Document:

EXHIBIT 10.10

               CROMPTON CORPORATION

           1988 LONG TERM INCENTIVE PLAN

        Section 1.  Purpose

        The purpose of the Plan is to attract and retain key
employees of the Company and its Subsidiaries and to motivate
such employees to put forth maximum efforts for the success of
the business by offering them long term performance-based
incentives and an opportunity to acquire ownership of the
Company's Stock.

        Section 2.  Definitions

        For purposes of the Plan, the following terms shall have
the meanings set forth below:

            (a) "Board" means the Board of Directors of the
Company.

            (b) "Change in Control", "Potential Change in
Control", and "Change in Control Price" have the meanings set
forth in Sections 10(b), (c), and (d), respectively.

            (c) "Code" means the Internal Revenue Code of 1986,
as amended from time to time.

            (d) "Commission" means the Securities and Exchange
Commission or any successor agency.

            (e) "Committee" means the Committee referred to in
Section 3.

            (f) "Company" means Crompton Corporation, a
corporation organized under the laws of the State of Delaware, or
any successor corporation.

            (g) "Disability" means permanent and total disability
as determined under procedures established by the
Committee for purposes of the Plan.

            (h) "Disinterested Person" shall have the meaning set
forth in Rule 16b-3(d)(3), as promulgated by the Commission under
the Exchange Act, or any successor definition adopted by the
Commission.

            (i) "Early Retirement" means retirement, with the
consent for purposes of the Plan of the Committee or such
officer of the Company as may be designated from time to time by
the Committee, from active employment with the Company or
a Subsidiary prior to Normal Retirement.

            (j) "Exchange Act" means the Securities Exchange Act
of 1934, as amended from time to time.

            (k) "Fair Market Value" means, except as provided in
Section 7(b), the mean, as of any given date, between the highest
and lowest reported sales prices of the Stock on the New York
Stock Exchange Composite Index on such date (or, if there is no
reported sale on such date, on the last preceding date on which
any reported sale occurred), or if no such reported sales prices
are available, the fair market value of the Stock as determined
by the Committee in good faith.

            (l) "Incentive Stock Option" means any Stock Option
intended to be and designated as an "incentive stock option"
within the meaning of Section 422A of the Code.

            (m) "Long Term Performance Award" or "Long Term
Award" means an award under Section 9.

            (n) "Non-Qualified Stock Option" means any Stock
Option that is not an Incentive Stock Option.

            (o) "Normal Retirement" means retirement from active
employment with the Company or a Subsidiary at or after age 65.

            (p) "Plan" means the Crompton Corporation 1988 Long
Term Incentive Plan, as set forth herein and as hereafter amended
from time to time.

            (q) "Restricted Stock" means an award under Section
8.

            (r) "Retirement" means Normal or Early Retirement.

            (s) "Rule 16b-3" means Rule 16b-3 as promulgated by
the Commission under Section 16(b) of the Exchange Act, as
amended from time to time.

            (t) "Stock" means the Common Stock, $1.00 par value,
of the Company.

            (u) "Stock Appreciation Right" means a right granted
under Section 7.

            (v) "Stock Option" or "Option" means an option
granted under Section 6.

            (w) "Subsidiary" means any business entity in which
the Company, directly or indirectly, owns 50 percent or more of
the total combined voting power of all classes of stock or other
equity interest.

        Section 3.  Administration

     The Plan shall be administered by the Organization,
Compensation and Governance Committee of the Board, or such other
committee of the Board, composed of not less than three
Disinterested Persons, as shall be designated by the Board from
time to time.  If at any time no Committee designated to
administer the Plan shall be in office, the functions of the
Committee specified in the Plan shall be exercised by the Board.

        Except as limited by the express provisions of the Plan,
the Committee shall have the sole and complete authority:

            (a) to select the officers and other key employees to
whom Stock Options, Stock Appreciation Rights, Restricted Stock,
and Long Term Performance Awards may from time to time be
granted;

            (b) to determine whether and to what extent Incentive
Stock Options, Non-Qualified Stock Options, Stock Appreciation
Rights, Restricted Stock, Long Term Performance Awards, or any
combination thereof are to be granted, hereunder;

            (c) to determine the number of shares to be covered
by each award granted hereunder;

            (d) to determine the terms and conditions of any
award granted hereunder (including, but not limited to, the share
price, any restriction or limitation, and any vesting
acceleration or forfeiture waiver regarding any Stock Option or
other award and the shares of Stock relating thereto), based on
such factors as the Committee shall determine;

            (e) to adjust the performance goals and measurements
applicable to performance-based awards pursuant to the terms of
the Plan; and

            (f) to determine to what extent and under what
circumstances Stock and other amounts payable with respect to an
award shall be deferred.

        The Committee shall have the authority to adopt, alter,
and repeal such administrative rules, guidelines and practices
governing the Plan as it shall from time to time deem advisable,
to interpret the terms and provisions of the Plan and any award
issued under the Plan (and any agreement relating thereto), and
otherwise to supervise the administration of the Plan.  The
Committee may act only by a majority of its members then in
office, except that the members thereof may authorize any one or
more of their number or any officer of the Company to execute and
deliver documents on behalf of the Committee.  Any determination
made by the Committee pursuant to the provisions of the Plan with
respect to any award shall be made in its sole discretion at the
time of the grant of the award or, unless in contravention of any
express term of the Plan, at any time thereafter.  All decisions
made by the Committee pursuant to the provisions of the Plan
shall be final and binding on all persons, including the Company
Plan participants.

        Section 4.  Stock Subject to Plan

        The total number of shares of Stock reserved for
distribution pursuant to Stock Options or other awards under the
Plan shall be 10,000,000 shares.  Such shares may consist, in
whole or in part, of authorized and  unissued shares or issued
shares heretofore or hereafter reacquired and held as treasury
shares.  Upon the exercise of a Stock Appreciation Right, the
full number of shares to which the Stock Appreciation Right
relates shall be deemed to have been distributed under the Plan,
and upon the payment of a Long Term Performance Award in the form
of cash, the full number of shares that could have been purchased
with such cash at the Fair Market Value of the Stock on the date
of such payment shall be deemed to have been distributed under
the Plan.  If the outstanding Stock Option or Stock Appreciation
Right shall expire or terminate without having been exercised in
full, or if any Restricted Stock award or Long Term Performance
Award is forfeited in whole or in part, the shares subject to the
unexercised or forfeited portion of such award shall again be
available for distribution in connection with awards under the
Plan.

        In the event of any merger, reorganization,
consolidation, recapitalization, stock dividend, stock split, or
other change in corporate structure affecting the Stock, such
substitution or adjustments shall be made in the aggregate number
of shares reserved for issuance under the Plan, in the number and
option price of shares subject to outstanding Stock Options, in
the determination of the amount payable upon exercise of
outstanding Stock Appreciation Rights, and in the number of
shares subject to other outstanding awards granted under the Plan
as may be determined by the Committee, in its sole discretion, to
be equitable to prevent substantial dilution or enlargement of
the rights granted to participants hereunder, provided, however,
that the number of shares subject to any award will always be a
whole number.  The Committee shall give notice to each
participant of any adjustment made pursuant to this paragraph,
and upon such notice, such adjustment shall be effective and
binding for all purposes of the Plan.

        Section 5.  Eligibility

        Officers and other key employees of the company and its
Subsidiaries (but excluding members of the Committee and any
person who serves only as a director) who in the opinion of the
Committee are responsible for or contribute to the management,
growth, and profitability of the business of the Company or its
Subsidiaries are eligible to be granted awards under the Plan.

       Section 6.  Stock Options

        Stock Options may be granted alone or in addition to
other awards granted under the Plan and may be of two types:
Incentive Stock Options and Non-Qualified Stock Options.  Any
Stock Option granted under the Plan shall be in such form as the
Committee may from time to time approve.  The Committee shall
have the authority to grant any optionee Incentive Stock Options,
Non-Qualified Stock Options, or both types of Stock Options (in
each case with or without Stock Appreciation Rights).  To the
extent that any Stock Option does not qualify as an Incentive
Stock Option, it shall constitute a separate Non-Qualified Stock
Option.  The Committee shall not grant Stock Options to any one
individual with respect to more than twenty-five percent (25%) of
the shares of Stock reserved for distribution pursuant to Stock
Options or other awards under the Plan.

        Stock Options shall be evidenced by option agreements,
the terms and provisions of which may differ.  An option
agreement shall indicate on its face whether it is an agreement
for Incentive Stock Options or Non-Qualified Stock Options.  The
grant of a Stock Option shall occur on the date the Committee by
resolution selects an employee as a participant in any grant of
Stock Options, determines the number of Stock Options to be
granted to such employee, and specifies the terms and provisions
of the option agreement; provided, however, that the Committee
may designate in such resolution a later date as the date of
grant of any or all of the Stock Options covered thereby.  The
Company shall notify a participant of any grant of Stock Options,
and a written option agreement or agreements shall be duly
executed between the Company and the participant.

        Anything in the Plan to the contrary notwithstanding, no
term of the Plan relating to Incentive Stock Options shall be
interpreted, amended, or altered nor shall any discretion or
authority granted under the Plan be exercised so as to disqualify
the Plan under Section 422A of the Code or, without the consent
of the optionee affected, to disqualify any Incentive Stock
Option under such Section 422A.

        Options granted under the Plan shall be subject to the
following terms and conditions and shall contain such additional
terms and conditions as the Committee shall deem desirable:

            (a) Option Price.  The option price per share of
Stock purchasable under a Stock Option shall be equal to the Fair
Market Value of the Stock on the date of grant or such higher
price as shall be determined by the Committee at grant.

            (b) Option Term.  The term of each Stock Option shall
be fixed by the Committee, but no incentive Stock Option shall be
exercisable more than 10 years after the date of grant of the
Option, and no Non-Qualified Stock Option shall be exercisable
more than 10 years and one month after the date of grant of the
Option.

            (c) Exercisability.  Stock Options shall be
exercisable at such time or times and subject to such terms and
conditions as shall be determined by the Committee; provided,
however, that, except as provided in Sections 6(f), (g), (h), and
10, no Stock Option shall be exercisable prior to the first
anniversary date of the granting of the Stock Option.  If the
Committee provides that any Stock Option is exercisable only in
installments, the Committee may at any time waive such
installment exercise provisions, in whole or in part, based on
such factors as the Committee may determine.

            (d) Method of Exercise.  Subject to the provisions of
this Section 6, Stock Options may be exercised, in whole or in
part, at any time during the option term by giving written notice
of exercise to the Company specifying the number of shares to
be purchased.  Such notice shall be accompanied by payment in
full of the purchase price in cash (including check, bank draft,
money order, or such other instrument as the Company may accept).
Unless otherwise determined by the Committee at any time or from
time to time, payment in full or in part may also be made (i) by
delivering a duly executed notice of exercise together with
irrevocable instructions by the optionee to a broker to deliver
promptly to the Company sufficient proceeds from a sale or loan
of the shares subject to the Stock Option to pay the purchase
price (provided, however, that the amount of any shares sold
shall not exceed the amount necessary to satisfy required U.S.
federal, state, local and foreign withholding obligations using
the minimum statutory rate), or (ii) in the form of unrestricted
Stock already owned by the optionee and acquired more than six
(6) months prior to such tender or, in the case of the exercise
of a Non-Qualified Stock Option, Restricted Stock subject to an
award hereunder (based, in each case, on the Fair Market Value of
the Stock on the date the Stock Option is exercised).  If payment
of the option exercise price of a Non-Qualified Stock Option is
made in whole or in part in the form of Restricted Stock, such
Restricted Stock (and any replacement shares relating thereto)
shall remain restricted in accordance with the original terms of
the Restricted Stock award in question, and any additional Stock
received upon the exercise shall be subject to the same
forfeiture restrictions, unless otherwise determined by the
Committee.

            No shares of Stock shall be issued until full payment
therefor has been made.  Subject to any forfeiture restrictions
that may apply if a Stock Option is exercised using Restricted
Stock, an optionee shall have all of the rights of a stockholder
of the Company, including the right to vote the shares and the
right to receive dividends, with respect to shares subject to the
Stock Option when the optionee has given written notice of
exercise, has paid in full for such shares, and, if requested,
has given the representation described in Section 13(a).

            (e) Non-transferability of Options.  No Stock Option
shall be transferable by the optionee other than by will or by
the laws of descent and distribution, and all Stock Options shall
be exercisable, during the optionee's lifetime, only by the
optionee or by the guardian or legal representative of the
optionee, it being understood that the terms "holder" and
"optionee" include the guardian and legal representative of the
optionee named in the option agreement and any person to whom an
option  is transferred by will or the laws of descent and
distribution.  Shares issued upon exercise of a Stock Option
shall be issued in the name of the optionee or, at the request of
the optionee, in the name of such optionee and the optionee's
spouse with right of survivorship.

            (f) Termination by Death.  Subject to Section 6(j),
if an optionee's employment terminates by reason of death, any
Stock Option held by such optionee may thereafter be exercised,
to the extent then exercisable or on such accelerated basis as
the Committee may determine, for a period of two years from the
date of such death or until the expiration of the stated term of
such Stock Option, whichever period is the shorter.

            (g) Termination by Reason of Disability.  Subject to
Section 6(j), if an optionee's employment terminates by reason of
Disability, any Stock Option held by such optionee may thereafter
be exercised by the optionee, to the extent it was exercisable at
the time of termination or on such  accelerated basis as the
Committee may determine, for a period of two years from the date
of such  termination of employment or until the expiration of the
stated term of such Stock Option,  whichever period is the
shorter; provided, however, that, if the optionee dies within
such two-year period, any unexercised Stock Option held by such
optionee shall, notwithstanding the expiration of such two-year
period, continue to be exercisable to the extent to which it was
exercisable at the time of death for a period of 12 months from
the date of such death or until the expiration of the stated term
of such Stock Option, whichever period is the shorter.  In the
event of termination of employment by reason of Disability, if an
Incentive Stock Option is exercised after the expiration of the
exercise periods that apply for purposes of Section 422A of the
Code, such Stock Option will thereafter be treated as
Non-Qualified Stock Option.

            (h) Termination by Reason of Retirement.  Subject to
Section 6(j), if an optionee's employment terminates by reason of
Retirement, any Stock Option held by such optionee that was
granted on or after October 1, 2001, or that had an option price
greater than the Fair Market Value of the Stock on January 22,
2002, may thereafter be exercised by the optionee, to the extent
it was exercisable at the time of Retirement or on such
accelerated basis as the Committee may determine, for a period of
five years from the date of such termination of employment or
until the expiration of the stated term of such Stock Option,
whichever period is the shorter; provided, however, that if the
optionee dies within such five-year period, any unexercised Stock
Option held by such optionee shall, notwithstanding the
expiration of such five-year period, continue to be exercisable
to the extent to which it was exercisable at the time of death
for a period of 12 months from the date of such death or until
the expiration of the stated term of such Stock Option whichever
period is the shorter.  For all other Stock Options awarded
under the Plan, the provisions of the immediately preceding
sentence shall be applicable, with the sole exception that the
five-year period referred to therein shall be three years.  In
the event of termination of employment by reason of Retirement,
if an Incentive Stock Option is exercised after the expiration of
the exercise periods that apply for purposes of Section 422A of
the Code, such Stock Option will thereafter be treated as a Non-
Qualified Stock Option.

            (i) Other Termination.  Subject to Section 6(j), if
an optionee's employment terminates for any  reason other than
death, Disability, Retirement, or cause, any Stock Option held by
such optionee may thereafter be exercised by the optionee, to the
extent it was exercisable at the time of  termination, for a
period of three months from the date of such termination of
employment or until the expiration of the stated term of such
Stock Option, whichever period is the shorter; provided, however,
that if the optionee dies within such three-month period, any
unexercised Stock Option held by such optionee shall,
notwithstanding the expiration of such three-month period,
continue to be exercisable to the extent to which it was
exercisable at the time of death for a period of 12 months from
the date of such death or until the expiration of the stated term
of such Stock Option, whichever period is the shorter.  If an
optionee's employment is terminated for cause, all rights under
any Stock Option held by such optionee shall expire immediately
upon the giving to the optionee of notice of such termination,
unless otherwise determined by the Committee.

            (j) Incentive Stock Option Limitations.  To the
extent required for "incentive stock option" status under Section
422A of the Code, the aggregate Fair Market Value (determined as
of the time of grant) of the Stock with respect to which
Incentive Stock Options granted after 1986 are exercisable for
the first time by an optionee during any calendar year under the
Plan and any other stock option plan of the Company or any
subsidiary or parent corporation (within the meaning of  Section
425 of the Code) after 1986 shall not exceed $100,000.  In the
event a portion of a Stock Option designated as an Incentive
Stock Option exceeds said $100,000 limitation, such portion shall
be treated as a Non-Qualified Stock Option.

            The Committee is authorized to provide at grant that,
to the extent permitted under Section 422A of the Code, if a
participant's employment with the Company and its Subsidiaries is
terminated by reason of death, Disability or Retirement and the
portion of any Incentive Stock Option that is otherwise
exercisable during the post-termination period specified under
Sections 6(f), (g), or (h), applied without regard to this
Section 6(j), is greater than the portion of such option that is
exercisable as an "incentive stock option" during such
post-termination period under Section 422A, such post-termination
period shall automatically be extended (but not beyond the stated
term of  such Stock Option) to the extent necessary to permit the
optionee to exercise such Incentive Stock Option (either as an
Incentive Stock Option or, if exercised after the expiration
periods that apply for the purposes of Section 422A, as a
Non-Qualified Stock Option).  The Committee is also authorized to
provide at grant for a similar extension of the post-termination
exercise period in the event of a Change in Control or a
Potential Change in Control.

            (k) Cashing Out of Options.  In an case when a Stock
Option is exercised after the death of an optionee, the Committee
may elect to cash out all or any part of the Stock Option by
paying the person to whom the Stock Option has been transferred
by reason of the death of the Optionee an amount, in cash or
shares of Stock, equal in value to the excess of the Fair Market
Value of the Stock over the option price on the effective date of
such cash out.

            (l) Substitute Options.  Stock Options or Stock
Appreciation Rights may be granted under the Plan from time to
time in substitution for stock options or stock appreciation
rights held by employees of any corporation who, as the result
of a merger, consolidation, or combination of such other
corporation with, or the acquisition of all or substantially all
of the assets or stock of such other corporation by, the Company
or a Subsidiary, become employees of the Company or a Subsidiary.
The terms and conditions of any substitute Stock Options or Stock
Appreciation Rights so granted may vary from the terms and
conditions set forth in the Plan to such extent as the Committee
at the time of grant may deem appropriate to conform, in whole or
in part, to the provisions of the stock options or stock
appreciation rights in substitution for which they are
granted; provided, however, that in the event a stock option for
which a substitute Stock Option is being granted is an incentive
stock option, no such variation shall be permitted the effect of
which would be to adversely affect the status of any such
substitute Stock Options as an Incentive Stock Option.

        Section 7. Stock Appreciation Rights

        A Stock Appreciation Right may be granted in conjunction
with all or part of any Stock Option granted under the Plan.  In
the case of a Non-Qualified Stock Option, such Right may be
granted either at or after the time of grant of such Stock
Option.  In the case of an Incentive Stock Option, such Right may
be granted only at the time of grant of such Stock Option.  A
Stock Appreciation Right independent of a Stock Option grant may
also be awarded by the Committee, in which event the provisions
of this Section 7 shall be applied for purposes of determining
the operation of such Stock Appreciation Right as if a
Non-Qualified Stock Option had been granted on the date of the
grant of and in conjunction with such independent Stock
Appreciation Right.

        A Stock Appreciation Right granted with respect to a
given Stock Option shall terminate and no longer be exercisable
to the extent of the shares with respect to which the related
Stock Option is exercised or terminates.  A Stock Appreciation
Right may be exercised by an optionee in accordance with the
provisions of this Section 7 by surrendering the applicable
portion of the related Stock Option in accordance with procedures
established by the Committee.  Upon such exercise and surrender,
the optionee shall be entitled to receive an amount determined in
the manner prescribed in Section 7(b).  The Stock Option which
has been so surrendered shall no longer be exercisable to the
extent the related Stock Appreciation Right has been exercised.

        Stock Appreciation Rights shall be subject to such terms
and conditions as shall be determined by the Committee, including
the following:

            (a) Exercisability.  A Stock Appreciation Right shall
be exercisable only at such time or times  and to the extent that
the Stock Option to which it relates is exercisable in accordance
with the provisions of Section 6 and this Section 7; provided,
however, that a Stock Appreciation Right shall not be exercisable
during the first six months of its term by an optionee who is
actually or potentially subject to Section 16(b) of the Exchange
Act, unless otherwise determined by the Committee in the event of
death or Disability of the optionee prior to the expiration of
the six-month period.

            (b) Payment Upon Exercise.  Upon the exercise of a
Stock Appreciation Right, an optionee shall be entitled to
receive an amount in cash, shares of Stock, or both equal in
value to the excess of the Fair Market Value on the date of
exercise of one share of Stock over the option exercise price per
share specified in the related Stock Option multiplied by the
number of shares in respect of which the Stock Appreciation Right
shall have been exercised.  The Committee shall have the right to
determine the form of payment in each case.

            In the case of a Stock Appreciation Right held by an
optionee who is actually or potentially subject to Section 16(b)
of the Exchange Act, the Committee:

                 (i)  may require that such Stock Appreciation
Right be exercised only in accordance with  the applicable
"window period" provisions of Rule 16b-3; and

                 (ii) in the case of a Stock Appreciation Right
relating to a Non-Qualified Stock Option, may provide that the
amount to be paid upon exercise of such Stock Appreciation Right
during a  Rule 16b-3 "window period" shall be based on the
highest mean sales price of the Stock as reported on the New
York Stock Exchange Composite Index on any day during such
"window period".

            (c) Non-transferability.  A Stock Appreciation Right
shall be transferable only when and to the extent that the
related Stock Option would be transferable under Section 6(e).

            (d) Effect of Change in Control.  The Committee may
provide, at the time of grant, that a Stock Appreciation Right
can be exercised only in the event of a Change in Control or a
Potential Change in Control, subject to such terms and
conditions as the Committee may specify at grant.  The Committee
may also provide that, in the event of a Change in Control or a
Potential Change in Control, the amount to be paid upon the
exercise of a Stock Appreciation Right shall be based on  the
Change in Control Price, subject to such terms and conditions as
the Committee may specify at grant.

        Section 8.  Restricted Stock

            (a) Administration.  Shares of Restricted Stock may
be issued either alone or in addition to other awards granted
under the Plan.  The Committee shall determine the officers and
key  employees to whom and the time or times at which grants of
Restricted Stock will be made, the number of shares to be
awarded, the time or times within which such awards may be
subject to forfeiture, and any other terms and conditions of
the awards, in addition to those contained in Section 8(c).  The
Committee may condition the grant of Restricted Stock upon the
attainment of  specified performance goals or such other factors
or criteria as the Committee shall determine.  The provisions of
Restricted Stock awards need not be the same with respect to each
recipient.

        (b) Awards and Certificates.  Each participant receiving
a Restricted Stock award shall be issued a certificate in
respect of such shares of Restricted Stock.  Such certificate
shall be registered  in the name of such participant and shall
bear an appropriate legend referring to the terms, conditions,
and restrictions applicable to such award, substantially in the
following form:

           "The transferability of this certificate and the
shares of stock represented hereby are subject to the terms and
conditions (including forfeiture) of the Crompton & Knowles
Corporation 1988 Long Term Incentive Plan and a Restricted Stock
Agreement.  Copies of such Plan and Agreement are on file at the
offices of Crompton & Knowles Corporation, One Station Place,
Metro Center, Stamford, Connecticut 06902."

        The Committee may require that the certificates
evidencing such shares be held in custody by the Company until
the restrictions thereon shall have lapsed and that, as a
condition of any Restricted Stock award, the participant shall
have delivered a stock power, endorsed in blank, relating to the
Stock covered by such award.

            (c) Terms and Conditions.  Shares of Restricted Stock
shall be subject to the following terms and conditions:

                (i)    Subject to the provisions of the Plan and
the Restricted Stock Agreement referred to in Section
8(c)(vi), during such period commencing with the date of such
award as shall be set by the Committee (the "Restriction
Period"), the participant shall not be permitted to sell,
assign, transfer, pledge, or otherwise encumber shares of
Restricted Stock.  Within these limits, the Committee may
provide for the lapse of such restrictions in installments and
may accelerate or waive such restrictions, in whole or in part,
based on service, performance, and such other facts or
criteria as the Committee may determine.

                (ii)   Except as provided in Section 8(c)(i), the
participant shall have, with respect to the shares of Restricted
Stock, all of the rights of a stockholder of the Company,
including the right to vote the shares and the right to receive
any cash dividends thereon; provided, however, that the Committee
may provide at the time of an award that cash dividends shall be
automatically deferred and reinvested in additional Restricted
Stock.  Dividends on Restricted Stock which  are payable in Stock
shall be paid in the form of additional shares of Restricted
Stock.

                (iii)   Except to the extent otherwise provided
in the applicable Restricted Stock Agreement  and Sections
8(c)(i) and (iv), upon termination of a participant's employment
for any reason during the Restriction Period, all shares still
subject to restriction shall be forfeited by the participant.

               (iv)  In the event of the death of a participant
during the Restriction Period or in the event of hardship or
other special circumstances of a participant whose employment is
involuntarily terminated (other than for cause) during the
Restriction Period, the Committee may waive in whole or in part
any or all remaining restrictions with respect to such
participant's shares of  Restricted Stock.

               (v)  If and when the Restriction Period expires
without a prior forfeiture of the Restricted Stock
subject to such Restriction Period, unlegended certificates for
such shares shall be delivered to the participant.

               (vi)   Each award shall be confirmed by, and be
subject to the terms of, a Restricted Stock Agreement.

        Section 9. Long Term Performance Awards

            (a) Awards and Administration.  Long Term Performance
Awards may be awarded either alone or in addition to other awards
granted under the Plan.  The Committee shall determine the
nature, length, and starting date of the performance period (the
"Performance Period") for each Long Term Performance Award, which
shall be at least two years (subject to Section 10), and shall
determine the performance objectives to be used in valuing Long
Term Performance Awards and determining the extent to which such
Long Term Performance Awards have been earned.  Performance
objectives  may vary from participant to participant and between
groups of participants and shall be based upon such Company,
Subsidiary, business unit, or individual performance factors or
criteria as the Committee may deem appropriate, including, but
not limited to, earnings per share or return on equity.
Performance Periods may overlap and participants may participate
simultaneously with respect to Long Term Performance Awards that
are subject to different Performance Periods and different
performance factors and criteria.  Long Term Performance Awards
shall be confirmed by, and be subject to the terms of, a Long
Term Performance Award Agreement.  The terms of such awards need
not be the same with respect to each participant.

            At the beginning of each performance Period, the
Committee shall determine for each Long Term Performance Award
subject to such Performance Period the range of dollar values or
number of shares of Stock (including Restricted Stock) to be
awarded to the participant at the end of the Performance Period
if and to the extent that the relevant measures of performance
for such Long Term Performance Award are met.  Such dollar values
or number of shares of Stock may be fixed or may vary in
accordance with such performance or other criteria as may be
determined by the Committee.

            (b) Adjustment of Awards.  The Committee may adjust
the performance goals and measurements applicable to Long
Term Performance Awards to take into account changes in law  and
accounting and tax rules and to make such adjustments as the
Committee deems necessary or appropriate to reflect the
inclusion or exclusion of the impact of extraordinary or unusual
items, events, or circumstances in order to avoid windfalls or
hardships.

            (c) Termination of Employment.  Subject to Section 10
and unless otherwise provided in the applicable Long Term
Performance Award Agreement, if a participant terminates
employment during a Performance Period because of death,
Disability, or Retirement, such participant shall be entitled to
a payment with respect to each outstanding Long Term Performance
Award at the end of the applicable Performance Period:

                (i)    based, to the extent relevant under the
terms of the award, upon the participant's performance for
the portion of such Performance Period ending on the date of
termination and the performance of the Company or any
applicable business unit for the entire Performance
Period, and

               (ii)   prorated for the portion of the Performance
Period during which the participant was employed by the Company
or a Subsidiary, all as determined by the Committee.  The
Committee may provide for an earlier payment in settlement of
such award in such amount and under such terms and conditions
as the Committee deems appropriate.  Subject to Section 10
and except as otherwise provided in the applicable Long Term
Performance Award Agreement, if a participant terminates
employment during a Performance Period for any other reason, then
such participant shall not be entitled to any payment with
respect to the Long Term Performance Awards subject to such
Performance Period, unless the committee shall otherwise
determine.

            (d) Form of Payment.  The earned portion of a Long
Term Performance Award may be paid currently or on a deferred
basis with such interest or earnings equivalent as may be
determined by the Committee.  Payment shall be made in the form
of cash or whole shares of Stock, including Restricted Stock, or
a combination thereof, either in a lump sum payment or in annual
installments, all as the Committee shall determine.

        Section 10. Change in Control Provisions

            (a) Impact of Event.  In the event of:

                (i)    a "Change in Control" as defined in
Section 10(b), unless otherwise determined by  the Committee or
the Board prior to the occurrence of such Change in Control, or

                (ii)   a "Potential Change in Control" as defined
in Section 10(c), but only if and to the extent so determined
by the Committee or the Board, the following acceleration and
valuation provisions shall apply:

                (1)    Any Stock Options and Stock Appreciation
Rights outstanding as of the date such Change in Control or such
Potential Change in Control is determined to have occurred and
not then exercisable and vested shall become fully exercisable
and vested; provided, however, that, in the
case of Stock Appreciation Rights held by an optionee who is
actually subject to Section 16(b) of the Exchange Act,
such Stock Appreciation Rights shall not become
exercisable and vested unless they shall have been outstanding
for at least six months at the date such Change
in Control is determined to have occurred.

                (2)    The restrictions and forfeiture provisions
applicable to any Restricted Stock shall lapse, and such
Restricted Stock shall become fully vested.

               (3)    The value of all outstanding Stock Options,
Stock Appreciation Rights, and Restricted Stock shall,
unless otherwise determined by the Committee at or after grant,
but prior to a Change in Control or Potential Change in Control,
be either, in the Committee's sole discretion pursuant to a
resolution adopted prior to the occurrence of a Change in Control
or Potential Change in Control: (i) cashed out on the basis of
the "Change in Control Price," as defined in Section 10(d), as of
the date such Change in Control or such Potential Change in
Control is determined to have occurred or such date as the
Committee may determine prior to the Change in Control; or (ii)
adjusted by substituting for Stock subject to such Stock Option,
Stock Appreciation Right or Restricted Stock, stock or other
securities of the surviving corporation or any successor
corporation to the Company, or a parent or subsidiary thereof, or
that may be issuable by another corporation that is a party to
the transaction resulting in the Change in Control or Potential
Change in Control.

             (4)    Any outstanding Long Term Performance Awards
shall, unless the Committee otherwise determines, be
vested and paid out based on the prorated target results for the
Performance Periods in question, unless the Committee provides
prior to the Change in Control event for a
different payment.

            (b) Definition of "Change in Control".  For purposes
of Section 10(a), a "Change in Control" means a change in control
of the Company of a nature that would be required, to be reported
in response to Item 1(a) of the Current Report on Form 8-K, as in
effect on the effective date of the Plan, pursuant to Section 13
or 15(d) of the Exchange Act; provided that, without
limitation, such a "Change in Control" shall be deemed to have
occurred if:

                (i)    A third person, including a "group" as
such term is used in Section 13(d)(3) of the Exchange Act, other
than the trustee of a Company employee benefit plan, becomes the
beneficial owner, directly or indirectly, of 20 percent or more
of the combined voting power of the Company's outstanding voting
securities ordinarily having the right to vote for the
election of directors of the Company;

                (ii)  During any period of 24 consecutive months
individuals who, at the beginning of such consecutive 24-month
period, constitute the Board of Directors of the Company (the
"Board" generally and as of the effective date of the Plan the
"Incumbent Board") cease for any reason (other than
retirement upon reaching normal retirement age, disability, or
death) to constitute at least a majority of the Board; provided
that any person becoming a director subsequent to
the effective date of the Plan whose election, or nomination for
election by the Company's shareholders, was approved by a vote of
at least three-quarters of the directors comprising
the Incumbent Board (other than an election or nomination of
an individual whose initial assumption of office is in connection
with an actual or threatened election contest
relating to the election of the Directors of the Company, as such
terms are used in Rule 14a-11 of Regulation 14A promulgated under
the Exchange Act) shall be, for purposes of this
Agreement, considered as though such person were a member
of the Incumbent Board; or

                (iii) The Company shall cease to be a publicly
owned corporation having its outstanding Stock listed on the New
York Stock Exchange or quoted in the NASDAQ National Market
System.

            (c) Definition of "Potential Change in Control".  For
purposes of Section 10(a), a "Potential Change in Control" means
the happening of any one of the following:

                (i)    The entering into an agreement by the
Company, the consummation of which would result in a
Change in Control of the Company as defined in Section 10(b); or

                (ii)   The acquisition of beneficial ownership,
directly or indirectly, by any entity, person, or group (other
than the trustee of a Company employee benefit plan) of
securities of the Company representing five percent or more of
the combined voting power of the Company's outstanding
voting securities and the adoption by the Board of a resolution
to the effect that a Potential Change in Control
of the Company has occurred for purposes of the Plan.

            (d) Change in Control Price.  For purposes of this
Section 10, "Change in Control Price" means the highest price per
share paid in any transaction reported on the New York Stock
Exchange Composite Index or paid or offered in any bona fide
transaction related to an actual or potential Change in Control
of the Company at any time during the preceding 60-day period as
determined by the Committee, except that, in the case of
Incentive Stock Options and Stock Appreciation Rights
relating to Incentive Stock Options, such price shall be based
only on transactions reported for the date on which the
Committee decides to cash out such Stock Options.

        Section 11. Amendments and Termination

        The Board may amend, alter, or discontinue the Plan, but
no amendment, alteration, or discontinuation shall be made which
would impair the rights of an optionee under a Stock Option or a
recipient of a Stock Appreciation Right, Restricted Stock award,
or Long Term Performance Award theretofore granted without the
optionee's or recipient's consent or which, without the approval
of the Company's stockholders, would:

            (a) except as expressly Provided in the Plan,
increase the total number of shares reserved for the purpose of
the Plan;

            (b) decrease the option price of any Stock Option to
less than the Fair Market Value on the date of grant;

            (c) change the class of employees eligible to
participate in the Plan; or

            (d) extend the maximum option periods under Section
6(b).

        The Committee may amend the terms of any Stock Option or
other award theretofore granted, prospectively or retroactively,
but no such amendment shall impair the right of any holder
without the holder's consent.  Subject to the above provisions,
the Board shall have authority to amend the Plan to take into
account changes in law and tax and accounting rules, as well as
other developments.

        Section 12.  Unfunded Status of Plan

        It is presently intended that the Plan constitute an
"unfunded" plan for incentive and deferred compensation.  The
Committee may authorize the creation of trusts or other
arrangements to meet the obligations created under the Plan to
deliver Stock or make payments; provided, however, that, unless
the Committee otherwise determines, the existence of such trusts
or other arrangements is consistent with the "unfunded" status of
the Plan.

        Section 13.  General Provisions

            (a)  All certificates for shares of Stock or other
securities delivered under the Plan shall be subject to such
stock transfer orders and other restrictions as the committee may
deem advisable under the rules, regulations, and other
requirements of the Commission, any stock exchange upon which the
Stock is then listed, and any applicable Federal or state
securities law, and the Committee  may cause a legend or legends
to be put on any such certificates to make appropriate reference
to such restrictions.  The Committee may require any optionee
purchasing shares pursuant to a Stock Option to represent to and
agree with the Company in writing that the optionee is acquiring
the shares without a view to the distribution thereof.

            (b)  Nothing contained in this Plan shall prevent the
Company or a Subsidiary from adopting other or additional
compensation arrangements for its employees.

            (c)  The adoption of the Plan shall not confer upon
any employee any right to continued employment nor shall it
interfere in any way with the right of the Company or a
Subsidiary to terminate the employment of any employee at
any time.

           (d)  No later than the date on which the Company is
required to withhold taxes in respect of an award, the
participant shall pay to the Company, or make arrangements
satisfactory to the Company regarding the payment of, any
Federal, state, local, or other taxes of any kind required by law
to be withheld with respect to such award or any payment or
distribution made in connection therewith.  Unless otherwise
determined by the Committee, withholding obligations may be
settled with Stock, including Stock that is part of the award
that gives rise to the withholding requirement; provided,
however, that in the case of any optionee who is actually subject
to Section 16(b) of the Exchange Act, any such settlement shall
comply with the applicable requirements of Rule 16(b)-3.  The
obligations of the Company under the Plan shall be conditional on
such payment or arrangements, and the Company and its
Subsidiaries shall, to the extent permitted by law, have the
right to deduct any such taxes from any payment otherwise due to
the participant.

            (e)  The reinvestment of dividends in additional
Restricted Stock at the time of any dividend payment shall only
be permissible if sufficient shares of Stock are available under
Section 3 for such reinvestment (taking into account then
outstanding Stock Options and other Plan awards).

            (f)  The Committee shall establish such procedures as
it deems appropriate for a participant to designate a beneficiary
to whom any amounts payable with respect to outstanding awards
under the Plan in the event of the participant's death are to be
paid.

                (g)  The Plan and all awards made and actions
taken thereunder shall be governed by and construed in accordance
with the laws of the State of Connecticut.

        Section 14.  Effective Date of Plan; Shareholder Approval

        The Plan shall be effective as of the date it is adopted
by the Board, subject however to the approval of the Plan by the
holders of at least a majority of the outstanding shares of Stock
of the Company present or represented and entitled to vote at a
meeting of shareholders of the Company.  Awards may be made under
the Plan on and after its effective date; provided, however, that
any such awards shall be null and void if shareholder approval of
the Plan is not obtained within 12 months of the adoption of the
Plan by the Board.

       Section 15.  Term of Plan

        No Stock Option, Stock Appreciation Right, Restricted
Stock award, or Long Term Performance Award shall be granted on
or after the tenth anniversary of the effective date of the Plan,
but awards granted prior to such tenth anniversary (including,
without limitation, Long Term Performance Awards for Performance
Periods commencing prior to such tenth anniversary) may extend
beyond that date.

  Adopted:  April 11, 1989
  Amended:  October 17, 1990
  Amended:  May 19, 1993
  Amended:  October 20, 1993
  Amended:  August 21, 1996
  Amended:  January 29, 2001
  Amended:  March 14, 2002EXHIBIT 10.201

                      Amended and Restated
                   Receivables Sale Agreement

                  Dated as of January 18, 2002

                              among

           Crompton & Knowles Receivables Corporation,
                         as the Seller,

                      Crompton Corporation,
                as the Initial Collection Agent,

                       ABN AMRO Bank N.V.,
                          as the Agent,

                     the Liquidity Providers
                 from time to time party hereto,

                       ABN AMRO Bank N.V.,
                        as the Enhancer,

                               and

                  Amsterdam Funding Corporation

                        Table of Contents

                                                             Page

Article I      Purchases from Seller and Settlements            1
   Section 1.1. Sales                                           1
   Section 1.2. Interim Liquidations.                           3
   Section 1.3. Section of Discount Rates and Tranche
                 Periods.                                       4
   Section 1.4. Fees and Other Costs and Expenses               5
   Section 1.5. Maintenance of Sold Interest; Deemed
                 Collection                                     5
   Section 1.6. Reduction in Commitments                        6
   Section 1.7. Repurchases.                                    6
   Section 1.8. Assignment of Purchase Agreements.              6
   Section 1.9. Extension of Liquidity Termination
                 Date                                           7

Article II     Sales to and from Amsterdam; Allocations         7
   Section 2.1. Required Purchases from Amsterdam               7
   Section 2.2. Purchases by Amsterdam                          9
   Section 2.3. Allocations and Distributions                   9

Article III    Administration and Collections                  11
   Section 3.1. Appointment of Collection Agent                11
   Section 3.2. Duties of Collection Agent                     12
   Section 3.3. Reports                                        12
   Section 3.4. Lock-Box Arrangements                          12
   Section 3.5. Enforcement Rights                             13
   Section 3.6. Collection Agent Fee                           13
   Section 3.7. Responsibilities of the Seller                 14
   Section 3.8. Actions by Seller                              14
   Section 3.9. Indemnities by the Collection Agent.           14

Article IV     Representations and Warranties                  15
   Section 4.1. Representations and Warranties                 15

Article V      Covenants                                       17
   Section 5.1. Covenants of the Seller                        17

Article VI     Indemnification                                 22
   Section 6.1. Indemnities by the Seller                      22
   Section 6.2. Increased Cost and Reduced Return              23
   Section 6.3. Other Costs and Expenses                       24
   Section 6.4. Withholding Taxes                              24
   Section 6.5. Payments and Allocations                       25

Article VII    Conditions Precedent                            25
   Section 7.1. Conditions to Closing                          25
   Section 7.2. Conditions to Each Purchase                    26

Article VIII   The Agent                                       27
   Section 8.1. Appointment and Authorization                  27
   Section 8.2. Delegation of Duties                           27
   Section 8.3. Exculpatory Provisions                         27
   Section 8.4. Reliance by Agent                              27
   Section 8.5. Assumed Payments                               28
   Section 8.6. Notice of Termination Events                   28
   Section 8.7. Non-Reliance on Agent and Other
                 Purchasers                                    28
   Section 8.8. Agent and Affiliates.                          29
   Section 8.9. Indemnification                                29
   Section 8.10.Successor Agent.                               29

Article IX     Miscellaneous                                   29
   Section 9.1. Termination                                    29
   Section 9.2. Notices                                        30
   Section 9.3. Payments and Computations                      30
   Section 9.4. Sharing of Recoveries                          30
   Section 9.5. Right of Setoff                                31
   Section 9.6. Amendments                                     31
   Section 9.7. Waivers                                        31
   Section 9.8. Successors and Assigns;
                 Participations; Assignments                   32
   Section 9.9. Intended Tax Characterization                  33
   Section 9.10.Waiver of Confidentiality                      33
   Section 9.11.Confidentiality of Agreement                   34
   Section 9.12.Agreement Not to Petition.                     34
   Section 9.13.Excess Funds                                   34
   Section 9.14.No Recourse                                    34
   Section 9.15.Limitation of Liability                        35
   Section 9.16.Headings; Counterparts.                        35
   Section 9.17.Cumulative Rights and Severability.            35
   Section 9.18.Governing Law; Submission to
                 Jurisdiction                                  35
   Section 9.19.Waiver of Trial by Jury                        35
   Section 9.20.Entire Agreement.                              35

Signature                                                      36

Schedules   Description

Schedule I  Definitions
Schedule II Liquidity Providers and Commitments of Committed
            Purchasers

Exhibits    Description

Exhibit A   Form of Incremental Purchase Request
Exhibit B   Form of Notification of Assignment from Amsterdam to
            the Committed Purchasers
Exhibit C   Form of Notification of Assignment from the
            Committed Purchasers to Amsterdam
Exhibit D-1 Form of Periodic Report
Exhibit D-2 Form of Daily Report
Exhibit E   Addresses and Names of Seller and Originator
Exhibit F   Subsidiaries
Exhibit G   Lock-Boxes and Lock-Box Banks
Exhibit H   Form of Lock-Box Letter
Exhibit I   Compliance Certificate
Exhibit J   Credit and Collection Policy

                      Amended and Restated
                   Receivables Sale Agreement

     This  Amended and Restated Receivables Sale Agreement, dated
as  of  January  18,  2002, among Crompton & Knowles  Receivables
Corporation,  a  Delaware corporation, as Seller (the  "Seller"),
Crompton  Corporation,  a Delaware corporation,  as  the  initial
Collection Agent (the "Initial Collection Agent"), ABN AMRO  Bank
N.V.,  as  agent for the Purchasers (the "Agent"), the  liquidity
providers party hereto (the "Liquidity Providers"), ABN AMRO Bank
N.V.,  as  provider  of  the Program LOC  (the  "Enhancer"),  and
Amsterdam Funding Corporation ("Amsterdam").  Certain capitalized
terms used herein, and certain rules of construction, are defined
in  Schedule  I.   The sole initial Liquidity  Provider  and  the
Commitments   of   all  Committed  Purchasers   are   listed   on
Schedule II.

                      Preliminary Statement

     The   Seller,  Initial  Collection  Agent,  Amsterdam,   the
Enhancer, the Liquidity Provider and the Agent are parties  to  a
Receivables  Sale Agreement, dated as of December 11,  1998  (the
"Original Agreement"); and

     Subject  to  and  upon  the terms and conditions  set  forth
herein,  the  parties  desire to amend and restate  the  Original
Agreement in the form of this Agreement.

     Now,  Therefore,  in consideration of the mutual  agreements
contained  herein and the other good and valuable  consideration,
the receipt and sufficiency of which are hereby acknowledged, the
parties hereby agree as follows:

                            Article I
              Purchases from Seller and Settlements

Section 1.1.  Sales.

    (a)   The Sold Interest.  Subject to the terms and conditions
hereof,  the  Seller may, from time to time before the  Liquidity
Termination  Date,  sell  to Amsterdam,  or,  only  if  Amsterdam
declines  to  make  the  applicable  purchase,  ratably  to   the
Committed  Purchasers an undivided percentage ownership  interest
in  the  Receivables  and  all  related  Collections.   Any  such
purchase  (a "Purchase") shall be made by each relevant Purchaser
remitting  funds  to the Seller, through the Agent,  pursuant  to
Section  1.1(c) or by the Collection Agent remitting  Collections
to   the  Seller  pursuant  to  Section  1.1(d).   The  aggregate
percentage ownership interest so acquired by a Purchaser  in  the
Receivables  and  related Collections (its  "Purchase  Interest")
shall equal at any time the following quotient:

                            I         +    PRP
                            ER

where:

         I        =         the  outstanding Investment  of  such
Purchaser at such time;

        ER        =    the Eligible Receivables
                       Balance at such time; and

       PRP        =     the Purchaser  Reserve
                        Percentage at such time.

Except  during  a  Liquidation  Period  for  a  Purchaser,   such
Purchaser's   Purchase   Interest  will   change   whenever   its
Investment,  its  Purchaser Reserve Percentage  or  the  Eligible
Receivables Balance changes.  During a Liquidation Period  for  a
Purchaser its Purchase Interest shall remain constant, except for
redeterminations   to  reflect  Investment   acquired   from   or
transferred to another Purchaser under Article II.   The  sum  of
all  Purchasers' Purchase Interests at any time  is  referred  to
herein as the "Sold Interest", which at any time is the aggregate
percentage ownership interest then held by the Purchasers in  the
Receivables and Collections.

     (b)    Amsterdam  Purchase  Option  and  Other   Purchasers'
Commitments.   Subject to Section 1.1(d) concerning  Reinvestment
Purchases, at no time will Amsterdam have any obligation to  make
a  Purchase.  Each Liquidity Provider and the Enhancer  (together
the  "Committed  Purchasers" and each  a  "Committed  Purchaser")
severally  hereby agrees, subject to Section 7.2  and  the  other
terms  and  conditions  hereof,  to  make  Purchases  before  the
Liquidity  Termination Date, based on its Ratable Share  of  each
Purchase   by  the  Committed  Purchasers,  to  the  extent   its
Investment would not thereby exceed its Commitment, the Aggregate
Investment would not thereby exceed the Purchase Limit,  and  the
Matured  Aggregate  Investment  would  not  thereby  exceed   the
Aggregate Commitments.  Each Purchaser's first Purchase and  each
additional  Purchase by such Purchaser not made from  Collections
pursuant  to  Section  1.1(d)  is  referred  to  herein   as   an
"Incremental  Purchase."  Each Purchase made by a Purchaser  with
the  proceeds of Collections in which it has a Purchase Interest,
which  does  not  increase  the outstanding  Investment  of  such
Purchaser, is referred to herein as a "Reinvestment Purchase."

     (c)    Incremental  Purchases.   In  order  to  request   an
Incremental Purchase from a Purchaser, the Seller must provide to
the Agent an irrevocable written request (including by telecopier
or  other facsimile communication) substantially in the  form  of
Exhibit  A,  by  10:00  a.m. (Chicago time) three  Business  Days
before the requested date (the "Purchase Date") of such Purchase,
specifying the requested Purchase Date (which must be a  Business
Day)  and  the requested amount (the "Purchase Amount")  of  such
Purchase,  which  must be in a minimum amount of  $1,000,000  and
multiples  thereof (or, if less, an amount equal to  the  Maximum
Incremental Purchase Amount).  An Incremental Purchase  may  only
be  requested  from  Amsterdam  unless  Amsterdam,  in  its  sole
discretion,  determines not to make such Incremental Purchase  in
which  case  the  Seller will automatically  be  deemed  to  have
requested   such   Incremental  Purchase   from   the   Committed
Purchasers.  The Agent shall promptly notify the contents of  any
such  request  to  each  Purchaser from  which  the  Purchase  is
requested.   If Amsterdam determines, in its sole discretion,  to
make  the  requested Purchase, Amsterdam shall  transfer  to  the
Agent's  Account the amount of such Incremental Purchase  on  the
requested  Purchase  Date.   If  Amsterdam  refuses  to  make   a
requested  Purchase, the Seller shall automatically be deemed  to
have  requested  the  Incremental  Purchase  from  the  Committed
Purchasers,  subject  to  Section 7.2 and  the  other  terms  and
conditions  hereof, each Committed Purchaser shall  transfer  its
Ratable  Share of the requested Purchase Amount into the  Agent's
Account  by  no  later  than 12:00 noon  (Chicago  time)  on  the
Purchase  Date.   The  Agent  shall transfer  to  the  Designated
Account  the proceeds of any Incremental Purchase delivered  into
the Agent's Account.

   (d)  Reinvestment Purchases.  Unless Amsterdam has provided to
the Agent, the Seller, and the Collection Agent a notice still in
effect  that  it no longer wishes to make Reinvestment  Purchases
(in  which case Amsterdam's Reinvestment Purchases, but not those
of the Committed Purchasers, shall cease), at any time before the
Liquidity  Termination  Date when no Interim  Liquidation  is  in
effect,  on  each  day that any Collections are received  by  the
Collection  Agent  a  Purchaser's  Purchase  Interest   in   such
Collections  shall automatically be used to make  a  Reinvestment
Purchase  by  such  Purchaser,  but  only  to  the  extent   such
Reinvestment Purchase would not cause the Purchaser's  Investment
to  increase above the amount of such Investment at the start  of
the  day plus any Incremental Purchases made by the Purchaser  on
that  day.   Amsterdam may revoke any notice provided  under  the
first sentence of this Section 1.1(d) by notifying the Agent, the
Seller,  and  the Collection Agent that it will make Reinvestment
Purchases.

    (e)   Security  Interest.   To secure  all  of  the  Seller's
obligations  under the Transaction Documents, the  Seller  hereby
grants  to  the  Agent  (for the benefit  of  the  Purchasers)  a
security  interest  in  all  of  the  Seller's  rights   in   the
Receivables, the Collections, and the Lock- Box Accounts.

Section  1.2.  Interim Liquidations.  (a) Optional.   The  Seller
may at any time direct that Reinvestment Purchases cease and that
an  Interim Liquidation commence for all Purchasers by giving the
Agent  and  the  Collection Agent at least three  Business  Days'
written  (including  telecopy or other  facsimile  communication)
notice specifying the date on which the Interim Liquidation shall
commence  and,  if  desired, when such Interim Liquidation  shall
cease  before  the  Liquidity Termination Date (identified  as  a
specific date or as when the Aggregate Investment is reduced to a
specified amount).  If the Seller does not so specify the date on
which  an  Interim  Liquidation shall cease, it  may  cause  such
Interim  Liquidation  to cease at any time before  the  Liquidity
Termination  Date, subject to Section 1.2(b) below, by  notifying
the  Agent  and  the  Collection Agent in writing  (including  by
telecopy  or  other  facsimile  communication)  at  least   three
Business  Days before the date on which it desires  such  Interim
Liquidation to cease.

     (b)   Mandatory.   If  at  any  time  before  the  Liquidity
Termination  Date any condition in Section 7.2 is not  fulfilled,
the  Seller shall immediately notify the Agent and the Collection
Agent,  whereupon  Reinvestment  Purchases  shall  cease  and  an
Interim  Liquidation shall commence, which shall only cease  upon
the  Seller  confirming  to  the Agent  that  the  conditions  in
Section 7.2 are fulfilled.

Section  1.3.   Selection of Discount Rates and Tranche  Periods.
(a)(1)  The provisions of this subsection (a)(1) shall  apply  to
all  Investment of Amsterdam funded with commercial paper  issued
on  or  before the Agent makes the election described  in  clause
(a)(2)  below:  All such Investment shall be allocated to one  or
more  Tranches  reflecting  the  Discount  Rates  at  which  such
Investment  accrues Discount and the Tranche  Periods  for  which
such Discount Rates apply. All such Investment of Amsterdam shall
accrue Discount at the CP Rate.  Each CP Tranche shall be in  the
minimum  amount  of  $1,000,000 and in  multiples  thereof.   All
Discount accrued at the CP Rate during a Tranche Period shall  be
payable  by  the  Seller on the last day of such Tranche  Period;
(2)  At the Agent's option, the Agent may notify the Seller  that
the  provisions  of  this subsection (a)(2) shall  apply  to  all
Investment  of  Amsterdam  funded with  Pooled  Commercial  Paper
issued  after the Agent delivers a notice to the Seller  that  it
elects  to  have  the  provisions of this  clause  (a)(2)  to  be
applicable to the Investment of Amsterdam:  The Seller shall  pay
Funding Charges with respect to Amsterdam's Purchase Interest for
each day that any Investment in respect of such Purchase Interest
is  outstanding.  Each such Purchase Interest will accrue Funding
Charges  each  day  based  on  the Pooled  Allocation.   On  each
Settlement  Date  the  Seller shall pay to  the  Agent  (for  the
benefit  of  Amsterdam) an aggregate amount equal to all  accrued
and  unpaid Funding Charges in respect of such Purchase  Interest
for the immediately preceding Discount Period; (3) All Investment
of  the  Committed Purchasers shall be allocated to one  or  more
Tranches  reflecting the Discount Rates at which such  Investment
accrues  Discount and the Tranche Periods for which such Discount
Rates apply.  In each request for an Incremental Purchase from  a
Committed Purchaser and three Business Days before the expiration
of  any  Tranche  Period applicable to any Committed  Purchaser's
Investment,  the Seller may request the Tranche Period(s)  to  be
applicable to such Investment and the Discount Rate(s) applicable
thereto.   All Investment of the Committed Purchasers may  accrue
Discount at either the Eurodollar Rate or the Prime Rate, in  all
cases  as established for each Tranche Period applicable to  such
Investment.   Each  Tranche shall be in  the  minimum  amount  of
$1,000,000  and in multiples thereof or, in the case of  Discount
accruing  at  the  Prime Rate, in any amount of  Investment  that
otherwise has not been allocated to another Tranche Period.   Any
Investment of the Committed Purchasers not allocated to a Tranche
Period  shall  be  a  Prime Tranche.  During the  pendency  of  a
Termination  Event,  the  Agent may  reallocate  any  outstanding
Investment  of the Committed Purchasers to a Prime Tranche.   All
Discount  accrued  on the Investment of the Committed  Purchasers
during  a  Tranche Period shall be payable by the Seller  on  the
last day of such Tranche Period or, for a Eurodollar Tranche with
a  Tranche  Period of more than three months, 90 days  after  the
commencement, and on the last day, of such Tranche Period.

    (b)  The Agent shall allocate the Investment of Amsterdam  to
Tranche Periods in its sole discretion.  If, by the time required
in  Section 1.3(a), the Seller fails to select a Discount Rate or
Tranche  Period  for any Investment of the Committed  Purchasers,
such amount of Investment shall automatically accrue Discount  at
the  Prime  Rate  for a three Business Day Tranche  Period.   Any
Investment  purchased  from Amsterdam pursuant  to  the  Transfer
Agreement  shall accrue Discount at the Prime Rate  and  have  an
initial Tranche Period of three Business Days.

    (c)   If the Agent or any Committed Purchaser determines  (i)
that  maintenance  of any Eurodollar Tranche  would  violate  any
applicable  law or regulation, (ii) that deposits of a  type  and
maturity  appropriate  to  match fund  any  of  such  Purchaser's
Eurodollar  Tranches  are  not  available  or  (iii)   that   the
maintenance  of  any Eurodollar Tranche will not  adequately  and
fairly  reflect the cost of such Purchaser of funding  Eurodollar
Tranches,  then the Agent, upon the direction of such  Purchaser,
shall suspend the availability of, and terminate any outstanding,
Eurodollar Tranche so affected.  All Investment allocated to  any
such  terminated  Eurodollar Tranche shall be  reallocated  to  a
Prime Rate Tranche.

Section 1.4.  Fees and Other Costs and Expenses.  (a) The  Seller
shall  pay  to  the  Agent  (i) for the ratable  benefit  of  the
Liquidity Providers, such amounts as agreed to with the Liquidity
Providers  and  the Agent in the Fee Letter,  and  (ii)  for  the
account of the Enhancer and the Agent, such amounts as agreed  to
with the Enhancer and the Agent in the Fee Letter.

    (b)   If  the  amount of Investment allocated to  any  CP  or
Eurodollar Tranche is reduced before the last day of its  Tranche
Period,  or if a requested Incremental Purchase at the Eurodollar
Rate  does  not  take place on its scheduled Purchase  Date,  the
Seller shall pay the Early Payment Fee to each Purchaser that had
its Investment so reduced or scheduled Purchase not made.

    (c)  Investment shall be payable solely from Collections  and
from  amounts  payable under Sections 1.5, 1.7 and  6.1  (to  the
extent   amounts   paid  under  Section  6.1  indemnify   against
reductions  in or non-payment of Receivables).  The Seller  shall
pay,  as  a  full recourse obligation, all other amounts  payable
hereunder,  including,  without limitation,  all  Discount,  fees
described in clauses (a) and (b) above and amounts payable  under
Article VI.

Section  1.5.   Maintenance of Sold Interest; Deemed  Collection.
(a)   General.   If at any time before the Liquidity  Termination
Date the Eligible Receivables Balance is less than the sum of the
Aggregate  Investment  (or, if a Termination  Event  exists,  the
Matured  Aggregate  Investment) plus the Aggregate  Reserve,  the
Seller  shall pay to the Agent an amount equal to such deficiency
for  application  to  reduce the Investments  of  the  Purchasers
ratably  in  accordance  with  the  principal  amount  of   their
respective  Investments,  applied first  to  Prime  Tranches  and
second   to  the  other  Tranches  with  the  shortest  remaining
maturities unless otherwise specified by the Seller.  Any  amount
so applied to reduce Amsterdam's Investment shall be deposited in
the Special Transaction Subaccount.

    (b)   Deemed  Collections.  If on  any  day  the  outstanding
balance  of a Receivable is reduced or cancelled as a  result  of
any defective or rejected goods or services, any cash discount or
adjustment   (including  any  adjustment   resulting   from   the
application  of  any  special refund or other  discounts  or  any
reconciliation),  any  setoff or credit (whether  such  claim  or
credit  arises  out  of  the  same, a related,  or  an  unrelated
transaction) including without limitation, a Receivable Setoff or
other similar reason not arising from the financial inability  of
the  Obligor to pay undisputed indebtedness, the Seller shall  be
deemed  to  have  received  on such  day  a  Collection  on  such
Receivable  in the amount of such reduction or cancellation.   If
on  any  day  any  representation, warranty,  covenant  or  other
agreement of the Seller related to a Receivable is not true or is
not  satisfied,  the Seller shall be deemed to have  received  on
such day a Collection in the amount of the outstanding balance of
such  Receivable.  All such Collections deemed  received  by  the
Seller  under this Section 1.5(b) shall be remitted by the Seller
to the Collection Agent in accordance with Section 5.1(i).

    (c)   Adjustment  to Sold Interest.  At any time  before  the
Liquidity  Termination Date that the Seller  is  deemed  to  have
received   any   Collection   under   Section   1.5(b)   ("Deemed
Collections")  that derive from a Receivable  that  is  otherwise
reported  as  an  Eligible Receivable, so long as no  Liquidation
Period  then  exists, the Seller may satisfy  its  obligation  to
deliver  such amount to the Collection Agent by instead notifying
the  Agent  that  the  Sold Interest should  be  recalculated  by
decreasing the Eligible Receivables Balance by the amount of such
Deemed Collections, so long as such adjustment does not cause the
Sold Interest to exceed 100%.

     (d)    Payment  Assumption.   Unless  an  Obligor  otherwise
specifies or another application is required by contract or  law,
any  payment  received by the Seller from any  Obligor  shall  be
applied  as a Collection of Receivables of such Obligor (starting
with  the  oldest such Receivable) and remitted to the Collection
Agent as such.

Section  1.6.   Reduction in Commitments.  The Seller  may,  upon
thirty days' notice to the Agent, reduce the Aggregate Commitment
in  increments of $1,000,000, so long as the Aggregate Commitment
at  all  times equals at least the outstanding Matured  Aggregate
Investment.   Each  such  reduction in the  Aggregate  Commitment
shall  reduce  the  Commitment  of each  Committed  Purchaser  in
accordance  with its Ratable Share and shall ratably  reduce  the
Purchase Limit so that the Aggregate Commitment remains at  least
102% of the Purchase Limit.

Section 1.7.  Repurchases.  (a)  Optional.  At any time that  the
Aggregate Investment is less than 10% of the Aggregate Commitment
in  effect on the date hereof, the Seller may, upon thirty  days'
notice to the Agent, repurchase the entire Sold Interest from the
Purchasers at a price equal to the outstanding Matured  Aggregate
Investment and all other amounts then owed hereunder.

     (b)   Mandatory.   If  at  any  time  before  the  Liquidity
Termination  Date  the  Sold Interest exceeds  100%,  unless  the
Seller remedies the situation by satisfying its obligations under
Section  1.5(a),  any  Purchaser may direct that  all  Purchasers
ratably  reassign to the Seller, without recourse, representation
or warranty, a portion of the Purchase Interest of each Purchaser
so that the Sold Interest does not exceed 100%.  The Seller shall
purchase  such reassigned Purchase Interests at a purchase  price
equal  to  the  Matured Value of the Investment so reassigned  by
each Purchaser.

Section  1.8.   Assignment of Purchase  Agreements.   The  Seller
hereby  assigns  and otherwise transfers to the  Agent  (for  the
benefit of the Agent, each Purchaser and any other Person to whom
any  amount is owed hereunder), all of the Seller's right,  title
and  interest  in,  to  and under each Purchase  Agreement.   The
Seller  shall execute, file and record all financing  statements,
continuation statements and other documents required  to  perfect
or  protect  such assignment.  This assignment includes  (a)  all
monies  due  and to become due to the Seller from each Originator
or the Parent under or in connection with each Purchase Agreement
(including fees, expenses, costs, indemnities and damages for the
breach  of  any  obligation  or representation  related  to  such
agreement)  and (b) all rights, remedies, powers, privileges  and
claims of the Seller against each Originator or the Parent  under
or in connection with each Purchase Agreement.  All provisions of
each Purchase Agreement shall inure to the benefit of, and may be
relied  upon  by, the Agent, each Purchaser and each  such  other
Person.  At any time that a Termination Event has occurred and is
continuing,  the Agent shall have the sole right to  enforce  the
Seller's rights and remedies under each Purchase Agreement to the
same  extent  as  the  Seller could absent this  assignment,  but
without any obligation on the part of the Agent, any Purchaser or
any  other such Person to perform any of the obligations  of  the
Seller  under  each Purchase Agreement (or any of the  promissory
notes  executed  thereunder).  All  amounts  distributed  to  the
Seller under each Purchase Agreement from Receivables sold to the
Seller  thereunder  shall  constitute Collections  hereunder  and
shall be applied in accordance herewith.

Section  1.9.   Extension  of Liquidity  Termination  Date.   The
Seller  may  advise the Liquidity Providers and the  Enhancer  in
writing  of  its desire to extend the Liquidity Termination  Date
for an additional 364 days, provided (i) such request is made not
more than 120 days prior to, and not less than 90 days prior  to,
the  Liquidity Termination Date, and (ii) not more than one  such
request  for the extension of the Liquidity Termination Date  may
be  made in any one calendar year and (iii) in no event shall the
Liquidity  Termination Date be extended beyond January 17,  2003.
In  the  event that the Liquidity Providers and the Enhancer  are
agreeable to such extension, the Agent shall so notify the Seller
in  writing (it being understood that the Liquidity Providers and
the  Enhancer may accept or decline such a request in their  sole
discretion and on such terms as they may elect) not less than  45
days  prior to the Liquidity Termination Date and the Seller  and
the  Liquidity Providers and the Enhancer shall enter  into  such
documents  as the Liquidity Providers and the Enhancer  may  deem
necessary  or  appropriate to reflect  such  extension,  and  all
reasonable costs and expenses incurred by the Liquidity Providers
and  the  Enhancer in connection therewith (including  reasonable
attorneys'  fees)  shall be paid by the  Seller.   The  Liquidity
Providers  or  the Enhancer shall be deemed to  have  refused  to
grant  the requested extension in the event the Agent shall  fail
to so notify the Seller of their agreement to such an extension.

                           Article II
            Sales to and from Amsterdam; Allocations

Section  2.1.  Required Purchases from Amsterdam.  (a)  Amsterdam
may, at any time, and on the earlier of the Amsterdam Termination
Date  and  10  Business Days following the  Agent  and  Amsterdam
learning of a continuing Termination Event, Amsterdam shall, sell
to   the  Committed  Purchasers  any  percentage  designated   by
Amsterdam  of  Amsterdam's Investment and its  related  Amsterdam
Settlement  (each,  a  "Put").  If the  Put  occurs  due  to  the
Amsterdam Termination Date or a Termination Event, the designated
percentage  shall  be  100%  or  such  lesser  percentage  as  is
necessary  to  obtain the maximum available Purchase  Price  from
each  Committed Purchaser.  Immediately upon notice of a Put from
Amsterdam to the Agent, the Agent shall deliver to each Purchaser
a  notification  of  assignment  in  substantially  the  form  of
Exhibit  B,  and  each  Committed Purchaser shall  purchase  from
Amsterdam  its Purchase Percentage of Amsterdam's Investment  and
related  Amsterdam  Settlement by  transferring  to  the  Agent's
Account an amount equal to such Purchaser's Purchase Price by not
later  than 1:00 p.m. (Chicago time) on the date such  funds  are
requested; provided, however, that the Enhancer may exchange  for
part  or all of the Purchase Price payable by it an equal  amount
of the Program Unreimbursed Draw Amount.

    (b)   If a Liquidity Provider fails to transfer to the  Agent
its  full  Purchase  Price when required by Section  2.1(a)  (the
aggregate  amount not made available to the Agent  by  each  such
Liquidity Provider being the "Unpaid Amount"), then, upon  notice
from  the Agent by not later than 1:15 p.m. (Chicago time),  each
Liquidity  Provider not owing an Unpaid Amount shall transfer  to
the  Agent's Account, by not later than 1:45 p.m. (Chicago time),
an  amount  equal  to  the  lesser of such  Liquidity  Provider's
proportionate  share  (based on its  Commitment  divided  by  the
Commitments of all Liquidity Providers that have not so failed to
pay  their  full  Purchase Price) of the Unpaid  Amount  and  its
Unused Commitment.  If the Agent does not then receive the Unpaid
Amount  in  full, upon notice from the Agent by  not  later  than
2:00  p.m.  (Chicago  time) on such day, each Liquidity  Provider
that  has not failed to fund any part of its obligations on  such
day  under this Section 2.1 shall pay to the Agent, by not  later
than   2:30   p.m.   (Chicago  time),  its  proportionate   share
(determined  as described above) of the amount of such  remaining
deficiency  up  to  the  amount of its  Unused  Commitment.   Any
Liquidity  Provider  that  fails to make  a  payment  under  this
Section  2.1  on  the date of a Put shall pay on demand  to  each
other  Liquidity  Provider  that  makes  a  payment  under   this
subsection  (b)  the  amount paid by it to  cover  such  failure,
together  with interest thereon, for each day from the date  such
payment was made until the date such other Liquidity Provider has
been  paid such amount in full, at a rate per annum equal to  the
Federal Funds Rate plus two percent (2%) per annum.  In addition,
without  prejudice to any other rights Amsterdam may  have  under
applicable  law,  any  Liquidity  Provider  that  has  failed  to
transfer  to  the  Agent under Section 2.1(a) its  full  Purchase
Price  shall  pay  on demand to Amsterdam the difference  between
such unpaid Purchase Price and the amount paid by other Liquidity
Providers  or  the  Agent  to cover such failure,  together  with
interest thereon, for each day from the date such Purchase  Price
was  due  until the date paid, at a rate per annum equal  to  the
Federal Funds Rate plus two percent (2%) per annum.

    (c)   Any  portion  of  Amsterdam's  Investment  and  related
Amsterdam   Settlement   purchased  by  a   Committed   Purchaser
(including  any purchased under Section 2.1(b) in fulfillment  of
another  Liquidity Provider's obligation unless such purchase  is
reimbursed  in  full,  with interest,  by  such  other  Liquidity
Provider under Section 2.1(b)) shall be considered part  of  such
Purchaser's Investment and related Amsterdam Settlement from  the
date  of  the  relevant Put.  Each such sale by  Amsterdam  to  a
Committed Purchaser shall be without recourse, representation  or
warranty  except  for the representation and warranty  that  such
Investment  and related amounts are being sold by Amsterdam  free
and  clear  of any Adverse Claim created or granted by Amsterdam.
Immediately upon any purchase by the Committed Purchasers of  any
portion  of Amsterdam's Investment, the Seller shall pay  to  the
Agent  (for  the  ratable benefit of such Purchasers)  an  amount
equal  to  the sum of the Assigned Amsterdam Settlement  and  the
amount calculated for all such Purchasers pursuant to clause  (b)
of the definition of Purchase Price.

    (d)   The proceeds from each Put received by Amsterdam (other
than  amounts  described  in clauses (b)(ii)  and  (iii)  of  the
definition  of  Purchase Price), shall be  transferred  into  the
Special  Transaction  Subaccount and  used  solely  to  pay  that
portion  of the outstanding commercial paper of Amsterdam  issued
to  fund  or maintain the Investment of Amsterdam so transferred.
Until  used to pay CP Notes, all proceeds of any Put pursuant  to
this  Section  shall be invested in Permitted  Investments.   All
earnings on such Permitted Investments shall be promptly remitted
to the Seller.

    (e)   The obligation of each Committed Purchaser to make  any
purchase  from Amsterdam pursuant to this Section  2.1  shall  be
several,  not  joint,  and shall be absolute  and  unconditional;
provided,  however, that no Committed Purchaser  shall  have  any
obligation  to make such a purchase at a time that (i)  Amsterdam
shall  have  voluntarily commenced any proceeding  or  filed  any
petition under any bankruptcy, insolvency or similar law  seeking
the  dissolution, liquidation or reorganization of  Amsterdam  or
(ii)  involuntary  proceedings or an involuntary  petition  shall
have  been  commenced  or  filed  against  Amsterdam  under   any
bankruptcy,  insolvency or similar law seeking  the  dissolution,
liquidation or reorganization of Amsterdam and such proceeding or
petition shall not have been dismissed or stayed for a period  of
thirty (30) days, or any of the actions sought in such proceeding
or  petition (including the entry of an order for relief against,
or  the  appointment of a receiver, trustee, custodian  or  other
similar  official for, Amsterdam or for any substantial  part  of
Amsterdam's property) shall occur.

Section 2.2.  Purchases by Amsterdam.  If the Seller requests  an
increase  in Amsterdam's Investment when any Committed  Purchaser
has  any  outstanding Investment, Amsterdam shall  determine  the
amount,  if  any, by which it desires to increase its  Investment
(the  "Desired  Increase") and shall so notify the  Agent.   Such
request  may  only  be made at the end of a Tranche  Period.   If
Amsterdam has a Desired Increase, the Agent shall deliver to  the
Committed   Purchasers   a   notification   of   assignment    in
substantially  the form of Exhibit C and, before  purchasing  any
additional  Investment from the Seller, Amsterdam shall  purchase
in full the Investment of the Committed Purchasers, at a purchase
price  equal to such Investment plus accrued and unpaid  Discount
thereon.   If the Desired Increase is less than the  sum  of  the
total   Investment  of  the  Committed  Purchasers  and   accrued
Discount,  Amsterdam  shall purchase a ratable  portion  of  each
Liquidity   Provider's  Investment  and  only  after   all   such
Investment   and  accrued  Discount  thereon  is  purchased   may
Amsterdam  purchase  Investment  of  the  Enhancer  and  Discount
thereon.   Any  sale  from any Committed Purchaser  to  Amsterdam
pursuant   to  this  Section  2.2  shall  be  without   recourse,
representation  or  warranty except for  the  representation  and
warranty  that the Investment sold by such Purchaser is free  and
clear  of  any Adverse Claim created or granted by such Purchaser
and that such Purchaser has not suffered a Bankruptcy Event.

Section 2.3.  Allocations and Distributions.

    (a)   Amsterdam  Termination  and  Non-Reinvestment  Periods.
Before   the   Liquidity  Termination  Date  unless  an   Interim
Liquidation  is  in  effect, on each day  during  a  period  that
Amsterdam  is  not making Reinvestment Purchases (as  established
under Section 1.1(d)) and at all times on and after the Amsterdam
Termination  Date, the Collection Agent (i) shall set  aside  and
hold  solely  for  the benefit of Amsterdam (or  deliver  to  the
Agent,  if  so instructed pursuant to Section 3.2(a)) Amsterdam's
Purchase  Interest in all Collections received on  such  day  and
(ii)  shall distribute on the last day of each CP Tranche  Period
to  the  Agent (for the benefit of Amsterdam) the amounts so  set
aside  up  to  the amount of Amsterdam's Investment allocated  to
such  Tranche Period and, to the extent not already paid in full,
all  Discount  thereon and all other amounts then  due  from  the
Seller  in  connection with such Investment and  Tranche  Period.
The  Sold Interest, and each Purchaser's Purchase Interest, shall
be  recalculated to give effect to any application of any portion
of  the  Sold  Interest in Collections to pay Discount  or  other
amounts  (except Investment) under this Section 2.3(a),  and  the
Seller shall comply with Section 1.5(a) after such recalculation.

    (b)  Liquidity Termination Date and Interim Liquidations.  On
each  day on and after the Liquidity Termination Date, and during
any Interim Liquidation, the Collection Agent shall set aside and
hold solely for the account of the Agent, for the benefit of  the
Purchasers,  (or deliver to the Agent, if so instructed  pursuant
to  Section 3.2(a)) the Sold Interest in all Collections received
on such day and such Collections shall be allocated as follows:

          (i)   first, only so long as (A) the sum of the Matured
     Value of the Amsterdam Investment, the Matured Value of  the
     Liquidity  Provider Investment, and the Enhancer  Investment
     is  less than (B)  the product of the Sold Interest (or,  if
     less,  100%) multiplied by the Eligible Receivables Balance,
     to  the payment of all Discount then due and not paid to the
     Enhancer;

          (ii)    second,  to  Amsterdam  and  to  the  Liquidity
     Providers  (ratably,  based on the Matured  Value  of  their
     Investments) until all Investment of, and Discount  due  but
     not  already paid to, the Liquidity Providers and  Amsterdam
     has been paid in full;

        (iii)    third, to the Enhancer until all Investment  of,
     and  Discount due but not already paid to, the Enhancer  has
     been paid in full;

         (iv)   fourth, to the Purchasers until all other amounts
     owed to the Purchasers have been paid in full;

          (v)   fifth, to the Agent until all amounts owed to the
     Agent have been paid in full;

        (vi)   sixth, to any other Person to whom any amounts are
     owed  under the Transaction Documents until all such amounts
     have been paid in full; and

        (vii)    seventh, to the Seller (or as otherwise required
     by applicable law).

Unless  an  Interim Liquidation has ended by such date (in  which
case  Reinvestment Purchases shall resume to the extent  provided
in  Section  1.1(d)),  on  the last day of  each  Tranche  Period
(unless   otherwise   instructed  by  the   Agent   pursuant   to
Section  3.2(a)),  the Collection Agent shall  deposit  into  the
Agent's  Account,  from such set aside Collections,  all  amounts
allocated  to  such Tranche Period and all Tranche  Periods  that
ended before such date, due in accordance with the priorities  in
clauses (i)-(iii) above.  No distributions shall be made  to  pay
amounts  under clauses (iv) - (vii) until sufficient  Collections
have been set aside to pay all amounts described in clauses (i) -
(iii)  that  may  become  payable  for  all  outstanding  Tranche
Periods.   All  distributions by the Agent shall be made  ratably
within  each  priority level in accordance  with  the  respective
amounts  then  due  each Person included  in  such  level  unless
otherwise agreed by the Agent and all Purchasers.  As provided in
Section  1.4(c) all Discount and other amounts payable  hereunder
other than Investment are payable by the Seller.  If any part  of
the  Sold Interest in any Collections is applied to pay any  such
amounts pursuant to this Section 2.3(b), the Seller shall pay  to
the  Collection  Agent the amount so applied for distribution  as
part of the Sold Interest in Collections.

                           Article III
                 Administration and Collections

Section   3.1.   Appointment  of  Collection  Agent.    (a)   The
servicing, administering and collecting of the Receivables  shall
be  conducted by a Person (the "Collection Agent") designated  to
so  act  on behalf of the Purchasers under this Article III.   As
the Initial Collection Agent, the Parent is hereby designated as,
and  agrees  to  perform  the  duties  and  obligations  of,  the
Collection  Agent.  The Parent acknowledges that  the  Agent  and
each  Purchaser have relied on the Parent's agreement to  act  as
Collection  Agent (and the agreement of any of the sub-collection
agents  to so act) in making the decision to execute and  deliver
this Agreement and agrees that it will not voluntarily resign  as
Collection  Agent.   At  any  time  after  the  occurrence  of  a
Collection Agent Replacement Event, the Agent may designate a new
Collection  Agent  to  succeed  the  Parent  (or  any   successor
Collection Agent).

    (b)   The  Parent may, and if requested by the  Agent  shall,
delegate  its duties and obligations as Collection  Agent  to  an
Affiliate  (acting  as a sub-collection agent).   Notwithstanding
such delegation, the Parent shall remain primarily liable for the
performance of the duties and obligations so delegated,  and  the
Agent  and each Purchaser shall have the right to look solely  to
the Parent for such performance.  The Agent may at any time after
the occurrence of a Collection Agent Replacement Event remove  or
replace any sub-collection agent.

    (c)   If  replaced,  the  Collection  Agent  agrees  it  will
terminate, and will cause each existing sub-collection  agent  to
terminate, its collection activities in a manner requested by the
Agent  to  facilitate the transition to a new  Collection  Agent.
The  Collection  Agent shall cooperate with and  assist  any  new
Collection   Agent   (including   providing   access   to,    and
transferring,  all Records and allowing the new Collection  Agent
to  use all licenses, hardware or software necessary or desirable
to  collect the Receivables).  The Parent irrevocably  agrees  to
act  (if requested to do so) as the data-processing agent for any
new  Collection  Agent in substantially the same  manner  as  the
Parent conducted such data-processing functions while it acted as
the Collection Agent; provided, however, that the Parent receives
a then market rate compensation for providing such services.

Section  3.2.   Duties of Collection Agent.  (a)  The  Collection
Agent  shall take, or cause to be taken, all action necessary  or
advisable  to  collect  each Receivable in accordance  with  this
Agreement,  the  Credit and Collection Policy and all  applicable
laws,  rules  and regulations using the skill and  attention  the
Collection  Agent  exercises in collecting other  receivables  or
obligations  owed solely to it.  The Collection Agent  shall,  in
accordance  herewith,  set  aside  all  Collections  to  which  a
Purchaser  is  entitled.   If so instructed  by  the  Agent,  the
Collection  Agent  shall  transfer to the  Agent  the  amount  of
Collections to which the Agent and the Purchasers are entitled by
the  Business  Day following receipt and identification  thereof.
Each party hereto hereby appoints the Collection Agent to enforce
such  Person's  rights  and interests  in  the  Receivables,  but
(notwithstanding any other provision in any Transaction Document)
the Agent shall at all times after the occurrence of a Collection
Agent  Replacement  Event  have the  sole  right  to  direct  the
Collection  Agent  to  commence or settle  any  legal  action  to
enforce collection of any Receivable.

    (b)   If no Termination Event exists and the Collection Agent
determines  that such action is appropriate in order to  maximize
the Collections, the Collection Agent may, in accordance with the
Credit  and  Collection  Policy,  extend  the  maturity  of   any
Receivable (but no such extension shall be for a period more than
thirty  (30)  days)  or  adjust the outstanding  balance  of  any
Receivable.  Any such extension or adjustment shall not alter the
status  of  a Receivable as a Defaulted Receivable or  Delinquent
Receivable  or  limit any rights of the Agent or  the  Purchasers
hereunder.   If a Termination Event exists, the Collection  Agent
may  make  such  extensions or adjustments only  with  the  prior
consent of the Instructing Group.

    (c)   The  Collection Agent shall turn  over  to  the  Seller
(i) any percentage of Collections in excess of the Sold Interest,
less  all reasonable third party out-of-pocket costs and expenses
of  the  Collection  Agent  for collecting  the  Receivables  and
(ii)  subject to Section 1.5(d), the collections and records  for
any  indebtedness  owed to the Seller that is not  a  Receivable.
The  Collection Agent shall have no obligation to remit any  such
funds  or  records  to  the  Seller until  the  Collection  Agent
receives evidence (satisfactory to the Agent) that the Seller  is
entitled  to such items.  The Collection Agent has no obligations
concerning  indebtedness that is not a Receivable other  than  to
deliver the collections and records for such indebtedness to  the
Seller when required by this Section 3.2(c).

Section  3.3.  Reports.  On or before the twentieth day  of  each
month,  the Collection Agent shall deliver to the Agent a  report
reflecting  information  as  of the  close  of  business  of  the
Collection Agent for the immediately preceding calendar month  or
such  other  preceding period as is requested (each  a  "Periodic
Report"),  containing the information described  on  Exhibit  D-1
(with  such modifications or additional information as  requested
by  the Agent or the Instructing Group); provided, however,  that
in the event the senior unsecured long-term debt of the Parent is
rated  (i) less than BB- by S&P or (ii) less than Ba3 by  Moody's
(or  either  such  rating  is suspended or  withdrawn)  then  the
Collection   Agent   shall  deliver  a  report   containing   the
information  described  on  Exhibit D-2  to  the  Agent  on  each
Business Day.

Section  3.4.   Lock-Box  Arrangements.   The  Agent  is   hereby
authorized to give notice at any time after the occurrence  of  a
Collection  Agent Replacement Event to any or all Lock-Box  Banks
that  the  Agent  is  exercising its rights  under  the  Lock-Box
Letters  and  to  take all actions permitted under  the  Lock-Box
Letters.  The Seller agrees to take any action requested  by  the
Agent  to  facilitate the foregoing.  After the Agent  takes  any
such   action  under  the  Lock-Box  Letters,  the  Seller  shall
immediately deliver to the Agent any Collections received by  the
Seller.  If the Agent takes control of any Lock-Box Account,  the
Agent  shall  distribute  Collections it receives  in  accordance
herewith   and  shall  deliver  to  the  Collection  Agent,   for
distribution  under  Section 3.2, all other amounts  it  receives
from such Lock-Box Account.

Section 3.5.  Enforcement Rights.  (a) The Agent may, at any time
after  the  occurrence of a Collection Agent  Replacement  Event,
direct  the Obligors and the Lock-Box Banks to make all  payments
on  the  Receivables directly to the Agent or its designee.   The
Agent  may, and the Seller shall at the Agent's request, withhold
the  identity  of the Purchasers from the Obligors  and  Lock-Box
Banks.   Upon  the  Agent's request after  the  occurrence  of  a
Collection  Agent Replacement Event, the Seller (at the  Seller's
expense)  shall  (i) give notice to each Obligor of  the  Agent's
ownership  of  the  Sold  Interest and direct  that  payments  on
Receivables  be  made  directly to the  Agent  or  its  designee,
(ii)  assemble for the Agent all Records and collateral  security
for  the Receivables and transfer to the Agent (or its designee),
or  license  to  the  Agent (or its designee)  the  use  of,  all
software  then  used  by  the Collection  Agent  to  collect  the
Receivables  and  (iii) segregate in a manner acceptable  to  the
Agent  all  Collections the Seller receives  and,  promptly  upon
receipt,  remit  such  Collections in  the  form  received,  duly
endorsed  or with duly executed instruments of transfer,  to  the
Agent or its designee.

    (b)   After  the occurrence of a Collection Agent Replacement
Event,  Seller  hereby  irrevocably appoints  the  Agent  as  its
attorney-in-fact  coupled with an interest, with  full  power  of
substitution and with full authority in the place of the  Seller,
to  take any and all steps deemed desirable by the Agent, in  the
name  and on behalf of the Seller to (i) collect any amounts  due
under  any Receivable, including endorsing the name of the Seller
on  checks  and  other instruments representing  Collections  and
enforcing such Receivables, and (ii) exercise any and all of  the
Seller's rights and remedies under each Purchase Agreement.   The
Agent's  powers under this Section 3.5(b) shall not  subject  the
Agent to any liability if any action taken by it (except for  any
action  taken pursuant thereto that constitutes gross  negligence
or  willful  misconduct) proves to be inadequate or invalid,  nor
shall  such  powers  confer any obligation  whatsoever  upon  the
Agent.

    (c)   Neither  the  Agent nor any Purchaser  shall  have  any
obligation to take or consent to any action to realize  upon  any
Receivable or to enforce any rights or remedies related thereto.

Section  3.6.  Collection Agent Fee.  On or before the  twentieth
day  of  each  calendar  month,  the  Seller  shall  pay  to  the
Collection  Agent  a  fee for the immediately preceding  calendar
month  as  compensation for its services (the  "Collection  Agent
Fee") equal to (a) at all times the Parent or an Affiliate of any
Crompton Entity is the Collection Agent, such consideration as is
acceptable to it, the receipt and sufficiency of which is  hereby
acknowledged,  and  (b)  at all times any  other  Person  is  the
Collection  Agent, a reasonable amount agreed upon by  the  Agent
and  the new Collection Agent on an arm's-length basis reflecting
rates  and  terms  prevailing in the market at  such  time.   The
Collection  Agent  may only apply to payment  of  the  Collection
Agent  Fee the portion of the Collections in excess of  the  Sold
Interest  or  Collections that fund Reinvestment Purchases.   The
Agent  may,  with the consent of the Instructing Group,  pay  the
Collection  Agent  Fee  to the Collection  Agent  from  the  Sold
Interest  in  Collections.   The Seller  shall  be  obligated  to
reimburse any such payment to the extent required by Section  1.5
or 2.3.

Section 3.7.  Responsibilities of the Seller.  The Seller  shall,
or shall cause each Originator to, pay when due all Taxes payable
in   connection  with  the  Receivables  or  their  creation   or
satisfaction.  The Seller shall, and shall cause each  Originator
to,  perform all of its obligations under agreements  related  to
the  Receivables  to  the  same extent as  if  interests  in  the
Receivables had not been transferred hereunder or, in the case of
each  Originator, under each Purchase Agreement.  The Agent's  or
any  Purchaser's  exercise  of any  rights  hereunder  shall  not
relieve  the  Seller  or  any Originator from  such  obligations.
Neither the Agent nor any Purchaser shall have any obligation  to
perform any obligation of the Seller or of any Originator or  any
other obligation or liability in connection with the Receivables.

Section  3.8.   Actions by Seller.  The Seller shall  defend  and
indemnify  the  Agent  and  each  Purchaser  against  all  costs,
expenses,  claims  and liabilities for any action  taken  by  the
Seller, any Originator or any other Affiliate of the Seller or of
such Originator (whether acting as Collection Agent or otherwise)
related to any Receivable (other than with respect to the  credit
risk  of  an Obligor and for which reimbursement would constitute
recourse  for uncollectible Receivables), or arising out  of  any
alleged  failure  of  compliance  of  any  Receivable  with   the
provisions of any law or regulation.  If any goods related  to  a
Receivable  are repossessed, the Seller agrees to resell,  or  to
have  the applicable Originator or another Affiliate resell, such
goods in a commercially reasonable manner for the account of  the
Agent  and  remit, or have remitted, to the Agent the Purchasers'
share in the gross sale proceeds thereof net of any out-of-pocket
expenses  and  any  equity of redemption of the Obligor  thereon.
Any  such  moneys  collected  by the  Seller  or  the  applicable
Originator  or  other Affiliate of the Seller  pursuant  to  this
Section  3.8 shall be segregated and held in trust for the  Agent
and  remitted to the Agent's Account within two Business Days  of
receipt  as  part  of  the  Sold  Interest  in  Collections   for
application as provided herein.

Section  3.9.   Indemnities  by the  Collection  Agent.   Without
limiting any other rights any Person may have hereunder or  under
applicable law, the Collection Agent hereby indemnifies and holds
harmless  the  Agent  and  each Purchaser  and  their  respective
officers,  directors, agents and employees (each an  "Indemnified
Party")  from  and against any and all damages,  losses,  claims,
liabilities,  penalties,  Taxes, costs  and  expenses  (including
attorneys'   fees  and  court  costs)  (all  of   the   foregoing
collectively, the "Indemnified Losses") at any time imposed on or
incurred  by  any Indemnified Party arising out of  or  otherwise
relating to:

         (i)   any written representation or warranty made by the
     Collection Agent (or any employee or agent of the Collection
     Agent)  in  this Agreement, any other Transaction  Document,
     any  Periodic  Report  or any other  information  or  report
     delivered  by  the Collection Agent pursuant  hereto,  which
     shall  have been false or incorrect in any material  respect
     when made;

        (ii)   the failure by the Collection Agent to comply with
     any  applicable  law,  rule  or regulation  related  to  any
     Receivable, or the nonconformity of any Receivable with  any
     such applicable law, rule or regulation;

        (iii)   any loss of a perfected security interest (or  in
     the  priority of such security interest) as a result of  any
     commingling  by the Collection Agent of funds to  which  the
     Agent  or any Purchaser is entitled hereunder with any other
     funds; or

         (iv)    any failure of the Collection Agent, to  perform
     its  duties or obligations in accordance with the provisions
     of this Agreement or any other Transaction Document to which
     the Collection Agent is a party;

whether  arising  by reason of the acts to be  performed  by  the
Collection   Agent   hereunder  or  otherwise,   excluding   only
Indemnified  Losses  to  the extent (a) such  Indemnified  Losses
resulted  solely  from negligence or willful  misconduct  of  the
Indemnified Party seeking indemnification, (b) solely due to  the
credit  risk  of  the  Obligor and for which reimbursement  would
constitute  recourse  to the Collection Agent  for  uncollectible
Receivables,  (c) such Indemnified Losses include  Taxes  on,  or
measured by, the overall net income of the Agent or any Purchaser
computed in accordance with the Intended Tax Characterization, or
(d)   the   applicable  Originator  is  the  plaintiff  and   the
Indemnified Party is the defendant unless such Indemnified  Party
prevails  in  such legal action; provided, however, that  nothing
contained  in  this  sentence shall limit the  liability  of  the
Collection  Agent  or limit the recourse of the  Agent  and  each
Purchaser  to  the  Collection Agent for  any  amounts  otherwise
specifically  provided  to  be  paid  by  the  Collection   Agent
hereunder.

                           Article IV
                 Representations and Warranties

Section   4.1.   Representations  and  Warranties.   The   Seller
represents and warrants to the Agent and each Purchaser that:

         (a)   Corporate Existence and Power.  Each of the Seller
     and  each Crompton Entity is either a corporation or limited
     liability  company duly organized, validly existing  and  in
     good  standing  under the laws of its state of  organization
     and  has all corporate or organizational power and authority
     and  all governmental licenses, authorizations, consents and
     approvals  required  to  carry  on  its  business  in   each
     jurisdiction in which its business is now conducted,  except
     where failure to obtain such license, authorization, consent
     or  approval  would  not have a material adverse  effect  on
     (i)  its  ability to perform its obligations under,  or  the
     enforceability  of,  any  Transaction  Document,  (ii)   its
     business or financial condition, (iii) the interests of  the
     Agent  or  any Purchaser under any Transaction  Document  or
     (iv) the enforceability or collectibility of any Receivable.

          (b)   Corporate or Organizational Authorization and  No
     Contravention.   The execution, delivery and performance  by
     each  of  the  Seller  and  each  Crompton  Entity  of  each
     Transaction Document to which it is a party (i)  are  within
     its  corporate  or  organizational  powers,  as  applicable,
     (ii) have been duly authorized by all necessary corporate or
     organizational   action,  as  applicable,   (iii)   do   not
     contravene  or constitute a default under (A) any applicable
     law,  rule  or  regulation,  (B)  its  or  any  Subsidiary's
     charter,  by-laws or operating agreement, as  applicable  or
     (C) any agreement, order or other instrument to which it  or
     any  Subsidiary  is a party or its property is  subject  and
     (iv)  will not result in any Adverse Claim on any Receivable
     or  Collection  or  give cause for the acceleration  of  any
     indebtedness  of  the  Seller, any Crompton  Entity  or  any
     Subsidiary.

         (c)   Conduct of Business.  The Seller will perform, and
     will  cause  each  Crompton Entity to perform,  all  actions
     necessary to remain duly organized, validly existing and  in
     good  standing  in its jurisdiction of organization  and  to
     maintain all requisite authority to conduct its business  in
     each jurisdiction in which it conducts business.

          (d)    Binding  Effect.  Each Transaction  Document  to
     which   the  Seller  or  any  Crompton  Entity  is  a  party
     constitutes the legal, valid and binding obligation of  such
     Person  enforceable against that Person in  accordance  with
     its  terms, except as limited by bankruptcy, insolvency,  or
     other  similar  laws of general application relating  to  or
     affecting the enforcement of creditors' rights generally and
     subject to general principles of equity.

          (e)    Perfection  of Ownership Interest.   Immediately
     preceding  its  sale  of Receivables  to  the  Seller,  each
     Originator  was  the  owner of, and effectively  sold,  such
     Receivables  to  the Seller, free and clear of  any  Adverse
     Claim.   The Seller owns the Receivables free of any Adverse
     Claim  other  than the interests of the Purchasers  (through
     the  Agent)  therein  that  are  created  hereby,  and  each
     Purchaser   shall  at  all  times  have  a  valid  undivided
     percentage  ownership  interest,  which  shall  be  a  first
     priority perfected security interest for purposes of Article
     9   of  the  applicable  Uniform  Commercial  Code,  in  the
     Receivables  and Collections (subject to,  in  the  case  of
     Collections,  the limitations on perfection  of  a  security
     interest  in  proceeds set forth in the  applicable  Uniform
     Commercial Code) to the extent of its Purchase Interest then
     in effect.

           (f)     Accuracy  of  Information.   All   information
     furnished  by  the  Seller,  any  Crompton  Entity  or   any
     Affiliate  of any such Person to the Agent or any  Purchaser
     in   connection  with  any  Transaction  Document,  or   any
     transaction  contemplated thereby, is true and  accurate  in
     all material respects (and is not incomplete by omitting any
     information necessary to prevent such information from being
     materially  misleading),  in  each  case  on  the  date  the
     statement  was made and in light of the circumstances  under
     which  the  statements  were made  or  the  information  was
     furnished.

         (g)   No Actions, Suits.  There are no actions, suits or
     other    proceedings   (including   matters   relating    to
     environmental  liability) pending or threatened  against  or
     affecting the Seller, any Crompton Entity or any Subsidiary,
     or any of their respective properties, that (i) if adversely
     determined  (individually or in the aggregate), may  have  a
     material  adverse effect on the financial condition  of  the
     Seller,  any  Crompton Entity or any Subsidiary  or  on  the
     collectibility  of  the  Receivables  or  (ii)  involve  any
     Transaction   Document   or  any  transaction   contemplated
     thereby.   None  of the Seller, any Crompton Entity  or  any
     Subsidiary is in default of any contractual obligation or in
     violation   of  any  order,  rule  or  regulation   of   any
     Governmental Authority, which default or violation may  have
     a  material adverse effect upon (i) the financial  condition
     of  the  Seller, the Crompton Entities and the  Subsidiaries
     taken  as  a  whole  or  (ii)  the  collectibility  of   the
     Receivables.

          (h)    No Material Adverse Change.  Since December  31,
     1997,  there  has  been no material adverse  change  in  the
     collectibility  of  the Receivables  or  the  Seller's,  any
     Crompton   Entity's  or  any  Subsidiary's   (i)   financial
     condition  or (ii) ability to perform its obligations  under
     any Transaction Document.

          (i)   Accuracy of Exhibits; Lock-Box Arrangements.  All
     information  on Exhibits E-G (listing offices and  names  of
     the  Seller  and  each  Originator and where  they  maintain
     Records;  the  Subsidiaries; and Lock  Boxes)  is  true  and
     complete, subject to any changes permitted by, and  notified
     to  the Agent in accordance with, Article V.  The Seller has
     delivered  a copy of all Lock-Box Agreements to  the  Agent.
     The  Seller has not granted any interest in any Lock-Box  or
     Lock-Box  Account to any Person other than  the  Agent  and,
     upon  delivery  to  a Lock-Box Bank of the related  Lock-Box
     Letter,  the Agent will have exclusive ownership and control
     of the Lock-Box Account at such Lock-Box Bank.

          (j)    Sales  by each Originator.  Each  sale  by  each
     Originator  to the Seller of an interest in Receivables  and
     their Collections has been made in accordance with the terms
     of  the applicable Purchase Agreement, including the payment
     by  the  Seller  to  each Originator of the  purchase  price
     described  in such Purchase Agreement.  Each such  sale  has
     been made for "reasonably equivalent value" (as such term is
     used  in Section 548 of the Bankruptcy Code) and not for  or
     on  account  of "antecedent debt" (as such term is  used  in
     Section  547 of the Bankruptcy Code) owed by such Originator
     to the Seller.

                            Article V
                            Covenants

Section  5.1.   Covenants  of  the  Seller.   The  Seller  hereby
covenants  and agrees to comply with the following covenants  and
agreements, unless the Agent (with the consent of the Instructing
Group) shall otherwise consent:

    (a)   Financial Reporting.  The Seller will, and  will  cause
each Crompton Entity and each Subsidiary to, maintain a system of
accounting established and administered in accordance  with  GAAP
and will furnish to the Agent and each Purchaser:

          (i)    Annual  Financial Statements.  Within  120  days
     after  each  fiscal  year of (A) the Parent  copies  of  the
     Parent's  consolidated annual audited  financial  statements
     (including   a   consolidated  balance  sheet,  consolidated
     statement  of income and retained earnings and statement  of
     cash flows, with related footnotes) certified by independent
     certified   public  accountants  of  nationally   recognized
     standing  or  other  firm  of independent  certified  public
     accountants  satisfactory to the Agent  and  prepared  on  a
     consolidated basis in conformity with GAAP, and (B) for each
     of  the Seller and each Originator the annual balance  sheet
     for such Person (and, additionally for the Seller, an annual
     profit   and  loss  statement)  certified  by  a  Designated
     Financial  Officer  thereof, in  each  case  prepared  on  a
     consolidated basis in conformity with GAAP as of  the  close
     of such fiscal year for the year then ended;

         (ii)    Quarterly Financial Statements.  Within 60  days
     after  each (except the last) fiscal quarter of each  fiscal
     year  of  (A) the Parent, copies of its unaudited  financial
     statements (including at least a consolidated balance  sheet
     as  of  the close of such quarter and statements of earnings
     and  sources  and applications of funds for the period  from
     the  beginning  of  the fiscal year to  the  close  of  such
     quarter)  certified  by a Designated Financial  Officer  and
     prepared   in   a  manner  consistent  with  the   financial
     statements  described  in part (A) of  clause  (i)  of  this
     Section  5.l(a)  and  (B)  each  of  the  Seller  and   each
     Originator,  the  quarterly balance sheet  for  such  Person
     (and,  additionally  for  the  Seller,  a  profit  and  loss
     statement) for the period from the beginning of such  fiscal
     year to the close of such quarter, in each case certified by
     a  Designated  Financial Officer thereof and prepared  in  a
     manner   consistent  with  part  (B)  of   clause   (i)   of
     Section 5.1(a);

         (iii)    Officer's  Certificate.   Each  time  financial
     statements are furnished pursuant to clause (i) or  (ii)  of
     Section  5.1(a), a compliance certificate (in  substantially
     the  form  of  Exhibit  I) signed by a Designated  Financial
     Officer, dated the date of such financial statements;

        (iv)   Public Reports.  Promptly upon becoming available,
     a copy of each report or proxy statement filed by the Parent
     with  the  Securities Exchange Commission or any  securities
     exchange;

          (v)   Crompton Credit Agreement Certificate.  A copy of
     the    financial   information,   certificates   and   other
     documentation described in Sections 5.01(a) through  (h)  of
     the   Crompton  Credit  Agreement,  delivered  as  and  when
     required by such Section 5.01; and

         (vi)    Other  Information.  With reasonable promptness,
     such other information (including non-financial information)
     as  may  be requested by the Agent or any Purchaser (with  a
     copy of such request to the Agent).

    (b)  Notices.  Immediately upon becoming aware of any of  the
following  the  Seller  will  notify  the  Agent  and  provide  a
description of:

          (i)   Potential Termination Events.  The occurrence  of
     any Potential Termination Event;

         (ii)    Representations and Warranties.  The failure  of
     any  representation or warranty herein to be true (when made
     or at any time thereafter) in any material respect;

        (iii)    Downgrading.   The  downgrading,  withdrawal  or
     suspension  of  any  rating  by any  rating  agency  of  any
     indebtedness of the Seller;

         (iv)    Litigation.  The institution of any  litigation,
     arbitration proceeding or governmental proceeding reasonably
     likely  to be material to the Seller, any Subsidiary or  the
     collectibility or quality of the Receivables;

          (v)    Judgments.  The entry of any judgment or  decree
     against the Seller, any Crompton Entity or any Subsidiary if
     the  aggregate  amount  of  all judgments  then  outstanding
     against   the   Seller,  the  Crompton  Entities   and   the
     Subsidiaries exceeds $1,000,000; or

         (vi)    Changes in Business.  Any change in, or proposed
     change in, the character of the Seller's or any Originator's
     business that could impair the collectibility or quality  of
     any Receivable.

If  the  Agent  receives such a notice, the Agent shall  promptly
give notice thereof to each Purchaser and, until Amsterdam has no
Investment  after  the Amsterdam Termination  Date,  to  each  CP
Dealer and each Rating Agency.

    (c)   Conduct of Business.  The Seller will perform, and will
cause each Crompton Entity and Subsidiary to perform, all actions
necessary  to remain duly incorporated, validly existing  and  in
good  standing  in  its  jurisdiction  of  incorporation  and  to
maintain all requisite authority to conduct its business in  each
jurisdiction in which it conducts business.

    (d)   Compliance with Laws.  The Seller will comply, and will
cause  each  Crompton Entity and Subsidiary to comply,  with  all
laws,  regulations,  judgments and  other  directions  or  orders
imposed by any Governmental Authority to which such Person or any
Receivable or Collection may be subject.

    (e)   Furnishing Information and Inspection of Records.   The
Seller  will  furnish  to  the  Agent  and  the  Purchasers  such
information  concerning  the  Receivables  as  the  Agent  or   a
Purchaser  may  reasonably request.  The Seller  will,  and  will
cause  each  Originator to, permit, at any  time  during  regular
business   hours,   the   Agent  or   any   Purchaser   (or   any
representatives thereof), once per year or at any time after  the
occurrence of a Termination Event (at the expense of the  Seller)
or  at  any  other  time (at the expense of  the  Agent  or  such
Purchaser (as applicable)) (i) to examine and make copies of  all
Records,  (ii) to visit the offices and properties of the  Seller
for  the  purpose of examining the Records and (iii)  to  discuss
matters  relating  hereto  with  any  of  the  Seller's  or   any
Originator's officers, directors, employees or independent public
accountants having knowledge of such matters.  Once a  year,  the
Agent  may  (at the expense of the Seller provided such  expenses
are  reasonable in amount) have an independent public  accounting
firm  conduct  an audit of the Records or make test verifications
of the Receivables and Collections.

    (f)   Keeping Records.  (i) The Seller will, and  will  cause
each  Originator  to,  have and maintain (A)  administrative  and
operating procedures (including an ability to recreate Records if
originals are destroyed), (B) adequate facilities, personnel  and
equipment and (C) all Records and other information necessary  or
advisable  for  collecting  the  Receivables  (including  Records
adequate  to  permit  the immediate identification  of  each  new
Receivable  and  all  Collections of, and  adjustments  to,  each
existing  Receivable).   The Seller will  give  the  Agent  prior
notice  of  any  material  change  in  such  administrative   and
operating procedures.

         (ii)    The Seller will, (A) at all times from and after
     the date hereof, clearly and conspicuously mark its computer
     and  master data processing books and records with a  legend
     describing the Agent's and the Purchasers' interest  therein
     and (B) upon the request of the Agent, so mark each contract
     relating  to a Receivable and deliver to the Agent all  such
     contracts   (including  all  multiple  originals   of   such
     contracts),  with any appropriate endorsement or assignment,
     or segregate (from all other receivables then owned or being
     serviced  by  the Seller) the Receivables and all  contracts
     relating  to  each Receivable and hold in trust  and  safely
     keep  such contracts so legended in separate filing cabinets
     or  other suitable containers at such locations as the Agent
     may specify.

    (g)   Perfection.  (i) The Seller will, and will  cause  each
Originator  to, at its expense, promptly execute and deliver  all
instruments  and  documents  and take  all  action  necessary  or
requested  by  the Agent (including the execution and  filing  of
financing  or  continuation  statements,  amendments  thereto  or
assignments thereof) to enable the Agent to exercise and  enforce
all  its rights hereunder and to vest and maintain vested in  the
Agent a valid, first priority perfected security interest in  the
Receivables,  the  Collections,  the  Purchase  Agreements,   and
proceeds  thereof  free and clear of any  Adverse  Claim  (and  a
perfected  ownership interest in the Receivables and  Collections
to the extent of the Sold Interest).  The Agent will be permitted
to  authenticate a "record" and to sign and file any continuation
statements,  amendments thereto and assignments  thereof  without
the Seller's signature.

         (ii)    The  Seller will, and will cause each Originator
     to, only change its name, identity or corporate structure or
     relocate its chief executive office or the Records following
     thirty  (30)  days  advance notice  to  the  Agent  and  the
     delivery   to   the  Agent  of  all  financing   statements,
     instruments   and   other  documents  (including   direction
     letters) requested by the Agent.

        (iii)   The Seller and each Originator will at all  times
     maintain its chief executive offices within the jurisdiction
     of  its  organization (other than in the states of  Florida,
     Maryland and Tennessee) in which Article 9 of the UCC is  in
     effect.   If  the Seller or any Originator moves  its  chief
     executive office to a location that imposes Taxes,  fees  or
     other  charges  to perfect the Agent's and  the  Purchasers'
     interests  hereunder  or the Seller's  interests  under  the
     Purchase  Agreements, the Seller will pay all  such  amounts
     and  any  other  costs  and expenses incurred  in  order  to
     maintain  the  enforceability of the Transaction  Documents,
     the  Sold  Interest and the interests of the Agent  and  the
     Purchasers in the Receivables and Collections.

   (h)  Performance of Duties.  The Seller will perform, and will
cause  each  Crompton Entity and Subsidiary  and  the  Collection
Agent  (if  an  Affiliate) to perform, its respective  duties  or
obligations  in  accordance with the provisions of  each  of  the
Transaction  Documents.  The Seller (at its  expense)  will,  and
will  cause each Crompton Entity to, (i) fully and timely perform
in  all  material respects all agreements required to be observed
by  it  in  connection with each Receivable, (ii) comply  in  all
material  respects  with  the Credit and Collection  Policy,  and
(iii)  refrain from any action that may impair the rights of  the
Agent or the Purchasers in the Receivables or Collections.

    (i)  Payments on Receivables, Accounts.  The Seller will, and
will cause each Originator to, at all times instruct all Obligors
to deliver payments on the Receivables to a Lock-Box Account.  If
any such payments or other Collections are received by the Seller
or  any Originator, it shall hold such payments in trust for  the
benefit of the Agent and the Purchasers and promptly (but in  any
event  within  two Business Days after receipt and identification
thereof)  remit such funds into a Lock-Box Account.   The  Seller
will  cause each Lock-Box Bank to comply with the terms  of  each
applicable Lock-Box Letter.  The Seller will not permit the funds
of  any Affiliate to be deposited into any Lock-Box Account.   If
such  funds are nevertheless deposited into any Lock-Box Account,
the  Seller  will  promptly identify such funds for  segregation.
The Seller will not, and will not permit any Collection Agent  or
other  Person to, commingle Collections or other funds  to  which
the Agent or any Purchaser is entitled with any other funds.  The
Seller  shall  only add, and shall only permit an  Originator  to
add,  a  Lock-Box  Bank, Lock-Box, or Lock-Box Account  to  those
listed  on  Exhibit G if the Agent has received  notice  of  such
addition,  a  copy of any new Lock-Box Agreement and an  executed
and  acknowledged copy of a Lock-Box Letter substantially in  the
form  of  Exhibit H (with such changes as are acceptable  to  the
Agent)  from  any  new  Lock-Box Bank.   The  Seller  shall  only
terminate  a  Lock-Box  Bank or Lock-Box,  or  close  a  Lock-Box
Account, upon 30 days advance notice to the Agent.

   (j)  Sales and Adverse Claims Relating to Receivables.  Except
as  otherwise provided herein, the Seller will not, and will  not
permit  any  Originator to, (by operation of  law  or  otherwise)
dispose  of or otherwise transfer, or create or suffer  to  exist
any Adverse Claim upon, any receivable or any proceed thereof.

    (k)   Extension  or  Amendment  of  Receivables.   Except  as
otherwise  permitted  in  Section  3.2(b)  and  then  subject  to
Section  1.5,  the  Seller will not, and  will  not  permit  each
Originator to, extend, amend, rescind or cancel any Receivable.

    (l)  Change in Business or Credit and Collection Policy.  The
Seller will not, and will not permit any Originator to, make  any
material change in the character of its business or in its Credit
and Collection Policy.

    (m)  Accounting for Sale.  Except as provided in Section 9.9,
the  Seller will not, and will not permit any Crompton Entity to,
account for, or otherwise treat, the transactions contemplated by
the Transaction Documents other than as a sale of Receivables  or
inconsistent   with  the  Agent's  ownership  interest   in   the
Receivables and Collections.

                           Article VI
                         Indemnification

Section  6.1.   Indemnities by the Seller.  Without limiting  any
other  rights  any Person may have hereunder or under  applicable
law,  the  Seller  hereby indemnifies and holds harmless,  on  an
after-Tax   basis,  the  Agent  and  each  Purchaser  and   their
respective  officers, directors, agents and  employees  (each  an
"Indemnified  Party")  from  and against  any  and  all  damages,
losses, claims, liabilities, penalties, Taxes, costs and expenses
(including attorneys' fees and court costs) (all of the foregoing
collectively, the "Indemnified Losses") at any time imposed on or
incurred  by  any Indemnified Party arising out of  or  otherwise
relating   to   any   Transaction  Document,   the   transactions
contemplated  thereby or the acquisition of any  portion  of  the
Sold  Interest,  or any action taken or omitted  by  any  of  the
Indemnified Parties (including any action taken by the  Agent  as
attorney-in-fact  for  the Seller pursuant  to  Section  3.5(b)),
whether  arising  by reason of the acts to be  performed  by  the
Seller  hereunder or otherwise, excluding only Indemnified Losses
to  the  extent  (a)  a final judgment of a  court  of  competent
jurisdiction holds such Indemnified Losses resulted  solely  from
gross  negligence or willful misconduct of the Indemnified  Party
seeking indemnification, (b) solely due to the credit risk of the
Obligor and for which reimbursement would constitute recourse  to
the  Seller or the Collection Agent for uncollectible Receivables
or  (c) such Indemnified Losses include Taxes on, or measured by,
the overall net income of the Agent or any Purchaser computed  in
accordance  with  the  Intended Tax  Characterization;  provided,
however, that nothing contained in this sentence shall limit  the
liability  of  the Seller or the Collection Agent  or  limit  the
recourse  of  the Agent and each Purchaser to the Seller  or  the
Collection Agent for any amounts otherwise specifically  provided
to  be  paid  by  the Seller or the Collection  Agent  hereunder.
Without  limiting the foregoing indemnification, but  subject  to
the  limitations set forth in clauses (a), (b)  and  (c)  of  the
previous  sentence, the Seller shall indemnify  each  Indemnified
Party  for  Indemnified Losses (including losses  in  respect  of
uncollectible Receivables, regardless for these specific  matters
whether reimbursement therefor would constitute recourse  to  the
Seller or the Collection Agent) relating to or resulting from:

         (i)   any representation or warranty made by the Seller,
     any Crompton Entity or the Collection Agent (or any employee
     or   agent  of  the  Seller,  any  Crompton  Entity  or  the
     Collection   Agent)  under  or  in  connection   with   this
     Agreement,  any Periodic Report or any other information  or
     report  delivered by the Seller, any Crompton Entity or  the
     Collection  Agent  pursuant hereto, which  shall  have  been
     false  or  incorrect in any material respect  when  made  or
     deemed made;

        (ii)   the failure by the Seller, any Crompton Entity, or
     the Collection Agent to comply with any applicable law, rule
     or   regulation   related   to  any   Receivable,   or   the
     nonconformity  of  any Receivable with any  such  applicable
     law, rule or regulation;

        (iii)    the  failure of the Seller to vest and  maintain
     vested  in  the Agent, for the benefit of the Purchasers,  a
     perfected  ownership  or  security  interest  in  the   Sold
     Interest    and   the   property   conveyed   pursuant    to
     Section  1.1(e)  and  Section 1.8, free  and  clear  of  any
     Adverse Claim;

        (iv)   any commingling of funds to which the Agent or any
     Purchaser is entitled hereunder with any other funds;

          (v)   any failure of a Lock-Box Bank to comply with the
     terms of the applicable Lock-Box Letter;

         (vi)   any dispute, claim, offset or defense (other than
     discharge  in bankruptcy of the Obligor) of the  Obligor  to
     the  payment of any Receivable, or any other claim resulting
     from the sale or lease of goods or the rendering of services
     related  to such Receivable or the furnishing or failure  to
     furnish any such goods or services or other similar claim or
     defense  not  arising from the financial  inability  of  any
     Obligor to pay undisputed indebtedness;

        (vii)   any failure of the Seller or any Crompton Entity,
     or  any  Affiliate of any thereof, to perform its duties  or
     obligations  in  accordance  with  the  provisions  of  this
     Agreement  or any other Transaction Document to  which  such
     Person is a party (as a Collection Agent or otherwise);

      (viii)   any action taken by the Agent  as attorney-in-fact
     for the Seller pursuant to Section 3.5(b); or

          (ix)    any  environmental  liability  claim,  products
     liability  claim or personal injury or property damage  suit
     or  other  similar  or related claim or action  of  whatever
     sort, arising out of or in connection with any Receivable or
     any other suit, claim or action of whatever sort relating to
     any of the Transaction Documents.

Section  6.2.   Increased Cost and Reduced  Return.   By  way  of
clarification,  and  not of limitation, of Section  6.1,  if  the
adoption of any applicable law, rule or regulation, or any change
therein,  or  any change in the interpretation or  administration
thereof   by   any  Governmental  Authority  charged   with   the
interpretation  or administration thereof, or compliance  by  any
Amsterdam   Funding   Source,  the   Agent   or   any   Purchaser
(collectively,  the  "Funding  Parties")  with  any  request   or
directive  (whether or not having the force of law) of  any  such
Governmental  Authority (a "Regulatory Change") (a) subjects  any
Funding  Party  to any charge or withholding on or in  connection
with  a  Funding  Agreement or this Agreement (collectively,  the
"Funding Documents") or any Receivable, (b) changes the basis  of
taxation of payments to any of the Funding Parties of any amounts
payable under any of the Funding Documents (except for changes in
the rate of Tax on the overall net income of such Funding Party),
(c)   imposes,   modifies  or  deems  applicable   any   reserve,
assessment,   insurance  charge,  special  deposit   or   similar
requirement  against assets of, deposits with or for the  account
of,  or  any  credit  extended by, any of  the  Funding  Parties,
(d) has the effect of reducing the rate of return on such Funding
Party's  capital to a level below that which such  Funding  Party
could  have  achieved but for such adoption, change or compliance
(taking   into   consideration  such  Funding  Party's   policies
concerning  capital adequacy) or (e) imposes any other condition,
and  the result of any of the foregoing is (x) to impose  a  cost
on,  or increase the cost to, any Funding Party of its commitment
under  any  Funding  Document  or of purchasing,  maintaining  or
funding any interest acquired under any Funding Document, (y)  to
reduce  the amount of any sum received or receivable  by,  or  to
reduce the rate of return of, any Funding Party under any Funding
Document or (z) to require any payment calculated by reference to
the amount of interests held or amounts received by it hereunder,
then, upon demand by the Agent, the Seller shall pay to the Agent
for  the  account of the Person such additional amounts  as  will
compensate  the  Agent or such Purchaser  (or,  in  the  case  of
Amsterdam,  will  enable  Amsterdam to compensate  any  Amsterdam
Funding  Source)  for  such increased cost  or  reduction.   Each
Funding  Party agrees that on the occurrence of any event  giving
rise  to  the operation of this Section 6.2 with respect to  such
Funding  Party,  it  will,  if  requested  by  the  Seller,   use
reasonable  efforts (subject to overall policy considerations  of
such  Funding Party) to designate another office for  any  credit
accommodation  affected  by  such  event,  provided   that   such
designation is made on such terms that such Funding Party and its
office suffer no economic, legal or regulatory disadvantage, with
the  object of avoiding the consequence of the event giving  rise
to the operation of such Section.

Section  6.3.   Other  Costs  and  Expenses.   Also  by  way   of
clarification, and not of limitation, of Section 6.1, the  Seller
shall  pay  to  the  Agent on demand all costs  and  expenses  in
connection  with  (a)  the preparation, execution,  delivery  and
administration  (including amendments of any  provision)  of  the
Transaction Documents, (b) the sale of the Sold Interest, (c) the
perfection   of  the  Agent's  rights  in  the  Receivables   and
Collections,  (d) the enforcement by the Agent or the  Purchasers
of  the obligations of the Seller under the Transaction Documents
or  of any Obligor under a Receivable and (e) the maintenance  by
the  Agent  of  the  Lock-Boxes and Lock-Box Accounts,  including
fees,  costs  and  expenses of legal counsel for  the  Agent  and
Amsterdam  relating to any of the foregoing or  to  advising  the
Agent,  Amsterdam  and  any Amsterdam Funding  Source  about  its
rights and remedies under any Transaction Document or any related
Funding  Agreement and all costs and expenses (including  counsel
fees  and  expenses)  of  the  Agent,  each  Purchaser  and  each
Amsterdam  Funding Source in connection with the  enforcement  of
the  Transaction  Documents  or  any  Funding  Agreement  and  in
connection  with the administration of the Transaction  Documents
following  a  Termination Event.  The Seller shall reimburse  the
Agent  and  Amsterdam for the cost of the Agent's or  Amsterdam's
auditors  (which  may be employees of such Person)  auditing  the
books,  records and procedures of the Seller.  The  Seller  shall
reimburse  Amsterdam for any amounts Amsterdam must  pay  to  any
Amsterdam  Funding  Source pursuant to any Funding  Agreement  on
account  of  any  Tax.  The Seller shall reimburse  Amsterdam  on
demand for all other costs and expenses incurred by Amsterdam  or
any  shareholder of Amsterdam in connection with the  Transaction
Documents or the transactions contemplated thereby, including the
cost   of   auditing   Amsterdam's  books  by  certified   public
accountants,  the  cost of the Ratings and the fees  and  out-of-
pocket  expenses  of  counsel  of the  Agent,  Amsterdam  or  any
shareholder,  or administrator, of Amsterdam for advice  relating
to Amsterdam's operation.

Section  6.4.  Withholding Taxes.  (a) All payments made  by  the
Seller  hereunder  shall be made without withholding  for  or  on
account  of  any present or future taxes (other than overall  net
income  taxes on the recipient).  If any such withholding  is  so
required,  the Seller shall make the withholding, pay the  amount
withheld  to  the  appropriate authority before penalties  attach
thereto  or  interest  accrues thereon and  pay  such  additional
amount as may be necessary to ensure that the net amount actually
received by each Purchaser and the Agent free and clear  of  such
taxes  (including such taxes on such additional amount) is  equal
to  the  amount that Purchaser or the Agent (as the case may  be)
would  have received had such withholding not been made.  If  the
Agent or any Purchaser pays any such taxes, penalties or interest
the  Seller shall reimburse the Agent or such Purchaser for  that
payment  on demand.  If the Seller pays any such taxes, penalties
or  interest,  it shall deliver official tax receipts  evidencing
that  payment  or  certified copies thereof to the  Purchaser  or
Agent on whose account such withholding was made (with a copy  to
the  Agent if not the recipient of the original) on or before the
thirtieth day after payment.

    (b)   Before  the first date on which any amount  is  payable
hereunder for the account of any Purchaser not incorporated under
the  laws  of the USA such Purchaser shall deliver to the  Seller
and the Agent each two (2) duly completed copies of United States
Internal   Revenue  Service  Form  1001  or  4224  (or  successor
applicable  form) certifying that such Purchaser is  entitled  to
receive  payments hereunder without deduction or  withholding  of
any  United  States  federal income taxes.  Each  such  Purchaser
shall replace or update such forms when necessary to maintain any
applicable exemption and as requested by the Agent or the Seller.

Section  6.5.   Payments and Allocations.  If  any  Person  seeks
compensation  pursuant  to this Article  VI,  such  Person  shall
deliver  to the Seller and the Agent a certificate setting  forth
the  amount due to such Person, a description of the circumstance
giving  rise  thereto and the basis of the calculations  of  such
amount, which certificate shall be conclusive absent demonstrable
error.   The  Seller shall pay to the Agent (for the  account  of
such  Person)  the  amount shown as due on any  such  certificate
within 10 Business Days after receipt of the notice.

                           Article VII
                      Conditions Precedent

Section 7.1.  Conditions to Closing.  This Agreement shall become
effective  on the first date all conditions in this  Section  7.1
are  satisfied.  On or before such date, the Seller shall deliver
to  the  Agent  the  following documents in form,  substance  and
quantity acceptable to the Agent:

          (a)    A  certificate of the Secretary of each  of  the
     Seller   and  each  Crompton  Entity  certifying   (i)   the
     resolutions of the Seller's and each Crompton Entity's board
     of directors approving each Transaction Document to which it
     is  a party, (ii) the name, signature, and authority of each
     officer  who  executes  on  the  Seller's  or  any  Crompton
     Entity's behalf a Transaction Document (on which certificate
     the  Agent and each Purchaser may conclusively rely until  a
     revised  certificate is received), (iii)  the  Seller's  and
     each   Crompton   Entity's  certificate   or   articles   of
     incorporation  certified by the Secretary of  State  of  its
     state of incorporation, (iv) a copy of the Seller's and each
     Crompton Entity's by-laws and (v) good standing certificates
     issued  by the Secretaries of State of each jurisdiction  in
     which the Seller or any Crompton Entity is incorporated.

          (b)   All instruments and other documents required,  or
     deemed desirable by the Agent, to perfect the Agent's  first
     priority interest in the Receivables and Collections in  all
     appropriate jurisdictions.

          (c)    UCC  search  reports from all jurisdictions  the
     Agent requests.

           (d)     Executed  copies  of  (i)  all  consents   and
     authorizations necessary in connection with the  Transaction
     Documents (ii) direction letters executed by the Seller  and
     each  Originator authorizing the Agent to inspect  and  make
     copies  from  the Seller's and each Originator's  books  and
     records  with respect to the Receivables maintained  at  any
     off-site  data processing or storage facilities,  (iii)  all
     Lock-Box Letters, (iv) a compliance certificate in the  form
     of  Exhibit  I covering the period ending August  31,  1998,
     (v)  a  Periodic Report covering the month ended August  31,
     1998, and (vi) each Transaction Document.

          (e)    Favorable opinions of counsel to the Seller  and
     each  Crompton  Entity (and, if requested by Amsterdam,  the
     Enhancer  or any Liquidity Provider and then at the  expense
     of  the  Seller) covering such matters as Amsterdam  or  the
     Agent may request.

         (f)   Such other approvals, opinions or documents as the
     Agent or Amsterdam may request.

Section  7.2.   Conditions to Each Purchase.  The  obligation  of
each  Committed Purchaser to make any Purchase, and the right  of
the  Seller to request or accept any Purchase, are subject to the
conditions  (and  each  Purchase  shall  evidence  the   Seller's
representation  and  warranty  that  clauses  (a)-(e)   of   this
Section  7.2  have  been satisfied) that  on  the  date  of  such
Purchase before and after giving effect to the Purchase:

         (a)   no Potential Termination Event shall then exist or
     shall occur as a result of the Purchase;

         (b)   the Liquidity Termination Date has not occurred;

          (c)    after  giving effect to the application  of  the
     proceeds  of  such  Purchase, (x)  the  outstanding  Matured
     Aggregate   Investment  would  not  exceed   the   Aggregate
     Commitment  and  (y)  the outstanding  Aggregate  Investment
     would not exceed the Purchase Limit;

          (d)   the representations and warranties in Section 4.1
     are  true and correct in all material respects on and as  of
     such  date  (except  to the extent such representations  and
     warranties relate solely to an earlier date and then  as  of
     such earlier date); and

          (e)   each of the Seller and each Crompton Entity is in
     full  compliance  with the Transaction Documents  (including
     all covenants and agreements in Article V).

Nothing  in  this  Section 7.2 limits the obligations  (including
those in Section 2.1) of each Committed Purchaser to Amsterdam.

                          Article VIII
                            The Agent

Section  8.1.   Appointment  and  Authorization.  Each  Purchaser
hereby irrevocably designates and appoints ABN AMRO Bank N.V.  as
the  "Agent"  hereunder and authorizes the  Agent  to  take  such
actions and to exercise such powers as are delegated to the Agent
hereby  and  to  exercise  such other powers  as  are  reasonably
incidental thereto.  The Agent shall hold, in its name,  for  the
benefit  of  each  Purchaser,  the  Purchase  Interest   of   the
Purchaser.  The Agent shall not have any duties other than  those
expressly set forth herein or any fiduciary relationship with any
Purchaser,  and  no implied obligations or liabilities  shall  be
read  into this Agreement, or otherwise exist, against the Agent.
The  Agent  does  not  assume, nor shall it  be  deemed  to  have
assumed,  any obligation to, or relationship of trust  or  agency
with,   the  Seller.   Notwithstanding  any  provision  of   this
Agreement  or any other Transaction Document, in no  event  shall
the  Agent ever be required to take any action which exposes  the
Agent to personal liability or which is contrary to the provision
of any Transaction Document or applicable law.

Section 8.2.  Delegation of Duties.  The Agent may execute any of
its  duties  through  agents or attorneys-in-fact  and  shall  be
entitled  to advice of counsel concerning all matters  pertaining
to  such  duties.   The  Agent shall not be responsible  for  the
negligence  or  misconduct  of  any agents  or  attorneys-in-fact
selected by it with reasonable care.

Section 8.3.  Exculpatory Provisions.  Neither the Agent nor  any
of  its  directors, officers, agents or employees shall be liable
for  any action taken or omitted (i) with the consent or  at  the
direction of the Instructing Group or (ii) in the absence of such
Person's gross negligence or willful misconduct.  The Agent shall
not  be responsible to any Purchaser or other Person for (i)  any
recitals, representations, warranties or other statements made by
the  Seller,  any  Crompton Entity or any  of  their  Affiliates,
(ii)    the    value,   validity,   effectiveness,   genuineness,
enforceability  or  sufficiency  of  any  Transaction   Document,
(iii)  any failure of the Seller, any Crompton Entity or  any  of
their   Affiliates  to  perform  any  obligation  or   (iv)   the
satisfaction  of  any condition specified in  Article  VII.   The
Agent shall not have any obligation to any Purchaser to ascertain
or  inquire about the observance or performance of any  agreement
contained   in  any  Transaction  Document  or  to  inspect   the
properties,  books or records of the Seller, any Crompton  Entity
or any of their Affiliates.

Section 8.4.  Reliance by Agent.  The Agent shall in all cases be
entitled  to rely, and shall be fully protected in relying,  upon
any document, other writing or conversation believed by it to  be
genuine and correct and to have been signed, sent or made by  the
proper  Person  and upon advice and statements of  legal  counsel
(including  counsel to the Seller), independent  accountants  and
other  experts  selected by the Agent.  The Agent  shall  in  all
cases  be  fully  justified in failing or refusing  to  take  any
action  under  any  Transaction Document unless  it  shall  first
receive  such  advice  or  concurrence  of  the  Purchasers,  and
assurance of its indemnification, as it deems appropriate.

Section  8.5.   Assumed Payments.  Unless the  Agent  shall  have
received notice from the applicable Purchaser before the date  of
any  Put or of any Incremental Purchase that such Purchaser  will
not  make  available to the Agent the amount it is  scheduled  to
remit as part of such Put or Incremental Purchase, the Agent  may
assume such Purchaser has made such amount available to the Agent
when  due  (an  "Assumed  Payment") and, in  reliance  upon  such
assumption, the Agent may (but shall have no obligation to)  make
available such amount to the appropriate Person.  If and  to  the
extent that any Purchaser shall not have made its Assumed Payment
available  to  the Agent, such Purchaser (and the Seller  in  the
case  of any Incremental Purchase) hereby agrees to pay the Agent
forthwith  on demand such unpaid portion of such Assumed  Payment
up  to  the amount of funds actually paid by the Agent,  together
with  interest thereon for each day from the date of such payment
by the Agent until the date the requisite amount is repaid to the
Agent,  at a rate per annum equal to the Federal Funds Rate  plus
2%.

Section 8.6.  Notice of Termination Events.  The Agent shall  not
be  deemed to have knowledge or notice of the occurrence  of  any
Potential Termination Event unless the Agent has received  notice
from  any  Purchaser  or  the Seller  stating  that  a  Potential
Termination  Event  has occurred hereunder  and  describing  such
Potential  Termination Event.  The Agent shall take  such  action
concerning  a Potential Termination Event as may be  directed  by
the  Instructing Group (or, if required for such action,  all  of
the  Purchasers),  but until the Agent receives such  directions,
the  Agent may (but shall not be obligated to) take such  action,
or  refrain from taking such action, as the Agent deems advisable
and in the best interests of the Purchasers.

Section  8.7.  Non-Reliance on Agent and Other Purchasers.   Each
Purchaser expressly acknowledges that neither the Agent  nor  any
of  its officers, directors, employees, agents, attorneys-in-fact
or  Affiliates has made any representations or warranties  to  it
and  that  no  act  by the Agent hereafter taken,  including  any
review of the affairs of the Seller or any Crompton Entity, shall
be  deemed  to constitute any representation or warranty  by  the
Agent.  Each Purchaser represents and warrants to the Agent that,
independently and without reliance upon the Agent  or  any  other
Purchaser and based on such documents and information as  it  has
deemed appropriate, it has made and will continue to make its own
appraisal  of  and  investigation into the business,  operations,
property,   prospects,   financial  and  other   conditions   and
creditworthiness  of the Seller, the Crompton Entities,  and  the
Receivables and its own decision to enter into this Agreement and
to  take,  or  omit, action under any Transaction Document.   The
Agent  shall deliver each month to any Purchaser that so requests
a  copy of the Periodic Report(s) received covering the preceding
calendar  month.  Except for items specifically  required  to  be
delivered  hereunder,  the  Agent shall  not  have  any  duty  or
responsibility  to  provide any Purchaser  with  any  information
concerning  the  Seller,  any Crompton Entity  or  any  of  their
Affiliates that comes into the possession of the Agent or any  of
its officers, directors, employees, agents, attorneys-in-fact  or
Affiliates.

Section 8.8.  Agent and Affiliates.  The Agent and its Affiliates
may  extend credit to, accept deposits from and generally  engage
in  any kind of business with the Seller, any Crompton Entity  or
any of their Affiliates and, in its roles as a Liquidity Provider
and   the  Enhancer,  ABN  AMRO  may  exercise  or  refrain  from
exercising  its  rights and powers as if it were not  the  Agent.
The parties acknowledge that ABN AMRO acts as agent for Amsterdam
and  subagent  for  Amsterdam's  management  company  in  various
capacities,  as  well  as providing credit facilities  and  other
support for Amsterdam not contained in the Transaction Documents.

Section  8.9.   Indemnification.  Each Committed Purchaser  shall
indemnify   and  hold  harmless  the  Agent  and  its   officers,
directors,  employees, representatives and agents (to the  extent
not  reimbursed by the Seller or any Crompton Entity and  without
limiting  the obligation of the Seller or any Crompton Entity  to
do  so),  ratably in accordance with its Ratable Share  from  and
against  any  and all liabilities, obligations, losses,  damages,
penalties,   judgments,   settlements,   costs,   expenses    and
disbursements  of  any kind whatsoever (including  in  connection
with  any investigative or threatened proceeding, whether or  not
the  Agent  or  such Person shall be designated a party  thereto)
that  may  at  any time be imposed on, incurred  by  or  asserted
against  the Agent or such Person as a result of, or related  to,
any of the transactions contemplated by the Transaction Documents
or  the  execution,  delivery or performance of  the  Transaction
Documents or any other document furnished in connection therewith
(but   excluding  any  such  liabilities,  obligations,   losses,
damages,  penalties, judgments, settlements, costs,  expenses  or
disbursements  resulting  solely from  the  gross  negligence  or
willful  misconduct  of  the  Agent or  such  Person  as  finally
determined by a court of competent jurisdiction).

Section 8.10. Successor Agent.  The Agent may, upon at least five
(5)  days  notice  to  the Seller and each Purchaser,  resign  as
Agent.   Such  resignation  shall not become  effective  until  a
successor  agent  is appointed by an Instructing  Group  and  has
accepted   such  appointment.   Upon  such  acceptance   of   its
appointment  as  Agent  hereunder  by  a  successor  Agent,  such
successor Agent shall succeed to and become vested with  all  the
rights  and duties of the retiring Agent, and the retiring  Agent
shall  be  discharged from its duties and obligations  under  the
Transaction  Documents.  After any retiring  Agent's  resignation
hereunder,  the  provisions of Article VI and this  Article  VIII
shall inure to its benefit as to any actions taken or omitted  to
be taken by it while it was the Agent.

Article IX

                          Miscellaneous

Section  9.1.  Termination.  Amsterdam shall cease to be a  party
hereto   when  the  Amsterdam  Termination  Date  has   occurred,
Amsterdam  holds  no  Investment and all amounts  payable  to  it
hereunder  have  been indefeasibly paid in full.  This  Agreement
shall terminate following the Liquidity Termination Date when  no
Investment  is held by a Purchaser and all other amounts  payable
hereunder have been indefeasibly paid in full, but the rights and
remedies   of  the  Agent  and  each  Purchaser  concerning   any
representation, warranty or covenant made, or deemed to be  made,
by  the Seller and under Article VI and Section 8.9 shall survive
such termination.

Section  9.2.  Notices.  Unless otherwise specified, all  notices
and other communications hereunder shall be in writing (including
by  telecopier or other facsimile communication),  given  to  the
appropriate Person at its address or telecopy number set forth on
the  signature pages hereof or at such other address or  telecopy
number as such Person may specify, and effective when received at
the  address  specified  by  such  Person.   Each  party  hereto,
however,  authorizes  the Agent to act on  telephone  notices  of
Purchases,  Puts, and Discount Rate and Tranche Period selections
from any person the Agent in good faith believes to be acting  on
behalf of the relevant party and, at the Agent's option, to  tape
record any such telephone conversation.  Each party hereto agrees
to deliver promptly to the Agent a confirmation of each telephone
notice  given or received by such party (signed by an  authorized
officer  of  such  party), but the absence of  such  confirmation
shall  not  affect  the  validity of the telephone  notice.   The
Agent's records of all such conversations shall be deemed correct
and,  if  the  confirmation  of  a conversation  differs  in  any
material respect from the action taken by the Agent, the  records
of  the Agent shall govern absent manifest error.  The number  of
days  for  any  advance notice required hereunder may  be  waived
(orally  or in writing) by the Person receiving such notice  and,
in  the  case of notices to the Agent, the consent of each Person
to which the Agent is required to forward such notice.

Section   9.3.    Payments  and  Computations.    Notwithstanding
anything  herein  to  the contrary, any amounts  to  be  paid  or
transferred by the Seller or the Collection Agent to, or for  the
benefit  of, any Purchaser or any other Person shall be  paid  or
transferred  to the Agent (for the benefit of such  Purchaser  or
other  Person).   The  Agent shall promptly (and,  if  reasonably
practicable,  on the day it receives such amounts)  forward  each
such  amount to the Person entitled thereto and such Person shall
apply the amount in accordance herewith.  All amounts to be  paid
or  deposited hereunder shall be paid or transferred on  the  day
when  due in immediately available Dollars (and, if due from  the
Seller  or  Collection Agent, by 11:00 a.m. (Chicago time),  with
amounts  received  after  such time  being  deemed  paid  on  the
Business   Day  following  such  receipt).   The  Seller   hereby
authorizes  the Agent to debit the Seller Account for application
to  any  amounts owed by the Seller hereunder.  The Seller shall,
to the extent permitted by law, pay to the Agent upon demand, for
the account of the applicable Person, interest on all amounts not
paid  or  transferred by the Seller or the Collection Agent  when
due  hereunder  at  a  rate  equal to the  Prime  Rate  plus  2%,
calculated  from the date any such amount became  due  until  the
date  paid  in  full.   Any payment or other  transfer  of  funds
scheduled to be made on a day that is not a Business Day shall be
made  on the next Business Day, and any Discount Rate or interest
rate  accruing  on  such amount to be paid or  transferred  shall
continue  to  accrue to such next Business Day.  All computations
of  interest,  fees,  and Discount shall be  calculated  for  the
actual days elapsed based on a 360 day year.

Section 9.4.  Sharing of Recoveries.  Each Purchaser agrees  that
if  it receives any recovery, through set-off, judicial action or
otherwise,  on any amount payable or recoverable hereunder  in  a
greater  proportion than should have been received  hereunder  or
otherwise  inconsistent  with  the provisions  hereof,  then  the
recipient of such recovery shall purchase for cash an interest in
amounts owing to the other Purchasers (as return of Investment or
otherwise),  without representation or warranty  except  for  the
representation and warranty that such interest is being  sold  by
each  such  other Purchaser free and clear of any  Adverse  Claim
created  or  granted  by  such other  Purchaser,  in  the  amount
necessary  to create proportional participation by the Purchasers
in  such  recovery (as if such recovery were distributed pursuant
to  Section  2.3).   If  all or any portion  of  such  amount  is
thereafter recovered from the recipient, such purchase  shall  be
rescinded and the purchase price restored to the extent  of  such
recovery, but without interest.

Section 9.5.  Right of Setoff.  During a Termination Event,  each
Purchaser  is hereby authorized (in addition to any other  rights
it   may   have)  to  setoff,  appropriate  and  apply   (without
presentment,  demand, protest or other notice  which  are  hereby
expressly waived) any deposits and any other indebtedness held or
owing by such Purchaser (including by any branches or agencies of
such  Purchaser)  to, or for the account of, the  Seller  against
amounts  owing  by  the Seller hereunder (even if  contingent  or
unmatured).

Section 9.6.  Amendments.  Except as otherwise expressly provided
herein,  no amendment or waiver hereof shall be effective  unless
signed by the Seller and the Instructing Group.  In addition,  no
amendment  hereof  shall, without the  consent  of  (a)  all  the
Liquidity Providers, (i) extend the Liquidity Termination Date or
the  date of any payment or transfer of Collections by the Seller
to  the Collection Agent or by the Collection Agent to the Agent,
(ii)  reduce  the rate or extend the time of payment of  Discount
for  any  Eurodollar Tranche or Prime Tranche,  (iii)  reduce  or
extend  the  time of payment of any fee payable to the  Liquidity
Providers,  (iv) except as provided herein, release, transfer  or
modify any Committed Purchaser's Purchase Interest or change  any
Commitment,  (v)  amend  the  definition  of  Required  Liquidity
Providers,  Instructing Group, Termination Event or Section  1.1,
1.2,  1.5, 1.7(a), 2.1, 2.2, 2.3, 7.2 or 9.6, Article VI, or  any
obligation of any Crompton Entity thereunder, (vi) consent to the
assignment  or  transfer by the Seller or any Originator  of  any
interest  in  the  Receivables other  than  transfers  under  the
Transaction  Documents or permit any Crompton Entity to  transfer
any  of its obligations under any Transaction Document except  as
expressly contemplated by the terms of the Transaction Documents,
or  (vii) amend any defined term relevant to the restrictions  in
clauses  (i) through (vi) in a manner which would circumvent  the
intention  of  such  restrictions or (b)  the  Agent,  amend  any
provision  hereof  if  the  effect  thereof  is  to  affect   the
indemnities  to,  or the rights or duties of,  the  Agent  or  to
reduce   any   fee   payable  for  the   Agent's   own   account.
Notwithstanding  the foregoing, the amount of any  fee  or  other
payment due and payable from the Seller to the Agent (for its own
account),  Amsterdam or the Enhancer may be changed or  otherwise
adjusted  solely with the consent of the Seller and the party  to
which  such payment is payable.  Any amendment hereof shall apply
to  each  Purchaser equally and shall be binding upon the Seller,
the Purchasers and the Agent.

Section 9.7.  Waivers.  No failure or delay of the Agent  or  any
Purchaser  in  exercising any power, right, privilege  or  remedy
hereunder shall operate as a waiver thereof, nor shall any single
or partial exercise of any such power, right, privilege or remedy
preclude any other or further exercise thereof or the exercise of
any  other power, right, privilege or remedy.  Any waiver  hereof
shall  be  effective only in the specific instance  and  for  the
specific  purpose  for which such waiver was  given.   After  any
waiver,  the  Seller,  the Purchasers  and  the  Agent  shall  be
restored  to  their former position and rights and any  Potential
Termination  Event waived shall be deemed to  be  cured  and  not
continuing,  but no such waiver shall extend to  (or  impair  any
right   consequent  upon)  any  subsequent  or  other   Potential
Termination  Event.   Any additional Discount  that  has  accrued
after  a  Termination  Event before the  execution  of  a  waiver
thereof, solely as a result of the occurrence of such Termination
Event,  may  be  waived  by the Agent at  the  direction  of  the
Purchaser entitled thereto or, in the case of Discount  owing  to
the Liquidity Providers, of the Required Liquidity Providers.

Section    9.8.     Successors   and   Assigns;   Participations;
Assignments.

    (a)  Successors and Assigns.  This Agreement shall be binding
upon  and  inure to the benefit of the parties hereto  and  their
respective successors and assigns.  Except as otherwise  provided
herein,  the Seller may not assign or transfer any of its  rights
or  delegate any of its duties without the prior consent  of  the
Agent and the Purchasers.

    (b)   Participations.  Any Purchaser may sell to one or  more
Persons  (each  a "Participant") participating interests  in  the
interests  of  such  Purchaser hereunder.  Such  Purchaser  shall
remain   solely   responsible  for  performing  its   obligations
hereunder,  and the Seller and the Agent shall continue  to  deal
solely  and directly with such Purchaser in connection with  such
Purchaser's  rights and obligations hereunder.  Each  Participant
shall  be  entitled to the benefits of Article VI and shall  have
the  right  of setoff through its participation in amounts  owing
hereunder to the same extent as if it were a Purchaser hereunder,
which right of setoff is subject to such Participant's obligation
to  share  with  the Purchasers as provided in  Section  9.4.   A
Purchaser  shall  not agree with a Participant to  restrict  such
Purchaser's  right  to  agree  to any  amendment  hereto,  except
amendments described in clause (a) of Section 9.6.

    (c)   Assignments  by  Liquidity  Providers.   Any  Liquidity
Provider may assign to one or more Persons ("Purchasing Liquidity
Providers"), acceptable to the Agent in its sole discretion,  any
portion  of  its Commitment as a Liquidity Provider and  Purchase
Interest   pursuant   to  a  supplement   hereto   (a   "Transfer
Supplement") in form satisfactory to the Agent executed  by  each
such   Purchasing  Liquidity  Provider,  such  selling  Liquidity
Provider  and  the  Agent.  Any such assignment  by  a  Liquidity
Provider  must be for an amount of at least Five Million Dollars.
Each  Purchasing  Liquidity Provider shall pay  a  fee  of  Three
Thousand  Dollars to the Agent.  Any partial assignment shall  be
an   assignment  of  an  identical  percentage  of  such  selling
Liquidity Provider's Investment and its Commitment as a Liquidity
Provider.   Upon the execution and delivery to the Agent  of  the
Transfer  Supplement  and  payment by  the  Purchasing  Liquidity
Provider to the selling Liquidity Provider of the agreed purchase
price, such selling Liquidity Provider shall be released from its
obligations hereunder to the extent of such assignment  and  such
Purchasing  Liquidity  Provider  shall  for  all  purposes  be  a
Liquidity Provider party hereto and shall have all the rights and
obligations of a Liquidity Provider hereunder to the same  extent
as  if  it were an original party hereto with a Commitment  as  a
Liquidity  Provider,  an  Investment  and  any  related  Assigned
Amsterdam Settlement described in the Transfer Supplement.

    (d)   Replaceable  Liquidity  Providers.   If  any  Liquidity
Provider  (a "Replaceable Liquidity Provider") shall (i) petition
the  Seller  for any amounts under Section 6.2 or (ii)  cease  to
have  a  short-term  debt rating of "A-1" by  S&P  and  "P-1"  by
Moody's,  the  Seller  or Amsterdam may designate  a  replacement
financial   institution  (a  "Replacement  Liquidity   Provider")
acceptable  to the Agent, in its sole discretion, to  which  such
Replaceable Liquidity Provider shall, subject to its  receipt  of
an amount equal to its Investment, any related Assigned Amsterdam
Settlement, and accrued Discount and fees thereon and all amounts
payable  under  Section 6.2, promptly assign all of  its  rights,
obligations and Liquidity Provider Commitment hereunder, together
with  all  of  its  Purchase Interest, and any  related  Assigned
Amsterdam  Settlement, to the Replacement Liquidity  Provider  in
accordance with Section 9.8(c).

    (e)   Assignment by Amsterdam.  Each party hereto agrees  and
consents  (i) to Amsterdam's assignment, participation, grant  of
security  interests in or other transfers of any portion  of,  or
any  of  its  beneficial  interest  in,  the  Amsterdam  Purchase
Interest  and  the Amsterdam Settlement and (ii) to the  complete
assignment  by  Amsterdam of all of its  rights  and  obligations
hereunder  to  ABN  AMRO  or  any other  Person,  and  upon  such
assignment  Amsterdam shall be released from all obligations  and
duties  hereunder;  provided, however, that  Amsterdam  may  not,
without the prior consent of the Required Liquidity Providers and
the  Enhancer,  transfer any of its rights under Section  2.1  to
cause  the  Liquidity Providers or the Enhancer to  purchase  the
Amsterdam  Purchase Interest and the Amsterdam Settlement  unless
the assignee (i) is a corporation whose principal business is the
purchase of assets similar to the Receivables, (ii) has ABN  AMRO
as  its  administrative agent and (iii) issues  commercial  paper
with  credit  ratings substantially comparable  to  the  Ratings.
Amsterdam  shall promptly notify each party hereto  of  any  such
assignment.    Upon  such  an  assignment  of  any   portion   of
Amsterdam's  Purchase Interest and the Amsterdam Settlement,  the
assignee  shall  have  all of the rights of  Amsterdam  hereunder
relate   to   such  Amsterdam  Purchase  Interest  and  Amsterdam
Settlement.

    (f)   Opinions of Counsel.  If required by the  Agent  or  to
maintain   the   Ratings,  each  Transfer  Supplement   must   be
accompanied by an opinion of counsel of the assignee as  to  such
matters as the Agent may reasonably request.

Section 9.9.  Intended Tax Characterization.  It is the intention
of  the  parties hereto that, for the purposes of all Taxes,  the
transactions contemplated hereby shall be treated as  a  loan  by
the  Purchasers (through the Agent) to the Seller that is secured
by  the  Receivables (the "Intended Tax Characterization").   The
parties  hereto  agree to report and otherwise  to  act  for  the
purposes  of  all Taxes in a manner consistent with the  Intended
Tax  Characterization.  As provided in Section 5.1(g), the Seller
hereby  grants  to  the  Agent, for the ratable  benefit  of  the
Purchasers,   a   security  interest  in  all   Receivables   and
Collections  to  secure  the payment of all  amounts  other  than
Investment  owing  hereunder  and (to  the  extent  of  the  Sold
Interest) to secure the repayment of all Investment.

Section  9.10.  Waiver  of Confidentiality.   The  Seller  hereby
consents  to the disclosure of any nonpublic information relating
to  the Seller, any Affiliate, or the Transaction Documents among
the  Agent  and the Purchasers and by the Agent or the Purchasers
to  (i) any officers, directors, members, managers, employees  or
outside  accountants,  auditors or attorneys  thereof,  (ii)  any
prospective or actual assignee or participant, (iii)  any  rating
agency, surety, guarantor or credit or liquidity enhancer to  the
Agent or any Purchaser, (iv) any entity organized to purchase, or
make  loans  secured  by, financial assets  for  which  ABN  AMRO
provides managerial services or acts as an administrative  agent,
(v)   Amsterdam's  administrator,  management  company,  referral
agents,  issuing  agents  or  depositaries  or  CP  Dealers   and
(vi) Governmental Authorities with appropriate jurisdiction.

Section  9.11.  Confidentiality of Agreement.   Unless  otherwise
consented  to  by the Agent, the Seller hereby will not  disclose
the   contents  of  any  Transaction  Document,  or   any   other
confidential or proprietary information furnished by the Agent or
any  Purchaser, to any Person other than to (i) its auditors  and
attorneys,  Affiliates, officers, directors,  members,  managers,
employees,  outside accountants or as required by applicable  law
or (ii) Governmental Authorities with appropriate jurisdiction.

Section  9.12.  Agreement  Not to Petition.   Each  party  hereto
agrees,  for  the  benefit of the holders  of  the  privately  or
publicly  placed indebtedness for borrowed money  for  Amsterdam,
not,  prior  to the date which is one (1) year and  one  (1)  day
after the payment in full of all such indebtedness, to acquiesce,
petition  or otherwise, directly or indirectly, invoke, or  cause
Amsterdam  to  invoke, the process of any Governmental  Authority
for  the  purpose of (a) commencing or sustaining a case  against
Amsterdam  under any federal or state bankruptcy,  insolvency  or
similar   law  (including  the  Federal  Bankruptcy  Code),   (b)
appointing  a receiver, liquidator, assignee, trustee, custodian,
sequestrator  or  other similar official for  Amsterdam,  or  any
substantial part of its property, or (c) ordering the winding  up
or liquidation of the affairs of Amsterdam.

Section  9.13.  Excess Funds.  Other than amounts  payable  under
Section 9.4, Amsterdam shall be required to make payment  of  the
amounts required to be paid pursuant hereto only if Amsterdam has
Excess  Funds  (as defined below).  If Amsterdam  does  not  have
Excess Funds, the excess of the amount due hereunder (other  than
pursuant  to  Section  9.4)  over  the  amount  paid  shall   not
constitute a "claim" (as defined in Section 101(5) of the Federal
Bankruptcy  Code) against Amsterdam until such time as  Amsterdam
has  Excess Funds.  If Amsterdam does not have sufficient  Excess
Funds  to make any payment due hereunder (other than pursuant  to
Section  9.4),  then Amsterdam may pay a lesser amount  and  make
additional  payments that in the aggregate equal  the  amount  of
deficiency  as  soon as possible thereafter.   The  term  "Excess
Funds"  means the excess of (a) the aggregate projected value  of
Amsterdam's  assets and other property (including cash  and  cash
equivalents),  over (b) the sum of (i) the sum of  all  scheduled
payments  of  principal, interest and other  amounts  payable  on
publicly  or  privately  placed  indebtedness  of  Amsterdam  for
borrowed  money,  plus  (ii) the sum of  all  other  liabilities,
indebtedness  and  other  obligations of Amsterdam  for  borrowed
money or owed to any credit or liquidity provider, together  with
all  unpaid interest then accrued thereon, plus (iii)  all  taxes
payable  by Amsterdam to the Internal Revenue Service, plus  (iv)
all  other indebtedness, liabilities and obligations of Amsterdam
then   due   and  payable,  but  the  amount  of  any  liability,
indebtedness  or  obligation of Amsterdam shall  not  exceed  the
projected  value  of  the  assets  to  which  recourse  for  such
liability,  indebtedness or obligation is limited.  Excess  Funds
shall be calculated once each Business Day.

Section  9.14.  No Recourse.  The obligations of  Amsterdam,  its
management  company,  its administrator and its  referral  agents
(each  a  "Program Administrator") under any Transaction Document
or other document (each, a "Program Document") to which a Program
Administrator is a party are solely the corporate obligations  of
such  Program Administrator and no recourse shall be had for such
obligations  against  any Affiliate, director,  officer,  member,
manager,   employee,   attorney   or   agent   of   any   Program
Administrator.

Section  9.15. Limitation of Liability.  No Person shall  make  a
claim  against  the Agent or any Purchaser (or  their  respective
Affiliates,  directors, officers, members,  managers,  employees,
attorneys or agents) for any special, indirect, consequential  or
punitive damages under any claim for breach of contract or  other
theory  of liability in connection with the Transaction Documents
or  the  transactions contemplated thereby, and the  Seller  (for
itself, the Collection Agent and all other Persons claiming by or
through the Seller) hereby waives any claim for any such damages.

Section   9.16.  Headings;  Counterparts.   Article  and  Section
Headings  in this Agreement are for reference only and shall  not
affect the construction of this Agreement.  This Agreement may be
executed by different parties on any number of counterparts, each
of  which  shall constitute an original and all of  which,  taken
together, shall constitute one and the same agreement.

Section 9.17. Cumulative Rights and Severability.  All rights and
remedies   of  the  Purchasers  and  Agent  hereunder  shall   be
cumulative  and  non-exclusive of any  rights  or  remedies  such
Persons  have under law or otherwise.  Any provision hereof  that
is prohibited or unenforceable in any jurisdiction shall, in such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability  without invalidating the  remaining  provisions
hereof  and  without  affecting  such  provision  in  any   other
jurisdiction.

Section  9.18.  Governing Law; Submission to Jurisdiction.   This
Agreement shall be governed by, and construed in accordance with,
the internal laws (and not the law of conflicts) of the State  of
New   York.   The  Seller  hereby  submits  to  the  nonexclusive
jurisdiction of the United States District Court for the Southern
District  of New York and of any New York state court sitting  in
New  York, New York for purposes of all legal proceedings arising
out  of,  or  relating  to,  the  Transaction  Documents  or  the
transactions contemplated thereby.  The Seller hereby irrevocably
waives, to the fullest extent permitted by law, any objection  it
may now or hereafter have to the venue of any such proceeding and
any  claim  that  any  such proceeding has  been  brought  in  an
inconvenient  forum.  Nothing in this Section 9.18  shall  affect
the  right  of the Agent or any Purchaser to bring any action  or
proceeding  against the Seller or its property in the  courts  of
other jurisdictions.

Section  9.19. Waiver of Trial by Jury.  To the extent  permitted
by applicable law, each party hereto irrevocably waives all right
of  trial  by  jury  in  any action, proceeding  or  counterclaim
arising  out of, or in connection with, any transaction  document
or any matter arising thereunder.

Section   9.20.  Entire  Agreement.   The  Transaction  Documents
constitute  the  entire  understanding  of  the  parties  thereto
concerning   the  subject  matter  thereof.   Any   previous   or
contemporaneous  agreements, whether written or oral,  concerning
such matters are superseded thereby.

     In  Witness  Whereof, the parties hereto  have  caused  this
Agreement  to be executed and delivered by their duly  authorized
officers as of the date hereof.

ABN AMRO Bank N.V.,             ABN AMRO Bank N.V., as the
as the Agent                    Enhancer

By:                             By:
Title:                          Title:

By:                             By:
Title:                          Title:
Address:   Structured Finance,  Address: Structured Finance,
Asset Securitization            Asset Securitization
135 South LaSalle Street        135 South LaSalle Street
Chicago, Illinois 60674-9135    Chicago, Illinois  60674-9135
Attention: Purchaser Agent-     Attention:Enhancer-
Amsterdam                       Amsterdam
Telephone: (312) 904-6263       Telephone: (312) 904-6263
Telecopy:  (312) 904-6376       Telecopy:  (312) 904-6376

ABN AMRO Bank N.V.,              Amsterdam Funding Corporation
as a Liquidity Provider

By:                              By:
Title:                           Title:

By:                              Address:c/o Global Securitization
                                 Services, LLC
Title:                           400 West Main Street, Suite 338
Address:  Structured Finance,    New York, New York  11702
Asset Securitization             Attention: Andrew Stidd
135 South LaSalle Street
Chicago, Illinois 60674-9135     Telephone: (631) 587-4700
Attention: Administrator -       Telecopy: (212) 302-8767
           Amsterdam
Telephone: (312) 904-6263
Telecopy:  (312) 904-6376

                    with a copy to:

                    ABN AMRO Bank N.V.
                    Address:    Structured Finance,
                                Asset Securitization
                                135 South LaSalle Street
                                Chicago, Illinois 60674-9135
                                Attention: Administrator -
                                           Amsterdam
                                Telephone:  (312) 904-6263
                                Telecopy:   (312) 904-6376

Crompton & Knowles Receivables        Crompton Corporation,
Corporation, as Seller                as Initial Collection Agent

By:                                   By:
Title:                                Title:
Address:  One American Lane           Address: One American Lane
Greenwich, Connecticut  06831         Greenwich, Connecticut  06831
Atten:  Robert A. Marchitello         Atten: Robert A. Marchitello
Telephone:  (203) 552-3150            Telephone: (203) 552-3150
Telecopy:   (203) 552-2868            Telecopy:  (203) 552-2868

Notices sent to:                      Notices sent to:

One American Lane                     One American Lane
Greenwich, Connecticut  06831         Greenwich, Connecticut 06831
Atten:  Robert A. Marchitello         Atten: Robert A. Marchitello

   With a copy to:                  With a copy to:

   Crompton Corporation             Crompton Corporation
   Benson Road                      Benson Road
   Middlebury, Conneticut 06749     Middlebury, Connecticut 06749

                           Schedule I
                           Definitions

     The following terms have the meanings set forth, or referred
to, below:

     "ABN  AMRO"  means  ABN  AMRO Bank N.V.  in  its  individual
capacity and not in its capacity as the Agent.

     "Adverse  Claim"  means,  for any asset  or  property  of  a
Person,  a  lien,  security interest, charge,  mortgage,  pledge,
hypothecation, assignment or encumbrance, or any other  right  or
claim, in, of or on such asset or property in favor of any  other
Person, except (i) those in favor of the Agent and (ii) liens for
taxes,  assessments  or  charges of  any  Governmental  Authority
(other than Tax or ERISA liens) and liens of landlords, carriers,
warehousemen,  mechanics and materialmen imposed by  law  in  the
ordinary course of business, in each case (a) for amounts not yet
due or (b) which are being contested in good faith by appropriate
proceedings and with respect to which adequate reserves or  other
appropriate  provisions are being maintained in  accordance  with
GAAP.

     "Affiliate"  means, for any Person, any other Person  which,
directly or indirectly, is in control of, is controlled by, or is
under  common  control with such Person.  For  purposes  of  this
definition, "control" means the power, directly or indirectly, to
cause the direction of the management and policies of a Person.

     "Agent" is defined in the first paragraph hereof.

     "Agent's Account" means the account designated to the Seller
and the Purchasers by the Agent.

     "Aggregate Commitment" means $204,000,000, as  such   amount
may be reduced pursuant to Section 1.6.

     "Aggregate  Investment" means the sum of the Investments  of
all Purchasers.

     "Aggregate Reserve" means, at any time at which such  amount
is  calculated, the sum of the Loss Reserve, Dilution Reserve and
Discount Reserve.

     "Allocated  Commercial Paper" means commercial  paper  notes
issued  by  Amsterdam  for a tenor and in an amount  specifically
requested by any Person in connection with a Receivable  Purchase
Facility.

     "Amsterdam" is defined in the first paragraph hereof.

     "Amsterdam Funding Source" means any insurance company, bank
or  other  financial  institution  providing  liquidity,  back-up
purchase or credit support for Amsterdam.

     "Amsterdam  Settlement" means the  sum  of  all  claims  and
rights  to  payment pursuant to Section 1.5 or 1.7 or  any  other
provision  owed  to  Amsterdam (or  owed  to  the  Agent  or  the
Collection  Agent  for the benefit of Amsterdam)  by  the  Seller
that, if paid, would be applied to reduce Amsterdam's Investment.

     "Amsterdam Termination Date" means the earliest of  (a)  the
Business  Day designated by Amsterdam at any time to  the  Seller
and (c) the Liquidity Termination Date.

     "Assigned  Amsterdam Settlement" means, for  each  Committed
Purchaser  for any Put, the product of such Purchaser's Purchased
Percentage  and  the  amount  of the Amsterdam  Settlement  being
transferred pursuant to such Put.

     "Bankruptcy  Event"  means, for any Person,  that  (a)  such
Person makes a general assignment for the benefit of creditors or
any proceeding is instituted by or against such Person seeking to
adjudicate  it bankrupt or insolvent, or seeking the liquidation,
winding  up, reorganization, arrangement, adjustment, protection,
relief  or composition of it or its debts under any law  relating
to bankruptcy, insolvency or reorganization or relief of debtors,
or seeking the entry of an order for relief or the appointment of
a  receiver,  trustee or other similar official  for  it  or  any
substantial  part  of its property or (b) such Person  takes  any
corporate action to authorize any such action.

     "Break  Funding  Costs" means for any Pool  Funded  Purchase
Interest  amounts  payable  to  Amsterdam  under  the  applicable
Receivables  Purchase Facility in connection with any  prepayment
or  amortization if amounts payable thereunder in excess  of  the
amount of the investment or loan prepaid or amortized and accrued
and unpaid interest or discount thereon.

     "Business  Day"  means any day other than  (a)  a  Saturday,
Sunday  or  other day on which banks in the States of  New  York,
Connecticut or Illinois are authorized or required to close,  (b)
a  holiday  on the Federal Reserve calendar and, (c)  solely  for
matters relating to a Eurodollar Tranche, a day on which dealings
in Dollars are not carried on in the London interbank market.

     "Charge-Off"  means any Receivable that has or  should  have
been  (in  accordance  with  the Credit  and  Collection  Policy)
charged off or written off by the Seller.

     "Collection"  means any amount paid, or deemed  paid,  on  a
Receivable,  including from the proceeds of collateral  securing,
or  any  guaranty  of,  such Receivable or by  the  Seller  under
Section 1.5(b).

     "Collection Agent" is defined in Section 3.1(a).

     "Collection Agent Replacement Event" means the occurrence of
any one or more of the following:

          (a)    any failure by the Collection Agent to make  any
     payment,  transfer  or deposit required by  any  Transaction
     Document to be made by it which failure continues unremedied
     for one Business Day;

          (b)    failure on the part of the Collection  Agent  to
     observe  or  perform any covenant or agreement contained  in
     Sections 3.2 or 3.3 of this Agreement;

          (c)    failure on the part of the Collection  Agent  to
     observe or perform any other covenant or agreement set forth
     in  this Agreement or any other Transaction Document,  which
     failure  has a material adverse effect on any Purchaser  and
     continues  unremedied  for a period of  30  days  after  the
     earlier  of  (i)  the date on which written  notice  of  the
     failure, requiring the same to be remedied, shall have  been
     given  to the Collection Agent by any Purchaser, or  to  and
     (ii) the date on which the Collection Agent became aware  of
     such failure;

          (d)    the Daily Report shall fail to have been correct
     in  any material respect when made or delivered or shall not
     have been delivered when required under the terms hereof;

         (e)   the Monthly Report shall fail to have been correct
     in any material respect when made or delivered, or shall not
     have  been  delivered when required under the terms  hereof,
     and  such  condition continues unremedied for  a  period  of
     three Business Days;

            (f)      any    written   representation,   warranty,
     certification or statement made by the Collection Agent  in,
     or pursuant to, any Transaction Document proves to have been
     incorrect in any material adverse respect when made; or

         (g)   the Collection Agent suffers a Bankruptcy Event.

     "Collection Agent Fee" is defined in Section 3.6.

     "Commitment" means, for each Committed Purchaser, the amount
set forth on Schedule II, as adjusted in accordance with Sections
1.6 and 9.8.

     "Committed Purchasers" is defined in Section 1.1(b).

     "Concentration  Limit" means (i) with  respect  to  Obligors
with senior unsecured long-term indebtedness rated A- (or higher)
by  S&P or A3 (or higher) by Moody's, an amount not to exceed  5%
of the Eligible Receivables Balance, and (ii) with respect to all
other  Obligors,  an  amount not to exceed  3%  of  the  Eligible
Receivables Balance.

     "CP  Dealer" means, at any time, each Person Amsterdam  then
engages as a placement agent or commercial paper dealer.

     "CP Rate" means, for any CP Tranche Period, a rate per annum
equal  to  (a)  the  weighted  average  of  the  rates  at  which
commercial  paper notes having a term equal to  such  CP  Tranche
Period  may  be  sold by any CP Dealer selected by Amsterdam,  as
agreed between each such CP Dealer and Amsterdam, plus (b) on  or
after the occurrence of a Termination Event, 2%.  If such rate is
a  discount  rate, the CP Rate shall be the rate  resulting  from
Amsterdam's  converting such discount rate to an interest-bearing
equivalent rate.  If Amsterdam determines that due to disruptions
in  the  commercial  paper market that  it  is  unable  to  issue
commercial paper, then the CP Rate shall be the Prime Rate for so
long as such condition shall continue.  The CP Rate shall include
all  costs  and  expenses  to Amsterdam of  issuing  the  related
commercial paper notes, including all dealer commissions and note
issuance costs in connection therewith.

     "Credit and Collection Policy" means the Seller's credit and
collection policy and practices relating to Receivables  attached
hereto as Exhibit J.

     "Crompton  Credit  Agreement" means that certain  Five  Year
Credit  Agreement, dated as of October 28, 1999, among  CK  Witco
Corporation  (now  known as Crompton Corporation),  the  Eligible
Subsidiaries  referred to therein, the Banks listed therein,  The
Chase  Manhattan  Bank, as Syndication Agent, Citibank  N.A.,  as
Administrative  Agent,  and  Bank of America  and  Deutsche  Bank
Securities  Inc.,  as Co-Documentation Agents,  as  such  may  be
amended, modified or supplemented from time to time in accordance
with the terms thereof.

     "Crompton Entity" means the Parent and each Originator.

     "Deemed Collections" is defined in Section 1.5(c).

     "Default  Ratio" means, at any time, the ratio  of  (a)  the
then  aggregate outstanding balance of all Defaulted  Receivables
(minus Charge-Offs) to (b) the then aggregate outstanding balance
of all Receivables (minus Charge-Offs).

     "Defaulted Receivable" means any Receivable (a) on which any
amount is unpaid more than (i) for Davis-Standard Corporation, 90
days  past  its  original invoice date and  (ii)  for  all  other
Originators,  90  days past its original due  date,  or  (b)  the
Obligor on which has suffered a Bankruptcy Event.

     "Delinquency Ratio" means, at any time, the ratio of (a) the
then  aggregate outstanding balance of all Delinquent Receivables
to (b) the then aggregate outstanding balance of all Receivables.

     "Delinquent Receivable" means any Receivable (other  than  a
Charge-Off or Defaulted Receivable) on which any amount is unpaid
more than (i) for Davis Standard Corporation, 31-90 days past its
original  invoice date and (ii) for all other Originators,  31-90
days past its original due date.

     "Designated Financial Officer" means each of Chief Financial
Officer, Treasurer and Assistant Treasurer.

     "Dilution  Ratio" means, for any period, the ratio  computed
by  dividing  (a) the aggregate amount of payments  owed  by  the
Seller  pursuant to the first sentence of Section  1.5(b)  during
such  period by (b) the aggregate amount of Collections  received
during such period.

     "Dilution  Reserve"  means,  at  any  time  prior   to   the
occurrence of a Dilution Reserve Trigger Event, 0, and  upon  the
occurrence  of  a  Dilution Reserve Trigger Event,  3  times  the
highest  Dilution Ratio (expressed as a decimal) as of  the  last
day of each of the last twelve calendar months.

     "Dilution  Reserve Trigger Event" shall  mean  at  any  time
either  (A)  the  Parent's  long-term  unsecured,  unsubordinated
indebtedness  is  rated less than "BBB-"  by  S&P  or  "Baa3"  by
Moody's  (or  S&P  or  Moody's has withdrawn  or  suspended  such
rating)  and  the Seller has not provided the Agent with  written
notice  (which notice may only be given once during the  term  of
this  Agreement)  within two Business Days of such  downgrade  or
withdrawal that it agrees to pay the increased fees provided  for
in  the  Fee  Letter  or  (B) the Parent's  long-term  unsecured,
unsubordinated indebtedness is rated less than "BBB-" by S&P  and
"Baa3"  by  Moody's (or S&P or Moody's has withdrawn or suspended
such rating).

     "Discount" means, for any Tranche Period, (a) the product of
(i)  the  Discount Rate for such Tranche Period, (ii)  the  total
amount  of Investment allocated to the Tranche Period, and  (iii)
the  number of days elapsed during the Tranche Period divided  by
(b) 360 days.

     "Discount Period" means, with respect to any Settlement Date
or  the Liquidity Termination Date, the period from and including
the  preceding  Settlement Date (or if none, the  date  that  the
first  Incremental  Purchase  is  made  hereunder)  to  but   not
including such Settlement Date or Liquidity Termination Date,  as
applicable.

     "Discount Rate" means, for any Tranche Period, the CP  Rate,
the Eurodollar Rate or the Prime Rate, as applicable.

     "Discount  Reserve"  means, at  any  time,  the  product  of
(a)  1.5 multiplied by (b) the rate announced by ABN AMRO as  its
"Prime Rate" (which may not be its best or lowest rate) plus  100
basis  points  (1.00%)  multiplied by  (c)  Aggregate  Investment
multiplied  by  (d) a fraction, the numerator  of  which  is  the
average  Turnover  Rate  as of the last day  of  the  last  three
calendar months and the denominator of which is 360.

     "Dollar" and "$" means lawful currency of the United  States
of America.

     "Early  Payment Fee" means, if any Investment of a Purchaser
allocated  (or, in the case of a requested Purchase not  made  by
the Committed Purchasers for any reason other than their default,
scheduled  to be allocated) to a Tranche Period for a CP  Tranche
or  Eurodollar Tranche is reduced or terminated before  the  last
day  of  such Tranche Period (the amount of Investment so reduced
or  terminated  being referred to as the "Prepaid  Amount"),  the
cost  to  the relevant Purchaser of terminating or reducing  such
Tranche,  which  (a)  for  a CP Tranche  means  any  compensation
payable  in  prepaying the related commercial paper  or,  if  not
prepaid,  any shortfall between the amount that will be available
to Amsterdam on the maturity date of the related commercial paper
from reinvesting the Prepaid Amount in Permitted Investments  and
the Face Amount of such commercial paper and (b) for a Eurodollar
Tranche  will be determined based on the difference  between  the
LIBOR  applicable to such Tranche and the LIBOR applicable for  a
period equal to the remaining maturity of the Tranche on the date
the Prepaid Amount is received.

     "Eligible Receivable" means, at any time, any Receivable:

    (i)   the Obligor of which (a) is a resident of, or organized
under  the  laws of, or with its chief executive office  in,  the
USA;  provided,  however,  that not more  than  10%  of  Eligible
Receivables at any time may consist of Receivables the Obligor of
which  is not a resident of, or organized under the laws  of,  or
with  its  chief executive office in, the USA (each,  a  "Foreign
Receivable") if the applicable Originator is the account party to
a  letter  of  credit or letters of credit issued by a  financial
institution  acceptable to the Agent naming the Collection  Agent
(or  a  permitted sub-collection agent) as beneficiary in a  face
amount  not  less than the aggregate invoiced amount  of  Foreign
Receivables  of  such  Originator  and  in  form  and   substance
satisfactory  to  the  Agent; (b) is  not  an  Affiliate  of  any
Crompton  Entity;  (c)  is  not a government  or  a  governmental
subdivision  or agency; (d) has not suffered a Bankruptcy  Event;
(e) is a customer of the Originator in good standing; and (f)  is
not the Obligor of Receivables 25% or more of which are Defaulted
Receivables;

   (ii)   which  is stated to be due and payable within  90  days
after the invoice therefor; provided, however, that not more than
10%   of  Eligible  Receivables  at  any  time  may  consist   of
Receivables which are stated to be due and payable within  91  to
360 days after invoice therefor;

 (iii)  which is not a Defaulted Receivable or a Charge-Off;

    (iv)    which   is  an  "account"  within  the   meaning   of
Section 9-102(a) of the UCC of all applicable jurisdictions;

    (v)  which is denominated and payable only in Dollars in  the
USA and is non-interest bearing; provided that a Receivable shall
not  be  deemed to be interest bearing solely as a result of  the
Seller's lawful imposition of an interest or other charge on  any
Receivable that remains unpaid for some specified period of time;

   (vi)  which arises under a contract that is in full force  and
effect and constitutes the legal, valid and binding obligation of
the   related  Obligor  enforceable  against  such   Obligor   in
accordance with its terms subject to no offset (other than, prior
to  the  occurrence of the Receivable Setoff Downgrade  Event,  a
Receivable Setoff), counterclaim, defense or other Adverse Claim,
and  is  not an executory contract or unexpired lease within  the
meaning of Section 365 of the Bankruptcy Code;

  (vii)   which  arises  under a contract that  (a)  contains  an
obligation to pay a specified sum of money and is subject  to  no
contingencies   and  (b)  does  not  contain  a   confidentiality
provision  that purports to restrict any Purchaser's exercise  of
rights  under this Agreement, including, without limitation,  the
right to review such contract;

(viii)  which does not, in whole or in part, contravene any  law,
rule   or   regulation  applicable  thereto  (including,  without
limitation,  those  relating to usury,  truth  in  lending,  fair
credit  billing, fair credit reporting, equal credit opportunity,
fair debt collection practices and privacy); and

  (ix)  which satisfies all applicable requirements of the Credit
and Collection Policy and was generated in the ordinary course of
each Originator's business from the sale of goods or provision of
services to a related Obligor solely by each Originator.

     "Eligible Receivables Balance" means, at any time,  (a)  the
aggregate   outstanding  principal  balance   of   all   Eligible
Receivables  less (b)(1) the portion of the aggregate outstanding
principal  balance  of  Eligible  Receivables  which  exceed  the
Concentration  Limit plus (2) the aggregate principal  amount  of
all   Receivable  Setoffs  in  excess  of  5%  of  the   Eligible
Receivables Balance.

     "Enhancer" is defined in the first paragraph hereof.

     "Enhancer Commitment Percentage" means 10%.

     "Eurodollar  Rate"  means,  for any  Tranche  Period  for  a
Eurodollar Tranche, the sum of (a) LIBOR for such Tranche  Period
divided  by  1  minus the "Reserve Requirement" plus  (b)(i)  for
Investment of a Liquidity Provider, the amount specified  in  the
Fee  Letter, or, (ii) for Investment of the Enhancer, the  amount
specified  in the Fee Letter plus (c) on or after the  occurrence
of  a  Termination Event, the amount specified in the Fee Letter;
where  "Reserve Requirement" means, for any Tranche Period for  a
Eurodollar  Tranche,  the  maximum  reserve  requirement  imposed
during  such  Tranche  Period  on "eurocurrency  liabilities"  as
currently  defined in Regulation D of the Board of  Governors  of
the Federal Reserve System.

     "Face  Amount"  means  the  face  amount  of  any  Amsterdam
commercial paper issued on a discount basis or, if not issued  on
a  discount basis, the principal amount of such note and interest
scheduled to accrue thereon to its stated maturity.

     "Federal  Funds  Rate"  means for any  day  the  greater  of
(i) the average rate per annum as determined by ABN AMRO at which
overnight Federal funds are offered to ABN AMRO for such  day  by
major  banks  in the interbank market, and (ii) if  ABN  AMRO  is
borrowing  overnight funds from a Federal Reserve Bank that  day,
the average rate per annum at which such overnight borrowings are
made  on that day.  Each determination of the Federal Funds  Rate
by  ABN AMRO shall be conclusive and binding on the Seller except
in the case of manifest error.

     "Fee Letter" means the letter agreement dated as of the date
hereof  among  the  Seller, the Liquidity Providers,  the  Agent,
Amsterdam and the Enhancer.

     "Funding   Agreement"  means  any  agreement  or  instrument
executed  by  Amsterdam  and executed  by  or  in  favor  of  any
Amsterdam  Funding  Source or executed by any  Amsterdam  Funding
Source at the request of Amsterdam (including the Program LOC).

     "Funding  Charges"  means, for each  day,  the  sum  of  (i)
discount  accrued on Pooled Commercial Paper on  such  day,  plus
(ii)  any  and  all accrued commissions in respect  of  placement
agents  and  commercial paper dealers in respect of  such  Pooled
Commercial  Paper  for such day, plus (iii)  issuing  and  paying
agents'  fees incurred on such Pooled Commercial Paper  for  such
day,  plus (iv) other costs associated with funding small or odd-
lot  amounts  with respect to all Receivable Purchase  Facilities
which  are funded by Pooled Commercial Paper for such day,  minus
(v)  any  accrual of income net of expenses received on such  day
from  investment  of  collections received under  all  Receivable
Purchase  Facilities funded with Pooled Commercial  Paper,  minus
(vi)  any payment received on such day net of expenses in respect
of  Break Funding Costs related to the prepayment of any Purchase
Interests  held  by  Amsterdam  pursuant  to  the  terms  of  any
Receivable  Purchase Facilities funded substantially with  Pooled
Commercial Paper.

     "GAAP" means generally accepted accounting principles in the
USA, applied on a consistent basis.

     "Governmental  Authority"  means  any  (a)  Federal,  state,
municipal or other governmental entity, board, bureau, agency  or
instrumentality,  (b)  administrative  or  regulatory   authority
(including  any central bank or similar authority) or (c)  court,
judicial  authority or arbitrator, in each case, whether  foreign
or domestic.

     "Incremental Purchase" is defined in Section 1.1(b).

     "Initial Collection Agent" is defined in the first paragraph
hereof.

     "Instructing Group" means the Required Liquidity  Providers,
the  Enhancer  and,  unless the Amsterdam  Termination  Date  has
occurred and Amsterdam has no Investment, Amsterdam.

     "Intended Tax Characterization" is defined in Section 9.9.

     "Interim  Liquidation" means any time before  the  Liquidity
Termination Date during which no Reinvestment Purchases are  made
by any Purchaser, as established pursuant to Section 1.2.

     "Investment"  means,  for each Purchaser,  (a)  the  sum  of
(i)  all  Incremental Purchases by such Purchaser  and  (ii)  the
aggregate  amount of any payments or exchanges  made  by,  or  on
behalf of, such Purchaser to any other Purchaser under Article II
minus (b) all Collections, amounts received from other Purchasers
under Article II, and other amounts received or exchanged and, in
each  case, applied by the Agent or such Purchaser to reduce such
Purchaser's  Investment.   A  Purchaser's  Investment  shall   be
restored  to the extent any amounts so received or exchanged  and
applied are rescinded or must be returned for any reason.

     "LIBOR"  means,  for  any Tranche Period  for  a  Eurodollar
Tranche  or  other  time  period, the  rate  per  annum  (rounded
upwards,  if necessary, to the next higher one hundred-thousandth
of a percentage point) for deposits in Dollars for a period equal
to  such  Tranche Period or other period, which appears  on  Page
3750  of the Telerate Service (or any successor page or successor
service  that displays the British Bankers' Association  Interest
Settlement  Rates for Dollar deposits) as of 11:00 a.m.  (London,
England  time) two Business Days before the commencement of  such
Tranche Period or other period.  If for any Tranche Period for  a
Eurodollar Tranche no such displayed rate is available  (or,  for
any  other period, if such displayed rate is not available or the
need  to calculate LIBOR is not notified to the Agent at least  3
Business Days before the commencement of the period for which  it
is  to  be determined), the Agent shall determine such rate based
on the rates ABN AMRO is offered deposits of such duration in the
London interbank market.

     "Limited  Guaranty"  means the Limited Guaranty,  dated  the
date hereof, from the Parent in favor of the Agent.

     "Liquidation  Period" means, for Amsterdam only,  all  times
when  Amsterdam is not making Reinvestment Purchases pursuant  to
Section  1.1(d) and, for all Purchasers, all times (x) during  an
Interim   Liquidation  and  (y)  on  and  after   the   Liquidity
Termination Date.

     "Liquidity  Providers"  is defined in  the  first  paragraph
hereof.

     "Liquidity Termination Date" means the earliest of  (a)  the
date of the occurrence of a Termination Event described in clause
(e)  of  the  definition  of  Termination  Event,  (b)  the  date
designated  by  the  Agent to the Seller at any  time  after  the
occurrence  of any other Termination Event, (c) the Business  Day
designated by the Seller with no less than five (5) Business Days
prior notice to the Agent and (d) January 17, 2003.

     "Lock-Box" means each post office box or bank box listed  on
Exhibit G, as revised pursuant to Section 5.1(i).

     "Lock-Box  Account"  means each account  maintained  by  the
Collection Agent at a Lock-Box Bank for the purpose of  receiving
or concentrating Collections.

     "Lock-Box  Agreement"  means  each  agreement  between   the
Collection  Agent  and  a  Lock-Box Bank  concerning  a  Lock-Box
Account.

     "Lock-Box  Bank"  means each bank listed on  Exhibit  G,  as
revised pursuant to Section 5.1(i).

     "Lock-Box Letter" means a letter in substantially  the  form
of  Exhibit  H  (or otherwise acceptable to the Agent)  from  the
Seller   and   the  Collection  Agent  to  each  Lock-Box   Bank,
acknowledged and accepted by such Lock-Box Bank and the Agent.

     "Loss  Reserve" means, at any time, the product of  (i)  the
greatest  of  (a) 12.0%, (b) 0.75 times the highest  three  month
rolling average Delinquency Ratio (expressed as a decimal) as  of
the  last day of each of the last twelve calendar months and  (c)
0.75  times the highest three month rolling average Default Ratio
(expressed as a decimal) as of the last day of each of  the  last
twelve   calendar   months  multiplied  by  (ii)   the   Eligible
Receivables Balance.

     "Loss-to-Liquidation Ratio" means, for any period, the ratio
of the outstanding balance of Charge-Offs to the aggregate amount
of Collections during such period.

     "Matured  Aggregate  Investment" means,  at  any  time,  the
Matured   Value   of  Amsterdam's  Investment  plus   the   total
Investments of all other Purchasers then outstanding.

     "Matured  Value" means, of any Investment, the sum  of  such
Investment  and  all  unpaid Discount,  fees  and  other  amounts
scheduled  to  become  due (whether or  not  then  due)  on  such
Investment  during all Tranche Periods to which  any  portion  of
such Investment has been allocated.

     "Maximum  Incremental Purchase Amount" means, at  any  time,
the  lesser of (a) the difference between the Purchase Limit  and
the  Aggregate Investment then outstanding and (b) the difference
between  the  Aggregate  Commitment  and  the  Matured  Aggregate
Investment then outstanding.

     "Moody's" means Moody's Investors Service, Inc.

     "Obligor"  means, for any Receivable, each Person  obligated
to pay such Receivable and each guarantor of such obligation.

     "Originators"  means each of Crompton Sales  Company,  Inc.,
Davis Standard Corporation and Crompton Corporation.

     "Parent" means Crompton Corporation, a Delaware corporation.

     "Periodic Report" is defined in Section 3.3.

     "Permitted Investments" means (a) evidences of indebtedness,
maturing  within  thirty (30) days after  the  date  of  purchase
thereof,  issued by, or guaranteed by the full faith  and  credit
of,  the federal government of the USA, (b) repurchase agreements
with   banking  institutions  or  broker-dealers  the  short-term
unsecured  obligations of which is rated at least "A-1"  (or  the
equivalent)  by  S&P  and at least "P-1" (or the  equivalent)  by
Moody's  registered  under the Securities Exchange  Act  of  1934
which  are fully secured by obligations of the kind specified  in
clause  (a), (c) money market funds (i) rated not lower than  the
highest  rating  category from Moody's and "AAA m"  or  "AAAm-g,"
from  S&P  or (ii) which are otherwise acceptable to  the  Rating
Agencies  or  (d)  commercial paper  issued  by  any  corporation
incorporated under the laws of the USA and rated at  least  "A-1"
(or the equivalent) by S&P and at least "P-1" (or the equivalent)
by Moody's.

     "Person"  means  an  individual,  partnership,  corporation,
association,  joint  venture,  Governmental  Authority  or  other
entity of any kind.

     "Pool  Funded  Purchase Interest" means each  investment  or
loan  of  Amsterdam under a Receivables Purchase Facility  funded
with Pooled Commercial Paper.

     "Pooled  Allocation"  means, for each Pool  Funded  Purchase
Interest,  an  amount each day equal to the product  of  (i)  the
Pooled  Percentage Share of such Purchase Interest  on  such  day
multiplied  by (ii) the aggregate amount of Funding  Charges  for
such day.

     "Pooled  Commercial Paper" means commercial paper  notes  of
Amsterdam  except  (A)  Allocated  Commercial  Paper,   and   (B)
Specially Pooled Paper.

     "Pooled  Percentage  Share"  means,  for  each  Pool  Funded
Purchase  Interest, a fraction (expressed as  a  percentage)  the
numerator  of  which is equal to the Investment  associated  with
such  Pool Funded Purchase Interest and the denominator of  which
is  equal  to the aggregate amount of all outstanding  investment
(or  comparable  terms used in any Receivable Purchase  Facility)
held  by  Amsterdam  which  is funded substantially  with  Pooled
Commercial Paper.

     "Potential Termination Event" means any Termination Event or
any  event or condition that with the lapse of time or giving  of
notice, or both, would constitute a Termination Event.

       "Prime  Rate"  means, for any period,  the  daily  average
during  such  period  of  (a) the greater  of  (i)  the  floating
commercial  loan  rate per annum of ABN AMRO  (which  rate  is  a
reference  rate and does not necessarily represent the lowest  or
best rate actually charged to any customer by ABN AMRO) announced
from  time  to  time as its prime rate or equivalent  for  Dollar
loans in the USA, changing as and when said rate changes and (ii)
the  Federal  Funds  Rate plus 0.75% plus (b)  on  or  after  the
occurrence  of a Termination Event, the amount set forth  in  the
Fee Letter.

     "Program   LOC"  means  that certain  amended  and  restated
irrevocable  transferable  letter of credit  No.  S550115,  dated
November  3,  1995,  issued by the Enhancer  at  the  request  of
Amsterdam,  and  each letter of credit issued in substitution  or
replacement therefor.

     "Program  Unreimbursed Draw Amount" means  the  sum  of  all
draws  under  the Program LOC in connection with this Transaction
which  have  not been reimbursed (whether through the payment  of
cash  or  the  exchange of assets), together  with  all  interest
thereon  and  all  other amounts, if any, payable  in  connection
therewith.

     "Purchase" is defined in Section 1.1(a).

     "Purchase   Agreement"   means  the   Receivables   Purchase
Agreement dated as of the date hereof among the Seller  and  each
Originator.

     "Purchase Amount" is defined in Section 1.1(c).

     "Purchase Date" is defined in Section 1.1(c).

     "Purchase  Interest" means, for a Purchaser, the  percentage
ownership  interest  in the Receivables and Collections  held  by
such   Purchaser,   calculated   when   and   as   described   in
Section  1.1(a); provided, however, that (except for purposes  of
computing a Purchase Interest or the Sold Interest in Section 1.5
or 1.7) at any time the Sold Interest would otherwise exceed 100%
each  Purchaser  then  holding  any  Investment  shall  have  its
Purchase  Interest reduced by multiplying such Purchase  Interest
by  a  fraction  equal  to  100% divided  by  the  Sold  Interest
otherwise  then in effect, so that the Sold Interest  is  thereby
reduced to 100%.

     "Purchase Limit" means $200,000,000.

     "Purchase Price" means, for each Committed Purchaser for any
Put,   such  Purchaser's  Purchased  Percentage  for   such   Put
multiplied by the sum of (a) (i) for the Enhancer, the amount  of
Amsterdam's  Investment being transferred pursuant  to  such  Put
(the "Put Investment") and (ii) for each Liquidity Provider,  the
lesser  of  (A), the Put Investment and (B) the sum  of  (I)  the
product   of  (1)  the  amount  of  Amsterdam  Investment   being
transferred  pursuant  to  such  Put  divided  by  the  Amsterdam
Investment  (before giving effect to such Put),  (2)  Amsterdam's
Purchase  Interest  at  such time, (3) the  Eligible  Receivables
Balance  as  most  recently calculated, provided,  however,  that
Collections  used to reduce such most recently computed  Eligible
Receivables  Balance but not yet received by the Agent  shall  be
added  back  to the Eligible Receivables Balance,  and  (II)  the
amount of Amsterdam Settlement being transferred pursuant to such
Put  plus  (b) (i) all unpaid Discount owed to Amsterdam (whether
or  not then due) to the end of each applicable Tranche Period to
which  any  Investment  being Put has been  allocated,  (ii)  all
accrued  but  unpaid fees (whether or not then  due)  payable  to
Amsterdam in connection herewith at the time of such purchase and
(iii) all accrued and unpaid costs, expenses and indemnities  due
to  Amsterdam from the Seller in connection herewith.   Amsterdam
shall  calculate the Purchase Price on the date of such Put based
on  the  information  then available to it,  and,  regardless  of
whether  such information is complete, such calculation shall  be
conclusive and binding absent manifest error; provided,  however,
that  if  such  purchase  occurs  due  to  the  occurrence  of  a
Termination Event, the Purchase Price shall be determined  as  of
the date such Termination Event first occurred (without regard to
any  grace  periods),  adjusted to reflect  amounts  received  by
Amsterdam.   In making any such calculation, Amsterdam  shall  be
entitled  to  rely on information provided to it  by  the  Seller
without   any   obligation  to  investigate   the   accuracy   or
completeness of such information.

     "Purchased  Percentage"  means,  for  any  Put,   for   each
Committed  Purchaser, its Ratable Share or such lesser percentage
as  is  necessary to prevent the Purchase Price of such Purchaser
from exceeding its Unused Commitment (unless, in the case of  the
Enhancer,  it  elects not to reduce its Purchased  Percentage  in
whole or in part).

     "Purchasers" means the Liquidity Providers, the Enhancer and
Amsterdam.

     "Put" is defined in Section 2.l(a).

     "Ratable  Share"  means, for each Committed Purchaser,  such
Purchaser's Commitment divided by the Aggregate Commitment.   If,
however, on the date any Incremental Purchase or payment for  any
Put  is to be made by the Committed Purchasers, the Enhancer  has
outstanding Investment plus Program Unreimbursed Draw  Amount  in
excess  of  its  Ratable Share of the outstanding Investment  and
Program  Unreimbursed  Draw Amount of all  Committed  Purchasers,
then for purposes of such Incremental Purchase or Put the Ratable
Share  of  each  Committed Purchaser shall  be  replaced  with  a
percentage  equal  for  each  Committed  Purchaser  to  (a)   its
Commitment  minus  its Investment and Program  Unreimbursed  Draw
Amount  before  such Purchase or Put (its "Existing  Investment")
divided  by  (b) the Aggregate Commitment minus the  sum  of  the
Existing Investments of all Committed Purchasers.

     "Rating  Agency"  means Moody's, S&P and  any  other  rating
agency Amsterdam chooses to rate its commercial paper notes.

     "Ratings"  means the ratings by the Rating Agencies  of  the
indebtedness for borrowed money of Amsterdam.

     "Receivable" means each obligation of an Obligor to pay  for
merchandise  sold  or  services rendered by  any  Originator  and
includes  such Originator's rights to payment of any interest  or
finance charges and in the merchandise (including returned goods)
and   contracts  relating  to  such  Receivable,   all   security
interests, guaranties and property securing or supporting payment
of   such  Receivable,  all  Records  and  all  proceeds  of  the
foregoing.  During any Interim Liquidation and on and  after  the
Liquidity  Termination  Date, the term  "Receivable"  shall  only
include receivables existing on the date such Interim Liquidation
commenced  or Liquidity Termination Date occurred, as applicable.
Deemed  Collections  shall  reduce  the  outstanding  balance  of
Receivables  hereunder,  so  that any  Receivable  that  has  its
outstanding  balance  deemed  collected  shall  cease  to  be   a
Receivable  hereunder  after (x) the  Collection  Agent  receives
payment of such Deemed Collections under Section 1.5(b) or (y) if
such   Deemed   Collection  is  received  before  the   Liquidity
Termination Date, an adjustment to the Sold Interest permitted by
Section 1.5(c) is made.

     "Receivable   Purchase  Facility"  means   any   receivables
purchase  agreement, loan agreement or other similar  contractual
arrangement  to  which  Amsterdam is  a  party  relating  to  the
transfer, purchase or financing of receivables or other assets.

     "Receivable Setoff" means the reduction of any Receivable of
an  Obligor  by  any amount owing by the Seller to  such  Obligor
other  than  a  reduction resulting from the creditworthiness  of
such Obligor.

     "Receivable Setoff Downgrade Event" shall mean at  any  time
the Parent's long-term unsecured, unsubordinated indebtedness  is
rated  less  than "BBB-" by S&P or "Baa3" by Moody's (or  S&P  or
Moody's has withdrawn or suspended such rating).

     "Records"  means, for any Receivable, all contracts,  books,
records  and  other documents or information (including  computer
programs, tapes, disks, software and related property and rights)
relating to such Receivable or the related Obligor.

     "Reinvestment Purchase" is defined in Section 1.1(b).

     "Required  Liquidity  Providers" means  Liquidity  Providers
having Liquidity Provider Commitments in excess of 66-2/3% of the
Commitment of all Liquidity Providers.

     "Reserve  Percentage"  means,  at  any  time,  the  quotient
obtained  by  dividing  (a)  the Aggregate  Reserve  by  (b)  the
Eligible Receivables Balance.

     "Seller" is defined in the first paragraph hereof.

     "Seller  Account" means the Seller's account  number  035-1-
084215  at The Chase Manhattan Bank, New York, New York  or  such
other account designated by the Seller to the Agent with at least
ten (10) days prior notice.

     "Settlement Date" means the 20th day of each calendar month.

     "Sold Interest" is defined in Section 1.1(a).

     "Special   Transaction   Subaccount"   means   the   special
transaction subaccount established for this Agreement pursuant to
Amsterdam's depositary agreement.

     "Specially  Pooled  Paper"  means  the  aggregate   of   all
commercial  paper  notes of Amsterdam issued in  connection  with
receivables purchase facilities designated from time to  time  by
the  Agent (in its sole discretion).  Specially Pooled Paper will
not include Pooled Commercial Paper or Allocated Commercial Paper
at any time.

     "S&P" means Standard & Poor's Ratings Group.

     "Subordinated  Notes" means each buyer note  issued  by  the
Seller to the applicable Originator under the Purchase Agreement.

     "Subsidiary" means any Person of which at least  a  majority
of  the voting stock (or equivalent equity interests) is owned or
controlled by the Seller or any Crompton Entity or by one or more
other  Subsidiaries of the Seller or such Crompton  Entity.   The
Subsidiaries  of  the  Parent on the date hereof  are  listed  on
Exhibit F.

     "Taxes"  means  all taxes, charges, fees,  levies  or  other
assessments   (including   income,   gross   receipts,   profits,
withholding,  excise, property, sales, use,  license,  occupation
and franchise taxes and including any related interest, penalties
or  other  additions)  imposed  by  any  jurisdiction  or  taxing
authority (whether foreign or domestic).

     "Termination  Date" means (a) for Amsterdam,  the  Amsterdam
Termination Date, (b) for the Liquidity Providers, the  Liquidity
Termination Date and (c) for the Enhancer, the earlier of (i) the
third (3rd) Business Day following the Liquidity Termination Date
and (ii) January 17, 2003.

     "Termination Event" means the occurrence of any one or  more
of the following:

    (a)  any representation, warranty, certification or statement
made by the Seller or any Crompton Entity in, or pursuant to, any
Transaction  Document  proves  to  have  been  incorrect  in  any
material respect when made; or

    (b)   the Collection Agent, any Crompton Entity or the Seller
fails  to  make any payment or other transfer of funds  hereunder
when due (including any payments under Section 1.5(a)); or

    (c)   the Seller fails to observe or perform any covenant  or
agreement  contained  in  Sections 3.3, 5.1(b),  5.1(e),  5.1(g),
5.1(i),  or 5.1(j) of this Agreement or any Originator  fails  to
perform  any  covenant or agreement in Sections  6.1(d),  6.1(f),
6.1(i), 6.1(j), 6.1(k), 6.2(b) or 6.3 of each Purchase Agreement;
or

   (d)  the Seller or the Collection Agent (or any sub-collection
agent)  fails to observe or perform any other term,  covenant  or
agreement  under  any  Transaction  Document,  and  such  failure
remains unremedied for thirty days; or

    (e)   the Seller, any Originator or any Subsidiary suffers  a
Bankruptcy Event; or

    (f)   the average of the Delinquency Ratios as of the end  of
each of the most recent three calendar months exceeds 20.0%,  the
average  of the Default Ratios as of the end of each of the  most
recent three calendar months exceeds 20.0%, the Dilution Ratio at
the  end  of  any  calendar month measured for  the  three  month
calendar  period then ending exceeds 7.5% prior to the occurrence
of  a  Receivable  Setoff  Downgrade Event  and  5.0%  after  the
occurrence of a Receivable Setoff Downgrade Event or the Loss-to-
Liquidation  Ratio at the end of any calendar month measured  for
the three month calendar period then ending exceeds 1.0%; or

    (g)   (i)  the Seller, any Crompton Entity or any  Affiliate,
directly  or  indirectly, disaffirms or contests the validity  or
enforceability   of  any  Transaction  Document   or   (ii)   any
Transaction  Document fails to be the enforceable  obligation  of
the Seller or any Affiliate party thereto; or

    (h)  the Seller or any Subsidiary (A) generally does not  pay
its  debts  as  such debts become due or admits  in  writing  its
inability to pay its debts generally or (B) fails to pay  any  of
its  indebtedness (except in aggregate principal amount  of  less
than  $1,000,000) or defaults in the performance of any provision
of  any agreement under which such indebtedness was created or is
governed  and  such  default  permits  such  indebtedness  to  be
declared  due and payable or to be required to be prepaid  before
the scheduled maturity thereof; or

     (i)   any event occurs or condition exists which constitutes
a  default  or  an  event of default under  the  Crompton  Credit
Agreement; or

    (j)   the average of the Turnover Rates for each of the  most
recent three calendar months exceeds 90 days; or

    (k)  a Collection Agent Replacement Event has occurred and is
continuing with respect to the Initial Collection Agent;

    (l)   the  Parent shall fail to own and control, directly  or
indirectly,  (i)  100% of the outstanding  voting  stock  of  the
Seller and each Originator; or

    (m)  the long-term, unsecured, unsubordinated indebtedness of
the  Parent  is rated less than "BB+" by S&P or "Ba1" by  Moody's
(or S&P or Moody's has withdrawn or suspended such rating).

Notwithstanding  the foregoing, a failure of a representation  or
warranty  or breach of any covenant described in clause (a),  (c)
or  (d)  above  related to a Receivable shall  not  constitute  a
Termination Event if the Seller has been deemed to have collected
such  Receivable  pursuant  to  Section  1.5(b)  or,  before  the
Liquidity  Termination Date, has adjusted the  Sold  Interest  as
provided  in Section 1.5(c) so that such Receivable is no  longer
considered to be outstanding.

     "Tranche" means a portion of the Investment of Amsterdam  or
of  the  Committed  Purchasers  allocated  to  a  Tranche  Period
pursuant  to  Section 1.3.  A Tranche is a (i) CP  Tranche,  (ii)
Eurodollar  Tranche  or  (iii) Prime  Tranche  depending  whether
Discount  accrues during its Tranche Period based  on  a  (i)  CP
Rate, (ii) Eurodollar Rate, or (iii) Prime Rate.

     "Tranche Period" means a period of days ending on a Business
Day  selected pursuant to Section 1.3, which (i) for a CP Tranche
shall  not  exceed 270 days, (ii) for a LIBOR Tranche  shall  not
exceed 180 days, and (iii) for a Prime Tranche shall not be  less
than 2 days and shall not exceed 30 days.

     "Transaction  Documents"  means  this  Agreement,  the   Fee
Letter,  the  Limited  Guaranty,  the  Purchase  Agreements,  the
Subordinated  Notes,  and  all other documents,  instruments  and
agreements  executed  or  furnished in  connection  herewith  and
therewith.

     "Transfer Supplement" is defined in Section 9.8.

     "Turnover  Rate"  means,  for any period  for  which  it  is
calculated,  the  product, expressed in  days,  of  (A)  (1)  the
outstanding balance of all Receivables at the beginning  of  such
period  divided by (2) the average daily Collections (other  than
Deemed Collections) during such period multiplied by (B) 30.

     "UCC"  means, for any state, the Uniform Commercial Code  as
in effect in such state.

     "USA"  means  the  United States of America  (including  all
states and political subdivisions thereof).

     "Unused  Aggregate  Commitment"  means,  at  any  time,  the
difference  between the Aggregate Commitment then in  effect  and
the outstanding Matured Aggregate Investment.

     "Unused  Commitment" means, for any Committed  Purchaser  at
any   time,  the  difference  between  its  Commitment  and   its
Investment then outstanding.

     The  foregoing  definitions shall be equally  applicable  to
both  the singular and plural forms of the defined terms.  Unless
otherwise  inconsistent  with the terms of  this  Agreement,  all
accounting  terms  used  herein shall  be  interpreted,  and  all
accounting  determinations hereunder shall be made, in accordance
with   GAAP.   Amounts  to  be  calculated  hereunder  shall   be
continuously recalculated at the time any information relevant to
such calculation changes.

                           Schedule II

   Liquidity Providers and Commitments of Committed Purchasers

Name of Liquidity Provider          Commitment

ABN AMRO Bank N.V.                  $183,600,000

Enhancer

ABN AMRO Bank N.V.                  $20,400,000

                            Exhibit A
                               to
                   Receivables Sale Agreement

              Form of Incremental Purchase Request

                      ______________, 200_

ABN AMRO Bank N.V., as Agent
Asset Securitization, Structured Finance
Suite 725
135 South LaSalle Street
Chicago, Illinois 60674-9135
Attn:  Purchaser Agent-Amsterdam

      Re:  Amended and Restated Receivables Sale Agreement
      dated as of January 18, 2002 (as amended or restated
     from time to time, the "Sale Agreement") among Crompton
     & Knowles Receivables Corporation, as Seller, Crompton
            Corporation, as Initial Collection Agent,
                  ABN AMRO Bank N.V., as Agent,
                  and the Purchasers thereunder

Ladies and Gentlemen:

     The  undersigned  Seller  under  the  above-referenced  Sale
Agreement  hereby  confirms  its  has  requested  an  Incremental
Purchase  of $___________ by Amsterdam under the Sale  Agreement.
[In  the  event  Amsterdam is unable or  unwilling  to  make  the
requested  Incremental Purchase, the Seller  hereby  requests  an
Incremental Purchase of $___________ by the Committed  Purchasers
under  the Sale Agreement at the [Eurodollar Rate with a  Tranche
Period of _____ months.] [Prime Rate]].

     Attached hereto as Schedule I is information relating to the
proposed Incremental Purchase required by the Sale Agreement.  If
on  the date of this Incremental Purchase Request ("Notice"),  an
Interim Liquidation is in effect, this Notice revokes our request
for such Interim Liquidation so that Reinvestment Purchases shall
immediately  commence in accordance with Section  1.1(d)  of  the
Sale Agreement.

     The  Seller  hereby  certifies that both  before  and  after
giving  effect to [each of] the proposed Incremental  Purchase[s]
contemplated hereby and the use of the proceeds therefrom, all of
the  requirements of Section 7.2 of the Sale Agreement have  been
satisfied.

                                Very truly yours,

                                Crompton & Knowles Receivables
                                  Corporation

                                By
                                Title

                           Schedule I
                               to
                  Incremental Purchase Requests

       Summary of Information Relating to Proposed Sale(s)

     1.   Dates, Amounts, Purchaser(s), Proposed Tranche Periods

A1   Date of Notice

A2   Measurement Date (the last
     Business Day of the preceding
     calendar month or the preceding
     Business Day, as applicable)
A3   Proposed Purchase Dates
     (each of which is a
     Business Day)

A4   Respective Proposed
     Incremental Purchase on
     each such Purchase Date   $_____ $____ $_____  $____
     (each Incremental          (A4A)  (A4B) (A4C)  (A4D)
     Purchase must be in a
     minimum amount of
     $1,000,000 and multiples
     thereof, or, if less, an
     amount equal to the
     Maximum Incremental
     Purchase Amount)

A5   Proposed Allocation
     among Purchasers

             Amsterdam   $___  $___   $____  $_____

             Liquidity
               Providers $___  $___   $____  $_____

             Enhancer    $___  $____  $____  $_____

A6   Tranche Period
     and, for Committed
     Purchasers, Tranche Rate(s)

           Starting Date
           Ending Date
           Number of Days
           Prime or Eurodollar
           (for Committed
           Purchasers only)

     Each  proposed Purchase Date must be a Business Day and must
     occur no later than two weeks after the Measurement Date set
     forth  above.   The choice of Measurement  Date  is  a  risk
     undertaken by the Seller.  If a selected Measurement Date is
     not  the  applicable Purchase Date, the Seller's choice  and
     disclosure of such date shall not in any manner diminish  or
     waive  the obligation of the Seller to assure the Purchasers
     that,  after  giving  effect to the proposed  Purchase,  the
     actual  Sold  Interest  as  of the  date  of  such  proposed
     Purchase does not exceed 100%.

                            Exhibit B
                               to
                   Receivables Sale Agreement

        Form of Notification of Assignment from Amsterdam
                   to the Committed Purchasers

                      ______________, 200__

Crompton & Knowles
  Receivables Corporation
_____________________
_____________________

ABN AMRO Bank N.V., as Agent
Asset Securitization, Structured Finance
Suite 725
135 South LaSalle Street
Chicago, Illinois 60674-9135
Attn:  Enhancer-Amsterdam

[Insert Name and Address of each
  Liquidity Provider]

      Re:  Amended and Restated Receivables Sale Agreement
      dated as of January 18, 2002 (as amended or restated
     from time to time, the "Sale Agreement") among Crompton
     & Knowles Receivables Corporation, as Seller, Crompton
     Corporation, as Initial Collection Agent, ABN AMRO Bank
          N.V., as Agent, and the Purchasers thereunder

Ladies and Gentlemen:

     The  Agent under the above-referenced Sale Agreement  hereby
notifies  each  of  you  that Amsterdam has  notified  the  Agent
pursuant  to  Section 2.1(a) of the Sale Agreement that  it  will
sell to the Committed Purchasers on ____________ (the "Put Date")
____%  of Amsterdam's Investment and related Amsterdam Settlement
(the  "Assigned Interest").  In accordance with the terms of  the
Sale  Agreement,  each Liquidity Provider and the  Enhancer  must
purchase  from Amsterdam on the Put Date its respective  Purchase
Percentage of the Assigned Interest by paying its Purchase  Price
therefor described on Schedule I hereto.  As further provided  in
Section  2.1  of the Sale Agreement, upon payment by a  Committed
Purchaser of its Purchase Price to the Agent, effective as of the
Put  Date the assignment by Amsterdam to such Committed Purchaser
of  its  Purchased Percentage of the Assigned Interest  shall  be
complete,  subject to the purchase of any additional  portion  of
the Assigned Interest pursuant to Section 2.1(b) upon the failure
of a Liquidity Provider to pay its Purchase Price.

     In   accordance   with   the  Sale  Agreement,   Amsterdam's
acceptance  of  the  Purchase Price  payable  by  each  Committed
Purchaser constitutes its representation and warranty that it  is
the  legal and beneficial owner of the Assigned Interest free and
clear  of any Adverse Claim created by Amsterdam and that on  the
Put  Date  it  is  not subject to any bankruptcy,  insolvency  or
similar  proceeding  described in  Section  2.1(e)  of  the  Sale
Agreement.

                                Very truly yours,

                                ABN AMRO Bank N.V., as Agent

                                By
                                Name
                                Title

                                By
                                Name
                                Title

                           Schedule I
                               to
                   Notification of Assignment

                    Dated ___________, 200__

I.    Percentage of Amsterdam Investment and related Amsterdam
Settlement assigned: ___%

II.   Information for each Committed Purchaser.

     Purchaser        Purchased Percentage   Purchase Price

III.  Information for Seller.

A.   Aggregate Amsterdam Investment Assigned:$______________.
B.   Aggregate Amsterdam Settlement Assigned:$______________.

C.   Aggregate amounts allocated to clause (b) of the
definition of Purchase Price:                   $___________.

                            Exhibit C
                               to
                   Receivables Sale Agreement

         Form of Notification of Assignment to Amsterdam
                  From the Committed Purchasers

                      ______________, 200__

Crompton & Knowles
  Receivables Corporation
_______________________
_______________________

ABN AMRO Bank N.V., as Agent
Asset Securitization, Structured Finance
Suite 725
135 South LaSalle Street
Chicago, Illinois 60674-9135
Attn:  Enhancer-Amsterdam

[Insert Name and Address of each
  Liquidity Provider]

      Re:  Amended and Restated Receivables Sale Agreement
            dated as of January 18, 2002
      (as amended or restated from time to time, the "Sale
      Agreement") among Crompton & Knowles Receivables Corporation, as
           Seller, Crompton Corporation, as Initial Collection Agent,
        ABN AMRO Bank N.V., as Agent, and the Purchasers
                           thereunder

Ladies and Gentlemen:

     The  Agent under the above-referenced Sale Agreement  hereby
notifies  each  of  you  that Amsterdam has  notified  the  Agent
pursuant  to  Section  2.2 of the Sale  Agreement  that  it  will
purchase  from  the  Committed Purchasers  on  ____________  (the
"Purchase  Date")  that  portion  of  the  Committed  Purchasers'
Investments  identified  on  Schedule  I  hereto  (the  "Assigned
Interest").   As  further provided in Section  2.2  of  the  Sale
Agreement, upon payment by Amsterdam to the Agent of the purchase
price  of  such  Investments  described  on  Schedule  I  hereto,
effective as of the Purchase Date the assignment by the Committed
Purchasers  to  Amsterdam  of  the  Assigned  Interest  shall  be
complete and all payments thereon under the Sale Agreement  shall
be made to Amsterdam.

     In  accordance  with  the  Sale  Agreement,  each  Committed
Purchaser's acceptance of the portion purchase price  payable  to
it  described on Schedule I hereto constitutes its representation
and  warranty  that it is the legal and beneficial owner  of  the
portion of the Assigned Interest related to its Purchase Interest
identified  on  Schedule I free and clear of  any  Adverse  Claim
created or granted by it and that on the Purchase Date it is  not
subject to a Bankruptcy Event.

                                Very truly yours,

                                ABN AMRO Bank N.V., as Agent

                                By
                                Name
                                Title

                                By
                                Name
                                Title

                           Schedule I
                               to
                   Notification of Assignment

                    Dated ___________, 200__

I.    Amount of Committed Purchaser Investment Assigned:
$____________

II.   Information for each Committed Purchaser.

     Purchaser        Purchase Interest      Purchase Price*

III.  Information for Seller.

      Aggregate amounts of purchase price in excess of amount  of
Investment assigned:  $_______________.

                           Exhibit D-1

                     Form of Periodic Report

                           Exhibit D-2

                      Form of Daily Report

                            Exhibit E

          Addresses and Names of Seller and Originators

     1.  Locations.  (a) The chief executive office of the Seller
and each Originator are located at the following address:

               Crompton & Knowles Receivables Corporation
               Benson Road
               Middlebury, Connecticut 06749

               Crompton Corporation
               One American Lane
               Greenwich, Connecticut  06831-2559

               Davis Standard Corporation
               1 Extrusion Drive
               Pawcatuck, Connecticut 06379

               Crompton Sales Company, Inc.
               One American Lane
               Greenwich, Connecticut  06831-2559

No such address was different at any time since July 1, 2001

    (b)  The following are all the locations where the Seller and
each  Originator  directly or through  its  agents  maintain  any
Records:

               One American Lane
               Greenwich, Connecticut  06831-2559

               World Headquarters
               Benson Road
               Middlebury, Connecticut  06749

     2.   Names.  The following is a list of all names (including
trade names or similar appellations) used by the Seller and  each
Originator or any of its divisions or other business units:

                    None.

      3.    Jurisdiction   of  Organization  and   Organizational
Identification Number

                            Exhibit F

                          Subsidiaries

                            Exhibit G

                  Lock Boxes and Lock-Box Banks

  Bank               Lock-Box Number      Collection Account

Citibank             7247-8429 and 2049        4049-8376
                                               4055-5094

Fleet Bank           30586                     058-8001

Mellon Bank, N.A.    360-313                   014-3626
                     010-642                   005-3575

                            Exhibit H

                  to Receivables Sale Agreement

                     Form of Lock Box Letter

[Name of Lock Box Bank]

Ladies and Gentlemen:

     Reference is made to the lock-box numbers _______________ in
__________ and the associated the lock-box demand deposit account
number  ____________  maintained with you  (such  lock-boxes  and
associated  lock-box  demand deposit account,  collectively,  the
"Accounts"), each in the name of [Name of Originator]  ("[___]").
[___]  hereby  confirms it has sold all Receivables  (as  defined
below)  to  Crompton  &  Knowles  Receivables  Corporation   (the
"Seller").

     In connection with the Amended and Restated Receivables Sale
Agreement, dated as of January 18, 2002 (as amended, supplemented
or  otherwise  modified from time to time, the "Receivables  Sale
Agreement"),  among  the  Seller, Amsterdam  Funding  Corporation
("Amsterdam"), the financial institutions from time to time party
thereto (collectively, the "Liquidity Providers"), ABN AMRO  Bank
N.V.,   as  provider  of  the  program  letter  of  credit   (the
"Enhancer"),  and ABN AMRO Bank N.V., as agent (the "Agent")  for
Amsterdam,    the   Liquidity   Providers   and   the    Enhancer
(collectively, the "Purchasers"), the Seller has assigned to  the
Agent  for  the benefit of the Purchasers an undivided percentage
interest  in the accounts, chattel paper, instruments or  general
intangibles   (collectively,  the  "Receivables")   under   which
payments  are or may hereafter be made to the Accounts,  and  has
granted to the Agent for the benefit of the Purchasers a security
interest in its retained interest in such Receivables.  As is the
customary practice in this type of transaction, we hereby request
that you execute this letter agreement.  All references herein to
"we"  and  "us"  refer  to [_____] and the  Seller,  jointly  and
severally.  Your execution hereof is a condition precedent to our
continued maintenance of the Accounts with you.

     We  hereby  transfer exclusive dominion and control  of  the
Accounts  to the Agent, subject only to the condition  subsequent
that  the  Agent shall have given you notice that a  "Termination
Event" has occurred and is continuing under the Receivables  Sale
Agreement  and  of  its  election to  assume  such  dominion  and
control, which notice shall be in substantially the form attached
hereto as Annex A (the "Agent's Notice").

     At  all  times  prior to the receipt of the  Agent's  Notice
described  above, all payments to be made by you out  of,  or  in
connection  with the Accounts, are to be made in accordance  with
the instructions of the Seller or its agent.

     We  hereby irrevocably instruct you, at all times  from  and
after the date of your receipt of the Agent's Notice as described
above,  to  make all payments to be made by you  out  of,  or  in
connection  with,  the Accounts directly to  the  Agent,  at  its
address  set  forth below its signature hereto or  as  the  Agent
otherwise  notifies  you, or otherwise  in  accordance  with  the
instructions of the Agent.

     We  also hereby notify you that, at all times from and after
the  date  of  your  receipt of the Agent's Notice  as  described
above, the Agent shall be irrevocably entitled to exercise in our
place  and  stead  any  and all rights  in  connection  with  the
Accounts, including, without limitation, (a) the right to specify
when  payments are to be made out of, or in connection with,  the
Accounts  and  (b) the right to require preparation of  duplicate
monthly  bank  statements on the Accounts for the  Agent's  audit
purposes  and mailing of such statements directly to  an  address
specified by the Agent.  At all times from and after the date  of
your  receipt of the Agent's Notice, neither we nor  any  of  our
affiliates shall be given any access to the Accounts.

     The  Agent's  Notice may be personally  served  or  sent  by
telex,   facsimile  or  U.S.  mail,  certified   return   receipt
requested,  to the address, telex or facsimile number  set  forth
under  your signature to this letter agreement (or to such  other
address,  telex or facsimile number as to which you shall  notify
the  Agent in writing).  If the Agent's Notice is given by  telex
or  facsimile, it will be deemed to have been received  when  the
Agent's  Notice  is sent and the answerback is received  (in  the
case  of  telex)  or receipt is confirmed by telephone  or  other
electronic  means (in the case of facsimile).  All other  notices
will  be deemed to have been received when actually received  or,
in the case of personal delivery, delivered.

     By  executing  this  letter agreement, you  acknowledge  the
existence  of  the Agent's right to dominion and control  of  the
Accounts  and  its  ownership of and  security  interest  in  the
amounts from time to time on deposit therein and agree that  from
the  date hereof the Accounts shall be maintained by you for  the
benefit of, and amounts from time to time therein held by you  as
agent  for, the Agent on the terms provided herein.  The Accounts
are  to  be  entitled "Crompton & Knowles Receivables Corporation
and  ABN  AMRO Bank N.V., as Agent for the Purchasers"  with  the
subline ["Name of Originator"].  Except as otherwise provided  in
this  letter  agreement,  payments to  the  Accounts  are  to  be
processed in accordance with the standard procedures currently in
effect.   All  service  charges and fees in connection  with  the
Accounts   shall  continue  to  be  payable  by  us   under   the
arrangements currently in effect.

     By  executing  this  letter agreement, you  (a)  irrevocably
waive and agree not to assert, claim or endeavor to exercise, (b)
irrevocably  bar and estop yourself from asserting,  claiming  or
exercising  and  (c)  acknowledge that you  have  not  heretofore
received  a  notice, writ, order or other form of  legal  process
from any other party asserting, claiming or exercising, any right
of  set-off, banker's lien or other purported form of claim  with
respect  to the accounts or any funds from time to time  therein.
Except for your right to payment of your service charge and  fees
and  to  make  deductions for returned items, you shall  have  no
rights  in  the Accounts or funds therein, except deductions  for
service  charges, fees and returned or misplaced items.   To  the
extent  you  may  ever  have any additional  rights,  you  hereby
expressly subordinate all such rights to all rights of the Agent.

     You  may  terminate this letter agreement by cancelling  the
Accounts  maintained with you, which cancellation and termination
shall  become effective only upon thirty (30) days prior  written
notice  thereof from you to the Agent in the absence of fraud  or
abuse.   Incoming  mail  addressed to  the  Accounts  (including,
without  limitation, any direct funds transfer to  the  Accounts)
received after such cancellation shall be forwarded in accordance
with the Agent's instructions.  This letter agreement may also be
terminated  upon written notice to you by the Agent stating  that
the Receivables Sale Agreement is no longer in effect.  Except as
otherwise  provided in this paragraph, this letter agreement  may
not be terminated without the prior written consent of the Agent.

     This  letter agreement contains the entire agreement between
the  parties with respect to the subject matter hereof,  and  may
not  be altered, modified or amended in any respect, nor may  any
right,  power  or privilege of any party hereunder be  waived  or
released or discharged, except upon execution by you, us and  the
Agent  of  a  written  instrument so providing.   The  terms  and
conditions  of  any  agreement between us and  you  (a  "Lock-Box
Service  Agreement") (whether now existing or executed hereafter)
with  respect  to the lock-box arrangements, to  the  extent  not
inconsistent  with this letter agreement, will remain  in  effect
between  you  and  us.  In the event that any provision  in  this
letter  agreement is in conflict with, or inconsistent with,  any
provision  of  any such Lock-Box Service Agreement,  this  letter
agreement will exclusively govern and control.  Each party agrees
to  take  all actions reasonably requested by any other party  to
carry  out  the purposes of this letter agreement or to  preserve
and protect the rights of each party hereunder.

     [___] agrees to indemnify, defend and hold harmless you  and
your   affiliates,   directors,  officers,   employees,   agents,
successors  and assigns (each, an "Indemnitee") from and  against
any  and all liabilities, losses, claims, damages, demands, costs
and  expenses of every kind (including but not limited  to  costs
incurred as a result of items being deposited in the Account  and
being  unpaid for any reason, reasonable attorney's fees and  the
reasonable   charges  of  your  in-house  counsel)  incurred   or
sustained  by  any Indemnitee arising out of your performance  of
the  services contemplated by this Lock-Box Letter, except to the
extent such liabilities, losses, claims, damages, demands,  costs
and  expenses  are the direct result of your gross negligence  or
willful  misconduct.   The  provisions of  this  paragraph  shall
survive the termination of this Lock-Box Letter.

     In  the  event  [___]  becomes subject  to  a  voluntary  or
involuntary  proceeding under the United States Bankruptcy  Code,
or  if  you are otherwise served with legal process which you  in
good  faith believe affects funds in the Account you may  suspend
disbursements from the Account otherwise required  by  the  terms
hereof until such time as you receive an appropriate court  order
or  other  assurances satisfactory to you establishing  that  the
funds  may continue to be disbursed according to the instructions
contained in this Lock-Box Letter.

     This letter agreement and the rights and obligations of  the
parties   hereunder  will  be  governed  by  and  construed   and
interpreted in accordance with the laws of the state of New York.
This   letter  agreement  may  be  executed  in  any  number   of
counterparts and all of such counterparts taken together will  be
deemed to constitute one and the same instrument.

     Please  indicate your agreement to the terms of this  letter
agreement  by signing in the space provided below.   This  letter
agreement will become effective immediately upon execution  of  a
counterpart of this letter agreement by all parties hereto.

                           Very truly yours,

                           [Name of Originator]

                            By:
                            Title:

                            Crompton & Knowles Receivables
                            Corporation

                            By:
                            Title:

Accepted and confirmed as of
the date first written above:

By:  ABN AMRO Bank N.V., as Agent

By:___________________________
Title:__________________________

By:____________________________
Title:___________________________

Address of notice:

     ABN AMRO Bank N.V.
     Structured Finance, Asset Securitization
     135 South LaSalle Street
     Chicago, Illinois 60674
     Attention:  Purchaser Agent-Amsterdam
     Telephone Number:  (312) 904-6263
     Telecopy Number:  (312) 904-6376

Acknowledged and agreed to as of the date first written above:

[Name of Bank]

By:___________________________
Title:__________________________

Address for notice:

     _______________________________
     _______________________________
     _______________________________

                                                       Annex A to
                                                  Lock-Box Letter

[Name of Bank]

     Re:   Crompton & Knowles Receivables Corporation
                 Lock Box Numbers ______________
              Lock-Box Account Number ____________

Ladies and Gentlemen:

     Reference   is   made   to   the  letter   agreement   dated
_________________  (the  "Letter  Agreement")  among   [Name   of
Originator],  Crompton  &  Knowles Receivables  Corporation,  the
undersigned,  as  Agent, and you concerning  the  above-described
lock-boxes  and lock-box account (collectively, the  "Accounts").
We hereby give you notice that a "Termination Event" has occurred
and  is  continuing  under  the Receivables  Sale  Agreement  (as
defined  in  the  Letter  Agreement) and  of  our  assumption  of
dominion  and control of the Accounts as provided in  the  Letter
Agreement.

     We hereby instruct you not to permit any other party to have
access to the Accounts and to make all payments to be made by you
out  of  or  in  connection  with the Accounts  directly  to  the
undersigned  upon  our  instructions, at our  address  set  forth
above.

                                Very truly yours,

                                ABN AMRO Bank N.V.

                                By:
                                  Title:

                                By:
                                  Title:

cc:  Crompton & Knowles Receivables Corporation

                            Exhibit I

                  To Receivables Sale Agreement

                     Compliance Certificate

To:  ABN AMRO Bank N.V., as Agent, and
     each Purchaser

     This Compliance Certificate is furnished pursuant to Section
5.1(a)(iii)   of  the  Amended  and  Restated  Receivables   Sale
Agreement, dated as of January 18, 2002 (as amended, supplemented
or   otherwise  modified  through  the  date  hereof,  the  "Sale
Agreement"),  among  Crompton & Knowles  Receivables  Corporation
(the  "Seller"),  Crompton Corporation (the  "Initial  Collection
Agent"), the liquidity providers from time to time party  thereto
(collectively,  the  "Liquidity  Providers"),  Amsterdam  Funding
Corporation ("Amsterdam") and ABN AMRO Bank N.V., as the provider
of the program letter of credit (the "Enhancer" and together with
the Liquidity Providers and Amsterdam, the "Purchasers"), and ABN
AMRO Bank N.V. as agent for the Purchasers (in such capacity, the
"Agent").   Terms  used in this Compliance  Certificate  and  not
otherwise  defined  herein  shall have  the  respective  meanings
ascribed thereto in the Sale Agreement.

     The  undersigned hereby represents, warrants, certifies  and
confirms that:

           1.    The  undersigned  is a duly  elected  Designated
     Financial Officer of the undersigned.

           2.    Attached  hereto  is a  copy  of  the  financial
     statements  described in Section 5.1(a)(i) or 5.1(a)(ii)  of
     the Sale Agreement.

           3.    The  undersigned has reviewed the terms  of  the
     Transaction  Documents and has made, or caused  to  be  made
     under   his/her  supervision,  a  detailed  review  of   the
     transactions  and  the conditions of  the  Seller  and  each
     Originator  during  and at the end of the accounting  period
     covered by the attached financial statements.

           4.    The examinations described in paragraph 3 hereof
     did  not disclose, and the undersigned has no knowledge  of,
     the existence of any condition or event which constitutes  a
     Potential  Termination Event, during or at the  end  of  the
     accounting   period   covered  by  the  attached   financial
     statements or as of the date of this Compliance Certificate,
     except as set forth below.

          5.   Based on the examinations described in paragraph 3
     hereof,  the  undersigned confirms that the  representations
     and warranties contained in Article IV of the Sale Agreement
     are  true  and  correct as though made on the  date  hereof,
     except as set forth below.

     Described below are the exceptions, if any, to paragraphs  4
and  5  listing, in detail, the nature of the condition or event,
the  period  during  which  it has existed  and  the  action  the
undersigned has taken, is taking or proposes to take with respect
to each such condition or event:

     The foregoing certifications, together with the computations
set  forth  in  Schedule  I hereto and the  financial  statements
delivered with this Compliance Certificate in support hereof, are
made and delivered this ____ day of ___________, 200__.

                                [Name of Seller or Originator]

                                By:
                                  Designated Financial Officer

                            Exhibit J

                  Credit and Collection Policy
_______________________________
*    calculated in accordance with Section 2.2.

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