 3.3              | %      |                         | 3.3    | %    |   | 3.3  | %      |   |   |   |   |   |   |
| Expected long-term rate of return on plan assets |   | 5.8              | %      |                         | 5.8    | %    |   | 5.8  | %      |   |   |   |   |   |   |

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Table of Contents

|                                                                                   |        |        |        |        |         |        |        |         |        |
|-----------------------------------------------------------------------------------|--------|--------|--------|--------|---------|--------|--------|---------|--------|
|                                                                              |   | Actual |   | Target |
|                                                                              |   | 2010   |   | 2009   |    | 2011   |
| Weighted average allocations of European pension plan assets at December 31: |   |   |   |   |    |   |
| Equity securities                                                                 |   | 14     | %      |   | 13      | %      |   | 21      | %      |
| Debt securities                                                                   |   | 82     | %      |   | 87      | %      |   | 79      | %      |
| Cash, short-term investments and other                                            |   | 4      | %      |   | — |   |   | — |   |
|                                                                              |   | 100    | %      |   | 100     | %      |   | 100     | %      |

|                                |                                                                                                       |
|--------------------------------|-------------------------------------------------------------------------------------------------------|
| •     | Level 1: Inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets. |

|                                |                                                                                                                                                                                                                                                                                                                                              |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Level 2: Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reported date. Level 2 equity securities are primarily in pooled asset and mutual funds and are valued based on underlying net asset value multiplied by the number of shares held. |

|                                |                                                                                                                                                         |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Level 3: Unobservable inputs, for example, inputs derived through extrapolation or interpolation that cannot be corroborated by observable market data. |

|                                                        |        |                                                                          |         |                                           |         |                                  |        |         |        |                                                                          |         |                                           |        |                                  |        |        |         |        |         |         |        |        |         |        |        |   |         |        |        |   |     |        |
|--------------------------------------------------------|--------|--------------------------------------------------------------------------|---------|-------------------------------------------|---------|----------------------------------|--------|---------|--------|--------------------------------------------------------------------------|---------|-------------------------------------------|--------|----------------------------------|--------|--------|---------|--------|---------|---------|--------|--------|---------|--------|--------|---|---------|--------|--------|---|-----|--------|
|                                                   |   | Fair Value Measurements Using                                            |
|                                                   |   | 2010                                                                     |    | 2009                                      |
|                                                   |   | QuotedPrices inActiveMarkets forIdentical Assets(Level 1) |    | SignificantOtherObservableInputs(Level 2) |    | UnobservableInputs(Level 3) |   | Total   |   | QuotedPrices inActiveMarkets forIdentical Assets(Level 1) |    | SignificantOtherObservableInputs(Level 2) |   | UnobservableInputs(Level 3) |   | Total  |
| U.S. equity(a)                                         |   | $                                                                        | — |                                      |    | $                                | 19     |    |   | $                                                                        | — |                                      |   | $                                | 19     |   |    | $      | — |    |   | $      | 9       |   |   | $ | — |   |   | $ | 9   |   |
| European equity(a)                                     |   | —                                                                  |    |                                      | — |                             |   | — |   |                                                                     | — |                                      |   | —                          |   |   | 7       |   |    | — |   |   | 7       |   |
| Other international equity(a)                          |   | —                                                                  |    |                                      | 5       |                             |   | — |   |                                                                     | 5       |                                      |   | —                          |   |   | 5       |   |    | — |   |   | 5       |   |
| Debt securities/fixed income(a)                        |   | —                                                                  |    |                                      | 106     |                             |   | — |   |                                                                     | 106     |                                      |   | —                          |   |   | 111     |   |    | — |   |   | 111     |   |
| Liability driven investments(b)(d)                     |   | —                                                                  |    |                                      | 56      |                             |   | — |   |                                                                     | 56      |                                      |   | —                          |   |   | 45      |   |    | — |   |   | 45      |   |
| Balanced pooled funds(a)(e)                            |   | —                                                                  |    |                                      | 8       |                             |   | — |   |                                                                     | 8       |                                      |   | —                          |   |   | 7       |   |    | — |   |   | 7       |   |
| Pooled insurance products w/ fixed income guarantee(a) |   | —                                                                  |    |                                      | 5       |                             |   | — |   |                                                                     | 5       |                                      |   | —                          |   |   | 5       |   |    | — |   |   | 5       |   |
| Cash, money market and other(c)                        |   | —                                                                  |    |                                      | 2       |                             |   | — |   |                                                                     | 2       |                                      |   | —                          |   |   | — |   |    | — |   |   | — |   |
| Total                                                  |   | $                                                                        | — |                                      |    | $                                | 201    |    |   | $                                                                        | — |                                      |   | $                                | 201    |   |    | $      | — |    |   | $      | 189     |   |   | $ | — |   |   | $ | 189 |   |

|                             |                                                                                                                                             |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|
| (a)     | Level 2 equity securities in pooled asset funds and are valued based on underlying net asset value multiplied by the number of shares held. |

|                             |                                                                                                                                                                                                                                              |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)     | Level 2 fixed income securities are valued using a market approach that includes various valuation techniques and sources, primarily using matrix/market corroborated pricing based on observable inputs including yield curves and indices. |

|                             |                                                                                                                                                                                                                                                            |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)     | Cash, money market and other securities include mutual funds, certificates of deposit and other short-term cash investments for which the share price is $1 or book value is assumed to equal fair value due to the short duration of the investment term. |

|                             |                                                                                                                                                                                                                                                                                                                                                                                         |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (d)     | Liability driven investments consist of a series of funds designed to provide returns matched to expected future cash flows, and include approximately 70% investments in fixed income securities targeting returns in line with 3-month euribor in the medium term, and 30% swaps, with an underlying portfolio of bonds and cash to counterbalance changes in the value of the swaps. |

|                             |                                                                                                                                      |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------|
| (e)     | The fund provides a mix of approximately 60% equity and 40% fixed income securities that achieves the target asset mix for the plan. |

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Table of Contents

|              |        |                       |        |                        |         |        |         |        |
|--------------|--------|-----------------------|--------|------------------------|---------|--------|---------|--------|
|         |   | Pension Benefits |   | PostretirementBenefits |
| 2011         |   | $                     | 8      |                   |    | $      | — |   |
| 2012         |   | 9                     |   |                   | — |   |
| 2013         |   | 9                     |   |                   | 1       |   |
| 2014         |   | 11                    |   |                   | — |   |
| 2015         |   | 11                    |   |                   | 1       |   |
| 2016 to 2020 |   | 72                    |   |                   | 2       |   |

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Table of Contents

|                              |        |         |        |        |         |        |        |     |        |   |     |   |
|------------------------------|--------|---------|--------|--------|---------|--------|--------|-----|--------|---|-----|---|
|                         |   | 2010    |   | 2009   |    | 2008   |
| Current                      |   |    |   |   |    |   |
| Federal and provincial  |   | $       | 22     |   |    | $      | (4     | )   |   | $ | (11 | ) |
| Foreign                      |   | 9       |   |   | — |   |   | 19  |   |
| Total current                |   | 31      |   |   | (4      | )      |   | 8   |   |
| Deferred                     |   |    |   |   |    |   |
| Federal and provincial  |   | (17     | )      |   | (4      | )      |   | 1   |   |
| Foreign                      |   | — |   |   | (8      | )      |   | (14 | )      |
| Total deferred               |   | (17     | )      |   | (12     | )      |   | (13 | )      |
| Income tax expense (benefit) |   | $       | 14     |   |    | $      | (16    | )   |   | $ | (5  | ) |

|                                                             |        |         |        |        |         |        |        |         |        |   |     |   |
|-------------------------------------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|---|-----|---|
|                                                        |   | 2010    |   | 2009   |    | 2008   |
| Income taxes computed at federal statutory tax rate         |   | $       | (8     | )      |    | $      | (12    | )       |   | $ | (51 | ) |
| Foreign rate differentials                                  |   | (12     | )      |   | (7      | )      |   | 2       |   |
| Losses and other expenses not deductible for tax            |   | 23      |   |   | 6       |   |   | 40      |   |
| Increase in the taxes due to changes in valuation allowance |   | 11      |   |   | 2       |   |   | 4       |   |
| Additional tax benefit on foreign unrepatriated earnings    |   | 1       |   |   | — |   |   | — |   |
| Changes in enacted tax rates                                |   | (1      | )      |   | — |   |   | — |   |
| Adjustment of prior estimates and other                     |   | — |   |   | (5      | )      |   | — |   |
| Income tax expense (benefit)                                |   | $       | 14     |   |    | $      | (16    | )       |   | $ | (5  | ) |

|          |        |      |        |        |        |        |        |    |        |   |      |   |
|----------|--------|------|--------|--------|--------|--------|--------|----|--------|---|------|---|
|     |   | 2010 |   | 2009   |   | 2008   |
| Domestic |   | $    | (70    | )      |   | $      | (51    | )  |   | $ | (192 | ) |
| Foreign  |   | 39   |   |   | 5      |   |   | (7 | )      |
|     |   | $    | (31    | )      |   | $      | (46    | )  |   | $ | (199 | ) |

|                                                |        |        |        |        |        |        |     |        |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|-----|--------|
|                                           |   | 2010   |   | 2009   |
| Assets                                         |   |   |   |   |
| Non-pension post-employement                   |   | $      | 1      |   |   | $      | 1   |   |
| Accrued and other expenses                     |   | 14     |   |   | 26     |   |
| Net operating loss and credit carryforwards    |   | 43     |   |   | 36     |   |
| Pension liabilities                            |   | 7      |   |   | 9      |   |
| Gross deferred tax assets                      |   | 65     |   |   | 72     |   |
| Valuation allowance                            |   | (36    | )      |   | (22    | )      |
| Net deferred tax asset                         |   | 29     |   |   | 50     |   |
| Liabilities                                    |   |   |   |   |
| Property, plant and equipment                  |   | (75    | )      |   | (93    | )      |
| Unrepatriated earnings of foreign subsidiaries |   | (33    | )      |   | (33    | )      |
| Intangibles                                    |   | (1     | )      |   | (17    | )      |
| Gross deferred tax liabilities                 |   | (109   | )      |   | (143   | )      |
| Net deferred tax liability                     |   | $      | (80    | )      |   | $      | (93 | )      |

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Table of Contents

|                                                          |        |         |        |        |        |        |     |        |
|----------------------------------------------------------|--------|---------|--------|--------|--------|--------|-----|--------|
| Assets                                                   |   | 2010    |   | 2009   |
| Current deferred income taxes (Other current assets)     |   | $       | 17     |   |   | $      | 11  |   |
| Long-term deferred income taxes (Other assets)           |   | 6       |   |   | 16     |   |
| Liabilities                                              |   |    |   |   |
| Current deferred income taxes (Other current liabilites) |   | — |   |   | (4     | )      |
| Long-term deferred income taxes                          |   | (103    | )      |   | (116   | )      |
| Net deferred tax liability                               |   | $       | (80    | )      |   | $      | (93 | )      |

|                                                              |        |         |        |        |        |        |    |        |
|--------------------------------------------------------------|--------|---------|--------|--------|--------|--------|----|--------|
|                                                         |   | 2010    |   | 2009   |
| Balance at beginning of year                                 |   | $       | 42     |   |   | $      | 45 |   |
| Additions based on tax positions related to the current year |   | 23      |   |   | 1      |   |
| Additions for tax positions of prior years                   |   | 1       |   |   | 2      |   |
| Reductions for tax positions of prior years                  |   | — |   |   | (6     | )      |
| Balance at end of year                                       |   | $       | 66     |   |   | $      | 42 |   |

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