NationsBank, N. A.                                              Customer #976547
                                                         Date: November 14, 1997

                                Pledge Agreement

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BANK/SECURED PARTY:                   PLEDGOR(S)/DEBTOR(S):

NationsBank, N.A.                           Closure Medical Corporation
Banking Center:                             5265 Capital Blvd.
                                            Raleigh, NC 27616
      One Hannover Square
      Raleigh, NC 27601

      County:  Wake                         County: Wake

(Street address including county)     (Name and street address including county)
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Pledgor/Debtor is:  Corporation
Address is Pledgor's/Debtor's: Place of Business
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1. Security Interest. For good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, Pledgor/Debtor (hereinafter referred
to as "Pledgor") pledges, assigns and grants to Bank a security interest and
lien in the Collateral (hereinafter defined) to secure the payment and the
performance of the Obligation (hereinafter defined).

2. Collateral. The security interest is granted in the following collateral (the
"Collateral"):

      A.  Description of Collateral.

      Specific Investment Property/Securities: The following investment property
and/or securities, together with all investment property and/or securities
hereafter delivered to Bank in substitution therefor or in addition thereto:
Commercial Paper of NationsBank Corporation in safekeeping account #841781 of
Closure Medical Corporation with NationsBank, N.A., Institutional Investment
Sales, as securities intermediary.

It is contemplated by the parties that Pledgor may provide additional collateral
from time to time hereunder as additional security for the Obligation, and may
from time to time with the prior written consent of Bank sell or otherwise
dispose of any Collateral provided that Pledgor provides Bank with substitute
collateral. At the time of each addition or substitution of Collateral, the
securities added or substituted shall be identified on a Pledge Certificate,
substantially in the form of Schedule II attached hereto (the "Pledge
Certificate"), and delivered to Bank. Bank has no obligation to make any
advances requested in connection therewith unless (i) such additional and/or
substituted Collateral is

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satisfactory to Bank and (ii) the perfected security interest granted to Bank
therein is completed to the satisfaction of Bank. All such additional and/or
substituted Collateral shall be Collateral for purposes of this Agreement, and
shall secure the Obligation in the same manner as the Collateral for which it is
added to and/or substituted.

      B. Proceeds. All additions, substitutes and replacements for and proceeds
of the above Collateral (including all income and benefits resulting from any of
the above, such as dividends payable or distributable in cash, property or
stock; interest, premium and principal payments; redemption proceeds and
subscription rights; and shares or other proceeds of conversions or splits of
any securities in the Collateral). Any investment property and/or securities
received by Pledgor, which shall comprise such additions, substitutes and
replacements for, or proceeds of, the Collateral, shall be held in trust for
Bank and shall be delivered immediately to Bank. Any cash proceeds shall be held
in trust for Bank and upon request shall be delivered immediately to Bank.

      C. Deposit Accounts. The balance of every deposit account of Pledgor
maintained with Bank and any other claim of Pledgor against Bank, now or
hereafter existing, liquidated or unliquidated, and all money, instruments,
investment property, securities, documents, chattel paper, credits, claims,
demands, income, and any other property, rights and interests of Pledgor which
at any time shall come into the possession or custody or under the control of
Bank or any of its agents or affiliates, for any purpose, and the proceeds of
any thereof. Bank shall be deemed to have possession of any of the Collateral in
transit to or set apart for it or any of its agents or affiliates.

3. Obligation.

      A. Description of Obligation. The following obligations ("Obligation") are
secured by this Agreement:

            i. All Debt: All debts, obligations, liabilities and agreements of
Pledgor and/or N/A to Bank, now or hereafter existing, arising directly or
indirectly between Pledgor and Bank whether absolute or contingent, joint or
several, secured or unsecured, due or not due, liquidated or unliquidated,
arising by operation of law or otherwise, and all renewals, extensions and
rearrangements of any of the above;

            ii. All costs and expenses incurred by Bank, including attorney's
fees, to obtain, preserve, perfect, enforce and defend this Agreement and
maintain, preserve, collect and realize upon the Collateral, together with
interest thereon at the highest rate allowed by law, or if none, 25% per annum;

            iii. All amounts which may be owed to Bank pursuant to all other
loan documents executed in connection with the indebtedness described in subpart
i. above.

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In the event any amount paid to Bank on any Obligation is subsequently recovered
from Bank in or as a result of any bankruptcy, insolvency or fraudulent
conveyance proceeding involving an obligor of the Obligation other than Pledgor,
Pledgor shall be liable to Bank for the amounts so recovered up to the fair
market value of the Collateral whether or not the Collateral has been released
or the security interest terminated. In the event the Collateral has been
released or the security interest terminated, the fair market value of the
Collateral shall be determined, at Bank's option, as of the date the Collateral
was released, the security interest terminated, or said amounts were recovered.

      B. Use of Proceeds. The proceeds of any indebtedness or obligation secured
by the Collateral will not be used directly or indirectly to purchase or carry
any "margin stock" as that term is defined in Regulation U of the Board of
Governors of the Federal Reserve System, or extend credit to or invest in other
parties for the purpose of purchasing or carrying any such "margin stock," or to
reduce or retire any indebtedness incurred for such purpose or otherwise in a
manner which would violate Regulations G, T or U.

4. Pledgor's Warranties. Pledgor hereby represents and warrants to Bank as
follows:

      A. Financing Statements. Except as may be noted by schedule attached
hereto and incorporated herein by reference, no financing statement covering the
Collateral is or will be on file in any public office, except the financing
statements relating to this security interest, and no security interest, other
than the one herein created, has attached or been perfected in the Collateral or
any part thereof.

      B. Ownership. Pledgor owns, or will use the proceeds of any loans by Bank
to become the owner of, the Collateral free from any setoff, claim, restriction,
lien, security interest or encumbrance except liens for taxes not yet due and
payable and the security interest hereunder.

      C. Power and Authority. Pledgor has full power and authority to make this
Agreement, and all necessary consents and approvals of any persons, entities,
governmental or regulatory authorities and securities exchanges have been
obtained to effectuate the validity of this Agreement.

5. Pledgor's Covenants. Until full payment and performance of all of the
Obligation and termination or expiration of any obligation or commitment of Bank
to make advances or loans to Pledgor, unless Bank otherwise consents in writing:

      A. Obligation and This Agreement. Pledgor shall perform all of its
agreements herein and in any other agreements between it and Bank.

      B. Ownership of Collateral. Pledgor shall defend the Collateral against
all claims and demands of all persons at any time claiming any interest therein
adverse to Bank. Pledgor shall keep the Collateral free from all liens and
security interests except those for taxes not yet due and payable and the
security interest hereby created.

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      C. Bank's Costs. Pledgor shall pay all costs necessary to obtain,
preserve, perfect, defend and enforce the security interest created by this
Agreement, collect the Obligation, and preserve, defend, enforce and collect the
Collateral, including but not limited to taxes, assessments, reasonable
attorney's fees, legal expenses and expenses of sales. Whether the Collateral is
or is not in Bank's possession, and without any obligation to do so and without
waiving Pledgor's default for failure to make any such payment, Bank at its
option may pay any such costs and expenses and discharge encumbrances on the
Collateral, and such payments shall be a part of the Obligation and bear
interest at the rate set out in the Obligation. Pledgor agrees to reimburse Bank
on demand for any costs so incurred.

      D. Information and Inspection. Pledgor shall (i) promptly furnish Bank any
information with respect to the Collateral requested by Bank; (ii) allow Bank or
its representatives to inspect and copy, or furnish Bank or its representatives
with copies of, all records relating to the Collateral and the Obligation; and
(iii) promptly furnish Bank or its representatives with any other information
Bank may reasonably request.

      E. Additional Documents. Pledgor shall sign and deliver any papers
furnished by Bank which are necessary or desirable in the judgment of Bank to
obtain, maintain and perfect the security interest hereunder and to enable Bank
to comply with any federal or state law in order to obtain or perfect Bank's
interest in the Collateral or to obtain proceeds of the Collateral.

      F. Notice of Changes. Pledgor shall notify Bank immediately of (i) any
material change in the Collateral, (ii) a change in Pledgor's residence or
location, (iii) a change in any matter warranted or represented by Pledgor in
this Agreement, or in any of the loan documents relating to the Obligation or
furnished to Bank pursuant to this Agreement, and (iv) the occurrence of an
Event of Default as defined herein.

      G. Possession of Collateral. Pledgor shall deliver a copy of this
Agreement (or other notice acceptable to Bank) to any Broker, financial
intermediary, or any other person in possession of any of the Collateral or on
whose books the interest of Pledgor in the Collateral appears, and such delivery
shall constitute notice to such person of Bank's security interest in the
Collateral and shall constitute Pledgor's instruction to such person to note
Bank's security interest on their books and records, or deliver to Bank
certificates or other evidence of the Collateral promptly upon Bank's request.
Pledgor shall deliver all investment securities and other instruments and
documents which are a part of the Collateral and in Pledgor's possession to Bank
immediately, or if hereafter acquired, immediately following acquisition, in a
form suitable for transfer by delivery or accompanied by duly executed
instruments of transfer or assignment in blank with signatures appropriately
guaranteed in form and substance suitable to Bank.

      H. Change of Name/Status. Pledgor shall not change its name, change its
corporate status, use any trade name or engage in any business not reasonably
related to its business as presently conducted.

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      I. Power of Attorney. Pledgor appoints Bank and any officer thereof as
Pledgor's attorney-in-fact with full power in Pledgor's name and on Pledgor's
behalf to do every act which Pledgor is obligated to do or may be required to do
hereunder; however, nothing in this paragraph shall be construed to obligate
Bank to take any action hereunder nor shall Bank be liable to Pledgor for
failure to take any action hereunder. This appointment shall be deemed a power
coupled with an interest and shall not be terminable as long as the Obligation
is outstanding and shall not terminate on the disability or incompetence of
Pledgor. Without limiting the generality of the foregoing, Bank shall have the
right and power to receive, indorse and collect all checks and other orders for
the payment of money made payable to Pledgor representing any dividend, interest
payment or other distribution payable in respect of the Collateral or any part
thereof.

      J. Other Parties and Other Collateral. No renewal or extensions of or any
other indulgence with respect to the Obligation or any part thereof, no
modification of the document(s) evidencing the Obligation, no release of any
security, no release of any person (including any maker, indorser, guarantor or
surety) liable on the Obligation, no delay in enforcement of payment, and no
delay or omission or lack of diligence or care in exercising any right or power
with respect to the Obligation or any security therefor or guaranty thereof or
under this Agreement shall in any manner impair or affect the rights of Bank
under any law, hereunder, or under any other Agreement pertaining to the
Collateral. Bank need not file suit or assert a claim for personal judgment
against any person for any part of the Obligation or seek to realize upon any
other security for the Obligation, before foreclosing or otherwise realizing
upon the Collateral. Pledgor waives any right that can be waived to the benefit
of or to require or control application of any security or proceeds thereof, and
agrees that Bank shall have no duty or obligation to Pledgor to apply to the
Obligation any such other security or proceeds thereof.

      K. Waivers by Pledgor. Pledgor waives notice of the creation, advance,
increase, existence, extension or renewal of, and of any indulgence with respect
to, the Obligation; waives presentment, demand, notice of dishonor, and protest;
waives notice of the amount of the Obligation outstanding at any time, notice of
any change in financial condition of any person liable for the Obligation or any
part thereof, notice of any Event of Default, and all other notices respecting
the Obligation; and agrees that maturity of the Obligation and any part thereof
may be accelerated, extended or renewed one or more times by Bank in its
discretion, without notice to Pledgor. Pledgor waives any right to require that
any action be brought against any other person or to require that resort be had
to any other security or to any balance of any deposit account. Pledgor further
waives any right of subrogation or to enforce any right of action against any
other pledgor until the Obligation is paid in full.

      L. Additional Provisions. If one or more Riders to this Agreement are
executed by Pledgor, the covenants and provisions of each such Rider shall be
incorporated by reference into this Agreement.

6. Maintenance of Collateral. At all times during the term of the Agreement,
Pledgor agrees to maintain as security for the Obligation Collateral of a type
described on Schedule I with a value of

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no less than fifty percent (50%) of the principal amount outstanding on the Note
based on the most recent closing bid price for such Collateral obtained from the
Wall Street Journal.

      A. Breach of Collateral Maintenance. Pledgor agrees that the failure to
maintain Collateral as set forth above shall constitute an Event of Default
under this Agreement. In such event, the Pledgor shall have two business days
from the date Pledgor is notified by Bank (in writing or orally) of such
noncompliance, to either pledge additional Collateral satisfactory to Bank, in
its sole discretion, or reduce the unpaid principal balance of the Obligations
such that, in either case, the value of the Collateral (determined as set forth
above) should be no less than fifty percent (50%) of the principal amount
outstanding on the Note. Any reduction in unpaid principal of the Obligation
shall not affect or reduce any future principal payments due except to the
extent such reductions are applied in accordance with the documents evidencing
or securing the Obligation. In the event Pledgor fails to comply with the terms
hereof, Bank may, without any further notice of any kind, exercise any of the
following rights and remedies, at Bank's option:

      (a) The rights and remedies set out in Section 8.B. of this Agreement,
including without limitation the right to accelerate the Obligation and
liquidate the Collateral.

      (b) Sell all or any part of the Collateral and apply the proceeds of such
sale to the Obligation to bring the Obligation back into compliance.

If an Event of Default exists hereunder and the Collateral is declining in value
or threatens to decline speedily in value, Bank shall have no obligation to
notify Pledgor of the failure to maintain Collateral with a value as set forth
above or to provide Pledgor with an opportunity to cure such noncompliance, and
in such case Pledgor agrees that Bank may immediately at Bank's sole option (i)
declare amounts due under the Obligation to be immediately due and payable,
and/or (ii) sell all or any part of the Collateral and apply the proceeds of
such Collateral to the Obligation.

      B. Sale or Substitution of Collateral. If no Event of Default has occurred
under this Agreement or would result from such action, Pledgor may (i) sell,
trade, or withdraw any part of the Collateral; or (ii) substitute new Collateral
for existing Collateral, provided that, in either event, the new Collateral
shall be acceptable to Bank in its sole discretion and the value of the
Collateral (determined as set forth above) should be no less than fifty percent
(50%) of the principal amount outstanding on the Note.

7. Rights and Powers of Bank.

      A. General. Bank, before or after default, without liability to Pledgor
may: take control of proceeds, including stock received as dividends or by
reason of stock splits; release the Collateral in its possession to any Pledgor,
temporarily or otherwise; require additional Collateral; reject as
unsatisfactory any property hereafter offered by Pledgor as Collateral; take
control of funds generated by the Collateral, such as cash dividends, interest
and proceeds, and use same to reduce any part of

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the Obligation and exercise all other rights which an owner of such Collateral
may exercise, except the right to vote or dispose of the Collateral before an
Event of Default; and at any time transfer any of the Collateral or evidence
thereof into its own name or that of its nominee. Bank shall not be liable for
failure to collect any account or instruments, or for any act or omission on the
part of Bank, its officers, agents or employees, except for its or their own
willful misconduct or gross negligence. The foregoing rights and powers of Bank
will be in addition to, and not a limitation upon, any rights and powers of Bank
given by law, elsewhere in this Agreement, or otherwise.

      B. Convertible Collateral. Bank may present for conversion any Collateral
which is convertible into any other instrument or investment security or a
combination thereof with cash, but Bank shall not have any duty to present for
conversion any Collateral unless it shall have received from Pledgor detailed
written instructions to that effect at a time reasonably far in advance of the
final conversion date to make such conversion possible.

8. Default.

      A. Event of Default. An event of default ("Event of Default") shall occur
(a) if Pledgor or any other obligor on all or part of the Obligation shall fail
to timely and properly pay or observe, keep or perform any term, covenant,
agreement or condition in this Agreement or in any other agreement between
Pledgor and Bank or between Bank and any other obligor on the Obligation,
including but not limited to any other note or instrument, loan agreement,
security agreement, deed of trust, mortgage, promissory note, assignment or
other agreement or instrument concerning the Obligation; or (b) if Pledgor or
such other obligor shall fail to timely and properly pay or observe, keep or
perform any term, covenant, agreement or condition in any agreement between such
party and any affiliate or subsidiary of NationsBank Corporation.

      B. Rights and Remedies. If any Event of Default shall occur, then, in each
and every such case, Bank may, without (a) presentment, demand, or protest, (b)
notice of default, dishonor, demand, non-payment, or protest, (c) notice of
intent to accelerate all or any part of the Obligation, (d) notice of
acceleration of all or any part of the Obligation, or (e) notice of any other
kind, all of which Pledgor hereby expressly waives (except for any notice
required under this Agreement, any other loan document or which may not be
waived under applicable law), at any time thereafter exercise and/or enforce any
of the following rights and remedies, at Bank's option:

            i. Acceleration. The Obligation shall, at Bank's option, become
immediately due and payable, and the obligation, if any, of Bank to permit
further borrowings under the Obligation shall at Bank's option immediately cease
and terminate.

            ii. Liquidation of Collateral. Sell, or instruct any Agent or Broker
to sell, all or any part of the Collateral in a public or private sale, direct
any Agent or Broker to liquidate all or any part of any Account and deliver all
proceeds thereof to Bank, and apply all proceeds to the payment of any or all of
the Obligation in such order and manner as Bank shall, in its discretion,
choose.

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            iii. Uniform Commercial Code. All of the rights, powers and remedies
of a secured creditor under the Uniform Commercial Code ("UCC") as adopted in
the jurisdiction to which Bank is subject under this Agreement.

            iv. Right of Set Off. Without notice or demand to Pledgor, set off
and apply against any and all of the Obligation any and all deposits (general or
special, time or demand, provisional or final) and any other indebtedness, at
any time held or owing by Bank or by any of Bank's affiliates or correspondents
to or for the credit of the account of Pledgor or any guarantor or indorser of
Pledgor's Obligation.

Pledgor specifically understands and agrees that any sale by Bank of all or part
of the Collateral pursuant to the terms of this Agreement may be effected by
Bank at times and in manners which could result in the proceeds of such sale as
being significantly and materially less than might have been received if such
sale had occurred at different times or in different manners, and Pledgor hereby
releases Bank and its officers and representatives from and against any and all
obligations and liabilities arising out of or related to the timing or manner of
any such sale.

If, in the opinion of Bank, there is any question that a public sale or
distribution of any Collateral will violate any state or federal securities law,
Bank may offer and sell such Collateral in a transaction exempt from
registration under federal securities law, and any such sale made in good faith
by Bank shall be deemed "commercially reasonable."

9. General.

      A. Parties Bound. Bank's rights hereunder shall inure to the benefit of
its successors and assigns, and in the event of any assignment or transfer of
any of the Obligation or the Collateral, Bank thereafter shall be fully
discharged from any responsibility with respect to the Collateral so assigned or
transferred, but Bank shall retain all rights and powers hereby given with
respect to any of the Obligation or the Collateral not so assigned or
transferred. All representations, warranties and agreements of Pledgor, if more
than one, are joint and several and all shall be binding upon the personal
representatives, heirs, successors and assigns of Pledgor.

      B. Waiver. No delay of Bank in exercising any power or right shall operate
as a waiver thereof; nor shall any single or partial exercise of any power or
right preclude other or further exercise thereof or the exercise of any other
power or right. No waiver by Bank of any right hereunder or of any default by
Pledgor shall be binding upon Bank unless in writing, and no failure by Bank to
exercise any power or right hereunder or waiver of any default by Pledgor shall
operate as a waiver of any other or further exercise of such right or power or
of any further default. Each right, power and remedy of Bank as provided for
herein or in any of the loan documents related to the Obligation, or which shall
now or hereafter exist at law or in equity or by statute or otherwise, shall be
cumulative and concurrent and shall be in addition to every other such right,
power or remedy. The exercise or beginning of the exercise by Bank of any one or
more of such rights, powers or remedies shall not

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preclude the simultaneous or later exercise by Bank of any or all other such
rights, powers or remedies.

      C. Agreement Continuing. This Agreement shall constitute a continuing
agreement. If the Obligation consists of All Debt, this Agreement shall apply to
all future as well as existing transactions, whether or not of the character
contemplated at the date of this Agreement, and if all transactions between Bank
and Pledgor shall be closed at any time, shall be equally applicable to any new
transactions thereafter. Provisions of this Agreement, unless by their terms
exclusive, shall be in addition to other agreements between the parties. Time is
of the essence of this Agreement.

      D. Definitions. Unless the context indicates otherwise, definitions in the
UCC apply to words and phrases in this Agreement; if UCC definitions conflict,
Article 8 and/or 9 definitions apply.

      E. Notice. Notice shall be deemed reasonable if mailed postage prepaid at
least 5 days before the related action (or if the UCC elsewhere specifies a
longer period, such longer period) to the address of Pledgor given above. Each
notice, request and demand shall be deemed given or made, if sent by mail, upon
the earlier of the date of receipt or five (5) days after deposit in the U.S.
Mail, first class postage prepaid, or if sent by any other means, upon delivery.

      F. Modifications. No provision hereof shall be modified or limited except
by a written agreement expressly referring hereto and to the provisions so
modified or limited and signed by Pledgor and Bank. The provisions of this
Agreement shall not be modified or limited by course of conduct or usage of
trade.

      G. Partial Invalidity. The unenforceability or invalidity of any provision
of this Agreement shall not affect the enforceability or validity of any other
provision herein, and the invalidity or unenforceability of any provision of any
loan document related to the Obligation to any person or circumstance shall not
affect the enforceability or validity of such provision as it may apply to other
persons or circumstances.

      H. Applicable Law and Venue. This Agreement has been delivered in the
State of North Carolina and shall be construed in accordance with the laws of
that State. It is performable by Pledgor in the county or city of Bank's address
set out above and Pledgor expressly waives any objection as to venue in any such
location. Wherever possible each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Agreement shall be prohibited by or invalid under
applicable law, such provision shall be ineffective to the extent of such
prohibition or invalidity, without invalidating the remainder of such provisions
or the remaining provisions of this Agreement.

      I. Financing Statement. To the extent permitted by applicable law, a
carbon, photographic or other reproduction of this Agreement or any financing
statement covering the Collateral shall be sufficient as a financing statement.

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      J. ARBITRATION. ANY CONTROVERSY OR CLAIM BETWEEN OR AMONG THE PARTIES
HERETO INCLUDING BUT NOT LIMITED TO THOSE ARISING OUT OF OR RELATING TO THIS
INSTRUMENT, AGREEMENT OR DOCUMENT OR ANY RELATED INSTRUMENTS, AGREEMENTS OR
DOCUMENTS, INCLUDING ANY CLAIM BASED ON OR ARISING FROM AN ALLEGED TORT, SHALL
BE DETERMINED BY BINDING ARBITRATION IN ACCORDANCE WITH THE FEDERAL ARBITRATION
ACT (OR IF NOT APPLICABLE, THE APPLICABLE STATE LAW), THE RULES OF PRACTICE AND
PROCEDURE FOR THE ARBITRATION OF COMMERCIAL DISPUTES OF J.A.M.S./ENDISPUTE OR
ANY SUCCESSOR THEREOF ("J.A.M.S."), AND THE "SPECIAL RULES" SET FORTH BELOW. IN
THE EVENT OF ANY INCONSISTENCY, THE SPECIAL RULES SHALL CONTROL. JUDGMENT UPON
ANY ARBITRATION AWARD MAY BE ENTERED IN ANY COURT HAVING JURISDICTION. ANY PARTY
TO THIS INSTRUMENT, AGREEMENT OR DOCUMENT MAY BRING AN ACTION, INCLUDING A
SUMMARY OR EXPEDITED PROCEEDING, TO COMPEL ARBITRATION OF ANY CONTROVERSY OR
CLAIM TO WHICH THIS AGREEMENT APPLIES IN ANY COURT HAVING JURISDICTION OVER SUCH
ACTION.

            i. SPECIAL RULES. THE ARBITRATION SHALL BE CONDUCTED IN THE COUNTY 
OF ANY BORROWER'S DOMICILE, OR IF THERE IS REAL OR PERSONAL PROPERTY COLLATERAL,
IN THE COUNTY WHERE SUCH REAL OR PERSONAL PROPERTY IS LOCATED AT THE TIME OF THE
EXECUTION OF THIS INSTRUMENT, AGREEMENT OR DOCUMENT AND ADMINISTERED BY J.A.M.S.
WHO WILL APPOINT AN ARBITRATOR; IF J.A.M.S. IS UNABLE OR LEGALLY PRECLUDED FROM
ADMINISTERING THE ARBITRATION, THEN THE AMERICAN ARBITRATION ASSOCIATION WILL
SERVE. ALL ARBITRATION HEARINGS WILL BE COMMENCED WITHIN 90 DAYS OF THE DEMAND
FOR ARBITRATION; FURTHER, THE ARBITRATOR SHALL ONLY, UPON A SHOWING OF CAUSE, BE
PERMITTED TO EXTEND THE COMMENCEMENT OF SUCH HEARING FOR UP TO AN ADDITIONAL 60
DAYS.

            ii. RESERVATION OF RIGHTS. NOTHING IN THIS ARBITRATION PROVISION 
SHALL BE DEEMED TO (I) LIMIT THE APPLICABILITY OF ANY OTHERWISE APPLICABLE
STATUTES OF LIMITATION OR REPOSE AND ANY WAIVERS CONTAINED IN THIS INSTRUMENT,
AGREEMENT OR DOCUMENT; OR (II) BE A WAIVER BY BANK OF THE PROTECTION AFFORDED TO
IT BY 12 U.S.C. SEC. 91 OR ANY SUBSTANTIALLY EQUIVALENT STATE LAW; OR (III)
LIMIT THE RIGHT OF BANK HERETO (A) TO EXERCISE SELF HELP REMEDIES SUCH AS (BUT
NOT LIMITED TO) SETOFF, OR (B) TO FORECLOSE AGAINST ANY REAL OR PERSONAL
PROPERTY COLLATERAL, OR (C) TO OBTAIN FROM A COURT PROVISIONAL OR ANCILLARY
REMEDIES SUCH AS (BUT NOT LIMITED TO) INJUNCTIVE RELIEF, WRIT OF POSSESSION OR
THE APPOINTMENT OF A RECEIVER. BANK MAY EXERCISE SUCH SELF HELP RIGHTS,
FORECLOSE UPON SUCH PROPERTY, OR

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OBTAIN SUCH PROVISIONAL OR ANCILLARY REMEDIES BEFORE, DURING OR AFTER THE
PENDENCY OF ANY ARBITRATION PROCEEDING BROUGHT PURSUANT TO THIS INSTRUMENT,
AGREEMENT OR DOCUMENT. NEITHER THIS EXERCISE OF SELF HELP REMEDIES NOR THE
INSTITUTION OR MAINTENANCE OF AN ACTION FOR FORECLOSURE OR PROVISIONAL OR
ANCILLARY REMEDIES SHALL CONSTITUTE A WAIVER OF THE RIGHT OF ANY PARTY,
INCLUDING THE CLAIMANT IN ANY SUCH ACTION, TO ARBITRATE THE MERITS OF THE
CONTROVERSY OR CLAIM OCCASIONING RESORT TO SUCH REMEDIES.

      K. Controlling Document. To the extent that this Agreement conflicts with
or is in any way incompatible with any other loan document concerning the
Obligation, any promissory note shall control over any other document, and if
such promissory note does not address an issue, then each other loan document
shall control to the extent that it deals most specifically with an issue.

      L. Execution Under Seal. This Agreement is being executed under seal by
Pledgor(s).

      M. NOTICE OF FINAL AGREEMENT. THIS WRITTEN AGREEMENT AND ANY OTHER
DOCUMENTS EXECUTED IN CONNECTION HEREWITH REPRESENT THE FINAL AGREEMENT BETWEEN
THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed under seal by their duly authorized representatives as of the date
first above written.

Bank/Secured Party:

NationsBank, N.A.



By: /s/ Kari C. Howe
    -------------------------
Name: Kari C. Howe

Title: Vice President



Corporate or Partnership Pledgor:

Closure Medical Corporation

                                                              Approved: 05/01/96
                                                               Revised: 05/28/96

                                      -11-
<PAGE>

By: /s/ J. Blount Swain      (Seal)
    -------------------------
Name: J. Blount Swain

Title: Secretary


/s/ J. Blount Swain
-----------------------------
Attest (If Applicable)

[Corporate Seal]

                                                              Approved: 05/01/96
                                                               Revised: 05/28/96

                                      -12-
<PAGE>

                                   SCHEDULE I
                                       TO
                                PLEDGE AGREEMENT

          Collateral Types with NationsBank Approved 100% Advance Rates



1.    Commercial Paper of NationsBank Corporation

2.    U. S. Government obligations with maturities not in excess of 1 year

3.    U. S. Agency obligations with maturities not in excess of 1 year

4.    Repurchase Agreements that are 100% collateralized by U. S. Government
      obligations of U. S. Agency obligations

                                                              Approved: 05/01/96
                                                               Revised: 05/28/96

                                      -13-
<PAGE>

                                   SCHEDULE II

                               PLEDGE CERTIFICATE


      Reference is hereby made to that certain Pledge Agreement dated as of
November 14, 1997 ("Pledge Agreement"), between Closure Medical Corporation
("Pledgor") and NationsBank, N.A., a national banking association ("Bank"). This
Pledge Certificate is delivered pursuant to Section 2 of the Pledge Agreement.
All capitalized terms used and not otherwise defined herein shall have their
respective meanings as set forth in the Pledge Agreement.

      Pledgor hereby certifies that concurrently with the delivery of this
Pledge Certificate,

      [] Pledgor is delivering to Bank the following items of Collateral as
      additional Collateral for the Obligation (collectively, the "Additional
      Collateral"):_____________________________________________________________
      __________________________________________________________________________
      __________________________________________________________________________

      [_] Pledgor is selling or otherwise disposing of the following items of
      Collateral:_______________________________________________________________
      __________________________________________________________________________
      __________________________________________________________________________
      and Pledgor is delivering to Bank the following items of Collateral being
      substituted therefor:_____________________________________________________
      __________________________________________________________________________
      __________________________________________________________________________
      (collectively, the "Substituted Collateral").

      Pledgor hereby acknowledges that Pledgor has granted to Bank a security
interest in the Additional Collateral and/or Substituted Collateral pursuant to
the Pledge Agreement to secure the Obligation and that the Collateral covered by
the Pledge Agreement includes, without limitation, the Substituted Collateral
and Additional Collateral. Pledgor hereby represents and warrants that all of
the representations and warranties contained in the Pledge Agreement are true
and correct in all material respects, including with respect to the Additional
Collateral and Substituted Collateral, on the date hereof as though made as of
the date hereof.

      EXECUTED this _____ day of ______________________, 19__.



                                       _________________________________________
                                       J. Blount Swain


                                       _________________________________________
                                       Benny Ward

                                                              Approved: 05/01/96
                                                               Revised: 05/28/96

                                      -14-