Document:

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                                                                    EXHIBIT 10-7

                                PLEDGE AGREEMENT

          THIS PLEDGE AGREEMENT, dated as of May 31, 2006, made by the
undersigned ("Pledgor"), in favor of CSE MORTGAGE LLC, a Delaware limited
liability company, not individually but in its capacity as "Agent" under the
Loan Agreement defined below (in such capacity the "Agent") pursuant to the Loan
Agreement (as defined below).

                                   WITNESSETH:

          WHEREAS, Pledgor is a "Borrower" under a certain Loan and Security
Agreement, dated as of May 31, 2006 (as at any time amended, modified or
supplemented, the "Loan Agreement"), by and among the "Lenders" identified as
such therein, CSE Mortgage LLC, a Delaware limited liability company, as the
sole initial "Lender" or one of the "Lenders" and as "Agent" for all such
"Lenders," and Pledgor and Lexington Rubber Group, Inc. ("Issuer"; Pledgor and
Issuer, collectively, "Borrowers"), pursuant to which, subject to the terms and
conditions set forth therein, Lenders have agreed to make available to the
Borrowers certain credit facilities; and

          WHEREAS, Pledgor is the record and beneficial owner of all of the
authorized, issued and outstanding shares of Equity Interests in Issuer, all as
more particularly described in Schedule I attached hereto (the "Pledged
Shares"); and

          WHEREAS, as a condition precedent (among others) to the extension of
credit facilities to Borrowers under the Loan Agreement, Lenders are requiring
that Pledgor shall have executed and delivered in favor of Agent this Agreement
pledging to Agent, for the benefit of Lenders, all such Pledged Shares as
security for the payment of the "Secured Obligations" (as hereinafter defined);

          NOW, THEREFORE, in consideration of the premises and to induce Agent
and Lenders to provide financial accommodations to Borrowers under the Loan
Agreement, Pledgor hereby agrees in favor of Agent as follows:

          1. Definitions. In addition to the terms defined hereinabove, unless
otherwise defined herein, terms defined in the Loan Agreement are used herein as
therein defined. The following terms shall have (unless otherwise provided
elsewhere in this Agreement) the following respective meanings (such meanings
being equally applicable to both the singular and plural form of the terms
defined):

          "Agreement" shall mean this Pledge Agreement, and all amendments,
modifications and supplements hereto.

          "Bankruptcy Code" shall mean Title 11, United States Code, as amended
from time to time, and any successor statute thereto.

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

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          "Secured Obligations" shall have the meaning assigned to such term in
Section 3 hereof.

          "Securities Act" shall mean the Securities Act of 1933, as amended.

          "UCC" shall mean the Uniform Commercial Code of the State of New York.

          2. Pledge. Pledgor hereby pledges, assigns, hypothecates, transfers
and grants to Agent, for the benefit of all Lender Parties, a security interest
in, all of the following (all of the following, herein, collectively, the
"Pledged Collateral"):

          (a) the Pledged Shares, and the certificates representing the Pledged
Shares, and all dividends, cash, instruments and other property or proceeds from
time to time received, receivable or otherwise distributed in respect of or in
exchange for any or all of the Pledged Shares;

          (b) all additional shares of capital stock of Issuer from time to time
acquired by Pledgor in any manner, including, without limitation, stock
dividends or distributions in connection with any increase or reduction of
capital, reclassification, merger, consolidation, sale of assets, combination of
shares, stock split, spin-off or split-off (all of which shares shall constitute
additional Pledged Shares), and the certificates representing such additional
Pledged Shares and all dividends, cash, instruments and other property or
proceeds from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of such additional Pledged Shares; and

          (c) all options and rights, whether as an addition to, in substitution
of or in exchange for any such Pledged Shares, and all such dividends, cash,
instruments and other property or proceeds.

          3. Security for Obligations. This Agreement secures, and the Pledged
Collateral is security for, the prompt payment in full when due, whether at
stated maturity, by acceleration or otherwise, and performance of all
"Obligations," as that term is defined in the Loan Agreement (herein,
collectively, the "Secured Obligations").

          4. Delivery of Pledged Collateral. All certificates representing or
evidencing the Pledged Shares shall be delivered to and held by or on behalf of
Agent pursuant hereto and shall be accompanied by duly executed instruments of
transfer or assignment in blank. Pledgor hereby authorizes Issuer, upon demand
by Agent, to deliver any certificates, instruments or other distributions issued
in respect of the Pledged Collateral directly to Agent, in each case to be held
by Agent, subject to the terms hereof. Agent shall have the right, upon the
occurrence of an Event of Default and during its continuation, in its
discretion, and without notice to Pledgor (except as otherwise provided in the
Loan Agreement), to transfer to or to register in the name of Agent or any of
its nominees, any or all of the Pledged Shares. In addition, after an Event of
Default has occurred and during its continuation, Agent shall have the right to
exchange certificates or instruments representing or evidencing Pledged Shares
for certificates or instruments of smaller or larger denominations.

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          5. Representations and Warranties. To induce Lenders to enter into the
Loan Agreement, Pledgor makes the following representations and warranties to
Agent each and all of which shall survive the execution and delivery of this
Agreement until all Secured Obligations are indefeasibly satisfied in full and
there remain no outstanding commitments under the Loan Agreement:

          (a) Sole Holder of Record. Pledgor is, and at the time of delivery of
any additional Pledged Shares to Agent pursuant to Section 4 hereof will be, the
sole holder of record and the sole beneficial owner of the Pledged Collateral
free and clear of any Lien except for Permitted Encumbrances.

          (b) Authorized Shares. All of the Pledged Shares have been duly
authorized, are validly issued and are fully paid and non-assessable.

          (c) No Restrictions on Transfer. There are no restrictions on transfer
of the Pledged Shares contained in any Organic Document of Issuer that have not
otherwise been enforceably and legally waived by the necessary parties.

          (d) No Violation of Securities Regulations. None of the Pledged Shares
has been issued or transferred in violation of the securities registration,
securities disclosure or similar laws of any jurisdiction to which such issuance
or transfer may be subject.

          (e) Capital Stock of Issuer. On the date hereof, the authorized
capital stock of Issuer is as set forth on Schedule I hereto. As of the date
hereof, (i) no subscription, warrant, option or other right to purchase or
acquire any shares of any class of capital stock of Issuer is authorized and
outstanding, and (ii) there is no commitment by Issuer to issue any such shares,
warrants, options or other such rights or securities. The Pledged Shares
constitute all of the issued and outstanding shares of capital stock of Issuer.

          (f) Valid Security Interest. The pledge, assignment and delivery of
the Pledged Collateral pursuant to this Agreement will create a valid security
interest in the Pledged Collateral and the proceeds thereof, securing the
payment of the Secured Obligations.

          The foregoing representations and warranties shall be deemed to have
been made by Pledgor on the date of each borrowing by Borrowers under the Loan
Agreement on and as of such date of such borrowing as though made hereunder on
and as of such date.

          6. Covenants. Pledgor covenants and agrees that until the Loan
Agreement has been terminated and the Secured Obligations have been paid in
full:

          (a) Without the prior written consent of Agent, Pledgor will not sell,
assign, transfer, convey, or otherwise dispose of its rights in or to the
Pledged Collateral or any interest therein; nor will Pledgor create, incur or
permit to exist any Lien whatsoever with respect to any of the Pledged
Collateral or any unpaid dividends or other distributions or payments with
respect thereto or the proceeds thereof other than Permitted Encumbrances.

          (b) Pledgor will not, subsequent to the date of this Agreement,
without the prior written consent of Agent, cause or permit Issuer to issue or
grant any warrants, stock

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options of any nature or other instruments convertible into shares of any class
of capital stock or issue any additional shares of capital stock or sell or
transfer any treasury stock unless such warrants, stock options, other
instruments or shares are made part of the Pledged Collateral.

          (c) Subject to Section 21 hereof, Pledgor will, at its expense,
promptly execute, acknowledge and deliver all such instruments and take all such
action as Agent may from time to time reasonably request in order to ensure to
Agent the benefits of the lien and security interest in and to the Pledged
Collateral intended to be created by this Agreement, including, without
limitation, delivering to Agent upon the occurrence of an Event of Default, and
during its continuation, irrevocable proxies in respect of the Pledged
Collateral in form satisfactory to Agent. Until receipt thereof, after the
occurrence of any Event of Default and during its continuation, this Agreement
shall constitute Pledgor's proxy to Agent or its nominee to vote all shares of
Pledged Collateral then registered in Pledgor's name.

          (d) Pledgor has and will defend the title to the Pledged Collateral
and the security interest of Agent therein against the claim of any Person other
than any holder of a Permitted Encumbrance, and will maintain and preserve such
security interest and until the date of termination of the Loan Agreement and
payment in full of the Secured Obligations.

          (e) Pledgor will pay all taxes, assessments and charges levied,
assessed or imposed upon the Pledged Collateral before the same become
delinquent or become liens upon any of the Pledged Collateral except where the
same may be contested in good faith by appropriate proceedings and as to which
adequate reserves have been provided.

          (f) Except as permitted by Section 7(a)(ii) hereof with respect to
certain cash dividends, Pledgor will cause any additional Pledged Collateral
issued to or received by it to be forthwith deposited and pledged with Agent or
Revolver Agent subject to Section 21 hereof, in each case accompanied by
instruments of assignment in conformity with Section 4 hereof.

          7. Pledgor's Rights; Termination of Rights.

          (a) As long as no Event of Default shall have occurred and be
continuing:

               (i) Pledgor shall have the right, from time to time, to vote and
give consents with respect to the Pledged Collateral or any part thereof for all
purposes not inconsistent with the provisions of this Agreement, the Loan
Agreement or any Other Document; provided, however, that no vote shall be cast,
no consent shall be given and no action shall be taken by Pledgor (without the
prior written consent of the Agent) that would violate any terms of this
Agreement or the Loan Agreement;

               (ii) Pledgor shall be entitled, from time to time, to collect and
receive, for Pledgor's own use, all dividends paid in respect of the Pledged
Shares, to the extent then permitted to be paid under the Loan Agreement.

          (b) Upon the occurrence of an Event of Default and during the
continuation thereof, all of Pledgor's rights to exercise voting and other
consensual rights pursuant to Section 7(a)(i) hereof and all of Pledgor's rights
to receive any cash dividends pursuant to Section 7(a)(ii) hereof shall cease
and all such rights shall thereupon become vested in Agent

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who shall have the sole and exclusive right to exercise the voting and other
consensual rights that Pledgor would otherwise be authorized to exercise
pursuant to Section 7(a)(i) hereof and to receive and retain the dividends which
Pledgor would otherwise be authorized to receive and retain pursuant to Section
7(a)(ii) hereof; provided, however, that notwithstanding anything contained in
this Agreement to the contrary, no voting or other consensual rights shall be
vested in Agent, unless and until Agent gives written notice to Pledgor that
Agent intends to have such voting or other consensual rights vest in itself.
Upon the occurrence of an Event of Default and during the continuation thereof,
Pledgor shall pay over to Agent any cash dividends received by Pledgor with
respect to the Pledged Collateral and any and all money and other property paid
over to or otherwise received by Agent, shall be retained by Agent as Pledged
Collateral hereunder and shall be applied in accordance with the provisions
hereof.

          8. Remedies. (a) Upon the occurrence of an Event of Default and during
its continuation, Agent may exercise all rights of a secured party under the
UCC. In addition, Agent is hereby authorized and empowered to (i) transfer and
register in its name or in the name of its nominee all or any part of the
Pledged Collateral, (ii) exercise the voting rights with respect to the Pledged
Collateral, (iii) exercise all corporate rights with respect to the Pledged
Collateral including, without limitation, all rights of conversion, exchange,
subscription or any other rights, privileges or options pertaining to any shares
of the Pledged Collateral as if it were the absolute owner thereof, including,
but without limitation, the right to exchange, at its discretion, any or all of
the Pledged Collateral upon the merger, consolidation, reorganization,
recapitalization or other readjustment of Issuer, as issuer or holder thereof,
as applicable, or upon the exercise by Issuer of any right, privilege or option
pertaining to any of the Pledged Collateral, and, in connection therewith, to
deposit and deliver any and all of the Pledged Collateral with any committee,
depository, transfer agent, registrar or other designated agent upon such terms
and conditions as it may determine, all without liability except to account for
property actually received by it, (iv) collect and receive all cash dividends
and other distributions made upon the Pledged Collateral, (v) sell in one or
more sales after ten (10) days' notice of the time and place of any public sale
or of the time after which a private sale is to take place (which notice Pledgor
agrees is commercially reasonable), but without any prior notice or
advertisement, the whole or any part of the Pledged Collateral and (vi)
otherwise act with respect to the Pledged Collateral as though Agent was the
outright owner thereof. Any sale shall be made at a public or private sale at
Agent's place of business, or at any public building in the City of New York,
New York or at another location to be named in the notice of sale, either for
cash or upon credit or for future delivery at such price as Agent may deem fair,
and Agent may be the purchaser of the whole or any part of the Pledged
Collateral so sold and hold the same thereafter in its own right free from any
claim of Pledgor or any right of redemption, which Pledgor hereby waives to the
maximum extent permitted by applicable law. Each sale shall be made to the
highest bidder, but Agent reserves the right to reject any and all bids at such
sale that, in its discretion, it shall deem inadequate. Demands of performance,
except as otherwise herein specifically provided for, notices of sale,
advertisements and the presence of property at sale are hereby waived and any
sale hereunder may be conducted by an auctioneer or any officer or agent of
Agent.

          (b) If, at the original time or times appointed for the sale of all or
any part of the Pledged Collateral, the highest bid, if there be but one sale,
shall be inadequate to discharge in full all the Secured Obligations, or if the
Pledged Collateral is offered for sale in lots, if at any of such sales, the
highest bid for the lot offered for sale would indicate to Agent, in its
reasonable

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discretion, the unlikelihood of the proceeds of the sales of all of the Pledged
Collateral being sufficient to discharge all the Secured Obligations, Agent may,
on one or more occasions and in its reasonable discretion, postpone any of said
sales by public announcement at the time of sale or the time of previous
postponement of sale, and no other notice of such postponement or postponements
of sale need be given, any other notice being hereby waived; provided, however,
that any sale or sales made after such postponement shall be after ten (10)
days' notice to Pledgor.

          (c) If, at any time Agent shall determine to exercise its rights to
sell all or any part of the Pledged Collateral hereunder, such Pledged
Collateral or the part thereof to be sold shall not, for any reason whatsoever,
be effectively registered under the Securities Act, Agent may, in its reasonable
discretion (subject only to applicable requirements of law), sell such Pledged
Collateral or part thereof by private sale in such manner and under such
circumstances as Agent may deem necessary or advisable, and shall not be
required to effect such registration or to cause the same to be effected.

          (d) Pledgor recognizes that Agent may be unable to effect a public
sale of any or all the Pledged Collateral and may be compelled to resort to one
or more private sales thereof. Pledgor also acknowledges that any such private
sale may result in prices and other terms less favorable to the seller than if
such sale were a public sale and, notwithstanding such circumstances, agrees
that any such private sale shall be deemed to have been made in a commercially
reasonable manner. Agent shall be under no obligation to delay a sale of any of
the Pledged Collateral for the period of time necessary to permit Pledgor to
cause such securities to be registered for public sale under the Act, or under
applicable state securities laws, even if Pledgor would agree to do so.

          (e) Pledgor agrees that after the occurrence of an Event of Default
and during its continuation, Pledgor will not at any time plead, claim or take
the benefit of any appraisal, valuation, stay, extension, moratorium or
redemption law now or hereafter in force in order to prevent or delay the
enforcement of this Agreement, or the absolute sale of the whole or any part of
the Pledged Collateral or the possession thereof by any purchaser at any sale
hereunder, and Pledgor waives the benefit of all such laws to the extent it
lawfully may do so. Pledgor agrees that it will not interfere with any right,
power and remedy of Agent provided for in this Agreement or now or hereafter
existing at law or in equity or by statute or otherwise, or any exercise by
Agent of any one or more of such rights, powers, or remedies. No failure or
delay on the part of Agent to exercise any such right, power or remedy and no
notice or demand which may be given to or made upon Pledgor by Agent with
respect to any such remedies shall operate as a waiver thereof, or limit or
impair Agent's or any Lender's right to take any action or to exercise any power
or remedy hereunder, without notice or demand, or prejudice its rights as
against Pledgor in any respect. Pledgor waives all claims, damages and demands
against Agent arising out of the repossession, retention or sale of the Pledged
Collateral except such as result from Agent's gross negligence or willful
misconduct.

          (f) Pledgor further agrees that a breach of any of the covenants
contained in this Section 8 will cause irreparable injury to Agent, that Agent
has no adequate remedy at law in respect of such breach and, as a consequence,
agrees that each and every covenant contained in this Section 8 shall be
specifically enforceable against Pledgor, and Pledgor hereby waives and

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agrees not to assert any defenses against an action for specific performance of
such covenants except for a defense that the Secured Obligations are not then
due and payable in accordance with the agreements and instruments governing and
evidencing such obligations.

          9. Application of Proceeds. Subject to Section 21 hereof, any cash
held by Agent as Pledged Collateral and all cash proceeds received by Agent in
respect of any sale of, liquidation of, or other realization upon all or any
part of the Pledged Collateral shall be applied or distributed by Agent first,
to the payment of all costs, expenses and charges of Agent, or the reimbursement
of Agent for the prior payment of such costs, expenses and charges incurred in
connection with the care and safekeeping of any of the Pledged Collateral
(including, without limitation, the expenses of any sale or other proceeding,
the expenses of any taking, reasonable attorneys' fees and expenses, court
costs, any other expenses incurred or expenditures or advances made by Agent in
the protection, enforcement or exercise of its rights, powers or remedies
hereunder) with interest on any such reimbursement at the rate prescribed in the
Loan Agreement as the Default Rate from the date of payment; second, to the
payment of all other Secured Obligations (in whatever order Agent elects);
third, to such Persons as required by applicable law including, without
limitation, Section 9-504(1)(c) of the Uniform Commercial Code and then, to the
extent of any surplus thereafter remaining, to Pledgor or as a court of
competent jurisdiction may direct. In the event that the proceeds of any
collection, recovery, receipt, appropriation, realization or sale are
insufficient to satisfy the Obligations, Pledgor shall be liable for the
deficiency together with interest thereon at the rate prescribed in the Loan
Agreement as the Default Rate plus the reasonable fees of any attorneys employed
by Agent to collect such deficiency. Subject to Section 21 hereof, Agent, in its
sole and absolute discretion, with or without notice to Pledgor, may deposit any
proceeds of any collection, recovery, receipt, appropriation or sale of the
Pledged Collateral in an interest bearing cash collateral deposit account to be
maintained as security for the Obligations.

          10. Information. Pledgor will promptly give or cause to be given to
Agent written notice of any material notices or other material documents
received by it with respect to the Pledged Collateral.

          11. Power of Attorney. Effective upon the occurrence of an Event of
Default during its continuation, Pledgor appoints Agent as Pledgor's attorney,
with power to endorse Pledgor's name on any checks, notes, acceptances, money
orders, drafts or other forms of payment or security representing a portion of
the Pledged Collateral that may come into Agent's possession and to do all
things necessary to carry out this Agreement. Pledgor ratifies and approves all
such acts of such attorney. Agent, as attorney hereunder, will not be liable for
any acts or omissions, nor for any errors of judgment or mistakes of fact or
law, except for such acts, omissions or errors in judgment determined by a court
of competent jurisdiction in a final proceeding to have resulted primarily from
Agent's gross negligence or willful misconduct. This power, coupled with an
interest, is irrevocable until the payment in full of the Secured Obligations
and termination of the Loan Agreement.

          12. Waiver. No delay on Agent's part in exercising any power of sale,
lien, option or other right hereunder, and no notice or demand which may be
given to or made upon Pledgor by Agent with respect to any power of sale, lien,
option or other right hereunder, shall constitute a waiver thereof, or limit or
impair Agent's right to take any action or to exercise any

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power of sale, lien, option, or any other right hereunder, without notice or
demand, or prejudice Agent's or any Lender's rights as against Pledgor in any
respect.

          13. Assignment. Agent may assign, endorse or transfer any instrument
evidencing all or any part of the Secured Obligations to any Person, to the
extent provided in the Loan Agreement, and such permitted holder of such
instrument shall be entitled to the benefits of this Agreement.

          14. Termination. Promptly following the payment in full of the Secured
Obligations and the irrevocable termination of the Loan Agreement, Agent shall
deliver to Pledgor the Pledged Collateral pledged by Pledgor at the time subject
to this Agreement and all instruments of assignment executed in connection
therewith, free and clear of the security interest therein created hereby, and,
except as otherwise provided herein, all of Pledgor's obligations hereunder
shall terminate at such time.

          15. Lien Absolute. All rights of Agent hereunder, and all obligations
of Pledgor hereunder, shall be absolute and unconditional irrespective of:

          (a) any lack of validity or enforceability of the Loan Agreement, this
Agreement, any Other Document or any other agreement or instrument governing or
evidencing any Secured Obligations;

          (b) any change in the time, manner or place of payment of, or in any
other term of, all or any part of the Secured Obligations, or any other
amendment or waiver of or any consent to any departure from the Loan Agreement,
the Agreement, any Other Document or any other agreement or instrument governing
or evidencing any Secured Obligations;

          (c) any exchange, release or non-perfection of any Collateral, other
than the Pledged Collateral, or any release or amendment or waiver of or consent
to departure from the terms of, any guaranty, for all of any of the Secured
Obligations; or

          (d) any other circumstance which might otherwise constitute a defense
available to, or a discharge of, Pledgor.

          16. Release. Pledgor consents and agrees that Agent may at any time,
or from time to time, in its discretion (a) renew, extend or change the time of
payment, and/or the manner, place or terms of payment of all or any part of the
Secured Obligations and (b) exchange, release and/or surrender all or any of the
Pledged Collateral, or any part thereof, by whomsoever deposited, which is now
or may hereafter be held by Agent in connection with all or any of the Secured
Obligations; all in such manner and upon such terms as Agent may deem proper,
and without notice to or further assent from Pledgor, it being hereby agreed
that Pledgor shall be and remain bound upon this Agreement, irrespective of the
existence, value or condition of any of the Pledged Collateral, and
notwithstanding any such change, exchange, settlement, compromise, surrender,
release, renewal or extension, and notwithstanding also that the Secured
Obligations may, at any time exceed the aggregate principal amount thereof set
forth in the Loan Agreement, or any other agreement governing any Secured
Obligations. Pledgor hereby waives notice of acceptance of this Agreement, and
also presentment, demand, protest and notice of dishonor of any and all of the
Secured Obligations, and promptness in commencing suit against

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any party hereto or liable hereon, and in giving any notice to or of making any
claim or demand hereunder upon Pledgor, except for such notices as are provided
for in the Loan Agreement. No act or omission of any kind on Agent's or any
Lender's part shall in any event affect or impair this Agreement.

          17. Agent's Right to Take Action. In the event that Pledgor fails or
refuses to perform any of its obligations set forth herein, including, without
limitation its obligation pursuant to Section 6(e) hereof to pay taxes,
assessments and other charges levied, assessed or imposed on the Pledged
Collateral, or otherwise fails or refuses to pay any amount necessary for the
preservation and protection of the Pledged Collateral, Agent shall have the
right, without obligation, to do all things it deems reasonably necessary or
advisable to discharge the same (including, without limitation, to pay any such
taxes, assessments, charges or other sums, together with interest and penalties
thereon) and any sums paid by Agent or the cost thereof, including, without
limitation, attorneys' fees, shall be reimbursed by Pledgor to Agent on demand
and, until so reimbursed, shall bear interest at the rate prescribed in the Loan
Agreement as the Default Rate.

          18. Payments. Agent shall have the continuing and exclusive right to
apply or reverse and reapply any and all payments to any portion of the Secured
Obligations. This Agreement shall remain in full force and effect and continue
to be effective should any petition be filed by or against Pledgor for
liquidation or reorganization, should Pledgor become insolvent or make an
assignment for the benefit of creditors or should a receiver or trustee be
appointed for all or any significant part of Pledgor's assets, and shall
continue to be effective or be reinstated, as the case may be, if at any time
payment and performance of the Secured Obligations, or any part thereof, is,
pursuant to applicable law, rescinded or reduced in amount, or must otherwise be
restored or returned by Agent whether as a "voidable preference", "fraudulent
conveyance" or otherwise all as though such payment or performance had not been
made. In the event that any payment or any part thereof, is rescinded, reduced,
restored, or returned, the Secured Obligations shall be reinstated and deemed
reduced only by such amount paid and not so rescinded, reduced, restored or
returned.

          19. Miscellaneous.

          (a) No Liability to Agent. The recitals of fact herein shall be taken
as statements of Pledgor for which Agent assumes no responsibility. Agent makes
no representation to anyone as to the value of the Pledged Collateral or any
part thereof or as to the validity or adequacy of the security afforded or
intended to be afforded thereby or as to the validity of this Agreement. Agent
shall be protected in relying upon any notice, consent, request or other paper
or document believed by it to be genuine and correct and to have been signed by
a proper person. The permissive rights of Agent hereunder shall not be construed
as duties of Agent. Agent shall be under no obligation to take any action toward
the enforcement of this Agreement or rights or remedies in respect of any of the
Pledged Collateral. Agent nor any of its respective officers, directors,
employees, agents or counsel shall be liable for any action lawfully taken or
omitted to be taken by it or them hereunder or in connection herewith, except
for its or their own gross negligence or willful misconduct.

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          (b) Amendments. This Agreement may not be modified, amended, or the
terms waived except in a writing signed by Pledgor and the Agent.

          (c) Successors and Assigns. All of the rights, privileges, remedies
and options given to Agent hereunder shall inure to the benefit of their
successors and assigns; and all the terms, conditions, promises, covenants,
provisions and warranties of this Agreement shall inure to the benefit of and
shall bind the representatives, successors and assigns of Agent and Pledgor, as
permitted by the Loan Agreement. Pledgor may not assign this Agreement to any
Person.

          (d) Interpretation. 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
provision or the remaining provisions of this Agreement. In case any security
interest or other right of Agent shall be held to be invalid, illegal or
unenforceable, such invalidity, illegality or unenforceability shall not affect
any other security interest or other right, privilege or power granted under
this Agreement.

          (e) Governing Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of New York applied to contracts to be
performed wholly within the State of New York.

          (f) Injunctive Relief. Pledgor recognizes that, in the event that
Pledgor fails to perform, observe or discharge any of its obligations or
liabilities under this Agreement, any remedy of law may prove to be inadequate
relief to Agent; therefore, Pledgor agrees that Agent, if Agent so requests,
shall be entitled to temporary and permanent injunctive relief in any such case
without the necessity of proving actual damages, to the extent permitted by
applicable law.

          (g) Notices. Any notice or request hereunder shall be given to Pledgor
or to Agent in the manner prescribed therefor in the Loan Agreement.

          (h) Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and all of which when
taken together shall constitute one and the same instrument.

          (i) Recapture. Anything in this Agreement to the contrary
notwithstanding, if Agent receives any payment or payments on account of the
Secured Obligations, which payment or payments or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside
and/or required to be repaid to a trustee, receiver, or any other party under
the United States Bankruptcy Code, as amended, or any other federal or state
bankruptcy, reorganization, moratorium or insolvency law relating to or
affecting the enforcement of creditors' rights generally, common law or
equitable doctrine, then to the extent of any sum not finally retained by Agent,
Pledgor 's obligations to Agent shall be reinstated and this Agreement shall
remain in full force and effect (or be reinstated) until payment shall have been
made to Agent, which payment shall be due on demand.

                                       10

<PAGE>

          (j) Section Headings. Any section headings used herein are solely for
the convenience of the parties and shall be without legal effect.

          (k) Time of Essence. Time is of the essence in all matters pertaining
to the payment or performance by Pledgor of its obligations hereunder.

          20. Survival of Rights, Duties, Etc. No termination or cancellation
(regardless of cause or procedure) of the Loan Agreement, except with the
written agreement or consent of the Agent, shall in any way affect or impair the
powers, obligations, duties, rights and liabilities of the parties hereto in any
way with respect to (i) any transaction or event occurring prior to such
termination or cancellation, (ii) the Pledged Collateral, or (iii) any of
Pledgor's undertakings, agreements, covenants, warranties and representations
contained in this Agreement and all such undertakings, agreements, covenants,
warranties and representations shall survive such termination or cancellation
until all of the Secured Obligations of every nature whatsoever shall have been
fully paid and satisfied.

          21. Intercreditor Matters. Notwithstanding anything to the contrary in
this Agreement, (i) the rights of Agent under this Agreement are subject to the
terms of the Intercreditor Agreement, (ii) any obligation of Pledgor in this
Agreement that requires delivery of Pledged Collateral to, possession or control
of Pledged Collateral with, the pledge, assignment, endorsement or transfer of
Pledged Collateral to or the registration of Pledged Collateral in the name of,
Pledge shall be deemed complied with and satisfied if such delivery of Pledged
Property is made to, such possession or control of Pledged Property is with, or
such Pledged Property be assigned, endorsed or transferred to or registered in
the name of, the Revolver Loan Agent, and (iii) in the event of a direct
conflict between the terms and provisions of this Agreement and the terms and
provisions of the Pledge Agreement, dated as of even date herewith, made by
Pledgor in favor of the Revolver Loan Agent (the "Revolver Loan Agent Pledge
Agreement") or the Revolver Loan Agreement it is the intention of Pledgor, Agent
and Lenders that such provisions shall be read together and construed, to the
fullest extent possible, to be in concert with each other; however, in the event
of any actual, irreconcilable conflict that cannot be resolved as a aforesaid,
the terms and provisions of the Revolver Loan Agent Pledge Agreement and the
Revolver Loan Agreement shall control and, in such case, Pledgor shall not be in
breach of its obligations under this Agreement as a result of complying with the
terms and provisions of the Revolver Loan Agent Pledge Agreement or the Revolver
Loan Agreement; provided that, notwithstanding the foregoing, nothing contained
in this Section 21 shall limit or otherwise adversely effect the grant of a
security interest in any Pledged Collateral made pursuant to this Agreement.

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK]

                                       11
<PAGE>

     IN WITNESS WHEREOF, Pledgor has executed this Agreement or caused this
    Agreement to be executed by its officers thereunto duly authorized as of
                          the date first above written.

                                        "PLEDGOR"

                                        LEXINGTON PRECISION CORPORATION

                                        By: /s/ Michael A. Lubin
                                            ------------------------------------
                                        Name: Michael A. Lubin
                                        Title: Chairman

The foregoing is hereby accepted and agreed to as of the date first above
written.

CSE MORTGAGE LLC, as Agent

By: /s/ Stephen M. Klein
    ---------------------------------
Name: Stephen M. Klein
Title: Managing Director Business
       Credit Group

                                       12

<PAGE>

                                   SCHEDULE I

                                 PLEDGED SHARES

<TABLE>
<CAPTION>
                                                                                STOCK
                                                            NUMBER OF        CERTIFICATE      PERCENTAGE
                            PLACE OF       CLASS OF       SHARES ISSUED      NUMBERS OF           OF            NUMBER OF
ISSUER                    ORGANIZATION   CAPITAL STOCK   AND OUTSTANDING   PLEDGED SHARES   SHARES PLEDGED   SHARES PLEDGED
------                    ------------   -------------   ---------------   --------------   --------------   --------------
<S>                       <C>            <C>             <C>               <C>              <C>              <C>
Lexington Rubber Group,
   Inc.                     Delaware         Common             1                 1              100%               1
</TABLE>

<PAGE>

                                STOCK ASSIGNMENT
                           (SEPARATE FROM CERTIFICATE)

     FOR VALUE RECEIVED, the undersigned does hereby sell, assign and convey
unto _____________________________________________ all right, title and interest
of the undersigned in and to one (1) share of the common stock of Lexington
Rubber Group, Inc., a Delaware corporation, standing in the name of the
undersigned on the books of said corporation, and represented by Certificate No.
1 to which this stock assignment is appended, with full power of substitution in
the premises as attorney-in-fact for the undersigned.

                                        Dated: May 31, 2006

                                        LEXINGTON PRECISION CORPORATION

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------<PAGE>

                                                                    EXHIBIT 10-8

                              TERMINATION AGREEMENT

                                                                    May 31, 2006

Lexington Precision Corporation
40 East 52nd Street
20th Floor
New York, NY 10022

Gentlemen:

     Wachovia Bank, National Association, successor by merger to Congress
Financial Corporation, a national banking association, in its capacity as agent
pursuant to the Loan Agreement (as hereinafter defined) acting for and on behalf
of the parties thereto as lenders (in such capacity, "Agent"), the parties to
the Loan Agreement as lenders (individually, each a "Lender" and collectively,
"Lenders"), Lexington Precision Corporation, a Delaware corporation ("LPC") and
Lexington Rubber Group, Inc., a Delaware corporation ("LRG" and together with
LPC, individually, each a "Borrower" and collectively, "Borrowers") have entered
into financing arrangements pursuant to which to which Lenders (or Agent on
behalf of Lenders) have made loans and advances (collectively, the "Loans") and
provided other financial accommodations to Borrowers as set forth in the Loan
and Security Agreement, dated December 18, 2003, by and among Agent, Lenders and
Borrowers (as the same has been amended or supplemented prior to the date
hereof, the "Loan Agreement", and together with all related agreements,
documents and instruments, as each may have been amended, modified,
supplemented, extended, renewed or restated, collectively, the "Financing
Agreements").

     Concurrently herewith, Borrowers are entering into financing arrangements
with (i) CapitalSource Finance LLC, in its capacity as agent (in such capacity,
"New Revolver Agent") for the lenders under such financing arrangements (such
lenders being collectively the "New Revolver Lenders"), and (ii) CSE Mortgage
LLC, in its capacity as agent (in such capacity, "New Term Agent") for the
lenders under such financing arrangements (such lenders being collectively the
"New Term Lenders"), and utilizing a portion of the initial loans provided by
the New Revolver Lenders and/or the New Term Lenders to repay all of the Loans
and related indebtedness to Agent and Lenders, other than the obligations,
liabilities and indebtedness of Borrowers to Agent and Lenders arising pursuant
to or in connection with the letters of credit arranged for by Agent for the
account of a Borrower and listed on Exhibit A hereto (individually, a "Letter of
Credit", and collectively, the "Letters of Credit").

     In consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
each of the undersigned hereby agrees as follows:

     1. Repayment; Pledge. Borrowers shall pay or cause to be repaid to Agent,
at Borrowers' cost and expense, on the date hereof, by federal funds wire
transfer the amount of

<PAGE>

     2. $25,123,761.37 consisting of (a) $23,128,761.37, which reflects the
total amount of the Obligations of Borrowers owing to Agent and Lenders under
the Financing Agreements as of May 31, 2006, and (b) $1,995,000, which shall be
pledged by Borrowers to Agent as Cash Collateral (as hereinafter defined) as
provided herein (collectively, the "Total Release Amount"). In the event that
Agent does not receive notice of receipt of the Total Release Amount in its
deposit account below prior to 3:00 p.m., New York City time, on the date
hereof, the Total Release Amount shall be recalculated on each day until the
Total Release Amount has been received by Agent; provided, that, if Agent
receives notice of receipt of the Total Release Amount in its deposit account
below after 3:00 p.m., New York City time, on any day, such funds shall be
deemed received by Agent on the next business day. The Total Release Amount
shall be sent to the following account of Agent:

          Wachovia Bank, National Association
          Charlotte, North Carolina
          ABA No. 053 000 219
          For credit to: Wachovia Bank, National Association
          Account No.: 5000000030279
          Re: Lexington Precision

     3. Releases.

          (a) Immediately upon the satisfaction of the conditions precedent set
forth in Section 8 hereof, (i) the financing arrangements relating to the Loans
as between Borrowers, on the one hand, and Agent and Lenders, on the other hand,
pursuant to the Financing Agreements are hereby terminated, cancelled and of no
further force and effect except for those provisions of the Financing Agreements
set forth in Sections 3(a) and 3(b) below relating to the Continuing Obligations
(as hereinafter defined) or those provisions thereof that otherwise expressly
survive termination by their terms, (ii) Agent and Lenders shall have no further
obligation to make any Loans, provide any Letter of Credit Accommodation (as
defined in the Loan Agreement) or other financial accommodations or have any
other duties or responsibilities in connection with the Financing Agreements
except as provided in Sections 9 and 10 hereof, and to allow the continuation of
the Letters of Credit (provided, that, Agent and Lenders shall have no
obligation to extend the expiration date of any Letter of Credit or agree to any
other amendment thereof or any waiver with respect thereto) and (iii) all
security interests, pledges and liens upon any and all properties and assets of
any Borrower heretofore granted by any Borrower to Agent pursuant to the
Financing Agreements are hereby irrevocably released, discharged and terminated
(except with respect to the Cash Collateral as provided herein). Such release,
discharge and termination shall be effective notwithstanding the Continuing
Obligations or Section 7 hereof.

          (b) Each Borrower hereby releases, discharges and acquits Agent and
Lenders, their respective officers, directors, agents and employees and its and
their respective successors and assigns, from all obligations to any Borrower
(and its respective successors and assigns), except as set forth in Sections 9
and 10 hereof, and from any and all claims, demands, debts, accounts, contracts,
liabilities, actions and causes of actions, whether in law or in equity, that
any Borrower at any time had or has, or that its successors and assigns
hereafter can or may have against Agent and Lenders, their respective officers,
directors, agents or employees and its and their respective successors and
assigns, except to the extent arising out of this Agreement.

                                       2

<PAGE>

     4. Cash Collateral.

          (a) As collateral security for the prompt performance, observance and
indefeasible payment in full of all of the Continuing Obligations set forth in
Sections 4(a) and (b) in respect of the Letters of Credit, Borrowers hereby
irrevocably assign, pledge, hypothecate, transfer, set over to Agent, and grant
to Agent a security interest in and right to set off against the sum specified
in clause (b) of Section 1 above, which sum has been remitted to Agent, and all
proceeds thereof (the "Cash Collateral"). The Cash Collateral shall be held by
Agent in an account designated by Agent for such purpose in its books and
records and may be commingled with Agent's own funds.

          (b) Agent shall hold the Cash Collateral (less any amounts thereof
applied to such Continuing Obligations, including payments of the Letter of
Credit Obligations or Letters of Credit returned to Borrowers pursuant to this
paragraph) in an amount equal to one hundred five (105%) percent of the undrawn
face amount of each of the Letters of Credit until, as to each Letter of Credit,
the earlier of (i) thirty (30) days after the expiration date of such Letter of
Credit, after which Agent shall remit to Borrowers, without interest, an amount
equal to the face value of such Letter of Credit (provided, that, no drawing or
purported drawing has been received prior to the thirtieth (30th) day following
the stated expiration date of such Letter of Credit), and (ii) five (5) days
after the receipt by Agent of either (A) the original Letters of Credit returned
for cancellation or (B) evidence, in form and substance reasonably satisfactory
to Agent, that such Letter of Credit has been cancelled, and thereafter Agent
shall remit to Borrowers an amount equal to the face value of each letter of
credit so cancelled, less any costs or fees accrued in connection therewith. In
the event of a drawing on any Letter of Credit, Agent will apply the cash
Collateral to satisfy any reimbursement obligations of the Borrowers in respect
of any drawing on any Letter of Credit. Upon later of (i) thirty (30) days after
the expiration of all Letters of Credit which have not been returned for
cancellation or (ii) five (5) days after all Letters of Credit have been
cancelled as provided in clause (ii) above, Agent shall release and remit to
Borrowers any remaining Cash Collateral then held by Agent in respect of each of
the Letters of Credit.

     5. Continuing Obligations. Notwithstanding anything to the contrary
contained herein, Borrowers are not released from, and hereby ratify and confirm
their continuing liability to Agent and Lenders for, the indefeasible payment
and satisfaction in full of the following (collectively, the "Continuing
Obligations"):

          (a) all obligations of Borrowers arising pursuant to or in connection
with the Letters of Credit, including, without limitation, (i) the obligation to
pay Agent and Lenders for amounts paid or payable by Agent or Lenders to the
issuer in respect of amounts drawn under any Letter of Credit, which amounts
shall be due and payable to Agent and Lenders, without notice or demand, at the
option of Agent, immediately upon any such drawing under such Letter of Credit
and (ii) all letter of credit fees, charges and expenses (including bank charges
and expenses) accrued and accruing in respect of the Letters of Credit, which
fees owing to Agent and Lenders shall be payable at the rate set forth in
Section 2.2(b) of the Loan Agreement as in effect immediately prior to the
effectiveness of this Agreement, and shall be due and payable each week upon
Borrowers receipt of a statement or invoice therefor;

                                       3

<PAGE>

          (b) interest (at the interest rate provided for in Section 3.1 of the
Loan Agreement) upon all amounts owed to Agent and Lenders in respect of the
Letters of Credit or otherwise in respect of the Continuing Obligations, which
interest shall accrue from the date of any drawing under the Letters of Credit
or such other date on which each such amount is due under the terms of the
Financing Agreements as in effect immediately prior to the effectiveness hereof,
until Agent and Lenders have received full and final payment thereof in
immediately available funds;

          (c) all obligations of Borrowers to Agent and Lenders hereunder,
including without limitation, the obligations described in Sections 5, 6 and 8
hereof, which shall be due and payable on demand;

          (d) any costs and expenses incurred by Agent and Lenders, including
attorneys' fees and legal expenses in connection with the termination of the
Financing Agreements, which shall be due and payable on demand; and

          (e) all indemnification obligations and other obligations in favor of
Agent and Lenders that, pursuant to the terms of the Financing Agreements as in
effect immediately prior to the effectiveness hereof, survive the termination
thereof, which shall be due and payable on demand.

          (f) All of the Continuing Obligations shall be (i) due and payable
upon demand by Agent on Borrowers, and (ii) payable without offset, defense or
counterclaim of any kind, nature or description.

     6. Indemnification for Returned Items and Related Expenses.

          (a) Each Borrower agrees, jointly and severally, to indemnify Agent
and Lenders from any and all loss, cost, damage or expense (including attorneys'
fees and legal expenses) which Agent or Lenders may suffer or incur at any time
as a result of or in connection with: (i)any non-payment, claim, refund or
dishonor of any checks or other similar items which have been credited by Agent
to the account of Borrowers with Agent and (ii) any bookkeeping, accounting or
other errors in calculation of any amount to be paid to Agent and Lenders
hereunder requiring an adjustment thereto, together with any expenses or other
charges incident thereto and in addition, each Borrower agrees jointly and
severally to pay Agent and Lenders on demand all reasonable costs and expenses
(including reasonable attorneys' fees and legal expenses) incurred in connection
with this letter agreement and any instruments or documents contemplated
hereunder. The provisions of this Section 4(a) shall not apply to any amounts
owed pursuant to Section 7 hereof.

          (b) In addition, and not in limitation of the rights to
indemnification in its favor provided for in Section 4(a) above from Borrowers,
New Revolver Agent agrees to indemnify Agent and Lenders from, and hold Agent
and Lenders harmless against, all loss, cost, damage or expense (including
attorneys' fees) which Agent and Lenders may suffer or incur at any time as a
result of any non-payment, claim, refund or dishonor of any checks or other
items that have been credited by Agent to the account of a Borrower with Agent
in determining the amount to be paid to Agent under Section 1 hereof, together
with any expenses or other charges incident thereto. The amount of any such
loss, cost, damage or expense indemnified hereupon shall be paid to

                                       4

<PAGE>

Agent and Lenders promptly by New Revolver Agent upon Agent's demand therefor,
sent in writing at any time within sixty (60) days after the date hereof, and
the amount of the demand shall be conclusive upon New Revolver Agent. Without
limitation, it is understood that the obligation of New Revolver Agent to make
such payments for the amounts indemnified hereupon shall not be conditioned upon
any prior demand by Agent upon Borrowers.

          (c) Borrowers authorize the foregoing indemnification of Agent and
Lenders by New Revolver Agent and agree that New Revolver Agent may pay any and
all amounts demanded by Agent pursuant to the foregoing indemnification and New
Revolver Agent may treat such amounts as advances to Borrowers and charge the
amounts to any account of Borrowers with New Revolver Agent, all without inquiry
as to whether such amounts are actually due and owing to Agent and Lenders and
without regard to any dispute or claim that Borrowers may have or assert against
Agent and Lenders and/or other parties.

     7. Rights in Instruments. Notwithstanding anything to the contrary
contained herein, Agent and each Lender reserve all of its rights in and to any
checks or similar instruments for payment of money heretofore received by Agent
or any Lender in connection with its arrangements with Borrowers, and all of
their rights to any monies due or to become due under said checks or similar
instruments and/or all of its claims thereon, but only if, and to the extent,
that the Borrowers' account with Agent has been credited for such monies, checks
or similar instruments and Borrower has not otherwise paid or reimbursed Agent
therefor.

     8. Reinstatement. Notwithstanding anything to the contrary contained
herein, in the event any payment made to, or other amount or value received by,
Agent or Lenders from or for the account of any Borrower is avoided, rescinded,
set aside or must otherwise be returned or repaid by Agent and Lenders whether
in any bankruptcy, reorganization, insolvency or similar proceeding involving
any Borrower or otherwise, the indebtedness intended to be repaid thereby shall
be reinstated (without any further action by any party) and shall be enforceable
against each Borrower and its respective successors or assigns. In such event,
each Borrower shall be and remain jointly and severally liable to Agent and
Lenders for the amount so repaid or recovered to the same extent as if such
amount had never originally been received by Agent or such Lender.

     9. Conditions Precedent. The effectiveness of the termination and release
contained in Section 2(a) above and any UCC Financing Statement Amendments
providing for the termination of financing statements naming Agent as secured
party and any Borrower as debtor or other release documents releasing any
security interests or other liens in favor of Agent that are delivered in
connection herewith (and any authorization to file such termination statements
or release documents) is subject to and conditioned upon the receipt by Agent of
each of the following on or prior to the date hereof:

          (a) cash or other immediately available funds in the amounts set forth
in Section 1 above; and

          (b) an original of this Agreement (or a photocopy of an executed
original or executed original counterparts of this Agreement by facsimile or
other electronic transmission), duly authorized, executed and delivered by the
parties hereto.

                                       5

<PAGE>

     10. Release Documents; Authorization to File. Upon the satisfaction of the
conditions precedent set forth in Section 8 above: (a) Agent, at Borrowers'
expense, shall deliver to any Borrower or New Revolver Agent (or any person that
Agent believes in good faith represents any Borrower or New Revolver Agent) and,
if applicable, execute: (i) all Uniform Commercial Code termination statements
to effectuate the release of record of the financing statements between Agent,
as secured party, and any Borrower, as debtor, that are currently filed of
record and for which Agent has or is provided with the recording information and
mortgage releases and release of security interests in patents and trademarks to
effectuate the release of record of mortgages or security interests in patents
and trademarks granted by a Borrower to Agent that are currently filed of record
and for which Agent has the recording information, (ii) the original stock
certificate for the shares of LRG pledged by LPC to Agent pursuant to the
Financing Agreements and (b) each of New Revolver Agent, New Term Loan Agent and
the Borrowers is authorized by Agent to file all UCC termination statements and
such other release documents on behalf of Agent or otherwise as are necessary to
terminate of record any security interests, pledges or other liens in favor of
the Agent (except that Agent shall retain a lien on the Cash Collateral by
virtue of Agent's possession thereof).

     11. Further Assurances. At the request of Borrowers or New Revolving Agent,
at Borrowers' expense, Agent agrees to execute and deliver such other and
further documents and instruments reasonably acceptable to Agent, as may be
reasonably requested in order to effect or evidence more fully the matters
covered hereby, including, without limitation, the release of all security
interests and liens in favor of Agent.

     12. Governing Law. The validity, construction and effect of this Agreement
shall be governed by the internal laws of the State of New York but excluding
any principles of conflicts of law or other rule of law that would cause the
application of the law of any jurisdiction other than the laws of the State of
New York.

     13. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original hereof and
submissible into evidence and all of which together shall be deemed to be a
single instrument. Delivery of an executed counterpart of this Agreement by
facsimile or other method of electronic transmission shall have the same force
and effect as delivery of an original executed counterpart of this Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       6

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered by their authorized officers as of the date and year
first above written.

                                       Very truly yours,

                                       WACHOVIA BANK, NATIONAL ASSOCIATION,
                                       successor by merger to Congress Financial
                                       Corporation, as Agent and a Lender

                                       By: /s/ Herb Korn
                                           -------------------------------------
                                       Title: Vice President

                                       ABLECO FINANCE LLC, on behalf of itself
                                       and its affiliate assigns, as a Lender

                                       By: /s/ Daniel E. Wolf
                                           -------------------------------------
                                       Title: Senior Vice President

LEXINGTON PRECISION CORPORATION

By: /s/ Michael A. Lubin
    --------------------------------
Title: Chairman

LEXINGTON RUBBER GROUP, INC.

By: /s/ Michael A. Lubin
    --------------------------------
Title: Chairman

AGREED AS TO SECTION 4(b):

CAPITALSOURCE FINANCE LLC

By: /s/ Stephen M. Klein
    --------------------------------
Title: Managing Director Business
       Credit Group

                                       7

<PAGE>

                                    EXHIBIT A
                                       TO
                              TERMINATION AGREEMENT

                          OUTSTANDING LETTERS OF CREDIT

<TABLE>
<CAPTION>
                                   LETTER OF
           APPLICANT              CREDIT NO.       AMOUNT      EXPIRATION DATE
           ---------              ----------   -------------   ---------------
<S>                               <C>          <C>             <C>
Lexington Precision Corporation    SM204450W   $1,000,000.00      6/30/2007
Lexington Precision Corporation    SM422553W   $  325,000.00      1/13/2007
Lexington Precision Corporation    SM209077W   $  575,000.00      6/30/2007
TOTAL                                          $1,900,000.00
                                               =============
</TABLE>

                                       A-1

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