Document:

EXHIBIT 10.2  

Execution Version  

SECURITY AGREEMENT  

      THIS
SECURITY AGREEMENT dated as of July 30, 2004, among ROCKWOOD SPECIALTIES INTERNATIONAL, INC., a Delaware corporation
("Holdings"), ROCKWOOD SPECIALTIES GROUP, INC., a Delaware corporation (the "US Borrower"), each
of the Subsidiaries of the US Borrower listed on Annex A hereto (each such undersigned Subsidiary being a "Subsidiary Grantor" and collectively the
"Subsidiary Grantors"; the Subsidiary Grantors, Holdings and the US Borrower are referred to collectively as the
"Grantors") and CREDIT SUISSE FIRST BOSTON, acting through its Cayman Islands Branch, as administrative agent (in such capacity, the
"Administrative Agent") for the lenders ("Lenders") from time to time party to the Credit Agreement
dated as of July 30, 2004 (as the same may be amended, supplemented or otherwise modified from time to time, the "Credit Agreement"), among the
US Borrower, Rockwood Specialties Limited, a company incorporated under the laws of England and Wales (the "UK Borrower" and, together with the US
Borrower, the "Borrowers"), Holdings, the Lenders, the Administrative Agent, and UBS Securities LLC and Goldman Sachs Credit Partners L.P., as
co-syndication agents (in such capacity, the "Co-Syndication Agents") for the Lenders. 

W I T N E S S E T H:  

        WHEREAS, (a) pursuant to the Credit Agreement, the Lenders have severally agreed to make Loans to the Borrowers and the Letter of Credit Issuer has agreed
to issue Letters of Credit for the account of the Borrowers (collectively, the "Extensions of Credit") upon the terms and subject to the conditions set
forth therein and (b) one or more Lenders or Affiliates of Lenders may from time to time enter into Hedge Agreements with the Borrowers or any of their Restricted Subsidiaries; 

        WHEREAS,
pursuant to the Guarantee (the "Guarantee") dated as of the date hereof, Holdings and each Subsidiary Grantor party thereto has
unconditionally and irrevocably guaranteed, as primary obligor and not merely as surety, to the Administrative Agent, for the ratable benefit of the Secured Parties the prompt and complete payment and
performance when due (whether at the stated maturity, by acceleration or otherwise) of the Obligations; 

        WHEREAS,
each Subsidiary Grantor is a Domestic Subsidiary of the US Borrower; 

        WHEREAS,
the proceeds of the Extensions of Credit will be used in part to enable the Borrowers to make valuable transfers to the Subsidiary Grantors in connection with the operation of
their respective businesses; 

        WHEREAS,
each Grantor acknowledges that it will derive substantial direct and indirect benefit from the making of the Extensions of Credit; and 

        WHEREAS,
it is a condition precedent to the obligation of the Lenders and the Letter of Credit Issuer to make their respective Extensions of Credit to the Borrowers under the Credit
Agreement that the Grantors shall have executed and delivered this Security Agreement to the Administrative Agent for the ratable benefit of the Secured Parties; 

        NOW,
THEREFORE, in consideration of the premises and to induce the Administrative Agent, the Co-Syndication Agents, the Lenders and the Letter of Credit Issuer to enter into
the Credit Agreement and to induce the Lenders and the Letter of Credit Issuer to make their respective Extensions of Credit to the Borrowers under the Credit Agreement and to induce one or more
Lenders or Affiliates of Lenders to enter into Hedge Agreements with the Borrowers and/or the Restricted 

 

Subsidiaries,
the Grantors hereby agree with the Administrative Agent, for the ratable benefit of the Secured Parties, as follows: 

        1.    Defined Terms.    

        (a)    Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement and all terms
defined in the Uniform Commercial Code from time to time in effect in the State of New York (the "NY UCC") and not defined herein shall have the
meanings specified therein; the term "instrument" shall have the meaning specified in Article 9 of the NY UCC. 

        (b)    The
following terms shall have the following meanings: 

        "Administrative Agent" shall have the meaning assigned to such term in the recitals hereto. 

        "Closing Time" shall mean 24:00 (German time) on the Closing Date. 

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

        "Collateral Account" shall mean any collateral account established by the Administrative Agent as provided in Section 5.1. 

        "Copyright License" means any written agreement, now or hereafter in effect, granting any right to any third party under any copyright now
or hereafter owned by any Grantor (including all Copyrights) or that any Grantor otherwise has the right to license, or granting any right to any Grantor under any copyright now or hereafter owned by
any third party, and all rights of any Grantor under any such agreement, including those listed on Schedule 1. 

        "copyrights" means, with respect to any Person, all of the following now owned or hereafter acquired by such Person: (i) all
copyright rights in any work subject to the copyright laws of the United States or any other country, whether as author, assignee, transferee or otherwise, and (ii) all registrations and
applications for registration of any such copyright in the United States or any other country, including registrations, recordings, supplemental registrations and pending applications for registration
in the United States Copyright Office. 

        "Copyrights" means all copyrights now owned or hereafter acquired by any Grantor, including those listed on Schedule 2. 

        "Equipment" shall mean any "equipment," as such term is defined in the NY UCC, now or hereafter owned by any Grantor and, in any event,
shall include all machinery, equipment, furnishings, movable trade fixtures and vehicles now or hereafter owned by any Grantor and any and all additions,
substitutions and replacements of any of the foregoing, wherever located, together with all attachments, components, parts, equipment and accessories installed thereon or affixed thereto; but
excluding Equipment to the extent it is subject to a Permitted Lien and the terms of the Indebtedness securing such Permitted Lien prohibit assignment of, or granting of a security interest in, such
Grantor's rights and interests therein, provided, that immediately upon the repayment of all Indebtedness secured by such Permitted Lien, such Grantor
shall be deemed to have granted a Security Interest in all the rights and interests with respect to such Equipment. 

        "General Intangibles" shall mean all "general intangibles" as such term is defined in Section 9-102 of the NY UCC and,
in any event, including with respect to any Grantor, all contracts, agreements, instruments and indentures in any form, and portions thereof, to which such Grantor is a party or under which such
Grantor has any right, title or interest or to which such Grantor or any property of such Grantor is subject, as the same may from time to time be amended, supplemented or otherwise modified,
including (a) all rights of such Grantor to receive moneys due and to become due to it thereunder or in connection therewith, (b) all rights of such Grantor to receive proceeds of any
insurance, indemnity, warranty or guarantee with respect thereto, (c) all claims of such Grantor for 

2

 

damages
arising out of any breach thereof or default thereunder and (d) all rights of such Grantor to terminate, amend, supplement, modify or exercise rights or options thereunder, to perform
thereunder and to compel performance and otherwise exercise all remedies thereunder, in each case to the extent the grant by such Grantor of a Security Interest pursuant to this Security Agreement in
its right, title and interest in any such contract, agreement, instrument or indenture is not prohibited by such contract, agreement, instrument or indenture without the consent of any other party
thereto, would not give any other party to any such contract, agreement, instrument or indenture the right to terminate its obligations thereunder or is permitted with consent if all necessary
consents to such grant of a Security Interest have been obtained from the other parties thereto (it being understood that the foregoing shall not be deemed to obligate such Grantor to obtain such
consents), provided, that the foregoing limitation shall not affect, limit, restrict or impair the grant by such Grantor of a Security Interest pursuant
to this Security Agreement in any Account or any money or other amounts due or to become due under any such contract, agreement, instrument or indenture. 

        "Guarantors" shall mean each Grantor other than the US Borrower. 

        "Grantor" shall have the meaning assigned to such term in the recitals hereto. 

        "Intellectual Property" shall mean all rights, priorities and privileges relating to intellectual property, whether arising under United
States, multinational or foreign laws or otherwise now owned or hereafter acquired, including (a) all information used or useful arising from the business including all goodwill, trade secrets,
trade secret rights, know-how, customer lists, processes of production, ideas, confidential business information, techniques, processes, formulas and all other proprietary information, and
(b) the Copyrights, the Patents, the Trademarks and the Licenses and all
rights to sue at law or in equity for any infringement or other impairment thereof, including the right to receive all proceeds and damages therefrom, in each case to the extent the grant by such
Grantor of a Security Interest pursuant to this Security Agreement in any such rights, priorities and privileges relating to intellectual property is not prohibited by any contract, agreement or other
instrument governing such rights, priorities and privileges without the consent of any other party thereto, would not give any other party to any such contract, agreement or other instrument the right
to terminate its obligations thereunder or is permitted with consent if all necessary consents to such grant of a Security Interest have been obtained from the relevant parties (it being understood
that the foregoing shall not be deemed to obligate such Grantor to obtain such consents). 

        "Investment Property" shall mean all Securities (whether certificated or uncertificated), Security Entitlements, Securities Accounts,
Commodity Contracts and Commodity Accounts of any Grantor, whether now or hereafter acquired by any Grantor, in each case to the extent the grant by a Grantor of a Security Interest therein pursuant
to this Security Agreement in its right, title and interest in any such Investment Property is not prohibited by any contract, agreement, instrument or indenture governing such Investment Property
without the consent of any other party thereto, would not give any other party to any such contract, agreement, instrument or indenture the right to terminate its obligations thereunder or is
permitted with consent if all necessary consents to such grant of a Security Interest have been obtained from the other parties thereto (it being understood that the foregoing shall not be deemed to
obligate such Grantor to obtain such consents). 

        "License" shall mean any Patent License, Trademark License, Copyright License or other license or sublicense to which any Grantor is a
party. 

        "NY UCC" has the meaning assigned to such term in Section 1(a). 

        "Obligations" shall mean the collective reference to (i) the due and punctual payment of (x) the principal of and premium,
if any, and interest at the applicable rate provided in the Credit Agreement (including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding,
regardless of whether allowed or allowable in such proceeding) on the Loans, when 

3

 

and
as due, whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise, (y) each payment required to be made by the Borrowers under the Credit Agreement in
respect of any Letter of Credit, when and as due, including payments in respect of reimbursement of disbursements, interest thereon and obligations to provide cash collateral, and (z) all other
monetary obligations, including fees, costs, expenses and indemnities, whether primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during the pendency
of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), of the Borrowers or any other Credit Party to any of the
Secured Parties under the Credit Agreement and the other Credit Documents, (ii) the due and punctual performance of all covenants, agreements, obligations and liabilities of the Borrowers under
or pursuant to the Credit Agreement and the other Credit Documents, (iii) the due and punctual payment and performance of all the covenants, agreements, obligations and liabilities of each
Credit Party under or pursuant to this Security Agreement or the other Credit Documents, (iv) the due and punctual payment and performance of all obligations of each Borrower or Restricted
Subsidiary under each Hedge Agreement that (x) is in effect on the Closing Date with a counterparty that is a Lender or an Affiliate of a Lender as of the Closing Date or (y) is entered
into after the Closing Date with any counterparty that is a Lender or an Affiliate of a Lender at the time such Hedge Agreement is entered into and (v) the due and punctual payment and
performance of all obligations in respect of overdrafts and related liabilities owed to the Administrative Agent or its Affiliates arising from or in connection with treasury, depositary or cash
management services or in connection with any automated clearinghouse transfer of funds. 

        "Patent License" means any written agreement, now or hereafter in effect, granting to any third party any right to make, use or sell any
invention on which a patent, now or hereafter owned by any Grantor (including all Patents) or that any Grantor otherwise has the right to license, is in existence, or granting to any Grantor any right
to make, use or sell any invention on which a patent, now or hereafter owned by any third party, is in existence, and all rights of any Grantor under any such agreement, including those listed on
Schedule 3. 

        "patents" means, with respect to any Person, all of the following now owned or hereafter acquired by such Person: (a) all letters
patent of the United States or the equivalent thereof in any other country, all registrations and recordings thereof, and all applications for letters patent of the United States or the equivalent
thereof in any other country, including registrations, recordings and pending applications in the United States Patent and Trademark Office or any similar offices in any other country, and
(b) all reissues, continuations, divisions, continuations-in-part, renewals or extensions thereof, and the inventions disclosed or claimed therein, including the right
to make, use and/or sell the inventions disclosed or claimed therein. 

        "Patents" means all patents now owned or hereafter acquired by any Grantor, including those listed on Schedule 4. 

        "Proceeds" shall mean all "proceeds" as such term is defined in Section 9-102 of the NY UCC and, in any event, shall
include with respect to any Grantor, any consideration received from the sale, exchange, license, lease or other disposition of any asset or property that constitutes Collateral, any value received as
a consequence of the possession of any Collateral and any payment received from any insurer or other person or entity as a result of the destruction, loss, theft, damage or other involuntary
conversion of whatever nature of any asset or property that constitutes Collateral, and shall include (a) all cash and negotiable instruments received by or held on behalf of the Administrative
Agent, (b) any claim of any Grantor against any third party for (and the right to sue and recover for and the rights to damages or profits due or accrued arising out of or in connection with)
(i) past, present or future infringement of any Patent now or hereafter owned by any Grantor, or licensed under a Patent License, (ii) past, present or future infringement or dilution of
any Trademark now or hereafter owned by any Grantor or licensed under a Trademark License or injury to the goodwill associated with or 

4

 

symbolized
by any Trademark now or hereafter owned by any Grantor, (iii) past, present or future breach of any License and (iv) past, present or future infringement of any Copyright now
or hereafter owned by any Grantor or licensed under a Copyright License and (c) any and all other amounts from time to time paid or payable under or in connection with any of the Collateral. 

        "Secured Parties" shall mean (i) the Lenders, (ii) the Letter of Credit Issuer, (iii) the Swingline Lender,
(iv) the Administrative Agent, (v) the Co-Syndication Agents, (vi) each counterparty to a Hedge Agreement the obligations under which constitute Obligations,
(vii) the beneficiaries of each indemnification obligation undertaken by any Credit Party under any Credit Document and (viii) any successors, indorsees, transferees and assigns of each
of the foregoing. 

        "Security Agreement" shall mean this Security Agreement, as the same may be amended, supplemented or otherwise modified from time to time. 

        "Security Interest" shall have the meaning assigned to such term in Section 2. 

        "Trademark License" means any written agreement, now or hereafter in effect, granting to any third party any right to use any trademark
now or hereafter owned by any Grantor (including any Trademark) or that any Grantor otherwise has the right to license, or granting to any Grantor any right to use any trademark now or hereafter owned
by any third party, and all rights of any Grantor under any such agreement, including those listed on Schedule 5. 

        "trademarks" means, with respect to any Person, all of the following now owned or hereafter acquired by such Person: (i) all
trademarks, service marks, trade names, corporate names, company names, business names, fictitious business names, trade styles, trade dress, logos, other source or business identifiers, designs and
general intangibles of like nature, now existing or hereafter adopted or acquired, all registrations and recordings thereof (if any), and all registration and recording applications filed in
connection therewith, including registrations and registration applications in the United States Patent and Trademark Office or any similar offices in any State of the United States or any other
country or any political subdivision thereof, and all extensions or renewals thereof, (ii) all goodwill associated therewith or symbolized thereby and (iii) all other assets, rights and
interests that uniquely reflect or embody such goodwill. 

        "Trademarks" means all trademarks now owned or hereafter acquired by any Grantor, including those listed on Schedule 6 hereto. 

        (c)    The
words "hereof", "herein", "hereto" and "hereunder" and words of similar import when used in this Security Agreement shall refer to this Security Agreement as a whole
and not to any particular provision of this Security Agreement, and Section and Schedule references are to this Security Agreement unless otherwise specified. The words "include", "includes" and
"including" shall be deemed to be followed by the phrase "without limitation". 

        (d)    The
meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms. 

        (e)    Where
the context requires, terms relating to the Collateral or any part thereof, when used in relation to a Grantor, shall refer to such Grantor's Collateral or the
relevant part thereof. 

        (f)    References
to "Lenders" in this Security Agreement shall be deemed to include Affiliates of Lenders that may from time to time enter into Hedge Agreements with the
Borrowers. 

        2.    Grant of Security Interest.    

        (a)    Each
Grantor hereby bargains, sells, conveys, assigns, sets over, mortgages, pledges, hypothecates and transfers to the Administrative Agent, and hereby grants to the
Administrative Agent, for the ratable benefit of the Secured Parties, a security interest, which security interest shall attach immediately upon the Closing Time (the "Security
Interest"), in all of the following property now owned 

5

 

or
hereafter acquired by such Grantor or in which such Grantor now has or at any time in future may acquire any right, title or interest (collectively, the
"Collateral"), as collateral security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or
otherwise) of the Obligations: 

          (i)  all
Accounts; 

         (ii)  all
Equipment; 

        (iii)  all
General Intangibles; 

        (iv)  all
Intellectual Property; 

         (v)  all
Inventory; 

        (vi)  all
cash and cash accounts; 

       (vii)  all
Investment Property; 

      (viii)  all
books and records pertaining to the Collateral; and 

        (ix)  to
the extent not otherwise included, all Proceeds and products of any and all of the foregoing. 

        (b)    Each
Grantor hereby irrevocably authorizes the Administrative Agent at any time and from time to time to file in any relevant jurisdiction any initial financing
statements with respect to the Collateral or any part thereof and amendments thereto that contain the information required by Article 9 of the Uniform Commercial Code of each applicable
jurisdiction for the filing of any financing statement or amendment, including whether such Grantor is an organization, the type of organization and any organizational identification number issued to
such Grantor. Such financing statements may describe the Collateral as "all assets" or "all property" or such other description as the Administrative Agent determines in its sole discretion. Each
Grantor agrees to provide such information to the Administrative Agent promptly upon request. 

        Each
Grantor also ratifies its authorization for the Administrative Agent to file in any relevant jurisdiction any initial financing statements or amendments thereto if filed prior to
the date hereof. 

        The
Administrative Agent is further authorized to file with the United States Patent and Trademark Office or United States Copyright Office (or any successor office or any similar office
in any other country) such documents as may be necessary or advisable for the purpose of perfecting, confirming, continuing, enforcing or protecting the Security Interest granted by each Grantor,
without the signature of any Grantor, and naming any Grantor or the Grantors as debtors and the Administrative Agent as secured party. 

        The
Security Interests are granted as security only and shall not subject the Administrative Agent or any other Secured Party to, or in any way alter or modify, any obligation or
liability of any Grantor with respect to or arising out of the Collateral. 

6

   
        3.    Representations And Warranties.    

        Each
Grantor hereby represents and warrants to the Administrative Agent and each Secured Party that: 

        3.1.    Title; No Other Liens.    Except for the Security Interest granted to the Administrative Agent for the ratable
benefit of the Secured Parties pursuant to this Security Agreement, the Liens permitted by the Credit Agreement and any Liens securing Indebtedness which is no longer outstanding or any Liens with
respect to commitments to lend which have been terminated, such Grantor owns each item of the Collateral free and clear of any and all Liens or claims of others. No security agreement, financing
statement or other public notice with respect to all or any part of the Collateral that evidences a Lien securing any material Indebtedness is on file or of record in any public office, except such as
have been filed in favor of the Administrative Agent, for the ratable benefit of the Secured Parties, pursuant to this Security Agreement or are permitted by the Credit Agreement. 

        3.2.    Perfected First Priority Liens.    (a)    Subject to the limitations set forth in clause (b)
of this Section 3.2, the Security Interests granted pursuant to this Security Agreement (i) will constitute valid perfected Security Interests in the Collateral in favor of the
Administrative Agent, for the ratable benefit of the Secured Parties, as collateral security for the Obligations, upon (A) completion of all filings, registrations, recordings and other actions
specified in Section 6 of the Perfection Certificate (as such information is updated pursuant to Section 9.1(d) of the Credit Agreement) to the extent that a Security Interest may be
perfected by the filing of any UCC financing statement, (B) in the case of Equipment that is covered by a certificate of title, the filing with the registrar of motor vehicles or other
appropriate authority in the applicable jurisdiction (as specified in the Perfection Certificate (as such information is updated pursuant to Section 9.1(d) of the Credit Agreement)) of an
application requesting the notation of the Security Interest created hereunder on such certificate of title and (C) completion of the filing, registration and recording of a fully executed
agreement in the form hereof (or a supplement hereto) and containing a description of all Collateral constituting Intellectual Property in the United Stated Patent and Trademark Office within the
three-month period (commencing as of the date hereof) or, in the case of Collateral constituting Intellectual Property acquired after the date hereof, thereafter pursuant to 35 USC §261
and 15 USC §1060 and the regulations thereunder with respect to United States Patents and United States registered Trademarks and in the United States Copyright Office within the
one-month period (commencing as of the date hereof) or, in the case of Collateral constituting Intellectual Property acquired after the date hereof, thereafter with respect to United
States registered Copyrights pursuant to 17 USC §205 and the regulations thereunder and otherwise as may be required pursuant to the laws of any other necessary jurisdiction to the extent
that a security interest may be perfected by such filings, registrations and recordings, and (ii) are prior to all other Liens on the Collateral other than Liens permitted pursuant to
Section 10.2 of the Credit Agreement. 

        (b)    Notwithstanding
anything to the contrary herein, no Grantor shall be required to perfect the Security Interests granted by this Security Agreement (including Security
Interests in cash, cash accounts and Investment Property) by any means other than by (i) filings pursuant to the Uniform Commercial Codes of the relevant State(s), (ii) filings with the
registrars of motor vehicles or other appropriate authorities in the relevant jurisdictions, (iii) filings approved by United States government offices with respect to Intellectual Property or
(iv) when applicable, possession by the Administrative Agent in the United States. No Grantor shall be required to complete any filings or other action with respect to the perfection of
Security Interests in any jurisdiction outside the United States. 

        (c)    It
is understood and agreed that the Security Interests in cash, cash accounts and Permitted Investments created hereunder shall not prevent the Grantors from using such
assets in the ordinary course of their respective businesses. 

7

 

        4.    Covenants.    

        Each
Grantor hereby covenants and agrees with the Administrative Agent and the Secured Parties that, from and after the date of this Security Agreement until the Obligations under the
Credit Documents are paid in full, the Commitments are terminated and no Letter of Credit remains outstanding: 

        4.1.    Maintenance of Perfected Security Interest; Further Documentation.    (a)    Such Grantor shall
maintain the Security Interest created by this Security Agreement as a perfected Security Interest having at least the priority described in Section 3.2 and shall defend such Security Interest
against the claims and demands of all Persons whomsoever, in each case subject to Section 3.2(b). 

        (b)    Such
Grantor will furnish to the Administrative Agent and the Lenders from time to time statements and schedules further identifying and describing the assets and
property of such Grantor and such other reports in connection therewith as the Administrative Agent may reasonably request. In addition, within 30 days after the end of each calendar quarter,
such Grantor will deliver to the Administrative Agent (i) copies of all such certificates of title issued during such calendar quarter with the notation thereon of the Administrative Agent's
Security Interest created hereunder in the items of Equipment covered hereby and (ii) a written supplement hereto substantially in the form of Annex 2 hereto with respect to any additional
Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks and Trademark Licenses acquired by such Grantor after the date hereof, all in reasonable detail. 

        (c)    Subject
to clause (d) below and Section 3.2(b), each Grantor agrees that at any time and from time to time, at the expense of such Grantor, it will execute
any and all further documents, financing statements, agreements and instruments, and take all such further actions (including the filing and recording of financing statements, fixture filings,
mortgages, deeds of trust and other documents), which may be required under any applicable law, or which the Administrative Agent or the Required Lenders may reasonably request, in order (x) to
grant, preserve, protect and perfect the validity and priority of the Security Interests created or intended to be created hereby or (y) to enable the Administrative Agent to exercise and
enforce its rights and remedies hereunder with respect to any Collateral, including the filing of any financing or continuation statements under the Uniform Commercial Code in effect in any
jurisdiction with respect to the Security Interests created hereby, all at the expense of such Grantor. 

        (d)    Notwithstanding
anything in this Section 4.1 to the contrary, (i) with respect to any assets acquired by such Grantor after the date hereof that are
required by the Credit Agreement to be subject to the Lien created hereby or (ii) with respect to any Person that, subsequent to the date hereof, becomes a Subsidiary of the US Borrower that is
required by the Credit Agreement to become a party hereto, the relevant Grantor after the acquisition or creation thereof shall promptly take all actions required by the Credit Agreement or this
Section 4.1. 

        4.2.    Changes in Locations, Name, etc.    Each Grantor will furnish to the Administrative Agent prompt written
notice of any change (i) in its legal name, (ii) in its jurisdiction of incorporation or organization, (iii) in the location of its chief executive office, its principal place of
business, any office in which it maintains books or records relating to Collateral owned by it (including the establishment of any such new office), (iv) in its identity or type of organization
or corporate structure or (v) in its Federal Taxpayer Identification Number or organizational identification number. Each Grantor agrees promptly to provide the Administrative Agent with
certified organizational documents reflecting any of the changes described in the first sentence of this paragraph. Each Grantor agrees not to effect or permit any change referred to in the preceding
sentence unless all filings have been made under the Uniform Commercial Code or otherwise that are required in order for the Administrative Agent to continue at all times following such change to have
a valid, legal and perfected security interest in all 

8

 

the
Collateral having at least the priority described in Section 3.2. Each Grantor also agrees promptly to notify the Administrative Agent if any material portion of the Collateral is damaged
or destroyed. 

        4.3.    Notices.    Each Grantor will advise the Administrative Agent and the Lenders promptly, in reasonable detail,
of any Lien of which it has knowledge (other than the Security Interests created hereby or Liens permitted under the Credit Agreement) on any of the Collateral which would adversely affect, in any
material respect, the ability of the Administrative Agent to exercise any of its remedies hereunder. 

        4.4.    Special Covenants with Respect to Equipment.    (a)    Each Grantor shall, promptly after the
acquisition by such Grantor of any item of Equipment that is covered by a certificate of title under a statute of any jurisdiction under the law of which indication of a Security Interest on such
certificate is required as a
condition of perfection thereof, execute and file with the registrar of motor vehicles or other appropriate authority in such jurisdiction an application or other document requesting the notation or
other indication of the Security Interest created hereunder on such certificate of title. 

        (b)    Upon
the occurrence and during the continuation of any Event of Default, all insurance payments in respect of such Equipment shall be paid to and applied by
Administrative Agent as specified in Section 5.5 hereof. 

        (c)    At
the Administrative Agent's request at any time after the occurrence and during the continuance of an Event of Default, each Grantor shall deliver to the
Administrative Agent the certificates of title covering each item of Equipment the perfection of which is governed by the notation on the certificate of title of the Administrative Agent's Security
Interest created hereunder. 

        5.    Remedial Provisions.    

        5.1.    Certain Matters Relating to Accounts.    (a)    At any time after the occurrence and during the
continuance of an Event of Default, the Administrative Agent shall have the right to make test verifications of the Accounts in any manner and through any medium that it reasonably considers
advisable, and each Grantor shall furnish all such assistance and information as the Administrative Agent may require in connection with such test verifications. The Administrative Agent shall have
the absolute right to share any information it gains from such inspection or verification with any Secured Party. 

        (b)    The
Administrative Agent hereby authorizes each Grantor to collect such Grantor's Accounts and the Administrative Agent may curtail or terminate said authority at any
time after the occurrence and during the continuance of an Event of Default. If required in writing by the Administrative Agent at any time after the occurrence and during the continuance of an Event
of Default, any payments of Accounts, when collected by any Grantor, (i) shall be forthwith (and, in any event, within two Business Days) deposited by such Grantor in the exact form received,
duly endorsed by such Grantor to the Administrative Agent if required, in a Collateral Account maintained under the sole dominion and control of and on terms and conditions reasonably satisfactory to
the Administrative Agent, subject to withdrawal by the Administrative Agent for the account of the Secured Parties only as provided in Section 5.5, and (ii) until so turned over, shall
be held by such Grantor in trust for the Administrative Agent and the Secured Parties, segregated from other funds of such Grantor. Each such deposit of Proceeds of Accounts shall be accompanied by a
report identifying in reasonable detail the nature and source of the payments included in the deposit. 

        (c)    At
the Administrative Agent's request at any time after the occurrence and during the continuance of an Event of Default, each Grantor shall deliver to the
Administrative Agent all original and other documents evidencing, and relating to, the agreements and transactions which gave rise to the Accounts, including all original orders, invoices and shipping
receipts. 

9

 

        (d)    Upon
the occurrence and during the continuance of an Event of Default, a Grantor shall not grant any extension of the time of payment of any of the Accounts, compromise,
compound or settle the same for less than the full amount thereof, release, wholly or partly, any person liable for the payment thereof, or allow any credit or discount whatsoever thereon if the
Administrative Agent shall have instructed the Grantors not to grant or make any such extension, credit, discount, compromise, or settlement under any circumstances during the continuance of such
Event of Default. 

        5.2.    Communications with Obligors; Grantors Remain Liable.    (a)    The Administrative Agent in its own
name or in the name of others may at any time after the occurrence and during the continuance of an Event of Default, after giving reasonable notice to the relevant Grantor of its intent to do so,
communicate with obligors under the Accounts to verify with them to the Administrative Agent's satisfaction the existence, amount and terms of any Accounts. The Administrative Agent shall have the
absolute right to share any information it gains from such inspection or verification with any Secured Party. 

        (b)    Upon
the written request of the Administrative Agent at any time after the occurrence and during the continuance of an Event of Default, each Grantor shall notify
obligors on the Accounts that the Accounts have been assigned to the Administrative Agent for the ratable benefit of the Secured Parties and that payments in respect thereof shall be made directly to
the Administrative Agent. 

        (c)    Anything
herein to the contrary notwithstanding, each Grantor shall remain liable under each of the Accounts to observe and perform all the conditions and obligations to
be observed and performed by it thereunder, all in accordance with the terms of any agreement giving rise thereto. Neither the Administrative Agent nor any Secured Party shall have any obligation or
liability under any Account (or any agreement giving rise thereto) by reason of or arising out of this Security Agreement or the receipt by the Administrative Agent or any Secured Party of any payment
relating thereto, nor shall the Administrative Agent or any Secured Party be obligated in any manner to perform any of the obligations of any Grantor under or pursuant to any Account (or any agreement
giving rise thereto), to make any payment, to make any inquiry as to the nature or the sufficiency of any payment received by it or as to the sufficiency of any performance by any party thereunder, to
present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been assigned to it or to which it may be entitled at any time or
times. 

        5.3.    Proceeds to be Turned Over To Administrative Agent.    In addition to the rights of the Administrative Agent
and the Secured Parties specified in Section 5.1 with respect to payments of Accounts, if an Event of Default shall occur and be continuing and the Administrative Agent so requires by notice in
writing to the relevant Grantor (it being understood that the exercise of remedies by the Secured Parties in connection with an Event of Default under Section 11.5 of the Credit Agreement shall
be deemed to constitute a request by the Administrative Agent for the purposes of this sentence and in such circumstances, no such written notice shall be required), all Proceeds received by any
Grantor consisting of cash, checks and other near-cash items shall be held by such Grantor in trust for the Administrative Agent and the Secured Parties, segregated from other funds of
such Grantor, and shall, forthwith upon receipt by such Grantor, be turned over to the Administrative Agent in the exact form received by such Grantor (duly endorsed by such Grantor to the
Administrative Agent, if required). All Proceeds received by the Administrative Agent hereunder shall be held by the Administrative Agent in a Collateral Account maintained under its sole dominion and
control and on terms and conditions reasonably satisfactory to the Administrative Agent. All Proceeds while held by the Administrative Agent in a Collateral Account (or by such Grantor in trust for
the Administrative Agent and the Secured Parties) shall continue to be held as collateral security for all the Obligations and shall not constitute payment thereof until applied as provided in
Section 5.5. 

10

 

        5.4.    Application of Proceeds.    The Administrative Agent shall apply the proceeds of any collection or sale of the
Collateral as well as any Collateral consisting of cash, at any time after receipt as follows: 

          (i)  first,
to the payment of all reasonable and documented costs and expenses incurred by the Administrative Agent in connection with such collection or sale or otherwise
in connection with this Security Agreement, the other Credit Documents or any of the Obligations, including all court costs and the reasonable fees and expenses of its agents and legal counsel, the
repayment of all advances made by the Administrative Agent hereunder or under any other Credit Document on behalf of any Grantor and any other reasonable and documented costs or expenses incurred in
connection with the exercise of any right or remedy hereunder or under any other Credit Document; 

         (ii)  second,
to the Secured Parties, an amount equal to all Obligations owing to them on the date of any distribution, and, if such moneys shall be insufficient to pay such
amounts in full, then ratably (without priority of any one over any other) to such Secured Parties in proportion to the unpaid amounts thereof; and 

        (iii)  third,
any surplus then remaining shall be paid to the Grantors or their successors or assigns or to whomsoever may be lawfully entitled to receive the same or as a
court of competent jurisdiction may direct. 

Upon
any sale of the Collateral by the Administrative Agent (including pursuant to a power of sale granted by statute or under a judicial proceeding), the receipt of the Administrative Agent or of the
officer making the sale shall be a sufficient discharge to the purchaser or purchasers of the Collateral so sold and such purchaser or purchasers shall not be obligated to see to the application of
any part of the purchase money paid over to the Administrative Agent or such officer or be answerable in any way for the misapplication thereof. 

        5.5.    Code and Other Remedies.    If an Event of Default shall occur and be continuing, the Administrative Agent may
exercise in respect of the Collateral, in addition to all other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party upon default under
the NY UCC or any other applicable law and also may without notice except as specified below, sell the Collateral or any part thereof in one or more parcels at public or private sale, at any exchange
broker's board or at any of the Administrative Agent's offices or elsewhere, for cash, on credit or for future delivery, at such price or prices and upon such other terms as are commercially
reasonable irrespective of the impact of any such sales on the market price of the Collateral. The Administrative Agent shall be authorized at any such sale (if it deems it advisable to do so) to
restrict the prospective bidders or purchasers of Collateral to Persons who will represent and agree that they are purchasing the Collateral for their own account for investment and not with a view to
the distribution or sale thereof, and, upon consummation of any such sale, the Administrative Agent shall have the right to assign, transfer and deliver to the purchaser or purchasers thereof the
Collateral so sold. Each purchaser at any such sale shall hold the property sold absolutely free from any claim or right on the part of any Grantor, and each Grantor hereby waives (to the extent
permitted by law) all rights of redemption, stay and/or appraisal that it now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted. The
Administrative Agent or any Secured Party shall have the right upon any such public sale, and, to the extent permitted by law, upon any such private sale, to purchase the whole or any part of the
Collateral so sold, and the Administrative Agent or such Secured Party may subject to (x) the satisfaction in full in cash of all payments due pursuant to Section 5.4(i), and
(y) the ratable satisfaction of the Obligations in accordance with Section 5.4(ii), pay the purchase price by crediting the amount thereof against the Obligations. Each Grantor agrees
that, to the extent notice of sale shall be required by law, at least ten days' notice to such Grantor of the time and place of any public sale or the time after which any private sale is to be made
shall constitute reasonable notification. The Administrative Agent shall not be obligated to make any sale of Collateral 

11

 

regardless
of notice of sale having been given. The Administrative Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale
may, without further notice, be made at the time and place to which it was so adjourned. To the extent permitted by law, each Grantor hereby waives any claim against the Administrative Agent arising
by reason of the fact that the price at which any Collateral may have been sold at such a private sale was less than the price that might have been obtained at a public sale, even if the
Administrative Agent accepts the first offer received and does not offer such Collateral to more than one offeree. Each Grantor further agrees, at the Administrative Agent's request, to assemble the
Collateral and make it available to the Administrative Agent at places which the Administrative Agent shall reasonably select, whether at such Grantor's premises or elsewhere. The Administrative Agent
shall apply the net proceeds of any action taken by it pursuant to this Section 5.5 in accordance with the provisions of Section 5.4. 

        5.6.    Deficiency.    Each Grantor shall remain liable for any deficiency if the proceeds of any sale or other
disposition of the Collateral are insufficient to pay its Obligations and the fees and disbursements of any attorneys employed by the Administrative Agent or any Secured Party to collect such
deficiency. 

        5.7.    Amendments, etc. with Respect to the Obligations; Waiver of Rights.    Each Grantor shall remain obligated
hereunder notwithstanding that, without any reservation of rights against any Grantor and without notice to or further assent by any Grantor, (a) any demand for payment of any of the
Obligations made by the Administrative Agent or any other Secured Party may be rescinded by such party and any of the Obligations continued, (b) the Obligations, or the liability of any other
party upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended,
amended, modified, accelerated, compromised, waived, surrendered or released by the Administrative Agent or any other Secured Party, (c) the Credit Agreement, the other Credit Documents, the
Letters of Credit and any other documents executed and delivered in connection therewith and the Hedge Agreements and any other documents executed and delivered in connection therewith and any
documents entered into with the Administrative Agent or any of its Affiliates in connection with treasury, depositary or cash management services or in connection with any automated clearinghouse
transfer of funds may be amended, modified, supplemented or terminated, in whole or in part, as the Administrative Agent (or the Required Lenders, as the case may be, or, in the case of any Hedge
Agreement or documents entered into with the Administrative Agent or any of its Affiliates in connection with treasury, depositary or cash management services or in connection with any automated
clearinghouse transfer of funds, the party thereto) may deem advisable from time to time, and (d) any collateral security, guarantee or right of offset at any time held by the Administrative
Agent or any other Secured Party for the payment of the Obligations may be sold, exchanged, waived, surrendered or released. Neither the Administrative Agent nor any other Secured Party shall have any
obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the Obligations or for this Security Agreement or any property subject thereto. When making any demand
hereunder against any Grantor, the Administrative Agent or any other Secured Party may, but shall be under no obligation to, make a similar demand on the US Borrower or any Grantor or grantor, and any
failure by the Administrative Agent or any other Secured Party to make any such demand or to collect any payments from the US Borrower or any Grantor or grantor or any release of the US Borrower or
any Grantor or grantor shall not relieve any Grantor in respect of which a demand or collection is not made or any Grantor not so released of its several obligations or liabilities hereunder, and
shall not impair or affect the rights and remedies, express or implied, or as a matter of law, of the Administrative Agent or any other Secured Party against any Grantor. For the purposes hereof
"demand" shall include the commencement and continuance of any legal proceedings. 

12

 

        6.    The Administrative Agent.    

        6.1.    Administrative Agent's Appointment as Attorney-in-Fact, etc.    (a)    Each
Grantor hereby appoints, which appointment is irrevocable and coupled with an interest, effective upon and during the occurrence of an Event of Default, the Administrative Agent and any officer or
agent
thereof, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of such Grantor and in the
name of such Grantor or otherwise, for the purpose of carrying out the terms of this Security Agreement, to take any and all appropriate action and to execute any and all documents and instruments
which may be necessary or desirable to accomplish the purposes of this Security Agreement, and, without limiting the generality of the foregoing, each Grantor hereby gives the Administrative Agent the
power and right, on behalf of such Grantor, either in the Administrative Agent's name or in the name of such Grantor or otherwise, without assent by such Grantor, to do any or all of the following, in
each case after and during the occurrence of an Event of Default and after written notice by the Administrative Agent of its intent to do so: 

        (i)    take
possession of and endorse and collect any checks, drafts, notes, acceptances or other instruments for the payment of moneys due under any Account or with respect to
any other Collateral and file any claim or take any other action or proceeding in any court of law or equity or otherwise deemed appropriate by the Administrative Agent for the purpose of collecting
any and all such moneys due under any Account or with respect to any other Collateral whenever payable; 

        (ii)    in
the case of any Intellectual Property, execute and deliver, and have recorded, any and all agreements, instruments, documents and papers as the Administrative Agent
may request to evidence the Administrative Agent's and the Secured Parties' Security Interest in such Intellectual Property and the goodwill and general intangibles of such Grantor relating thereto or
represented thereby; 

        (iii)    pay
or discharge taxes and Liens levied or placed on or threatened against the Collateral; 

        (iv)    execute,
in connection with any sale provided for in Section 5.5, any endorsements, assignments or other instruments of conveyance or transfer with respect to
the Collateral; 

        (v)    obtain
and adjust insurance required to be maintained by such Grantor or paid to the Administrative Agent pursuant to Section 4.4; 

        (vi)    direct
any party liable for any payment under any of the Collateral to make payment of any and all moneys due or to become due thereunder directly to the Administrative
Agent or as the Administrative Agent shall direct; 

        (vii)    ask
or demand for, collect and receive payment of and receipt for, any and all moneys, claims and other amounts due or to become due at any time in respect of or
arising out of any Collateral; 

        (viii)    sign
and endorse any invoices, freight or express bills, bills of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications, notices
and other documents in connection with any of the Collateral; 

        (ix)    commence
and prosecute any suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect the Collateral or any portion thereof and
to enforce any other right in respect of any Collateral; 

        (x)    defend
any suit, action or proceeding brought against such Grantor with respect to any Collateral (with such Grantor's consent to the extent such action or its
resolution could materially 

13

 

affect
such Grantor or any of its Affiliates in any manner other than with respect to its continuing rights in such Collateral); 

        (xi)    settle,
compromise or adjust any such suit, action or proceeding and, in connection therewith, give such discharges or releases as the Administrative Agent may deem
appropriate (with such Grantor's consent to the extent such action or its resolution could materially affect such Grantor or any of its Affiliates in any manner other than with respect to its
continuing rights in such Collateral); 

        (xii)    assign
any Copyright, Patent or Trademark (along with the goodwill of the business to which any such Copyright, Patent or Trademark pertains), throughout the world for
such term or terms, on such conditions, and in such manner, as the Administrative Agent shall in its sole discretion determine; and 

        (xiii)    generally,
sell, transfer, pledge and make any agreement with respect to or otherwise deal with any of the Collateral as fully and completely as though the
Administrative Agent were the absolute owner thereof for all purposes, and do, at the Administrative Agent's option and such Grantor's expense, at any time, or from time to time, all acts and things
that the Administrative Agent deems necessary to protect, preserve or realize upon the Collateral and the Administrative Agent's and the Secured Parties' Security Interests therein and to effect the
intent of this Security Agreement, all as fully and effectively as such Grantor might do. 

Anything
in this Section 6.l(a) to the contrary notwithstanding, the Administrative Agent agrees that it will not exercise any rights under the power of attorney provided for in this
Section 6.1(a) unless an Event of Default shall have occurred and be continuing. 

        (b)    If
any Grantor fails to perform or comply with any of its agreements contained herein, the Administrative Agent, at its option, but without any obligation so to do, may
perform or comply, or otherwise cause performance or compliance, with such agreement. 

        (c)    The
expenses of the Administrative Agent incurred in connection with actions undertaken as provided in this Section 6.1, together with interest thereon at a rate
per annum equal to the highest rate per annum at which interest would then be payable on any category of past due ABR Loans under the Credit Agreement, from the date of payment by the Administrative
Agent to the date reimbursed by the relevant Grantor, shall be payable by such Grantor to the Administrative Agent on demand. 

        (d)    Each
Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof. All powers, authorizations and agencies contained in this
Security Agreement are coupled with an interest and are irrevocable until this Security Agreement is terminated and the Security Interests created hereby are released. 

        6.2.    Duty of Administrative Agent.    The Administrative Agent's sole duty with respect to the custody, safekeeping
and physical preservation of the Collateral in its possession, under Section 9-207 of the NY UCC or otherwise, shall be to deal with it in the same manner as the Administrative
Agent deals with similar property for its own account. The Administrative Agent shall be deemed to have exercised reasonable care in the custody and preservation of any Collateral in its possession if
such Collateral is accorded treatment substantially equal to that which the Administrative Agent accords its own property. Neither the Administrative Agent, any Secured Party nor any of their
respective officers, directors, employees or agents shall be liable for failure to demand, collect or realize upon any of the Collateral or for any delay in doing so or shall be under any obligation
to sell or otherwise dispose of any Collateral upon the request of any Grantor or any other Person or to take any other action whatsoever with regard to the Collateral or any part thereof. The powers
conferred on the Administrative Agent and the Secured Parties hereunder are solely to protect the Administrative Agent's and the Secured Parties' interests in the Collateral and shall not impose any
duty upon the Administrative Agent or any Secured Party to exercise any such powers. The Administrative Agent and 

14

 

the
Secured Parties shall be accountable only for amounts that they actually receive as a result of the exercise of such powers, and neither they nor any of their officers, directors, employees or
agents shall be responsible to any Grantor for any act or failure to act hereunder, except for their own gross negligence or willful misconduct. 

        6.3.    Authority of Administrative Agent.    Each Grantor acknowledges that the rights and responsibilities of the
Administrative Agent under this Security Agreement with respect to any action taken by the Administrative Agent or the exercise or non-exercise by the Administrative Agent of any option,
voting right, request, judgment or other right or remedy provided for herein or resulting or arising out of this Security Agreement shall, as between the Administrative Agent and the Secured Parties,
be governed by the Credit Agreement and by such other agreements with respect thereto as
may exist from time to time among them, but, as between the Administrative Agent and the Grantors, the Administrative Agent shall be conclusively presumed to be acting as agent for the Secured Parties
with full and valid authority so to act or refrain from acting, and no Grantor shall be under any obligation, or entitlement, to make any inquiry respecting such authority. 

        6.4.    Security Interest Absolute.    All rights of the Administrative Agent hereunder, the security interest and all
obligations of the Grantors hereunder shall be absolute and unconditional. 

        6.5.    Continuing Security Interest; Assignments Under the Credit Agreement; Release.    (a)    This
Security Agreement shall remain in full force and effect and be binding in accordance with and to the extent of its terms upon each Grantor and the successors and assigns thereof and shall inure to
the benefit of the Administrative Agent and the other Secured Parties and their respective successors, indorsees, transferees and assigns until all Obligations under the Credit Documents and the
obligations of each Grantor under this Security Agreement shall have been satisfied by payment in full, the Commitments shall be terminated and no Letters of Credit shall be outstanding,
notwithstanding that from time to time during the term of the Credit Agreement and any Hedge Agreement the Credit Parties may be free from any Obligations. This Security Agreement and the security
interest granted hereby shall terminate on the first date on which all the Obligations under the Credit Documents shall have been satisfied by payment in full, the Commitments shall be terminated and
no Letters of Credit shall be outstanding. 

        (b)    A
Subsidiary Grantor shall automatically be released from its obligations hereunder and the Security Interest in the Collateral of such Subsidiary Grantor shall be
automatically released upon the consummation of any transaction permitted by the Credit Agreement as a result of which such Subsidiary Grantor ceases to be a Domestic Subsidiary of the US Borrower. 

15

   
        (c)    Upon any sale or other transfer by any Grantor of any Collateral that is permitted under the Credit Agreement, or upon the effectiveness of any written consent to the
release of the security interest granted hereby in any Collateral pursuant to Section 14.1 of the Credit Agreement, the Security Interest in such Collateral shall be automatically released and
such Collateral sold free and clear of the Lien and Security Interests created hereby. 

        (d)    In
connection with any termination or release pursuant to paragraph (a), (b) or (c), the Administrative Agent shall execute and deliver to any Grantor, at
such Grantor's expense, all documents that such Grantor shall reasonably request to evidence such termination or release. Any execution and delivery of documents pursuant to this Section 6.5
shall be without recourse to or warranty by the Administrative Agent. 

        6.6.    Reinstatement.    This Security Agreement shall continue to be effective, or be reinstated, as the case may
be, if at any time payment, or any part thereof, of any of the Obligations is rescinded or must otherwise be restored or returned by the Administrative Agent or any other Secured Party upon the
insolvency, bankruptcy, dissolution, liquidation or reorganization of the US Borrower or any other Credit Party, or upon or as a result of the appointment of a receiver, intervenor or conservator of,
or trustee or similar officer for, the US Borrower or any other Credit Party or any substantial part of its property, or otherwise, all as though such payments had not been made. 

        7.    Administrative Agent As Agent.    

        (a)    Credit
Suisse First Boston has been appointed to act as Administrative Agent hereunder by the Lenders and, by their acceptance of the benefits hereof, the other Secured
Parties. The Administrative Agent shall be obligated, and shall have the right hereunder, to make demands, to give notices, to exercise or refrain from exercising any rights, and to take or refrain
from taking any action (including the release or substitution of Collateral), solely in accordance with this Security Agreement and the Credit Agreement,  provided that the Administrative Agent shall
exercise, or refrain from exercising, any remedies provided for in Section 5 in accordance with the
instructions of (i) Required Lenders or (ii) after the termination of this Security Agreement. In furtherance of the foregoing provisions of this Section 7(a), each Secured Party,
by its acceptance of the benefits hereof, agrees that it shall have no right individually to realize upon any of the Collateral hereunder, it being understood and agreed by such Secured Party that all
rights and remedies hereunder may be exercised solely by the Administrative Agent for the ratable benefit of the Lenders and Secured Parties in accordance with the terms of this Section 7(a). 

        (b)    The
Administrative Agent shall at all times be the same Person that is the Administrative Agent under the Credit Agreement. Written notice of resignation by the
Administrative Agent pursuant to Section 12.9 of the Credit Agreement shall also constitute notice of resignation as Administrative Agent under this Security Agreement; removal of the
Administrative Agent shall also constitute removal as Administrative Agent under this Security Agreement; and appointment of a successor Administrative Agent pursuant to Section 12.9 of the
Credit Agreement shall also constitute appointment of a successor Administrative Agent under this Security Agreement. Upon the acceptance of any appointment as Administrative Agent under
Section 12.9 of the Credit Agreement by a successor Administrative Agent, that successor Administrative Agent shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring or removed Administrative Agent under this Security Agreement, and the retiring or removed Administrative Agent under this Security Agreement shall promptly
(i) transfer to such successor Administrative Agent all sums, securities and other items of Collateral held hereunder, together with all records and other documents necessary or appropriate in
connection with the performance of the duties of the successor Administrative Agent under this Security Agreement, and (ii) execute and deliver to such successor Administrative Agent such
amendments to financing statements and take such other actions, as may be necessary or appropriate in connection with the assignment to such successor Administrative Agent of 

16

 

the
Security Interests created hereunder, whereupon such retiring or removed Administrative Agent shall be discharged from its duties and obligations under this Security Agreement. After any retiring
or removed Administrative Agent's resignation or removal hereunder as Administrative Agent, the provisions of this Security Agreement shall inure to its benefit as to any actions taken or omitted to
be taken by it under this Security Agreement while it was Administrative Agent hereunder. 

        (c)    The
Administrative Agent shall not be deemed to have any duty whatsoever with respect to any Secured Party that is a counterparty to a Hedge Agreement the obligations
under which constitute Obligations, until it shall have received written notice in form and substance satisfactory to the Administrative Agent from a Grantor or any such Secured Party as to the
existence and terms of the applicable Hedge Agreement. 

        8.    Miscellaneous.    

        8.1.    Amendments in Writing.    None of the terms or provisions of this Security Agreement may be waived, amended,
supplemented or otherwise modified except by a written instrument executed by the affected Grantor and the Administrative Agent in accordance with Section 14.1 of the Credit Agreement. 

        8.2.    Notices.    All notices, requests and demands pursuant hereto shall be made in accordance with
Section 14.2 of the Credit Agreement. All communications and notices hereunder to any Subsidiary Grantor shall be given to it in care of the US Borrower at the US Borrower's address set forth
in Section 14.2 of the Credit Agreement. 

        8.3.    No Waiver by Course of Conduct; Cumulative Remedies.    Neither the Administrative Agent nor any Secured Party
shall by any act (except by a written instrument pursuant to Section 8.1 hereof), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have
acquiesced in any Default or Event of Default or in any breach of any of the terms and conditions hereof. No failure to exercise, nor any delay in exercising, on the part of the Administrative Agent
or any other Secured Party, any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of any right, power or privilege hereunder shall preclude any other
or further exercise thereof or the exercise of any other right, power or privilege. A waiver by the Administrative Agent or any other Secured Party of any right or remedy hereunder on any one occasion
shall not be construed as a bar to any right or remedy that the Administrative Agent or such other Secured Party would otherwise have on any future occasion. The rights, remedies, powers and
privileges herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law. 

        8.4.    Enforcement Expenses; Indemnification.    (a)    Each Grantor agrees to pay any and all expenses
(including all reasonable fees and disbursements of counsel) that may be paid or incurred by any Secured Party in enforcing, or obtaining advice of counsel in respect of, any rights with respect to,
or collecting, any or all of the Obligations and/or enforcing any rights with respect to, or collecting against, such Grantor under this Security Agreement. 

        (b)    Each
Grantor agrees to pay, and to save the Administrative Agent and the Secured Parties harmless from, any and all liabilities with respect to, or resulting from any
delay in paying, any and all stamp, excise, sales or other taxes which may be payable or determined to be payable with respect to any of the Collateral or in connection with any of the transactions
contemplated by this Security Agreement. 

        (c)    Each
Grantor agrees to pay, and to save the Administrative Agent and the Secured Parties harmless from, any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery, enforcement, performance and administration of this Security
Agreement to the extent either of the Borrowers would be required to do so pursuant to Section 12.7 of the Credit Agreement. 

17

 

        (d)    The
agreements in this Section 8.4 shall survive repayment of the Obligations and all other amounts payable under the Credit Agreement and the other Credit
Documents. 

        8.5.    Successors and Assigns.    The provisions of this Security Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns permitted hereby, except that no Grantor may assign, transfer or delegate any of its rights or obligations under this Security
Agreement without the prior written consent of the Administrative Agent except pursuant to a transaction permitted by the Credit Agreement. 

        8.6.    Counterparts.    This Security Agreement may be executed by one or more of the parties to this Security
Agreement on any number of separate counterparts (including by facsimile or other electronic transmission), and all of said counterparts taken together shall be deemed to constitute one and the same
instrument. A set of the copies of this Security Agreement signed by all the parties shall be lodged with the Administrative Agent and the US Borrower. 

        8.7.    Severability.    Any provision of this Security Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. The parties hereto shall endeavor in good-faith negotiations to
replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 

        8.8.    Section Headings.    The Section headings used in this Security Agreement are for convenience of reference
only and are not to affect the construction hereof or be taken into consideration in the interpretation hereof. 

        8.9.    Integration.    This Security Agreement represents the agreement of each of the Grantors with respect to the
subject matter hereof and there are no promises, undertakings, representations or warranties by the Administrative Agent or any other Secured Party relative to the subject matter hereof not expressly
set forth or referred to herein or in the other Credit Documents. 

        8.10.    GOVERNING LAW.    THIS SECURITY
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 

        8.11.    Submission To Jurisdiction; Waivers.    Each Grantor hereby irrevocably and unconditionally: 

        (a)   submits
for itself and its property in any legal action or proceeding relating to this Security Agreement and the other Credit Documents to which it is a party, or for
recognition and enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the courts of the State of New York, the courts of the United States of America
for the Southern District of New York, and appellate courts from any thereof; 

        (b)   consents
that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same; 

        (c)   agrees
that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar
form of mail), postage prepaid, to such Grantor at its address referred to in Section 8.2 or at such other address of which the Administrative Agent shall have been notified pursuant thereto; 

18

 

        (d)   agrees
that nothing herein shall affect the right of the Administrative Agent or any other Secured Party to effect service of process in any other manner permitted by
law or shall limit the right of the Administrative Agent or any Secured Party to sue in any other jurisdiction; and 

        (e)   waives,
to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section 8.11
any special, exemplary, punitive or consequential damages. 

        8.12.    Acknowledgments.    Each Grantor hereby acknowledges that: 

        (a)   it
has been advised by counsel in the negotiation, execution and delivery of this Security Agreement and the other Credit Documents to which it is a party; 

        (b)   neither
the Administrative Agent nor any other Secured Party has any fiduciary relationship with or duty to any Grantor arising out of or in connection with this
Security Agreement or any of the other Credit Documents, and the relationship between the Grantors, on the one hand, and the Administrative Agent and the other Secured Parties, on the other hand, in
connection herewith or therewith is solely that of debtor and creditor; and 

        (c)   no
joint venture is created hereby or by the other Credit Documents or otherwise exists by virtue of the transactions contemplated hereby among the Lenders and any other
Secured Party or among the Grantors and the Lenders and any other Secured Party. 

        8.13.    Additional Grantors.    Each Subsidiary of the US Borrower that is required to become a party to this
Security Agreement pursuant to Section 9.11 of the Credit Agreement shall become a Grantor, with the same force and effect as if originally named as a Grantor herein, for all purposes of this
Agreement upon execution and delivery by such Subsidiary of a Supplement substantially in the form of Annex 1 hereto. The execution and delivery of any instrument adding an additional Grantor as a
party to this Security Agreement shall not require the consent of any other Grantor hereunder. The rights and obligations of each Grantor hereunder shall remain in full force and effect
notwithstanding the addition of any new Grantor as a party to this Security Agreement. 

        8.14.    WAIVER OF JURY TRIAL.    EACH GRANTOR
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS SECURITY AGREEMENT, ANY OTHER CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM
THEREIN. 

19

        IN WITNESS WHEREOF, each of the undersigned has caused this Security Agreement to be duly executed and delivered as of the day and year first above written. 

	 	 	ROCKWOOD SPECIALTIES INTERNATIONAL, INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	Michael W. Valente
	 	 	 	 	Title:	Assistant Secretary
	

 	
 	

ROCKWOOD SPECIALTIES GROUP, INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	Michael W. Valente
	 	 	 	 	Title:	Assistant Secretary
	

 	
 	

ALPHAGARY CORPORATION,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	Michael W. Valente
	 	 	 	 	Title:	Assistant Secretary
	

 	
 	

ADVANTIS TECHNOLOGIES, INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	Michael W. Valente
	 	 	 	 	Title:	Assistant Secretary
	

 	
 	

CERAMTEC NORTH AMERICA INNOVATIVE

CERAMIC ENGINEERING CORPORATION
	

 	
 	

by	
 	

/s/  WALTER DOLLMAN      

	 	 	 	 	Name:	Walter Dollman
	 	 	 	 	Title:	President/CEO

	 	 	CHEMETALL CHEMICAL PRODUCTS INC.,
	

 	
 	

by	
 	

/s/  PHILIP E. KELLY      

	 	 	 	 	Name:	Philip E. Kelly
	 	 	 	 	Title:	President
	

 	
 	

CHEMETALL CORP.,
	

 	
 	

by	
 	

/s/  PHILIP E. KELLY      

	 	 	 	 	Name:	Philip E. Kelly
	 	 	 	 	Title:	Vice President
	

 	
 	

CHEMETALL FOOTE CORP.,
	

 	
 	

by	
 	

/s/  P.J. SEAMAN      

	 	 	 	 	Name:	P.J. Seaman
	 	 	 	 	Title:	Vice President
	

 	
 	

CHEMICAL SPECIALTIES, INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	Michael W. Valente
	 	 	 	 	Title:	Assistant Secretary
	

 	
 	

COMPUGRAPHICS U.S.A. INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	Michael W. Valente
	 	 	 	 	Title:	Assistant Secretary
	

 	
 	

CYANTEK CORPORATION,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	Michael W. Valente
	 	 	 	 	Title:	Assistant Secretary

	 	 	ELECTROCHEMICALS INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	Michael W. Valente
	 	 	 	 	Title:	Assistant Secretary
	

 	
 	

EXSIL, INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	Michael W. Valente
	 	 	 	 	Title:	Assistant Secretary
	

 	
 	

FOOTE CHILE HOLDING COMPANY,
	

 	
 	

by	
 	

/s/  P.J. SEAMAN      

	 	 	 	 	Name:	P.J. Seaman
	 	 	 	 	Title:	Vice President
	

 	
 	

LUREX, INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	Michael W. Valente
	 	 	 	 	Title:	Assistant Secretary
	

 	
 	

OAKITE PRODUCTS, INC.,
	

 	
 	

by	
 	

/s/  GREGORY V. POFF      

	 	 	 	 	Name:	Gregory V. Poff
	 	 	 	 	Title:	Secretary
	

 	
 	

ROCKWOOD AMERICA INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	Michael W. Valente
	 	 	 	 	Title:	Assistant Secretary

	 	 	ROCKWOOD SPECIALTIES INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	Michael W. Valente
	 	 	 	 	Title:	Assistant Secretary
	

 	
 	

ROCKWOOD PIGMENTS NA, INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	Michael W. Valente
	 	 	 	 	Title:	Assistant Secretary
	

 	
 	

RS FUNDING CORPORATION,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	Michael W. Valente
	 	 	 	 	Title:	Assistant Secretary
	

 	
 	

RW HOLDING CORP.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	Michael W. Valente
	 	 	 	 	Title:	Assistant Secretary
	

 	
 	

SACHTLEBEN CORPORATION,
	

 	
 	

by	
 	

/s/  PAUL FRAZIER      

	 	 	 	 	Name:	Paul Frazier
	 	 	 	 	Title:	Vice President Plastics & Coatings Market
	

 	
 	

SOUTHERN CLAY PRODUCTS, INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	Michael W. Valente
	 	 	 	 	Title:	Assistant Secretary

	 	 	SOUTHERN COLOR N.A., INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	Michael W. Valente
	 	 	 	 	Title:	Assistant Secretary
	

 	
 	

CREDIT SUISSE FIRST BOSTON,

acting through its Cayman Islands Branch,

as Administrative Agent
	

 	
 	

by	
 	

/s/  S. WILLIAM FOX      

	 	 	 	 	Name:	S. William Fox
	 	 	 	 	Title:	Director
	

 	
 	

by	
 	

/s/  DAVID DODD      

	 	 	 	 	Name:	David Dodd
	 	 	 	 	Title:	Associate

ANNEX A TO THE

SECURITY AGREEMENT  

SUBSIDIARY GRANTORS  

	•    Subsidiary Grantors
	

AlphaGary Corporation

Advantis Technologies, Inc.

CeramTec North America Innovative Ceramic Engineering Corporation

Chemical Specialties, Inc.

Chemetall Corp.

Chemetall Chemical Products Inc.

Chemetall Foote Corp.

Compugraphics U.S.A. Inc.

Cyantek Corporation

Electrochemicals Inc.

Exsil, Inc.

Foote Chile Holding Company

Lurex, Inc.

Oakite Products, Inc.

Rockwood America Inc.

Rockwood Specialties Inc.

Rockwood Pigments NA, Inc.

RS Funding Corporation

RW Holding Corp.

Sachtleben Corporation

Southern Clay Products, Inc.

Southern Color N.A., Inc.
	
•    Notice Address for All Grantors
	

100 Overlook Center

Princeton, NJ 08540

SCHEDULE 1 TO THE

SECURITY AGREEMENT  

COPYRIGHT LICENSES  

SCHEDULE 2 TO THE

SECURITY AGREEMENT  

COPYRIGHTS  

	Registered Owner/Grantor
 
	 	Title
	 	Registration Number

SCHEDULE 3 TO THE

SECURITY AGREEMENT  

PATENT LICENSES  

SCHEDULE 4 TO THE

SECURITY AGREEMENT  

PATENTS  

SCHEDULE 5 TO THE

SECURITY AGREEMENT  

TRADEMARK LICENSES  

SCHEDULE 6 TO THE

SECURITY AGREEMENT  

TRADEMARKS  

	Domestic Trademarks	 	 	 	 	 	 
	
Registered Owner/Grantor	
 	

Trademark	
 	

Registration No.	
 	

Application No.	
 	

 
	

 Foreign Trademarks	

 	

 	

 	

 	

 	

 
	
Registered Owner/Grantor	
 	

Trademark	
 	

Registration No.	
 	

Application No.	
 	

Country

ANNEX 1 TO THE

SECURITY AGREEMENT  

        SUPPLEMENT
NO. [    ] dated as of [                        ], to the Security Agreement dated as of July 30,
2004, among
ROCKWOOD SPECIALTIES GROUP, INC., a Delaware corporation (the "US Borrower"), ROCKWOOD SPECIALTIES INTERNATIONAL, INC., a Delaware
corporation ("Holdings"), each subsidiary of the US Borrower listed on Schedule 1 thereto (each such subsidiary individually a
"Subsidiary Grantor" and, collectively, the "Subsidiary Grantors"; the Subsidiary Grantors, Holdings and
the US Borrower are referred to collectively herein as the "Grantors"), CREDIT SUISSE FIRST BOSTON, acting through its Cayman Islands Branch, as
administrative agent (in such capacity, the "Administrative Agent") for the lenders (the "Lenders") from
time to time parties to the Credit Agreement referred to below. 

        A.    Reference
is made to (a) the Credit Agreement dated as of July 30, 2004 (as amended, supplemented or otherwise modified from time to time, the
"Credit Agreement"), among the US Borrower, Rockwood Specialties Limited, a company incorporated under the laws of England and Wales (the
"UK Borrower" and, together with the US Borrower, the "Borrowers"), Holdings, the Lenders, the
Administrative Agent, UBS Securities LLC and Goldman Sachs Credit Partners L.P., as co-syndication agents and (b) the Guarantee dated as of July 30, 2004 (as amended,
supplemented or otherwise modified from time to time, the "Guarantee"), among the US Borrower, Holdings, the Subsidiary Guarantors party thereto and the
Administrative Agent. 

        B.    Capitalized
terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Security Agreement. 

        C.    The
Grantors have entered into the Security Agreement in order to induce Administrative Agent, the Co-Syndication Agents, the Lenders and the Letter of Credit
Issuer to enter into the Credit Agreement and to induce the Lenders and the Letter of Credit Issuer to make their respective Extensions of Credit to the Borrowers under the Credit Agreement and to
induce one or more Lenders or Affiliates of Lenders to enter into Hedge Agreements with the Borrowers and/or the Restricted Subsidiaries. 

        D.    Section 9.11
of the Credit Agreement and Section 8.13 of the Security Agreement provide that each Subsidiary of the US Borrower that is required to become a
party to the Security Agreement pursuant to Section 9.11 of the Credit Agreement shall become a Grantor, with the same force and effect as if originally named as a Grantor therein, for all
purposes of the Security Agreement upon execution and delivery by such Subsidiary of an instrument in the form of this Supplement. Each undersigned Subsidiary (each a "New
Grantor") is executing this Supplement in accordance with the requirements of the Security Agreement to become a Subsidiary Grantor under the Security Agreement in order to
induce the Lenders and the Letter of Credit Issuer to make additional Extensions of Credit and as consideration for Extensions of Credit previously made. 

        Accordingly,
the Administrative Agent and the New Grantors agree as follows: 

        SECTION
1.    In accordance with Section 8.13 of the Security Agreement, each New Grantor by its signature below becomes a Grantor under the Security Agreement with the
same force and effect as if originally named therein as a Grantor and each New Grantor hereby (a) agrees to all the terms and provisions of the Security Agreement applicable to it as a Grantor
thereunder and (b) represents and warrants that the representations and warranties made by it as a Grantor thereunder are true and correct on and as of the date hereof. In furtherance of the
foregoing, each New Grantor, as security for the payment and performance in full of the Obligations, does hereby bargain, sell, convey, assign, set over, mortgage, pledge, hypothecate and transfer to
the Administrative Agent, and hereby grants to the Administrative Agent, for the ratable benefit of the Secured Parties, a Security Interest in all of the Collateral of such New Grantor. Each
reference to a "Grantor" in the Security Agreement shall be 

 

deemed
to include each New Grantor. The Security Agreement is hereby incorporated herein by reference. 

        SECTION
2.    Each New Grantor represents and warrants to the Administrative Agent and the other Secured Parties that this Supplement has been duly authorized, executed and
delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms. 

        SECTION
3.    This Supplement may be executed by one or more of the parties to this Supplement on any number of separate counterparts (including by facsimile or other
electronic transmission), and all of said counterparts taken together shall be deemed to constitute one and the same instrument. A set of the copies of this Supplement signed by all the parties shall
be lodged with the Administrative Agent and the US Borrower. This Supplement shall become effective as to each New Grantor when the Administrative Agent shall have received counterparts of this
Supplement that, when taken together, bear the signatures of such New Grantor and the Administrative Agent. 

        SECTION
4.    Each New Grantor hereby represents and warrants that (a) set forth on Schedule I attached hereto is a true and correct schedule of the location of
any and all Collateral of such New Grantor, (b) set forth under its signature hereto is (i) the legal name of such New Grantor, (ii) the jurisdiction of incorporation or
organization of such New Grantor, (iii) the true and correct location of the chief executive office and principal place of business and any office in which it maintains books or records
relating to Collateral owned by it, (iv) the identity or type of organization or corporate structure of such New Grantor and (v) the Federal Taxpayer Identification Number and
organizational number of such New Grantor and (c) as of the date hereof (i) Schedule II hereto sets forth all of each New Grantor's Copyright Licenses,
(ii) Schedule III hereto sets forth, in proper form for filing with the United States Copyright Office, all of each New Grantor's Copyrights (and all applications therefor),
(iii) Schedule IV hereto sets forth all of each New Grantor's Patent Licenses, (iv) Schedule V hereto sets forth, in proper form for filing with the United States Patent
and Trademark Office, all of each New Grantor's Patents (and all applications therefor), (v) Schedule VI hereto sets forth all of each New Grantor's Trademark Licenses,
(vi) Schedule VII hereto sets forth, in proper form for filing with the United States Patent and Trademark Office, all of each New Grantor's Trademarks (and all applications therefor). 

        SECTION
5.    Except as expressly supplemented hereby, the Security Agreement shall remain in full force and effect. 

        SECTION 6.    THIS SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

        SECTION
7.    Any provision of this Supplement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions hereof and in the Security Agreement, and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction. The parties hereto shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable
provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 

        SECTION
8.    All notices, requests and demands pursuant hereto shall be made in accordance with Section 14.2 of the Credit Agreement. All communications and notices
hereunder to each New Grantor shall be given to it in care of the US Borrower at the US Borrower's address set forth in Section 14.2 of the Credit Agreement. 

2

 

        SECTION
9.    Each New Grantor agrees to reimburse the Administrative Agent for its reasonable out-of-pocket expenses in connection with this
Supplement, including the reasonable fees, other charges and disbursements of counsel for the Administrative Agent. 

        IN
WITNESS WHEREOF, each New Grantor and the Administrative Agent have duly executed this Supplement to the Security Agreement as of the day and year first above written. 

	 	 	[NAME OF NEW GRANTOR],
	

 	
 	

By	

 
	 	 	 	
 Name:

Title:
	

 	
 	

CREDIT SUISSE FIRST BOSTON,

acting through its Cayman Islands Branch,

as Administrative Agent
	

 	
 	

By	

 
	 	 	 	
 Name:

Title:
	

 	
 	

By	

 
	 	 	 	
 Name:

Title:

3

SCHEDULE I

TO SUPPLEMENT NO.    TO THE

SECURITY AGREEMENT  

COLLATERAL  

	Legal Name
 
	 	Jurisdiction of

Incorporation or

Organization
	 	Location of Chief

Executive Office and

Principal Place of

Business
	 	Type of Organization

or Corporate

Structure
	 	Federal Taxpayer

Identification Number

and Organizational

Identification Number

SCHEDULE II

TO SUPPLEMENT NO.    TO THE

SECURITY AGREEMENT  

COPYRIGHT LICENSES  

SCHEDULE III

TO SUPPLEMENT NO.    TO THE

SECURITY AGREEMENT  

COPYRIGHTS  

	Registered Owner/Grantor
 
	 	Title
	 	Registration Number

SCHEDULE IV

TO SUPPLEMENT NO.    TO THE

SECURITY AGREEMENT  

PATENT LICENSES  

SCHEDULE V

TO SUPPLEMENT NO.    TO THE

SECURITY AGREEMENT  

PATENTS  

SCHEDULE VI

TO SUPPLEMENT NO.    TO THE

SECURITY AGREEMENT  

TRADEMARK LICENSES  

SCHEDULE VII

TO SUPPLEMENT NO.    TO THE

SECURITY AGREEMENT  

TRADEMARKS  

 Domestic Trademarks  

	Registered Owner/Grantor
 
	 	Trademark
	 	Registration No.
	 	Application No.

   

   

   

   

    

 Foreign Trademarks  

	Registered Owner/Grantor
 
	 	Trademark
	 	Registration No.
	 	Application No.
	 	 

ANNEX 2 TO THE

SECURITY AGREEMENT  

      SUPPLEMENT
NO. [    ] dated as of [            ], to the Security Agreement dated as of
[            ], 2004, among ROCKWOOD SPECIALTIES GROUP, INC., a Delaware corporation (the "US Borrower"), ROCKWOOD
SPECIALTIES INTERNATIONAL, INC., a Delaware corporation ("Holdings"), each subsidiary of the US Borrower listed on Schedule 1 thereto
(each such subsidiary individually a "Subsidiary Grantor" and, collectively, the "Subsidiary Grantors";
the Subsidiary Grantors, Holdings and the US Borrower are referred to collectively herein as the "Grantors"), CREDIT SUISSE FIRST BOSTON, acting through
its Cayman Islands Branch, as administrative agent (in such capacity, the "Administrative Agent") for the lenders (the
"Lenders") from time to time parties to the Credit Agreement referred to below. 

        A.    Reference
is made to (a) the Credit Agreement dated as of July 30, 2004 (as amended, supplemented or otherwise modified from time to time, the
"Credit Agreement"), among the US Borrower, Rockwood Specialties Limited, a company incorporated under the laws of England and Wales (the
"UK Borrower" and, together with the US Borrower, the "Borrowers"), Holdings, the Lenders, the
Administrative Agent, UBS Securities LLC and Goldman Sachs Credit Partners L.P., as co-syndication agents and (b) the Guarantee dated as of July 30, 2004 (as amended,
supplemented or otherwise modified from time to time, the "Guarantee"), among the US Borrower, Holdings, the Subsidiary Guarantors party thereto and the
Administrative Agent. 

        B.    Capitalized
terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Security Agreement. 

        C.    The
Grantors have entered into the Security Agreement in order to induce the Administrative Agent, the Co-Syndication Agents, the Lenders and the Letter of
Credit Issuer to enter into the Credit Agreement and to induce the Lenders and the Letter of Credit Issuer to make their respective Extensions of Credit to the Borrowers under the Credit Agreement and
to induce one or more Lenders or Affiliates of Lenders to enter into Hedge Agreements with the Borrowers. Pursuant to Section 4.1(b) of the Security Agreement, within 30 days after the
end of each calendar quarter, each Grantor has agreed to deliver to the Administrative Agent a written supplement substantially in the form of Annex 2 thereto with respect to any additional
Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks and Trademark Licenses acquired by such Grantor after the date of the Credit Agreement. The Grantors have identified the additional
Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks and Trademark Licenses acquired by such Grantors after the date of the Credit Agreement set forth on Schedule I, II, III,
IV, V and VI hereto. The undersigned Grantors are executing this Supplement in order to facilitate supplemental filings to be made by the Administrative Agent with the United States Copyright Office
and the United States Patent and Trademark Office. 

        Accordingly,
the Administrative Agent and the Grantors agree as follows: 

        SECTION
1.    (a) Schedule 1 of the Security Agreement is hereby supplemented, as applicable, by the information set forth in Schedule I hereto,
(b) Schedule 2 of the Security Agreement is hereby supplemented, as applicable, by the information set forth in Schedule II hereto, (c) Schedule 3 of the Security
Agreement is hereby supplemented, as applicable, by the information set forth in Schedule III hereto, (d) Schedule 4 of the Security Agreement is hereby supplemented, as
applicable, by the information set forth in Schedule IV hereto, (e) Schedule 5 of the Security Agreement is hereby supplemented, as applicable, by the information set forth in
Schedule V hereto, and (f) Schedule 6 of the Security Agreement is hereby supplemented, as applicable, by the information set forth in Schedule VI hereto. 

        SECTION
3.    Each Grantor hereby represents and warrants that the information set forth on Schedules I, II, III, IV, V and VI hereto is true and correct. 

 

        SECTION
2.    This Supplement may be executed by one or more of the parties to this Supplement on any number of separate counterparts (including by facsimile or other
electronic transmission), and all of said counterparts taken together shall be deemed to constitute one and the same instrument. A set of the copies of this Supplement signed by all the parties shall
be lodged with the Administrative Agent and the US Borrower. This Supplement shall become effective as to each Grantor when the
Administrative Agent shall have received counterparts of this Supplement that, when taken together, bear the signatures of such Grantor and the Administrative Agent. 

        SECTION
4.    Except as expressly supplemented hereby, the Security Agreement shall remain in full force and effect. 

        SECTION 5.    THIS SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK.

        SECTION
6.    Any provision of this Supplement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions hereof and in the Security Agreement, and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction. The parties hereto shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable
provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 

        SECTION
7.    All notices, requests and demands pursuant hereto shall be made in accordance with Section 14.2 of the Credit Agreement. All communications and notices
hereunder to each Grantor shall be given to it in care of the US Borrower at the US Borrower's address set forth in Section 14.2 of the Credit Agreement. 

        SECTION
8.    Each Grantor agrees to reimburse the Administrative Agent for its reasonable out-of-pocket expenses in connection with this Supplement,
including the reasonable fees, other charges and disbursements of counsel for the Administrative Agent. 

2

 

        IN
WITNESS WHEREOF, each Grantor and the Administrative Agent have duly executed this Supplement to the Security Agreement as of the day and year first above written. 

	 	 	GRANTOR
	

 	
 	

 	

By	

 
	 	 	 	 	
 Name:

Title:
	

 	
 	

CREDIT SUISSE FIRST BOSTON,

acting through its Cayman Islands Branch,

as Administrative Agent
	

 	
 	

 	

By	

 
	 	 	 	 	
 Name:

Title:
	

 	
 	

 	

By	

 
	 	 	 	 	
 Name:

Title:

3

SCHEDULE I

TO SUPPLEMENT NO.    TO THE

SECURITY AGREEMENT  

COPYRIGHT LICENSES  

SCHEDULE II

TO SUPPLEMENT NO.    TO THE

SECURITY AGREEMENT  

COPYRIGHTS  

	Registered Owner/Grantor
 
	 	Title
	 	Registration Number

SCHEDULE III

TO SUPPLEMENT NO.    TO THE

SECURITY AGREEMENT  

PATENT LICENSES  

SCHEDULE IV

TO SUPPLEMENT NO.    TO THE

SECURITY AGREEMENT  

PATENTS  

SCHEDULE V

TO SUPPLEMENT NO.    TO THE

SECURITY AGREEMENT  

TRADEMARK LICENSES  

SCHEDULE VI

TO SUPPLEMENT NO.    TO THE

SECURITY AGREEMENT  

TRADEMARKS  

Domestic Trademarks  

	Registered Owner/Grantor
 
	 	Trademark
	 	Registration No.
	 	Application No.

Foreign Trademarks  

	Registered Owner/Grantor
 
	 	Trademark
	 	Registration No.
	 	Application No.
	 	CountryExhibit 10.3  

Execution Version

PLEDGE AGREEMENT  

        PLEDGE AGREEMENT dated as of July 30, 2004, among ROCKWOOD SPECIALTIES INTERNATIONAL, INC., a Delaware corporation
("Holdings"), ROCKWOOD SPECIALTIES GROUP, INC., a Delaware corporation (the "US Borrower"), the
undersigned Subsidiaries of the US Borrower listed on Schedule 1 hereto (each a "Subsidiary Pledgor" and, collectively, the
"Subsidiary Pledgors"; the US Borrower, Holdings and the Subsidiary Pledgors are referred to collectively herein as the
"Pledgors") and CREDIT SUISSE FIRST BOSTON, acting through its Cayman Islands Branch, as administrative agent (in such capacity, the
"Administrative Agent") for the lenders (the "Lenders") from time to time parties to the Credit
Agreement dated as of July 30, 2004 (as the same may be amended, supplemented or otherwise modified from time to time, the "Credit Agreement"), among
the US Borrower, Rockwood Specialties Limited, a company incorporated under the laws of England and Wales (the "UK Borrower" and, together with the US
Borrower, the "Borrowers"), Holdings, the Lenders, the Administrative Agent and UBS Securities LLC and Goldman Sachs Credit Partners L.P., as
co-syndication agents (in such capacity, the "Co-Syndication Agents") for the Lenders. 

W I T N E S S E T H:  

        WHEREAS, (a) pursuant to the Credit Agreement, the Lenders have severally agreed to make Loans to the Borrowers and the Letter of Credit Issuer has agreed to
issue Letters of Credit for the account of the Borrowers (collectively, the "Extensions of Credit") upon the terms and subject to the conditions set
forth therein and (b) one or more Lenders or Affiliates of Lenders may from time to time enter into Hedge Agreements with the Borrowers or any of the Restricted Subsidiaries; 

        WHEREAS,
pursuant to the Guarantee (the "Guarantee") dated as of the date hereof, Holdings and each Subsidiary Pledgor has unconditionally
and irrevocably guaranteed, as primary obligor and not merely as surety, to the Administrative Agent, for the ratable benefit of the Secured Parties the prompt and complete payment and performance
when due (whether at the stated maturity, by acceleration or otherwise) of the Obligations (as defined below); 

        WHEREAS,
each Subsidiary Pledgor is a Domestic Subsidiary of the US Borrower; 

        WHEREAS,
the proceeds of the Extensions of Credit will be used in part to enable the Borrowers to make valuable transfers to the Subsidiary Pledgors in connection with the operation of
their respective businesses; 

        WHEREAS,
each Pledgor acknowledges that it will derive substantial direct and indirect benefit from the making of the Extensions of Credit; 

        WHEREAS,
it is a condition precedent to the obligation of the Lenders and the Letter of Credit Issuer to make their respective Extensions of Credit to the Borrowers under the Credit
Agreement that the US Borrower, Holdings and the Subsidiary Pledgors shall have executed and delivered this Pledge Agreement to the Administrative Agent for the ratable benefit of the Secured Parties;
and 

        WHEREAS,
(a) Holdings is the legal and beneficial owner of all the issued and outstanding shares of capital stock of the US Borrower, (b) the US Borrower and the Subsidiary Pledgors are
the legal and beneficial owners of the Equity Interests described under Schedule 2 hereto and issued by the entities named therein (the pledged Equity Interests described under (a) and (b) are,
together with any Equity Interests obtained in the future of the issuer of such Pledged Shares (the "After-acquired Shares"), referred to collectively
herein as the "Pledged Shares") and (c) each of the Pledgors is the legal and beneficial owner of the Indebtedness (the "Pledged
Debt") described under Schedule 2 hereto; 

        NOW,
THEREFORE, in consideration of the premises and to induce the Administrative Agent, the Co-Syndication Agents and the Lenders and the Letter of Credit Issuer to enter into the
Credit Agreement and to induce the Lenders and the Letter of Credit Issuer to make their respective 

 

Extensions
of Credit to the Borrowers under the Credit Agreement and to induce one or more Lenders or Affiliates of Lenders to enter into Hedge Agreements with the Borrowers and/or the Restricted
Subsidiaries, the Pledgors hereby agree with the Administrative Agent, for the ratable benefit of the Secured Parties, as follows: 

        1.     Defined Terms. 

        (a)   Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement and all terms
defined in the Uniform Commercial Code from time to time in effect in the State of New York (the "NY UCC") and not defined herein shall have the
meanings specified therein; the term "instrument" shall have the meaning specified in Article 9 of the NY UCC. 

        (b)   As
used herein, the term "Closing Time" means 24:00 (German time) on the Closing Date. 

        (c)   As
used herein, the term "Equity Interests" means shares of capital stock, partnership interests, membership interests in
a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person of whatever nature, and any warrants, options or other rights entitling the holder thereof
to purchase or acquire any of the foregoing. 

        (d)   As
used herein, the term "Obligations" means the collective reference to (i) the due and punctual payment of
(x) the principal of and premium, if any, and interest at the applicable rate provided in the Credit Agreement (including interest accruing during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Loans, when and as due, whether at maturity, by acceleration, upon one or more dates set
for prepayment or otherwise, (y) each payment required to be made by the Borrowers under the Credit Agreement in respect of any Letter of Credit, when and as due, including payments in respect
of reimbursement of disbursements, interest thereon and obligations to provide cash collateral, and (z) all other monetary obligations, including fees, costs, expenses and indemnities, whether
primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding,
regardless of whether allowed or allowable in such proceeding), of the Borrowers or any other Credit Party to any of the Secured Parties under the Credit Agreement and the other Credit Documents,
(ii) the due and punctual performance of all covenants, agreements, obligations and liabilities of the Borrowers under or pursuant to the Credit Agreement and the other Credit Documents,
(iii) the due and punctual payment and performance of all the covenants, agreements, obligations and liabilities of each Credit Party under or pursuant to this Pledge Agreement or the other
Credit Documents, (iv) the due and punctual payment and performance of all obligations of each Borrower or Restricted Subsidiary under each Hedge Agreement that (x) is in effect on the
Closing Date with a counterparty that is a Lender or an Affiliate of a Lender as of the Closing Date or (y) is entered into after the Closing Date with any counterparty that is a Lender or an
Affiliate of a Lender at the time such Hedge Agreement is entered into and (v) the due and punctual payment and performance of all obligations in respect of overdrafts and related liabilities
owed to the Administrative Agent or its Affiliates arising from or in connection with treasury, depositary or cash management services or in connection with any automated clearinghouse transfer of
funds. 

        (e)   As
used herein, the term "Secured Parties" means (i) the Lenders, (ii) the Letter of Credit Issuer,
(iii) the Swingline Lender, (iv) the Administrative Agent, (v) the Co-Syndication Agents, (vi) each counterparty to a Hedge Agreement the obligations under which constitute
Obligations, (vii) the beneficiaries of each indemnification obligation undertaken by any Credit Party under any Credit Document and (viii) any successors, indorsees, transferees and
assigns of each of the foregoing. 

2

 

        (f)    References
to "Lenders" in this Pledge Agreement shall be deemed to include Affiliates of Lenders that may from time to time enter into Hedge Agreements with any
Borrower or Restricted Subsidiary. 

        (g)   The
words "hereof," "herein" and "hereunder" and words of similar import when used in this Pledge Agreement shall refer to this Pledge Agreement as a whole and not to
any particular provision of this Pledge Agreement, and Section references are to Sections of this Pledge Agreement unless otherwise specified. The words "include", "includes" and "including" shall be
deemed to be followed by the phrase "without limitation". 

        (h)   The
meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms. 

        2.     Grant of Security.    Each Pledgor hereby transfers, assigns and pledges to the Administrative Agent for the
ratable benefit of the Secured Parties, and hereby grants to the Administrative Agent for the ratable benefit of the Secured Parties, a security interest, which security interest shall attach
immediately upon the Closing Time ("Security Interest"), in all of such Pledgor's right, title and interest in the following, whether now owned or
existing or hereafter acquired or existing (collectively, the "Collateral"): 

        (a)   the
Pledged Shares held by such Pledgor and the certificates representing such Pledged Shares and any interest of such Pledgor in the entries on the books of the issuer
of the Pledged Shares or any financial intermediary pertaining to the Pledged Shares and all dividends, cash, warrants, rights, instruments and other property or proceeds from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all of the Pledged Shares, provided that the Pledged Shares under this
Pledge Agreement shall not include more than 65 percent of the issued and outstanding Equity Interests in any Foreign Subsidiary; 

        (b)   the
Pledged Debt and the instruments evidencing the Pledged Debt owed to such Pledgor, and all interest, cash, instruments and other property or proceeds from time to
time received, receivable or otherwise distributed in respect of or in exchange for any or all of such Pledged Debt; and 

        (c)   to
the extent not covered by clauses (a) and (b) above, respectively, all proceeds of any or all of the foregoing Collateral. For purposes of this Pledge Agreement, the
term "proceeds" shall include all "proceeds" as defined in the NY UCC and shall also include proceeds of any indemnity or guarantee payable to any Pledgor or the Administrative Agent from time to time
with respect to any of the Collateral. 

        3.     Security for Obligations.    This Pledge Agreement secures the payment of all Obligations of each Credit Party.
Without limiting the generality of the foregoing, this Pledge Agreement secures the payment of all amounts that constitute part of the Obligations and would be owed by any of the Credit Parties to the
Administrative Agent or the Lenders under the Credit Documents but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding
involving any Credit Party. 

        4.     Delivery of the Collateral.    All certificates or instruments, if any, representing or evidencing the
Collateral shall be promptly delivered to and held by or on behalf of the Administrative Agent pursuant hereto and shall be in suitable form for transfer by delivery, or shall be accompanied by duly
executed instruments or documents of transfer or assignment in blank, all in form and substance reasonably satisfactory to the Administrative Agent. The Administrative Agent shall have the right, at
any time after the occurrence and during the continuance of an Event of Default and without notice to any Pledgor, to transfer to or to register in the name of the Administrative Agent or any of its
nominees any or all of the Pledged Shares. Each delivery of Collateral (including any After-acquired Shares) shall be accompanied by a schedule describing the securities theretofore and then being 

3

 

pledged
hereunder, which shall be attached hereto as Schedule 1 and made a part hereof, provided that the failure to attach any such schedule hereto
shall not affect the validity of such pledge of such securities. Each schedule so delivered shall supersede any prior schedules so delivered. 

        5.     Representations and Warranties.    Each Pledgor represents and warrants as follows: 

        (a)   Schedule
2 hereto (i) correctly represents as of the date hereof (A) the issuer, the certificate number, the Pledgor and the record and beneficial owner,
the number and class and the percentage of the issued and outstanding Equity Interests of such class of all Pledged Shares and (B) the issuer, the initial principal amount, the Pledgor and
holder, date of and maturity date of all Pledged Debt and (ii) together with the comparable schedule to each supplement hereto, includes all Equity Interests, debt securities and promissory
notes required to be pledged hereunder. Except as set forth on Schedule 2, the Pledged Shares represent all (or 65 percent in the case of pledges of Foreign Subsidiaries) of the issued
and outstanding Equity Interests of each class of Equity Interests in the issuer on the date hereof. 

        (b)   Such
Pledgor is the legal and beneficial owner of the Collateral pledged or assigned by such Pledgor hereunder free and clear of any Lien, except for the Lien created by
this Pledge Agreement. 

        (c)   As
of the date of this Pledge Agreement, the Pledged Shares pledged by such Pledgor hereunder have been duly authorized and validly issued and, in the case of Pledged
Shares issued by a corporation, are fully paid and non-assessable. 

        (d)   The
execution and delivery by such Pledgor of this Pledge Agreement and the pledge of the Collateral pledged by such Pledgor hereunder pursuant hereto create a valid and
perfected first-priority security interest in the Collateral, securing the payment of the Obligations, in favor of the Administrative Agent for the ratable benefit of the Secured Parties. 

        (e)   Such
Pledgor has full power, authority and legal right to pledge all the Collateral pledged by such Pledgor pursuant to this Pledge Agreement and this Pledge Agreement
constitutes a legal, valid and binding obligation of each Pledgor, enforceable in accordance with its terms, except as enforceability thereof may be limited by bankruptcy, insolvency or other similar
laws affecting creditors' rights generally and subject to general principles of equity. 

        6.     Certification of Limited Liability Company, Limited Partnership Interests and Pledged
Debt.    (a)    The Equity Interests in any Domestic Subsidiary that is organized as a limited liability company or limited partnership and pledged
hereunder shall be represented by a certificate and in the organizational documents of such Domestic Subsidiary, the applicable Pledgor shall cause the issuer of such interests to elect to treat such
interests as a "security" within the meaning of Article 8 of the Uniform Commercial Code of its jurisdiction of organization or formation, as applicable, by including in its organizational
documents language substantially similar to the following and, accordingly, such interests shall be governed by Article 8 of the Uniform Commercial Code: 

"The
Partnership/Company hereby irrevocably elects that all partnership/membership interests in the Partnership/Company shall be securities governed by Article 8 of the Uniform Commercial Code of
[jurisdiction of organization or formation, as applicable]. Each certificate evidencing partnership/membership interests in the Partnership/Company shall bear the following
legend: "This certificate evidences an interest in [name of Partnership/LLC] and shall be a security for purposes of Article 8 of the Uniform Commercial Code." No change to
this provision shall be effective until all outstanding certificates have been surrendered for cancelation and any new certificates thereafter issued shall not bear the foregoing legend." 

        (b)   Each
Pledgor will cause any Indebtedness for borrowed money owed to such Pledgor and required to be pledged hereunder to be evidenced by a duly executed promissory note
that is pledged and delivered to the Administrative Agent pursuant to the terms hereof. 

4

 

        7.     Further Assurances.    Each Pledgor agrees that at any time and from time to time, at the expense of such
Pledgor, it will execute any and all further documents, financing statements, agreements and instruments, and take all such further actions (including the filing and recording of financing statements,
fixture filings, mortgages, deeds of trust and other documents), which may be required under any applicable law, or which the Administrative Agent or the Required Lenders may reasonably request, in
order (x) to perfect and protect any pledge, assignment or security interest granted or purported to be granted hereby (including the priority thereof) or (y) to enable the Administrative Agent to
exercise and enforce its rights and remedies hereunder with respect to any Collateral. 

        8.     Voting Rights; Dividends and Distributions; Etc.    (a)    So long as no Event of Default shall have
occurred and be continuing: 

          (i)  Each
Pledgor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Collateral or any part thereof for any purpose not
prohibited by the terms of this Pledge Agreement or the other Credit Documents; and 

         (ii)  The
Administrative Agent shall execute and deliver (or cause to be executed and delivered) to each Pledgor all such proxies and other instruments or documents as such
Pledgor may reasonably request for the purpose of enabling such Pledgor to exercise the voting and other rights that it is entitled to exercise pursuant to paragraph (i) above. 

        (b)   Subject
to paragraph (c) below, each Pledgor shall be entitled to receive and retain and use, free and clear of the Lien of this Pledge Agreement, any and all dividends,
distributions, principal and interest made or paid in respect of the Collateral to the extent permitted by the Credit Agreement; provided, however, that
any and all noncash dividends, interest, principal or other distributions that would constitute Pledged Shares or Pledged Debt, whether resulting from a subdivision, combination or reclassification of
the outstanding Equity Interests of the issuer of any Pledged Shares or received in exchange for Pledged Shares or Pledged Debt or any part thereof, or in redemption thereof, or as a result of any
merger, consolidation, acquisition or other exchange of assets to which such issuer may be a party or otherwise, shall be, and shall be forthwith delivered to the Administrative Agent to hold as,
Collateral and shall, if received by such Pledgor, be received in trust for the benefit of the Administrative Agent, be segregated from the other property or funds of such Pledgor and be forthwith
delivered to the Administrative Agent as Collateral in the same form as so received (with any necessary indorsement). 

        (c)   Upon
written notice to a Pledgor by the Administrative Agent following the occurrence and during the continuance of an Event of Default, 

          (i)  all
rights of such Pledgor to exercise or refrain from exercising the voting and other consensual rights that it would otherwise be entitled to exercise pursuant to
Section 8(a)(i) shall cease, and all such rights shall thereupon become vested in the Administrative Agent, which shall thereupon have the sole right to exercise or refrain from exercising such
voting and other consensual rights during the continuance of such Event of Default, provided that, unless otherwise directed by the Required Lenders,
the Administrative Agent shall have the right from time to time following the occurrence and during the continuance of an Event of Default to permit the Pledgors to exercise such rights. After all
Events of Default have been cured or waived and the US Borrower has delivered to the Administrative Agent a certificate to that effect, each Pledgor will have the right to exercise the voting and
consensual rights that such Pledgor would otherwise be entitled to exercise pursuant to the terms of Section 8(a)(i) (and the obligations of the Administrative Agent under
Section 8(a)(ii) shall be reinstated); 

         (ii)  all
rights of such Pledgor to receive the dividends, distributions and principal and interest payments that such Pledgor would otherwise be authorized to receive and
retain pursuant to 

5

 

Section
8(b) shall cease, and all such rights shall thereupon become vested in the Administrative Agent, which shall thereupon have the sole right to receive and hold as Collateral (subject to Section
12) such dividends, distributions and principal and interest payments during the continuance of such Event of Default. After all Events of Default have been cured or waived and the US Borrower has
delivered to the Administrative Agent a certificate to that effect, the Administrative Agent shall repay to each Pledgor (unless previously applied to the Obligations) (and, in any event, without
interest) all dividends, distributions and principal and interest payments that such Pledgor would otherwise be permitted to receive, retain and use pursuant to the terms of Section 8(b); 

        (iii)  all
dividends, distributions and principal and interest payments that are received by such Pledgor contrary to the provisions of Section 8(b) shall be received in
trust for the benefit of the Administrative Agent, shall be segregated from other property or funds of such Pledgor and shall forthwith be delivered to the Administrative Agent as Collateral in the
same form as so received (with any necessary indorsements); and 

        (iv)  in
order to permit the Administrative Agent to receive all dividends, distributions and principal and interest payments to which it may be entitled under
Section 8(b) above, to exercise the voting and other consensual rights that it may be entitled to exercise pursuant to Section 8(c)(i) above, and to receive all dividends, distributions
and principal and interest payments that it may be entitled to under Sections 8(c)(ii) and (c)(iii) above, such Pledgor shall, if necessary, upon written notice from the Administrative Agent,
from time to time execute and deliver to the Administrative Agent, appropriate proxies, dividend payment orders and other instruments or documents as the Administrative Agent may reasonably request. 

        9.     Transfers and Other Liens; Additional Collateral; Etc.    Each Pledgor shall (a) not (i) except as
permitted by the Credit Agreement, sell or otherwise dispose of, or grant any option or warrant with respect to, any of the Collateral or (ii) create or suffer to exist any consensual Lien upon
or with respect to any of the Collateral, except for the Lien under this Pledge Agreement, provided that in the event such Pledgor sells or otherwise
disposes of assets permitted by the Credit Agreement and such assets are or include any of the Collateral, the Administrative Agent shall release such Collateral to such Pledgor free and clear of the
Lien under this Pledge Agreement concurrently with the consummation of such sale; 

        (b)   pledge
and, if applicable, cause each Domestic Subsidiary to pledge, to the Administrative Agent for the benefit of the Secured Parties, immediately upon acquisition
thereof, all the capital stock and all evidence of Indebtedness held or received by such Pledgor or Domestic Subsidiary required to be pledged hereunder pursuant to Section 9.12 of the Credit
Agreement, in each case pursuant to a supplement to this Pledge Agreement substantially in the form of Annex A hereto (it being understood that the execution and delivery of such a supplement shall
not require the consent of any Pledgor hereunder and that the rights and obligations of each Pledgor hereunder shall remain in full force and effect notwithstanding the addition of any new Subsidiary
Pledgor as a party to this Pledge Agreement); and 

        (c)   defend
its and the Administrative Agent's title or interest in and to all the Collateral (and in the Proceeds thereof) against any and all Liens (other than the Lien of
this Pledge Agreement), however arising, and any and all Persons whomsoever. 

        10.   Administrative Agent Appointed Attorney-in-Fact.    Each Pledgor hereby appoints, which appointment is
irrevocable and coupled with an interest, the Administrative Agent as such Pledgor's attorney-in-fact, with full authority in the place and stead of such Pledgor and in the name of such Pledgor or
otherwise, to take any action and to execute any instrument or document, in each case after the occurrence and during the continuance of an Event of Default, that the Administrative Agent may deem
reasonably necessary or advisable to accomplish the purposes of this Pledge Agreement, including 

6

 

to
receive, indorse and collect all instruments made payable to such Pledgor representing any dividend, distribution or principal or interest payment in respect of the Collateral or any part thereof
and to give full discharge for the same. 

        11.   The Administrative Agent's Duties.    The powers conferred on the Administrative Agent hereunder are solely to
protect its interest in the Collateral and shall not impose any duty upon it to exercise any such powers. Except for the safe custody of any Collateral in its possession and the accounting for moneys
actually received by it hereunder, the Administrative Agent shall have no duty as to any Collateral, as to ascertaining or taking action with respect to calls, conversions, exchanges, maturities,
tenders or other matters relative to any Pledged Shares, whether or not the Administrative Agent or any other Secured Party has or is deemed to have knowledge of such matters, or as to the taking of
any necessary steps to preserve rights against any parties or any other rights pertaining to any Collateral. The Administrative Agent shall be deemed to have exercised reasonable care in the custody
and preservation of any Collateral in its possession if such Collateral is accorded treatment substantially equal to that which the Administrative Agent accords its own property. 

        12.   Remedies. If any Event of Default shall have occurred and be continuing: 

        (a)   The
Administrative Agent may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all the
rights and remedies of a secured party upon default under the NY UCC (whether or not the NY UCC applies to the affected Collateral) and also may without notice except as specified below, sell the
Collateral or any part thereof in one or more parcels at public or private sale, at any exchange broker's board or at any of the Administrative Agent's offices or elsewhere, for cash, on credit or for
future delivery, at such price or prices and upon such other terms as are commercially reasonable irrespective of the impact of any such sales on the market price of the Collateral. The Administrative
Agent shall be authorized at any such sale (if it deems it advisable to do so) to restrict the prospective bidders or purchasers of Collateral to Persons who will represent and agree that they are
purchasing the Collateral for their own account for investment and not with a view to the distribution or sale thereof, and, upon consummation of any such sale, the Administrative Agent shall have the
right to assign, transfer and deliver to the purchaser or purchasers thereof the Collateral so sold. Each purchaser at any such sale shall hold the property sold absolutely free from any claim or
right on the part of any Pledgor, and each Pledgor hereby waives (to the extent permitted by law) all rights of redemption, stay and/or appraisal that it now has or may at any time in the future have
under any rule of law or statute now existing or hereafter enacted. The Administrative Agent or any Secured Party shall have the right upon any such public sale, and, to the extent permitted by law,
upon any such private sale, to purchase the whole or any part of the Collateral so sold, and the Administrative Agent or such Secured Party may subject to (x) the satisfaction in full in cash of all
payments due pursuant to Section 12(b)(i), and (y) the ratable satisfaction of the Obligations in accordance with Section 12(b)(ii) pay the purchase price by crediting the amount thereof against the
Obligations. Each Pledgor agrees that, to the extent notice of sale shall be required by law, at least ten days' notice to such Pledgor of the time and place of any public sale or the time after which
any private sale is to be made shall constitute reasonable notification. The Administrative Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given.
The Administrative Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time
and place to which it was so adjourned. To the extent permitted by law, each Pledgor hereby waives any claim against the Administrative Agent arising by reason of the fact that the price at which any
Collateral may have been sold at such a private sale was less than the price that might have been obtained at a public sale, even if the Administrative Agent accepts the first offer received and does
not offer such Collateral to more than one offeree. 

7

 

        (b)   The
Administrative Agent shall apply the proceeds of any collection or sale of the Collateral at any time after receipt as follows: 

          (i)  first,
to the payment of all reasonable and documented costs and expenses incurred by the Administrative Agent in connection with such collection or sale or otherwise
in connection with this Pledge Agreement, the other Credit Documents or any of the Obligations, including all court costs and the reasonable fees and expenses of its agents and legal counsel, the
repayment of all advances made by the Administrative Agent hereunder or under any other Credit Document on behalf of any Pledgor and any other reasonable and documented costs or expenses incurred in
connection with the exercise of any right or remedy hereunder or under any other Credit Document; 

         (ii)  second,
to the Secured Parties, an amount equal to all Obligations owing to them on the date of any such distribution, and, if such moneys shall be insufficient to pay
such amounts in full, then ratably (without priority of any one over any other) to such Secured Parties in proportion to the unpaid amounts thereof; and 

        (iii)  third,
any surplus then remaining shall be paid to the Pledgors or their successors or assigns or to whomsoever may be lawfully entitled to receive the same or as a
court of competent jurisdiction may direct. 

Upon
any sale of the Collateral by the Administrative Agent (including pursuant to a power of sale granted by statute or under a judicial proceeding), the receipt of the Administrative Agent or of the
officer making the sale shall be a sufficient discharge to the purchaser or purchasers of the Collateral so sold and such purchaser or purchasers shall not be obligated to see to the application of
any part of the purchase money paid over to the Administrative Agent or such officer or be answerable in any way for the misapplication thereof. 

        (c)   The
Administrative Agent may exercise any and all rights and remedies of each Pledgor in respect of the Collateral. 

        (d)   All
payments received by any Pledgor after the occurrence and during the continuance of an Event of Default in respect of the Collateral shall be received in trust for
the benefit of the Administrative Agent, shall be segregated from other property or funds of such Pledgor and shall be forthwith delivered to the Administrative Agent as Collateral in the same form as
so received (with any necessary indorsement). 

        (e)   Each
Pledgor hereby consents to the transfer, at any time after the occurrence and during the continuance of an Event of Default, of any Pledged Shares to the
Administrative Agent or its designee and to the substitution, at any time after the occurrence and during the continuance of an Event of Default, of the Administrative Agent or its designee as a
partner, member or shareholder of the limited liability company, partnership or other entity that issued the Pledged Shares. 

        13.   Amendments, etc. with Respect to the Obligations; Waiver of Rights.    Each Pledgor shall remain obligated
hereunder notwithstanding that, without any reservation of rights against any Pledgor and without notice to or further assent by any Pledgor, (a) any demand for payment of any of the
Obligations made by the Administrative Agent or any other Secured Party may be rescinded by such party and any of the Obligations continued, (b) the Obligations, or the liability of any other
party upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended,
amended, modified, accelerated, compromised, waived, surrendered or released by the Administrative Agent or any other Secured Party, (c) the Credit Agreement, the other Credit Documents, the
Letters of Credit and any other documents executed and delivered in connection therewith and the Hedge Agreements and any other documents executed and delivered in connection therewith and any
documents entered into with the Administrative Agent or any of its Affiliates in connection with treasury, depositary or cash 

8

 

management
services or in connection with any automated clearinghouse transfer of funds may be amended, modified, supplemented or terminated, in whole or in part, as the Administrative Agent (or the
Required Lenders, as the case may be, or, in the case of any Hedge Agreement or documents entered into with the Administrative Agent or any of its Affiliates in connection with treasury, depositary or
cash management services or in connection with any automated clearinghouse transfer of funds, the party thereto) may deem advisable from time to time, and (d) any collateral security, guarantee
or right of offset at any time held by the Administrative Agent or any other Secured Party for the payment of the Obligations may be sold, exchanged, waived, surrendered or released. Neither the
Administrative Agent nor any other Secured Party shall have any obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the Obligations or for this Pledge
Agreement or any property subject thereto. When making any demand hereunder against any Pledgor, the Administrative Agent or any other Secured Party may, but shall be under no obligation to, make a
similar demand on the US Borrower or any Pledgor or pledgor, and any failure by the Administrative Agent or any other Secured Party to make any such demand or to collect any payments from the US
Borrower or any Pledgor or pledgor or any release of the US Borrower or any Pledgor or pledgor shall not relieve any Pledgor in respect of which a demand or collection is not made or any Pledgor not
so released of its several obligations or liabilities hereunder, and shall not impair or affect the rights and remedies, express or implied, or as a matter of law, of the Administrative Agent or any
other Secured Party against any Pledgor. For the purposes hereof "demand" shall include the commencement and continuance of any legal proceedings. 

        14.   Continuing Security Interest; Assignments Under the Credit Agreement; Release.    (a)    This Pledge
Agreement shall remain in full force and effect and be binding in accordance with and to the extent of its terms upon each Pledgor and the successors and assigns thereof, and shall inure to the
benefit of the Administrative Agent and the other Secured Parties and their respective successors, indorsees, transferees and assigns until all the Obligations under the Credit Documents shall have
been satisfied by payment in full, the Commitments shall be terminated and no Letters of Credit shall be outstanding, notwithstanding that from time to time during the term of the Credit Agreement and
any Hedge Agreement the Credit Parties may be free from any Obligations. This Pledge Agreement and the security interest granted hereby shall terminate on the first date on which all the Obligations
under the Credit Documents shall have been satisfied by payment in full, the Commitments shall be terminated and no Letters of Credit shall be outstanding. 

        (b)   A
Subsidiary Pledgor shall automatically be released from its obligations hereunder and the Pledge of such Subsidiary Pledgor shall be automatically released upon the
consummation of any transaction permitted by the Credit Agreement as a result of which such Subsidiary Pledgor ceases to be a Domestic Subsidiary of the US Borrower. 

        (c)   Upon
any sale or other transfer by any Pledgor of any Collateral that is permitted under the Credit Agreement, or upon the effectiveness of any written consent to the
release of the security interest granted hereby in any Collateral pursuant to Section 14.1 of the Credit Agreement, the obligations of such Pledgor with respect to such Collateral and the security
interest granted hereby in such Collateral shall be automatically released and such Collateral sold free and clear of the Lien and Security Interests created hereby. 

        (d)   In
connection with any termination or release pursuant to paragraph (a), (b) or (c), the Administrative Agent shall execute and deliver to any Pledgor, at such Pledgor's
expense, all documents that such Pledgor shall reasonably request to evidence such termination or release. Any execution and delivery of documents pursuant to this Section 14 shall be without recourse
to or warranty by the Administrative Agent. 

        15.   Reinstatement.    This Pledge Agreement shall continue to be effective, or be reinstated, as the case may be,
if at any time payment, or any part thereof, of any of the Obligations is rescinded or must 

9

 

otherwise
be restored or returned by the Administrative Agent or any other Secured Party upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of any Pledgor, or upon or as a
result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the US Borrower or any other Pledgor or any substantial part of its property, or otherwise,
all as though such payments had not been made. 

        16.   Notices.    All notices, requests and demands pursuant hereto shall be made in accordance with Section 14.2 of
the Credit Agreement. All communications and notices hereunder to any Subsidiary Pledgor shall be given to it in care of the US Borrower at the US Borrower's address set forth in Section 14.2
of the Credit Agreement. 

        17.   Counterparts.    This Pledge Agreement may be executed by one or more of the parties to this Pledge Agreement
on any number of separate counterparts (including by facsimile or other electronic transmission), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.
A set of the copies of this Pledge Agreement signed by all the parties shall be lodged with the Administrative Agent and the US Borrower. 

        18.   Severability.    Any provision of this Pledge Agreement that is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. The parties hereto shall endeavor in good-faith negotiations to replace the invalid, illegal
or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 

        19.   Integration.    This Pledge Agreement represents the agreement of each of the Pledgors with respect to the
subject matter hereof and there are no promises, undertakings, representations or warranties by the Administrative Agent or any other Secured Party relative to the subject matter hereof not expressly
set forth or referred to herein or in the other Credit Documents. 

        20.   Amendments in Writing; No Waiver; Cumulative Remedies.

        (a)   None
of the terms or provisions of this Pledge Agreement may be waived, amended, supplemented or otherwise modified except by a written instrument executed by the
affected Pledgor and the Administrative Agent in accordance with Section 14.1 of the Credit Agreement. 

        (b)   Neither
the Administrative Agent nor any Secured Party shall by any act (except by a written instrument pursuant to Section 20(a) hereof), delay, indulgence, omission or
otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default or in any breach of any of the terms and conditions hereof. No failure to
exercise, nor any delay in exercising, on the part of the Administrative Agent or any other Secured Party, any right, power or privilege hereunder shall operate as a waiver thereof. No single or
partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege. A waiver by the Administrative
Agent or any other Secured Party of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy that the Administrative Agent or such other Secured Party
would otherwise have on any future occasion. 

        (c)   The
rights, remedies, powers and privileges herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies
provided by law. 

        21.   Section Headings.    The Section headings used in this Pledge Agreement are for convenience of reference only
and are not to affect the construction hereof or be taken into consideration in the interpretation hereof. 

        22.   Successors and Assigns.    This Pledge Agreement shall be binding upon the successors and assigns of each
Pledgor and shall inure to the benefit of the Administrative Agent and the other 

10

 

Secured
Parties and their respective successors and assigns, except that no Pledgor may assign, transfer or delegate any of its rights or obligations under this Pledge Agreement without the prior
written consent of the Administrative Agent. 

        23.   WAIVER OF JURY TRIAL.    EACH PLEDGOR HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES
TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS PLEDGE AGREEMENT, ANY OTHER CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

        24.   Submission to Jurisdiction; Waivers.    Each of the Pledgors hereby irrevocably and unconditionally: 

        (a)   submits
for itself and its property in any legal action or proceeding relating to this Pledge Agreement, and the other Credit Documents to which it is a party, or for
recognition and enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the courts of the State of New York, the courts of the United States of America for the
Southern District of New York and appellate courts from any thereof; 

        (b)   consents
that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or
proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same; 

        (c)   agrees
that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar
form of mail), postage prepaid, to such Pledgor at its address referred to in Section 16 or at such other address of which the Administrative Agent shall have been notified pursuant thereto; 

        (d)   agrees
that nothing herein shall affect the right of the Administrative Agent or any other Secured Party to effect service of process in any other manner permitted by
law or shall limit the right of the Administrative Agent or any other Secured Party to sue in any other jurisdiction; and 

        (e)   waives,
to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section 24 any
special, exemplary, punitive or consequential damages. 

        25.   GOVERNING LAW.    THIS PLEDGE AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

11

        IN WITNESS WHEREOF, each of the undersigned has caused this Pledge Agreement to be duly executed and delivered by its duly authorized officer as of the day and year first above written. 

	 
	 	 
	 	 
	 	 

	 	 	ROCKWOOD SPECIALTIES INTERNATIONAL, INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	 	Michael W. Valente
	 	 	 	 	Title:	 	Assistant Secretary
	

 	
 	

ROCKWOOD SPECIALTIES GROUP, INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	 	Michael W. Valente
	 	 	 	 	Title:	 	Assistant Secretary
	

 	
 	

ALPHAGARY CORPORATION,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	 	Michael W. Valente
	 	 	 	 	Title:	 	Assistant Secretary
	

 	
 	

ADVANTIS TECHNOLOGIES, INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	 	Michael W. Valente
	 	 	 	 	Title:	 	Assistant Secretary
	

 	
 	

CERAMTEC NORTH AMERICA INNOVATIVE

CERAMIC ENGINEERING CORPORATION
	

 	
 	

by	
 	

/s/  WALTER DOLLMAN      

	 	 	 	 	Name:	 	Walter Dollman
	 	 	 	 	Title:	 	President/CEO
	

 	
 	

CHEMETALL CHEMICAL PRODUCTS INC.,
	

 	
 	

by	
 	

/s/  PHILIP E. KELLY      

	 	 	 	 	Name:	 	Philip E. Kelly
	 	 	 	 	Title:	 	President
	

 	
 	

CHEMETALL CORP.,
	

 	
 	

by	
 	

/s/  PHILIP E. KELLY      

	 	 	 	 	Name:	 	Philip E. Kelly
	 	 	 	 	Title:	 	Vice President
	

 	
 	

CHEMETALL FOOTE CORP.,
	

 	
 	

by	
 	

/s/  P.J. SEAMAN      

	 	 	 	 	Name:	 	P.J. Seaman
	 	 	 	 	Title:	 	Vice President
	

 	
 	

CHEMICAL SPECIALTIES, INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	 	Michael W. Valente
	 	 	 	 	Title:	 	Assistant Secretary
	 	 	 	 	 	 	 

	

 	
 	

COMPUGRAPHICS U.S.A. INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	 	Michael W. Valente
	 	 	 	 	Title:	 	Assistant Secretary
	

 	
 	

CYANTEK CORPORATION,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	 	Michael W. Valente
	 	 	 	 	Title:	 	Assistant Secretary
	

 	
 	

ELECTROCHEMICALS INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	 	Michael W. Valente
	 	 	 	 	Title:	 	Assistant Secretary
	

 	
 	

EXSIL, INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	 	Michael W. Valente
	 	 	 	 	Title:	 	Assistant Secretary
	

 	
 	

FOOTE CHILE HOLDING COMPANY,
	

 	
 	

by	
 	

/s/  P.J. SEAMAN      

	 	 	 	 	Name:	 	P.J. Seaman
	 	 	 	 	Title:	 	Vice President
	

 	
 	

LUREX, INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	 	Michael W. Valente
	 	 	 	 	Title:	 	Assistant Secretary
	

 	
 	

OAKITE PRODUCTS, INC.,
	

 	
 	

by	
 	

/s/  GREGORY V. POFF      

	 	 	 	 	Name:	 	Gregory V. Poff
	 	 	 	 	Title:	 	Secretary
	

 	
 	

ROCKWOOD AMERICA INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	 	Michael W. Valente
	 	 	 	 	Title:	 	Assistant Secretary
	

 	
 	

ROCKWOOD SPECIALTIES INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	 	Michael W. Valente
	 	 	 	 	Title:	 	Assistant Secretary
	

 	
 	

ROCKWOOD PIGMENTS NA, INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	 	Michael W. Valente
	 	 	 	 	Title:	 	Assistant Secretary
	 	 	 	 	 	 	 

	

 	
 	

RS FUNDING CORPORATION,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	 	Michael W. Valente
	 	 	 	 	Title:	 	Assistant Secretary
	

 	
 	

RW HOLDING CORP.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	 	Michael W. Valente
	 	 	 	 	Title:	 	Assistant Secretary
	

 	
 	

SACHTLEBEN CORPORATION,
	

 	
 	

by	
 	

/s/  PAUL FRAZIER      

	 	 	 	 	Name:	 	Paul Frazier
	 	 	 	 	Title:	 	Vice President

Plastics & Coatings Market
	

 	
 	

SOUTHERN CLAY PRODUCTS, INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	 	Michael W. Valente
	 	 	 	 	Title:	 	Assistant Secretary
	

 	
 	

SOUTHERN COLOR N.A., INC.,
	

 	
 	

by	
 	

/s/  MICHAEL W. VALENTE      

	 	 	 	 	Name:	 	Michael W. Valente
	 	 	 	 	Title:	 	Assistant Secretary
	

 	
 	

CREDIT SUISSE FIRST BOSTON,

acting through its Cayman Islands Branch, as administrative agent
	

 	
 	

by	
 	

/s/  S. WILLIAM FOX      

	 	 	 	 	Name:	 	S. William Fox
	 	 	 	 	Title:	 	Director
	

 	
 	

by	
 	

/s/  DAVID DODD      

	 	 	 	 	Name:	 	David Dodd
	 	 	 	 	Title:	 	Associate

SUBSIDIARY PLEDGORS  

AlphaGary
Corporation

Advantis Technologies, Inc.

CeramTec North America Innovative Ceramic Engineering Corporation

Chemical Specialties, Inc.

Chemetall Corp.

Chemetall Chemical Products Inc.

Chemetall Foote Corp.

Compugraphics U.S.A. Inc.

Cyantek Corporation

Electrochemicals Inc.

Exsil, Inc.

Foote Chile Holding Company

Lurex, Inc.

Oakite Products, Inc.

Rockwood America Inc.

Rockwood Specialties Inc.

Rockwood Pigments NA, Inc.

RS Funding Corporation

RW Holding Corp.

Sachtleben Corporation

Southern Clay Products, Inc.

Southern Color N.A., Inc. 

SCHEDULE 2

TO THE PLEDGE AGREEMENT  

Pledged Shares  

[Schedule
To Come] 

Pledged Debt  

[Schedule
To Come] 

ANNEX A TO THE

PLEDGE AGREEMENT  

      SUPPLEMENT
NO. [    ] dated as of [    ], to the Pledge Agreement (the "Pledge
Agreement") dated as of July 30, 2004, among ROCKWOOD SPECIALTIES INTERNATIONAL, INC., a Delaware corporation ("Holdings")
ROCKWOOD SPECIALTIES GROUP, INC., a Delaware corporation (the "US Borrower"), the Subsidiaries of the US Borrower listed on Schedule 1 thereto (each a
"Subsidiary Pledgor" and, collectively, the "Subsidiary Pledgors"; the US Borrower, Holdings and the
Subsidiary Pledgors are referred to collectively herein as the "Pledgors") and CREDIT SUISSE FIRST BOSTON, acting through its Cayman Islands Branch, as
administrative agent (in such capacity, the "Administrative Agent") for the lenders (the "Lenders") from
time to time parties to the Credit Agreement referred to below. 

        A.
Reference is made to (a) the Credit Agreement dated as of July 30, 2004 (as amended, supplemented or otherwise modified from time to time, the "Credit
Agreement"), among the US Borrower, Rockwood Specialties Limited, a company incorporated under the laws of England and Wales, Holdings, the Lenders, the Administrative Agent,
UBS Securities LLC and Goldman Sachs Credit Partners L.P., as co-syndication agents, and (b) the Guarantee dated as of July 30, 2004 (as amended, supplemented or otherwise modified from time to time,
the "Guarantee"), among the US Borrower, Holdings, the Subsidiary Guarantors party thereto and the Administrative Agent. 

        B.
Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Pledge Agreement. 

        C.
The Pledgors have entered into the Pledge Agreement in order to induce the Administrative Agent, the Co-Syndication Agents, the Lenders and the Letter of Credit Issuer to enter into
the Credit Agreement and to induce the Lenders and the Letter of Credit Issuer to make their respective Extensions of Credit to the Borrowers under the Credit Agreement and to induce one or more
Lenders or Affiliates of Lenders to enter into Hedge Agreements with the Borrowers and/or the Restricted Subsidiaries. 

        D.
The undersigned [Pledgors] [Domestic Subsidiaries] (each an "Additional Pledgor") are
(a) the legal and beneficial owners of the Equity Interests described under Schedule 1 hereto and issued by the entities named therein (such pledged Equity Interests, together with any Equity
Interests obtained in the future of the issuer of such Pledged Shares (the "After-acquired Additional Pledged Shares"), referred to collectively herein
as the
"Additional Pledged Shares") and (b) the legal and beneficial owners of the Indebtedness (the "Additional Pledged
Debt") described under Schedule 1 hereto. 

        E.
Section 9.12 of the Credit Agreement and Section 9(b) of the Pledge Agreement provide that additional Subsidiaries may become Subsidiary Pledgors under the Pledge Agreement by
execution and delivery of an instrument in the form of this Supplement. Each undersigned Additional Pledgor is executing this Supplement in accordance with the requirements of Section 9(b) of the
Pledge Agreement to pledge to the Administrative Agent for the benefit of the Secured Parties the Additional Pledged Shares and the Additional Pledged Debt [and to become a Subsidiary
Pledgor under the Pledge Agreement] in order to induce the Lenders and the Letter of Credit Issuer to make additional Extensions of Credit and as consideration for Extensions of Credit
previously made. 

        Accordingly,
the Administrative Agent and each undersigned Additional Pledgor agree as follows: 

        SECTION
1. In accordance with Section 9(b) of the Pledge Agreement, each Additional Pledgor by its signature hereby transfers, assigns and pledges to the Administrative Agent for the
ratable benefit of the Secured Parties, and hereby grants to the Administrative Agent for the ratable benefit of the Secured Parties, a security interest in all of such Additional Pledgor's right,
title and interest in the 

 

following,
whether now owned or existing or hereafter acquired or existing (collectively, the "Additional Collateral"): 

	(a)
	the
Additional Pledged Shares held by such Additional Pledgor and the certificates representing such Additional Pledged Shares and any interest of such Additional Pledgor in the
entries on the books of the issuer of the Additional Pledged Shares or any financial intermediary pertaining to the Additional Pledged Shares and all dividends, cash, warrants, rights, instruments and
other property or proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Additional Pledged Shares,  provided that the Additional
Pledged Shares under this Supplement shall not include more than 65 percent of the issued and outstanding Equity Interests
in any Foreign Subsidiary;

	(b)
	the
Additional Pledged Debt and the instruments evidencing the Additional Pledged Debt owed to such Additional Pledgor, and all interest, cash, instruments and other property or
proceeds from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such Additional Pledged Debt; and

	(c)
	to
the extent not covered by clauses (a) and (b) above, respectively, all proceeds of any or all of the foregoing Additional Collateral. For purposes of this Supplement, the term
"proceeds" shall include all "proceeds" as defined in the NY UCC and shall also include proceeds of any indemnity or guarantee payable to any Additional Pledgor or the Administrative Agent from time
to time with respect to any of the Additional Collateral. 

        For
purposes of the Pledge Agreement, (x) the Collateral shall be deemed to include the Additional Collateral and (y) the After-acquired Pledged Shares shall be deemed to include the
Additional After-acquired Pledge Shares. 

        [SECTION
2. Each Additional Pledgor by its signature below becomes a Pledgor under the Pledge Agreement with the same force and effect as if originally named therein as a
Pledgor and each Additional Pledgor hereby agrees to all the terms and provisions of the Pledge Agreement applicable to it as a Pledgor thereunder. Each reference to a "Subsidiary Pledgor" or a
"Pledgor" in the Pledge Agreement shall be deemed to include each Additional Pledgor. The Pledge Agreement is hereby incorporated herein by reference.]1 

        SECTION
[2][3]. Each Additional Pledgor represents and warrants as follows: 

	(a)
	Schedule
1 hereto (i) correctly represents as of the date hereof (A) the issuer, the certificate number, the Pledgor and registered owner, the number and class and the percentage of
the issued and outstanding Equity Interests of such class of all Additional Pledged Shares and (B) the issuer, the initial principal amount, the Pledgor and holder, date of and maturity date of all
Additional Pledged Debt and (ii) together with Schedule 2 to the Pledge Agreement, the comparable schedules to each other Supplement to the Pledge Agreement, includes all Equity Interests, debt
securities and promissory notes required to be pledged hereunder. Except as set forth on Schedule 1, the Pledged Shares represent all (or 65 percent in the case of pledges of Foreign Subsidiaries) of
the issued and outstanding Equity Interests of each class of Equity Interests of the issuer on the date hereof.

	(b)
	Such
Additional Pledgor is the legal and beneficial owner of the Additional Collateral pledged or assigned by such Additional Pledgor hereunder free and clear of any Lien, except for
the Lien created by this Supplement to the Pledge Agreement. 

	1
	Include
for new pledgors only. 

2

 

	(c)
	As
of the date of this Supplement, the Additional Pledged Shares pledged by such Additional Pledgor hereunder have been duly authorized and validly issued and, in the case of
Additional Pledged Shares issued by a corporation, are fully paid and non-assessable.

	(d)
	The
execution and delivery by such Additional Pledgor of this Supplement and the pledge of the Additional Collateral pledged by such Additional Pledgor hereunder pursuant hereto
create a valid and perfected first-priority security interest in the Additional Collateral, securing the payment of the Obligations, in favor of the Administrative Agent for the ratable benefit of the
Secured Parties.

	(e)
	Such
Additional Pledgor has full power, authority and legal right to pledge all the Additional Collateral pledged by such Additional Pledgor pursuant to this Supplement and this
Supplement constitutes a legal, valid and binding obligation of each Additional Pledgor, enforceable in accordance with its terms, except as enforceability thereof may be limited by bankruptcy,
insolvency or other similar laws affecting creditors' rights generally and subject to general principles of equity. 

        SECTION
[3][4]. This Supplement may be executed by one or more of the parties to this Supplement on any number of separate counterparts
(including by facsimile or other electronic transmission), and all of said counterparts taken together shall be deemed to constitute one and the same instrument. A set of the copies of this Supplement
signed by all the parties shall be lodged with the Administrative Agent and the US Borrower. This Supplement shall become effective as to each Additional Pledgor when the Administrative Agent shall
have received counterparts of this Supplement that, when taken together, bear the signatures of such Additional Pledgor and the Administrative Agent. 

        SECTION
[4][5]. Except as expressly supplemented hereby, the Pledge Agreement shall remain in full force and effect. 

        SECTION [5][6]. THIS SUPPLEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

        SECTION
[6][7]. Any provision of this Supplement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof and in the Pledge Agreement, and any such prohibition or unenforceability in
any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. The parties hereto shall endeavor in good-faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 

        SECTION
[7][8]. All notices, requests and demands pursuant hereto shall be made in accordance with Section 16 of the Pledge Agreement. All
communications and notices hereunder to each Additional Pledgor shall be given to it in care of the US Borrower at the US Borrower's address set forth in Section 14.2 of the Credit Agreement. 

        SECTION
[8][9]. Each Additional Pledgor agrees to reimburse the Administrative Agent for its reasonable out-of-pocket expenses in
connection with this Supplement, including the reasonable fees, other charges and disbursements of counsel for the Administrative Agent. 

3

        IN WITNESS WHEREOF, each Additional Pledgor and the Administrative Agent have duly executed this Supplement to the Pledge Agreement as of the day and year first above written. 

	 	 	[NAME OF ADDITIONAL PLEDGOR],
	

 	
 	
By:	

 
	 	 	 	
 Name:

Title:

	 	 	CREDIT SUISSE FIRST BOSTON, AS

ADMINISTRATIVE AGENT,
	

 	
 	
By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:

SCHEDULE 1 TO

SUPPLEMENT NO.[    ]

TO THE PLEDGE AGREEMENT  

Pledged Shares  

	Pledgor
 
	 	Issuer
	 	Class of Stock
	 	Stock Certificate No(s)
	 	Number of Shares
	 	Percentage of Issued and Outstanding Shares

	 	 	 	 	 	 	 	 	 	 	 

Pledged Debt  

	Pledgor
 
	 	Issuer
	 	Initial Principal Amount
	 	Date of Note
	 	Maturity Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]