Document:

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                                                                   EXHIBIT 10.47

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                               SECURITY AGREEMENT

                                      among

                              CROMPTON CORPORATION,

                           CERTAIN OF ITS SUBSIDIARIES
                         FROM TIME TO TIME PARTY HERETO

                                       and

                        DEUTSCHE BANK AG NEW YORK BRANCH,
                               as COLLATERAL AGENT

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                           Dated as of August 16, 2004

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                               SECURITY AGREEMENT

        SECURITY AGREEMENT, dated as of August 16, 2004, made by each of the
undersigned assignors (each, an "Assignor" and, together with any other entity
that becomes an assignor hereunder pursuant to Section 10.12 hereof, the
"Assignors") in favor of Deutsche Bank AG New York Branch, as collateral agent
for the benefit of the Lender Creditors (as defined below) and as collateral
agent for the benefit of the Secured Creditors (as defined below) (in such
capacities and (in either case) together with any successor collateral agent,
the "Collateral Agent"). Certain capitalized terms as used herein are defined in
Article IX hereof. Except as otherwise defined herein, all capitalized terms
used herein and defined in the Credit Agreement (as defined below) shall be used
herein as therein defined. Notwithstanding anything herein to the contrary, (i)
for purposes of Section 1.1(a)(A) hereof and the first reference to "Collateral
Agent" in Section 6.6 hereof, the term "Collateral Agent" shall mean Deutsche
Bank AG New York Branch (together with any successor collateral agent), in its
separate individual capacity as collateral agent for the benefit of the Lender
Creditors with respect to the Priority Credit Document Obligations, (ii) for
purposes of Section 1.1(a)(B) and the second reference to "Collateral Agent" in
Section 6.6 hereof, hereof, the term "Collateral Agent" shall mean Deutsche Bank
AG New York Branch (together with any successor collateral agent), in its
separate individual capacity as collateral agent for the benefit of all of the
Secured Creditors with respect to the Obligations not constituting Priority
Credit Document Obligations, and (iii) for purposes of all other provisions in
this Agreement, the term "Collateral Agent" shall mean (x) Deutsche Bank AG New
York Branch (together with any successor collateral agent), in its separate
individual capacity as collateral agent for the benefit of the Lender Creditors
with respect to the Priority Credit Document Obligations and (y) Deutsche Bank
AG New York Branch (together with any successor collateral agent), in its
separate individual capacity as collateral agent for the benefit of all of the
Secured Creditors with respect to the Obligations not constituting Priority
Credit Document Obligations.

                              W I T N E S S E T H:

        WHEREAS, Crompton Corporation, a Delaware corporation (the "Borrower"),
the lenders from time to time party thereto (the "Lenders"), Deutsche Bank AG,
Cayman Islands Branch, as Deposit Bank, and Deutsche Bank AG New York Branch, as
administrative agent (together with any successor Administrative Agent, the
"Administrative Agent"), have entered into a Credit Agreement, dated as of
August 16, 2004, providing for the making of Loans to the Borrower, and the
issuance of, and participation in, Letters of Credit for the account of the
Borrower, all as contemplated therein (the Lenders, each Issuing Lender, the
Administrative Agent and the Collateral Agent are herein called the "Lender
Creditors") (as used herein, the term "Credit Agreement" means the Credit
Agreement described above in this paragraph, as the same may from time to time
be amended, modified, extended, renewed, replaced, restated, supplemented and/or
refinanced from time to time, and including any agreement extending the maturity
of, or refinancing or restructuring (including, but not limited to, the
inclusion of additional borrowers or guarantors thereunder or any increase in
the amount borrowed) of all or any portion of, the indebtedness under such
credit agreement or any successor credit agreement, whether or not with the same
agent, trustee, representative, lenders or holders);

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        WHEREAS, the Borrower and/or one or more of the other Assignors may at
any time and from time to time enter into one or more Interest Rate Protection
Agreements or Other Hedging Agreements with one or more Lenders or any affiliate
thereof (each such Lender or affiliate, even if the respective Lender
subsequently ceases to be a Lender under the Credit Agreement for any reason,
together with such Lender's or affiliate's successors and assigns, if any,
collectively, the "Hedging Creditors");

        WHEREAS, pursuant to the Subsidiaries Guaranty, each Subsidiary
Guarantor has jointly and severally guaranteed to the Lender Creditors and the
Hedging Creditors the payment and performance when due of all Guaranteed
Obligations as described (and defined) therein;

        WHEREAS, the Borrower has, prior to the date hereof, issued (x)
$110,000,000 in aggregate principal amount of its 7.75% debentures due 2023 (the
"Existing 2023 Senior Notes", and with the holders from time to time of such
Existing 2023 Senior Notes being herein called the "Existing 2023 Senior
Noteholders") pursuant to the Indenture, dated as of February 1, 1993, between
the Borrower (as successor-in-interest to Witco Corporation) and Deutsche Bank
Trust Company Americas (as successor-in-interest to JPMorgan Chase Bank (which
in turn was a successor-in-interest to The Chase Manhattan Bank, N.A.)), as
trustee (together with any successor trustee, the "Trustee"), as amended by the
First Supplemental Indenture thereto, dated as of February 1, 1996, among the
Borrower, the Trustee and U.S. Bank, National Association, as trustee for the
Existing 2006 Senior Notes (as further amended, modified or supplemented from
time to time, the "Existing Senior Notes Indenture"), and (y) $150,000,000 in
aggregate principal amount of its 6.875% debentures due 2026 (the "Existing 2026
Senior Notes", and with the holders from time to time of such Existing 2026
Senior Notes being herein called the "Existing 2026 Senior Noteholders"; and (i)
the Existing 2026 Senior Noteholders, together with the Existing 2023 Senior
Noteholders, are collectively referred to herein as the "Existing Senior
Noteholders" and (ii) the Existing 2023 Senior Notes, together with the Existing
2026 Senior Notes, are collectively referred to herein as the "Existing Senior
Notes") pursuant to the Existing Senior Notes Indenture;

        WHEREAS, the Borrower and/or one or more of the other Assignors have
entered into, or may in the future enter into, one or more agreements or
arrangements providing for (x) cash overdraft protection to be made available to
the Borrower and/or one or more of the other Assignors as part of their cash
management system and/or (y) credit card lines of credit to be made available to
certain employees of the Borrower and/or one or more of the other Assignors, in
each case, with one or more Lenders or any affiliate thereof (each such Lender
or affiliate, even if the respective Lender subsequently ceases to be a Lender
under the Credit Agreement for any reason, together with such Lender's or
affiliate's successors and assigns, if any, collectively, the "Additional
Secured Creditors"), which agreements or arrangements may, in accordance with
the terms thereof and to the extent permitted by the Credit Agreement and the
other Credit Documents, be (x) guaranteed by the Borrower and/or one or more of
the other Assignors and (y) secured on an equal and ratable basis in an
aggregate amount not to exceed $30,000,000 with the other Obligations not
constituting Priority Credit Document Obligations as hereinafter provided (each
such agreement or arrangement (but only to the extent permitted by the Credit
Agreement), an "Additional Secured Agreement");

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        WHEREAS, the Lender Creditors, the Hedging Creditors, the Existing
Senior Noteholders and the Additional Secured Creditors are collectively
referred to herein as the "Secured Creditors";

        WHEREAS, it is a condition precedent to (i) the making of Loans to, and
the issuance of, and participation in, Letters of Credit for the account of, the
Borrower under the Credit Agreement, (ii) the Hedging Creditors entering into
Interest Rate Protection Agreements and Other Hedging Agreements, and (iii) the
Additional Secured Creditors entering into Additional Secured Agreements, that
each Assignor shall have executed and delivered this Agreement to the Collateral
Agent;

        WHEREAS, because of the condition precedent described in the immediately
preceding recital, it is a requirement under the Existing Senior Notes Indenture
that the Borrower's obligations in respect of the Existing Senior Notes be
secured on an equal and ratable basis with a portion of the other Obligations
as, and to the extent, provided therein and herein; and

        WHEREAS, each Assignor obtained benefits from the issuance by the
Borrower of the Existing Senior Notes and will obtain benefits from the
incurrence of Loans by the Borrower and the issuance of, and participation in,
Letters of Credit for the account of the Borrower under the Credit Agreement,
the entering by the Borrower and/or one or more of the other Assignors into
Interest Rate Protection Agreements or Other Hedging Agreements and the entering
into by the Borrower and/or one or more of the other Assignors of Additional
Secured Agreements and, accordingly, desires to execute this Agreement in order
to satisfy the conditions described in the two preceding recitals and to induce
the Lenders to make Loans to the Borrower and issue, and/or participate in,
Letters of Credit for the account of the Borrower, the Hedging Creditors to
enter into Interest Rate Protection Agreements or Other Hedging Agreements with
the Borrower and/or one or more of the other Assignors and the Additional
Secured Creditors to enter into Additional Secured Agreements with the Borrower
and/or one or more of the other Assignors;

        NOW, THEREFORE, in consideration of the benefits accruing to each
Assignor, the receipt and sufficiency of which are hereby acknowledged, each
Assignor hereby makes the following representations and warranties to the
Collateral Agent for the benefit of the Secured Creditors and hereby covenants
and agrees with the Collateral Agent for the benefit of the Secured Creditors as
follows:

                                    ARTICLE I

                               SECURITY INTERESTS

        1.1 Grant of Security Interests. (a) Each Assignor does hereby (A)
assign and transfer unto the Collateral Agent in its capacity solely as
collateral agent for the equal and ratable benefit of the Lender Creditors, and
does hereby pledge and grant to the Collateral Agent in its capacity solely as
collateral agent for the equal and ratable benefit of the Lender Creditors, in
each case as security for the prompt payment and performance when due of all
Priority Credit Document Obligations, a continuing security interest in all of
the right, title and interest of such

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Assignor in, to and under all of the following personal property and fixtures
(and all rights therein) of such Assignor, or in which or to which such Assignor
has any rights, in each case whether now existing or hereafter from time to time
acquired, and (B) separately assign and transfer unto the Collateral Agent in
its capacity solely as collateral agent for the equal and ratable benefit of all
of the Secured Creditors, and does hereby separately pledge and grant to the
Collateral Agent in its capacity solely as collateral agent for the equal and
ratable benefit of all of the Secured Creditors, in each case as security for
the prompt payment and performance when due of all Obligations not constituting
Priority Credit Document Obligations, a separate continuing security interest in
all of the right, title and interest of such Assignor in, to and under all of
the following personal property and fixtures (and all rights therein) of such
Assignor, or in which or to which such Assignor has any rights, in each case
whether now existing or hereafter from time to time acquired (it being
understood and agreed by the parties hereto that (x) the security interest
granted herein (i) to the Collateral Agent in its capacity solely as collateral
agent for the equal and ratable benefit of the Lender Creditors to secure the
Priority Credit Document Obligations shall have a first priority distribution
right as provided in Section 7.4 hereof and (ii) to the Collateral Agent in its
capacity solely as collateral agent for the equal and ratable benefit of all of
the Secured Creditors to secure Obligations not constituting Priority Credit
Document Obligations shall be subject to the security interest granted herein
for the benefit of the Lender Creditors to secure Priority Credit Document
Obligations and shall only be entitled to a distribution as provided in Section
7.4 hereof after all Priority Credit Document Obligations have been paid in full
as provided in such Section 7.4, and (y) the grants of security interest
hereunder constitute two separate and distinct grants of security and Liens, one
in favor of the Collateral Agent in its capacity as collateral agent for the
equal and ratable benefit of the Lender Creditors to secure Priority Credit
Document Obligations and the second in favor of the Collateral Agent in its
capacity as collateral agent for the equal and ratable benefit of all of the
Secured Creditors to secure Obligations not constituting Priority Credit
Document Obligations):

        (i)     each and every Account;

        (ii)    all cash;

        (iii)   the Cash Collateral Account and all monies, securities,
    Instruments and other investments deposited in (or credited to) the Cash
    Collateral Account;

        (iv)    all Chattel Paper (including, without limitation, all Tangible
    Chattel Paper and all Electronic Chattel Paper);

        (v)     all Commercial Tort Claims;

        (vi)    all computer programs and Domain Names and all intellectual
    property rights therein, and all other proprietary information, including
    but not limited to Trade Secret Rights;

        (vii)   all Contracts, together with all Contract Rights arising
    thereunder;

        (viii)  all Copyrights;

        (ix)    all Equipment;

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        (x)     all Deposit Accounts and all other demand, deposit, time,
    savings, cash management, passbook and similar accounts maintained by such
    Assignor with any Person (including any Secured Creditor) and all monies,
    securities, Instruments and other investments deposited in (or credited to)
    any of the foregoing;

        (xi)    all Documents;

        (xii)   all General Intangibles;

        (xiii)  all Goods;

        (xiv)   all Instruments;

        (xv)    all Inventory;

        (xvi)   all Investment Property;

        (xvii)  all Letter-of-Credit Rights (whether or not the respective
    letter of credit is evidenced by a writing);

        (xviii) all Marks, the goodwill of the business of such Assignor
    symbolized by the Marks, and all causes of action arising prior to or after
    the date hereof for infringement of any of the Marks or unfair competition
    regarding the same;

        (xix)   all Patents and all causes of action arising prior to or after
    the date hereof for infringement of any of the Patents;

        (xx)    all Permits;

        (xxi)   all Software and all Software licensing rights, all writings,
    plans, specifications and schematics, all engineering drawings, customer
    lists, goodwill and licenses, and all recorded data of any kind or nature,
    regardless of the medium of recording;

        (xxii)  all Supporting Obligations; and

        (xxiii) all Proceeds and products of any and all of the foregoing (all
    of the above, including this clause (xxiii), the "Collateral").

        (b)     Notwithstanding anything to the contrary herein, the term
"Collateral" shall not include, and the security interest granted under this
Agreement shall not attach to: (a) any lease, license, contract or agreement to
which any Assignor is a party to the extent (but only to the extent) that the
grant of such security interest shall constitute or result in (i) the
abandonment, invalidation or unenforceability of any right, title or interest of
any Assignor therein or (ii) a breach or termination pursuant to the terms of,
or a default under, any such lease, license or agreement (other than, in either
case, to the extent that any such term would be rendered ineffective pursuant to
Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor provision or
provisions) of any relevant jurisdiction or any other applicable law (including
the Bankruptcy Code) or principles of equity), (b) except as otherwise provided
in the Pledge

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Agreement, more than 65% of the total combined voting power of all classes of
Voting Equity Interests (as defined in the Pledge Agreement) of any Exempted
Foreign Entity (as defined in the Pledge Agreement), (c) any Equipment owned by
any Assignor that is subject to a purchase money security interest (as defined
in Section 9-103 of the UCC) or a Capitalized Lease Obligation permitted
pursuant to the Credit Agreement if the contract or other agreement in which
such Lien is granted (or in the documentation providing for such Capitalized
Lease Obligation) prohibits or requires the consent of any Person other than any
Assignor as a condition to the creation of any other Lien on such Equipment, but
only, in each case, to the extent, and for so long as, the Indebtedness secured
by the applicable purchase money security interest or the applicable Capitalized
Lease Obligation has not been repaid in full or the applicable prohibition (or
consent requirement) has not otherwise been removed or terminated (or obtained
as applicable), and (d) the Domestic Receivables Facility Property and the
Proceeds thereof (other than the cash Proceeds received by the respective
Assignor from the sale of the respective Accounts to the buyer of such Accounts
pursuant to the New Domestic Receivables Facility).

        (c)     The security interests of the Collateral Agent under this
Agreement extends to all Collateral which any Assignor may acquire, or with
respect to which any Assignor may obtain rights, at any time during the term of
this Agreement.

        1.2 Power of Attorney. Each Assignor hereby constitutes and appoints the
Collateral Agent its true and lawful attorney, irrevocably, with full power
after the occurrence of and during the continuance of an Event of Default (in
the name of such Assignor or otherwise) to act, require, demand, receive,
compound and give acquittance for any and all moneys and claims for moneys due
or to become due to such Assignor under or arising out of the Collateral, to
endorse any checks or other instruments or orders in connection therewith and to
file any claims or take any action or institute any proceedings which the
Collateral Agent may deem to be necessary or advisable to protect the interests
of the Secured Creditors, which appointment as attorney is coupled with an
interest.

                                   ARTICLE II

                GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS

Each Assignor represents, warrants and covenants, which representations,
warranties and covenants shall survive execution and delivery of this Agreement,
as follows:

        2.1 Necessary Filings. All filings, registrations, recordings and other
actions necessary or appropriate to create, preserve and perfect the security
interests granted by such Assignor to the Collateral Agent hereby in respect of
the Collateral have been accomplished (or will be accomplished immediately
following the Effective Date) and the security interests granted to the
Collateral Agent pursuant to this Agreement in and to the Collateral create
valid and, together with all such filings, registrations, recordings and other
actions, perfected security interests therein prior to the rights of all other
Persons therein (subject to the intercreditor provisions set forth in Section
1.1 hereof) and subject to no other Liens (other than Permitted Liens related
thereto) and is entitled to all the rights, priorities and benefits afforded by
the Uniform Commercial Code or other relevant law as enacted in any relevant
jurisdiction to perfected security interests, in each case to the extent that
the Collateral consists of the type of property in

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which a security interest may be perfected by possession or control (within the
meaning of the UCC as in effect on the date hereof in the State of New York), by
filing a financing statement under the Uniform Commercial Code as enacted in any
relevant jurisdiction or by a filing of a Grant of Security Interest in the
respective form attached hereto in the United States Patent and Trademark Office
or in the United States Copyright Office, as applicable; provided, however, that
subsequent filings of Grants of Security Interests in the respective forms
attached hereto as Annexes L, M and N may be required with respect to
registrations and applications to register Marks, Patents and Copyrights,
respectively, acquired after the Effective Date.

        2.2 No Liens. Such Assignor is, and as to all Collateral acquired by it
from time to time after the date hereof such Assignor will be, the owner of all
Collateral free from any Lien, security interest, encumbrance or other right,
title or interest of any Person (other than Permitted Liens related thereto),
and such Assignor shall defend the Collateral against all claims and demands of
all Persons at any time claiming the same or any interest therein adverse to the
Collateral Agent.

        2.3 Other Financing Statements. As of the date hereof, there is no
financing statement (or similar statement or instrument of registration under
the law of any jurisdiction) covering or purporting to cover any interest of any
kind in the Collateral (other than financing statements filed in respect of
Permitted Liens), and so long as the Termination Date has not occurred, such
Assignor will not execute or authorize to be filed in any public office any
financing statement (or similar statement or instrument of registration under
the law of any jurisdiction) or statements relating to the Collateral, except
financing statements filed or to be filed in respect of and covering the
security interests granted hereby by such Assignor or in connection with
Permitted Liens or financing statements for which proper termination statements
have been delivered to the Collateral Agent for filing.

        2.4 Chief Executive Office, Record Locations. The chief executive office
of such Assignor is, on the date of this Agreement, located at the address
indicated on Annex A hereto for such Assignor. During the period of the four
calendar months preceding the date of this Agreement, the chief executive office
of such Assignor has not been located at any address other than that indicated
on Annex A in accordance with the immediately preceding sentence, in each case
unless each such other address is also indicated on Annex A hereto for such
Assignor.

        2.5 Location of Inventory and Equipment. All Inventory and Equipment
held on the date hereof anywhere in the United States, or held at any time
during the four calendar months prior to the date hereof anywhere in the United
States, by each Assignor is located at one of the locations shown on Annex B
hereto for such Assignor.

        2.6 Legal Names; Type of Organization (and Whether a Registered
Organization and/or a Transmitting Utility); Jurisdiction of Organization;
Location; Organizational Identification Numbers; Changes Thereto; etc. The exact
legal name of each Assignor, the type of organization of such Assignor, whether
or not such Assignor is a Registered Organization, the jurisdiction of
organization of such Assignor, such Assignor's Location, the organizational
identification number (if any) of such Assignor, and whether or not such
Assignor is a Transmitting Utility, is listed on Annex C hereto for such
Assignor. Such Assignor shall not change its legal name, its type of
organization, its status as a Registered Organization (in the case

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of a Registered Organization), its status as a Transmitting Utility or as a
Person which is not a Transmitting Utility, as the case may be, its jurisdiction
of organization, its Location, or its organizational identification number (if
any) from that used on Annex C hereto, except that any such changes shall be
permitted (so long as not in violation of the applicable requirements of the
Secured Debt Agreements and so long as same do not involve (x) a Registered
Organization ceasing to constitute same or (y) such Assignor changing its
jurisdiction of organization or Location from the United States or a State
thereof to a jurisdiction of organization or Location, as the case may be,
outside the United States or a State thereof) if (i) it shall have given to the
Collateral Agent not less than 15 days' prior written notice of each change to
the information listed on Annex C (as adjusted for any subsequent changes
thereto previously made in accordance with this sentence), together with a
supplement to Annex C which shall correct all information contained therein for
such Assignor, and (ii) in connection with the respective such change or
changes, it shall have taken all action reasonably requested by the Collateral
Agent to maintain the security interests of the Collateral Agent in the
Collateral intended to be granted hereby at all times fully perfected and in
full force and effect. In addition, to the extent that such Assignor does not
have an organizational identification number on the date hereof and later
obtains one, such Assignor shall promptly thereafter notify the Collateral Agent
of such organizational identification number (to the extent such organizational
identification number is required to perfect the Collateral Agent's security
interests hereunder) and shall take all actions reasonably satisfactory to the
Collateral Agent to the extent necessary to maintain the security interest of
the Collateral Agent in the Collateral intended to be granted hereby fully
perfected and in full force and effect.

        2.7 Trade Names; Etc. None of the Assignors has or operates in any
jurisdiction under, or in the preceding five years has had or has operated in
any jurisdiction under, any trade names, fictitious names or other names except
its legal name as specified in Annex C and such other trade or fictitious names
as are listed on Annex D hereto for such Assignor. Such Assignor shall not
assume or operate in any jurisdiction under any new trade, fictitious or other
name until (i) it shall have given to the Collateral Agent not less than 15
days' written notice of its intention so to do, clearly describing such new name
and the jurisdictions in which such new name will be used and providing such
other information in connection therewith as the Collateral Agent may reasonably
request and (ii) with respect to such new name, it shall have taken all action
reasonably requested by the Collateral Agent to maintain the security interest
of the Collateral Agent in the Collateral intended to be granted hereby at all
times fully perfected and in full force and effect.

        2.8 Certain Significant Transactions. During the one year period
preceding the date of this Agreement, no Person shall have merged or
consolidated with or into any Assignor, and no Person shall have liquidated
into, or transferred all or substantially all of its assets to, any Assignor, in
each case except as described in Annex E hereto. With respect to any
transactions so described in Annex E hereto, the respective Assignor shall have
furnished such information with respect to the Person (and the assets of the
Person and locations thereof) which merged with or into or consolidated with
such Assignor, or was liquidated into or transferred all or substantially all of
its assets to such Assignor, and shall have furnished to the Collateral Agent
such UCC lien searches as may have been reasonably requested with respect to
such Person and its assets, to establish that no security interest (excluding
Permitted Liens) continues perfected on the date hereof with respect to any
Person described above (or the assets transferred to the

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respective Assignor by such Person), including without limitation pursuant to
Section 9-316(a)(3) of the UCC.

        2.9 Non-UCC Property. The aggregate book value (as determined by the
Assignors in good faith) of all property of the Assignors of the types described
in clauses (1), (2) and (3) of Section 9-311(a) of the UCC (excluding any Marks,
Patents and Copyrights) does not exceed $1,000,000. If the aggregate book value
of all such property at any time owned by all Assignors exceeds $1,000,000, the
Assignors shall provide prompt written notice thereof to the Collateral Agent
and, upon the request of the Collateral Agent, the Assignors shall promptly (and
in any event within 30 days) take such actions (at their own cost and expense)
as may be required under the respective United States, State or other laws
referenced in Section 9-311(a) of the UCC to perfect the security interests
granted herein in any Collateral where the filing of a financing statement does
not perfect the security interest in such property in accordance with the
provisions of Section 9-311(a) of the UCC.

        2.10 As-Extracted Collateral; Timber-to-be-Cut. On the date hereof, such
Assignor does not own, or expect to acquire, any property which constitutes, or
would constitute, As-Extracted Collateral or Timber-to-be-Cut. If at any time
after the date of this Agreement such Assignor owns, acquires or obtains rights
to any As-Extracted Collateral or Timber-to-be-Cut, such Assignor shall furnish
the Collateral Agent with prompt written notice thereof (which notice shall
describe in reasonable detail the As-Extracted Collateral and/or
Timber-to-be-Cut and the locations thereof) and shall take all actions as may be
deemed reasonably necessary or desirable by the Collateral Agent to perfect the
security interest of the Collateral Agent therein.

        2.11 Recourse. This Agreement is made with full recourse to each
Assignor and pursuant to and upon all the warranties, representations, covenants
and agreements on the part of such Assignor contained herein and in the Secured
Debt Agreements.

                                   ARTICLE III

            SPECIAL PROVISIONS CONCERNING ACCOUNTS; CONTRACT RIGHTS;
             INSTRUMENTS; CHATTEL PAPER AND CERTAIN OTHER COLLATERAL

        3.1 Maintenance of Records. Each Assignor will keep and maintain at its
own cost and expense accurate records of its Accounts and Contracts, including,
but not limited to, originals of all documentation (including each Contract)
with respect thereto, records of all payments received, all credits granted
thereon, all merchandise returned and all other dealings therewith, and such
Assignor will make the same available on such Assignor's premises to the
Collateral Agent for inspection, at such Assignor's own cost and expense, at any
and all reasonable times upon prior notice to such Assignor and otherwise in
accordance with the Credit Agreement. Upon the occurrence and during the
continuance of an Event of Default and at the request of the Collateral Agent,
such Assignor shall, at its own cost and expense, deliver all tangible evidence
of its Accounts and Contract Rights (including, without limitation, all
documents evidencing the Accounts and all Contracts) and such books and records
to the Collateral Agent or to its representatives (copies of which evidence and
books and records may be retained by such Assignor). Upon the occurrence and
during the continuance of an Event of Default and if the Collateral Agent so
directs, such Assignor shall legend, in form and manner

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satisfactory to the Collateral Agent, the Accounts and the Contracts, as well as
books, records and documents (if any) of such Assignor evidencing or pertaining
to such Accounts and Contracts with an appropriate reference to the fact that
such Accounts and Contracts have been assigned to the Collateral Agent and that
the Collateral Agent has a security interest therein.

        3.2 Direction to Account Debtors; Contracting Parties; etc. Upon the
occurrence and during the continuance of an Event of Default, if the Collateral
Agent so directs any Assignor, such Assignor agrees (x) to cause all payments on
account of the Accounts and Contracts constituting Collateral to be made
directly to the Cash Collateral Account, (y) that the Collateral Agent may, at
its option, directly notify the obligors with respect to any such Accounts
and/or under any such Contracts to make payments with respect thereto as
provided in the preceding clause (x), and (z) that the Collateral Agent may
enforce collection of any such Accounts and Contracts and may adjust, settle or
compromise the amount of payment thereof, in the same manner and to the same
extent as such Assignor. Without notice to or assent by any Assignor, the
Collateral Agent may, upon the occurrence and during the continuance of an Event
of Default, apply any or all amounts then in, or thereafter deposited in, the
Cash Collateral Account toward the payment of the Obligations in the manner
provided in Section 7.4 of this Agreement. The reasonable costs and expenses of
collection (including reasonable attorneys' fees), whether incurred by an
Assignor or the Collateral Agent, shall be borne by the relevant Assignor. The
Collateral Agent shall deliver a copy of each notice referred to in the
preceding clause (y) to the relevant Assignor, provided that (x) the failure by
the Collateral Agent to so notify such Assignor shall not affect the
effectiveness of such notice or the other rights of the Collateral Agent created
by this Section 3.2 and (y) no such notice shall be required if an Event of
Default of the type described in Section 10.05 of the Credit Agreement has
occurred and is continuing.

        3.3 Modification of Terms; etc. Except in accordance with such
Assignor's ordinary course of business and consistent with reasonable business
judgment or as permitted by Section 3.4, no Assignor shall rescind or cancel any
indebtedness evidenced by any material Account or under any material Contract
constituting Collateral, or modify any material term thereof or make any
material adjustment with respect thereto, or extend or renew the same, or
compromise or settle any material dispute, claim, suit or legal proceeding
relating thereto, or sell any material Account or material Contract constituting
Collateral, or interest therein in each case in a manner that is adverse to such
Assignor in any material respect or adverse to the interests of the Secured
Creditors in any material respect, without the prior written consent of the
Collateral Agent. No Assignor will do anything to impair the rights of the
Collateral Agent in the Accounts or Contracts constituting Collateral.

        3.4 Collection. Each Assignor shall endeavor in accordance with
reasonable business practices to cause to be collected from the account debtor
named in each of its Accounts constituting Collateral or obligor under any
Contract constituting Collateral, as and when due (including, without
limitation, amounts which are delinquent, such amounts to be collected in
accordance with generally accepted lawful collection procedures) any and all
amounts owing under or on account of such Account or Contract, and apply
forthwith upon receipt thereof all such amounts as are so collected to the
outstanding balance of such Account or under such Contract. Except as otherwise
directed by the Collateral Agent after the occurrence and during the
continuation of an Event of Default, any Assignor may allow in the ordinary
course of

                                       10
<PAGE>

business as adjustments to amounts owing under its Accounts and Contracts (i) an
extension or renewal of the time or times of payment, or settlement for less
than the total unpaid balance, which such Assignor finds appropriate in
accordance with reasonable business judgment and (ii) a refund or credit due as
a result of returned or damaged merchandise or improperly performed services or
for other reasons which such Assignor finds appropriate in accordance with
reasonable business judgment. The reasonable costs and expenses (including,
without limitation, reasonable attorneys' fees) of collection, whether incurred
by an Assignor or the Collateral Agent, shall be borne by the relevant Assignor.

        3.5 Instruments. If any Assignor owns or acquires any Instrument which
is an Intercompany Note or any other Instrument with a principal amount in
excess of $250,000 constituting Collateral (other than checks and other payment
instruments received and collected in the ordinary course of business), such
Assignor will within 10 Business Days thereafter notify the Collateral Agent
thereof, and upon request by the Collateral Agent will promptly deliver such
Instrument to the Collateral Agent appropriately endorsed to the order of the
Collateral Agent.

        3.6 Assignors Remain Liable Under Accounts. Anything herein to the
contrary notwithstanding, the Assignors shall remain liable under each of the
Accounts to observe and perform all of the conditions and obligations to be
observed and performed by it thereunder, all in accordance with the terms of any
agreement giving rise to such Accounts. Neither the Collateral Agent nor any
other Secured Creditor shall have any obligation or liability under any Account
(or any agreement giving rise thereto) by reason of or arising out of this
Agreement or the receipt by the Collateral Agent or any other Secured Creditor
of any payment relating to such Account pursuant hereto, nor shall the
Collateral Agent or any other Secured Creditor be obligated in any manner to
perform any of the obligations of any Assignor 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 them or as to the
sufficiency of any performance by any party under any Account (or any agreement
giving rise thereto), 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 them or to which they may be entitled at any time or times.

        3.7 Assignors Remain Liable Under Contracts. Anything herein to the
contrary notwithstanding, the Assignors shall remain liable under each of the
Contracts to observe and perform all of the conditions and obligations to be
observed and performed by them thereunder, all in accordance with and pursuant
to the terms and provisions of each Contract. Neither the Collateral Agent nor
any other Secured Creditor shall have any obligation or liability under any
Contract by reason of or arising out of this Agreement or the receipt by the
Collateral Agent or any other Secured Creditor of any payment relating to such
Contract pursuant hereto, nor shall the Collateral Agent or any other Secured
Creditor be obligated in any manner to perform any of the obligations of any
Assignor under or pursuant to any Contract, to make any payment, to make any
inquiry as to the nature or the sufficiency of any performance by any party
under any Contract, 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 them or to which they may be entitled at any time or times.

                                       11
<PAGE>

        3.8 Deposit Accounts; Etc. (a) No Assignor maintains, or at any time
after the date of this Agreement shall establish or maintain, any demand, time,
savings, passbook or similar account, except for such accounts maintained with a
bank (as defined in Section 9-102 of the UCC) whose jurisdiction (determined in
accordance with Section 9-304 of the UCC) is within a State of the United
States. Annex F hereto sets forth, as of the date of this Agreement, for each
Assignor, each Deposit Account maintained by such Assignor (including a
description thereof and the respective account number), and the name of the
respective bank with which such Deposit Account is maintained. For each Deposit
Account which is part of the Collateral (other than (i) the Cash Collateral
Account or any other Deposit Account maintained with the Collateral Agent, (ii)
Deposit Accounts which are "zero balance" accounts used solely for accounts
payable and (iii) as otherwise agreed by the Collateral Agent), the respective
Assignor shall cause the bank with which the Deposit Account is maintained to
execute and deliver to the Collateral Agent, within 60 days after the date of
this Agreement or, if later, at the time of the establishment of the respective
Deposit Account (in each case, or such later date as agreed to in writing by the
Collateral Agent in its sole discretion), a "control agreement" in the form of
Annex G hereto (appropriately completed), with such changes thereto or in such
other form as may be reasonably acceptable to the Collateral Agent. If any bank
with which a Deposit Account is maintained refuses to, or does not, enter into
such a "control agreement," then the respective Assignor shall promptly (and in
any event within 60 days after the date of this Agreement (in each case, or such
later date as agreed to in writing by the Collateral Agent in its sole
discretion) or, if later, 45 days after the establishment of such account (or
such later date as may be acceptable to the Collateral Agent)) close the
respective Deposit Account and transfer all balances therein to the Cash
Collateral Account or another Deposit Account meeting the requirements of this
Section 3.8. If any bank with which a Deposit Account is maintained refuses to
subordinate its claims with respect to such Deposit Account to the Collateral
Agent's security interest therein on terms satisfactory to the Collateral Agent,
then the Collateral Agent, at its option, may (x) require that such Deposit
Account be terminated in accordance with the immediately preceding sentence or
(y) agree to a "control agreement" without such subordination, provided that in
such event the Collateral Agent may at any time, at its option, subsequently
require that such Deposit Account be terminated (within 45 days after notice
from the Collateral Agent (in each case, or such later date as agreed to in
writing by the Collateral Agent in its sole discretion)) in accordance with the
requirements of the immediately preceding sentence.

        (b)     After the date of this Agreement, no Assignor shall establish
any new demand, time, savings, passbook or similar account, except for Deposit
Accounts established and maintained with banks and meeting the requirements of
preceding clause (a). At the time any such Deposit Account is established, the
appropriate "control agreement" shall be entered into in accordance with the
requirements of preceding clause (a) and the respective Assignor shall furnish
to the Collateral Agent a supplement to Annex F hereto containing the relevant
information with respect to the respective Deposit Account and the bank with
which same is established.

        (c)     Without limiting the provisions of Sections 3.8(a) and (b)
hereof, to the extent that any Deposit Account is maintained by any Secured
Creditor, such Secured Creditor (by its acceptance of the benefits of this
Agreement) hereby agrees that (i) its possession and control over such Deposit
Account (and all Collateral deposited therein (or credited thereto)) shall be
held as agent and collateral bailee for the benefit of the Secured Creditors
pursuant to the terms of this Agreement and that the Collateral Agent and the
other Secured Creditors shall

                                       12
<PAGE>

thereby have constructive possession and control over such Deposit Account (and
all Collateral deposited therein (or credited therein (or credited thereto)),
and (ii) it shall comply with instructions originated by the Collateral Agent
directing the disposition of funds in such Deposit Account as, and to the
extent, set forth in Annex G hereto (all of the provisions of which (whether or
not executed by such Secured Creditor) are incorporated herein by reference in
their entirety as if fully set forth herein).

        3.9 Letter-of-Credit Rights. If any Assignor is at any time a
beneficiary under a letter of credit with a stated amount of $2,500,000 or more,
such Assignor shall promptly notify the Collateral Agent thereof and, at the
request of the Collateral Agent, such Assignor shall, pursuant to an agreement
in form and substance reasonably satisfactory to the Collateral Agent, use its
reasonable best efforts to (i) arrange for the issuer and any confirmer of such
letter of credit to consent to an assignment to the Collateral Agent of the
proceeds of any drawing under such letter of credit or (ii) arrange for the
Collateral Agent to become the transferee beneficiary of such letter of credit,
with the Collateral Agent agreeing, in each case, that the proceeds of any
drawing under the letter of credit are to be applied as provided in this
Agreement only after the occurrence and during the continuance of an Event of
Default.

        3.10 Commercial Tort Claims. All Commercial Tort Claims of each Assignor
in existence on the date of this Agreement in an amount (taking the greater of
the aggregate claimed damages thereunder or the good faith estimated value
thereof) of $10,000,000 or more are described in Annex H hereto. If any Assignor
shall at any time after the date of this Agreement acquire a Commercial Tort
Claim in an amount (taking the greater of the aggregate claimed damages
thereunder or the good faith estimated value thereof) of $10,000,000 or more,
such Assignor shall promptly notify the Collateral Agent thereof in a writing
signed by such Assignor and describing the details thereof and shall grant to
the Collateral Agent in such writing a security interest therein and in the
proceeds thereof, all upon the terms of this Agreement, with such writing to be
in form and substance reasonably satisfactory to the Collateral Agent.

        3.11 Chattel Paper. Upon the request of the Collateral Agent made at any
time or from time to time, each Assignor shall promptly furnish to the
Collateral Agent a list of all Electronic Chattel Paper held or owned by such
Assignor. Furthermore, if requested by the Collateral Agent, each Assignor shall
promptly take all actions which are reasonably practicable so that the
Collateral Agent has "control" of all Electronic Chattel Paper in accordance
with the requirements of Section 9-105 of the UCC. Each Assignor will promptly
(and in any event within 10 Business Days) following any request by the
Collateral Agent, deliver all of its Tangible Chattel Paper to the Collateral
Agent.

        3.12 Further Actions. Each Assignor will, at its own expense, make,
execute, endorse, acknowledge, file and/or deliver to the Collateral Agent from
time to time such vouchers, invoices, schedules, confirmatory assignments or
grants of security interest, conveyances, financing statements, transfer
endorsements, certificates, reports and other assurances or instruments and take
such further steps, including any and all actions as may be necessary or
required under the Federal Assignment of Claims Act, relating to its Accounts,
Contracts, Instruments, Inventory and other property or rights in each case
constituting Collateral and covered by the security interest hereby granted, as
the Collateral Agent may reasonably require.

                                       13
<PAGE>

                                   ARTICLE IV

            SPECIAL PROVISIONS CONCERNING TRADEMARKS AND DOMAIN NAMES

        4.1 Additional Representations and Warranties. Each Assignor represents
and warrants that it is the true and lawful owner of or otherwise has the right
to use the registered Marks and Domain Names listed in Annex I hereto for such
Assignor and that said listed Marks and Domain Names include all registered
United States Marks and applications for registrations of United States Marks in
the United States Patent and Trademark Office and all Domain Names that such
Assignor owns or uses in connection with its business as of the date hereof.
Each Assignor represents and warrants that it owns, is licensed to use or
otherwise has the right to use, all Marks and Domain Names that it uses, except
where the failure to have such rights, either individually or in the aggregate,
could not reasonably be expected to have a Material Adverse Effect. Each
Assignor further warrants that it has no knowledge of any third party claim
received by it that any aspect of such Assignor's present or contemplated
business operations infringes or will infringe any trademark, service mark or
trade name of any other Person other than as could not, either individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect. Each
Assignor represents and warrants that all U.S. trademark registrations and
applications and Domain Name registrations listed in Annex I hereto are
subsisting, have not been canceled and to such Assignor's knowledge are valid,
and that such Assignor is not aware of any third-party claim that any of said
registrations is invalid or unenforceable. Each Assignor hereby grants to the
Collateral Agent an absolute power of attorney to sign, upon the occurrence and
during the continuance of an Event of Default, any document which may be
required by the United States Patent and Trademark Office or similar registrar
in order to effect an absolute assignment of all right, title and interest in
each Mark and/or Domain Name, and record the same, such appointment as attorney
is coupled with an interest.

        4.2 Licenses and Assignments. Except as otherwise permitted by the
Secured Debt Agreements, each Assignor hereby agrees not to divest itself of any
right under any Mark or Domain Name absent prior written approval of the
Collateral Agent.

        4.3 Infringements. Each Assignor agrees, promptly upon learning thereof,
to notify the Collateral Agent in writing of the name and address of, and to
furnish such pertinent information that may be available with respect to, any
party who such Assignor believes is, or may be, infringing or diluting or
otherwise violating any of such Assignor's rights in and to any Mark or Domain
Name in any manner that could reasonably be expected to have a Material Adverse
Effect, or with respect to any party claiming that such Assignor's use of any
Mark or Domain Name material to such Assignor's business violates in any
material respect any property right of that party. Each Assignor further agrees
to prosecute diligently in accordance with reasonable business practices any
Person infringing any Mark or Domain Name to the extent that such infringement,
either individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.

        4.4 Preservation of Marks and Domain Names. Each Assignor agrees to use
its Marks and Domain Names which are material to such Assignor's business in
interstate commerce during the time in which this Agreement is in effect and to
take all such other actions

                                       14
<PAGE>

as are reasonably necessary to preserve such Marks as trademarks or service
marks under the laws of the United States consistent with Section 4.5 hereof and
other than any such Marks which are no longer used or are deemed by such
Assignor in its reasonable business judgment to no longer be useful in its
business or operations.

        4.5 Maintenance of Registration. Each Assignor shall, at its own
expense, diligently process all documents reasonably required to maintain all
Mark and/or Domain Name registrations, including but not limited to affidavits
of use and applications for renewals of registration in the United States Patent
and Trademark Office for all of its material registered Marks, and shall pay all
fees and disbursements in connection therewith and shall not abandon any such
filing of affidavit of use or any such application of renewal prior to the
exhaustion of all administrative and judicial remedies without prior written
consent of the Collateral Agent (other than with respect to registrations and
applications deemed by such Assignor in its reasonable business judgment to be
no longer prudent to pursue).

        4.6 Future Registered Marks and Domain Names. If any Mark registration
is issued hereafter to any Assignor as a result of any application now or
hereafter pending before the United States Patent and Trademark Office or any
Domain Name is registered by Assignor, within 45 days of receipt of such
certificate or similar indicia of ownership, such Assignor shall deliver to the
Collateral Agent a grant of a security interest in such Mark, to the Collateral
Agent and at the expense of such Assignor, confirming the grant of a security
interest in such Mark to the Collateral Agent hereunder, the form of such
security to be substantially in the form of Annex L hereto or in such other form
as may be reasonably satisfactory to the Collateral Agent.

        4.7 Remedies. If an Event of Default shall occur and be continuing, the
Collateral Agent may, by written notice to the relevant Assignor, take any or
all of the following actions: (i) declare the entire right, title and interest
of such Assignor in and to each of the Marks and Domain Names, together with all
trademark rights and rights of protection to the same, vested in the Collateral
Agent for the benefit of the Secured Creditors, in which event such rights,
title and interest shall immediately vest, in the Collateral Agent for the
benefit of the Secured Creditors, and the Collateral Agent shall be entitled to
exercise the power of attorney referred to in Section 4.1 hereof to execute,
cause to be acknowledged and notarized and record said absolute assignment with
the applicable agency or registrar; (ii) take and use or sell the Marks or
Domain Names and the goodwill of such Assignor's business symbolized by the
Marks or Domain Names and the right to carry on the business and use the assets
of such Assignor in connection with which the Marks or Domain Names have been
used; and (iii) direct such Assignor to refrain, in which event such Assignor
shall refrain, from using the Marks or Domain Names in any manner whatsoever,
directly or indirectly, and such Assignor shall execute such further documents
that the Collateral Agent may reasonably request to further confirm this and to
transfer ownership of the Marks or Domain Names (including any registrations and
any pending trademark applications) in the United States Patent and Trademark
Office or applicable Domain Name registrar to the Collateral Agent.

                                       15
<PAGE>

                                   ARTICLE V

       SPECIAL PROVISIONS CONCERNING PATENTS, COPYRIGHTS AND TRADE SECRETS

        5.1 Additional Representations and Warranties. Each Assignor represents
and warrants that it is the true and lawful owner of all rights in (i) all Trade
Secret Rights, (ii) the Patents listed in Annex J hereto for such Assignor and
that said Patents include all the United States patents and applications for
United States patents that such Assignor owns as of the date hereof and (iii)
the Copyrights listed in Annex K hereto for such Assignor and that said
Copyrights include all the United States copyrights registered with the United
States Copyright Office and applications to United States copyright
registrations that such Assignor owns as of the date hereof. Each Assignor
further warrants that it has no knowledge of any third party claim that any
aspect of such Assignor's present or contemplated business operations infringes
or will infringe any patent of any other Person or such Assignor has
misappropriated any trade secret or proprietary information which, either
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect. Each Assignor hereby grants to the Collateral Agent an
absolute power of attorney to sign, upon the occurrence and during the
continuance of any Event of Default, any document which may be required by the
United States Patent and Trademark Office or the United States Copyright Office
in order to effect an absolute assignment of all right, title and interest in
each Patent or Copyright, and to record the same, such appointment is coupled
with an interest.

        5.2 Licenses and Assignments. Except as otherwise permitted by the
Secured Debt Agreements, each Assignor hereby agrees not to divest itself of any
right under any Patent or Copyright absent prior written approval of the
Collateral Agent.

        5.3 Infringements. Each Assignor agrees, promptly upon learning thereof,
to furnish the Collateral Agent in writing with all pertinent information
available to such Assignor with respect to any infringement, contributing
infringement or active inducement to infringe or other violation of such
Assignor's rights in any Patent or Copyright in any manner that, either
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect, or to any claim that the practice of any Patent or use
of any Copyright violates any property right of a third party, or with respect
to any misappropriation of any Trade Secret Right or any claim that practice of
any Trade Secret Right violates any property right of a third party, in each
case, in any manner which, either individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect. Each Assignor further
agrees, absent direction of the Collateral Agent to the contrary, to diligently
prosecute, in accordance with its reasonable business judgment, any Person
infringing any Patent or Copyright or any Person misappropriating any Trade
Secret Right, in each case to the extent that such infringement or
misappropriation, either individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.

        5.4 Maintenance of Patents or Copyrights. At its own expense, each
Assignor shall make timely payment of all post-issuance fees required to
maintain in force its rights under each Patent or Copyright, absent prior
written consent of the Collateral Agent (other than any such Patents or
Copyrights which are no longer used or are deemed by such Assignor in its
reasonable business judgment to no longer be useful in its business or
operations).

                                       16
<PAGE>

        5.5 Prosecution of Patent or Copyright Applications. At its own expense,
each Assignor shall diligently prosecute all material applications for (i)
United States Patents listed in Annex J hereto and (ii) Copyrights listed on
Annex K hereto, in each case for such Assignor and shall not abandon any such
application prior to exhaustion of all administrative and judicial remedies
(other than applications that are deemed by such Assignor in its reasonable
business judgment to no longer be necessary or useful in the conduct of the
Assignor's business or operations), absent written consent of the Collateral
Agent.

        5.6 Other Patents and Copyrights. Within 45 days of the acquisition or
issuance of a United States Patent, registration of a Copyright, or acquisition
of a registered Copyright, or of filing of an application for a United States
Patent or Copyright registration, the relevant Assignor shall deliver to the
Collateral Agent a grant of a security interest as to such Patent or Copyright,
as the case may be, to the Collateral Agent and at the expense of such Assignor,
confirming the grant of a security interest, the form of such grant of a
security interest to be substantially in the form of Annex M or N hereto, as
appropriate, or in such other form as may be reasonably satisfactory to the
Collateral Agent.

        5.7 Remedies. If an Event of Default shall occur and be continuing, the
Collateral Agent may, by written notice to the relevant Assignor, take any or
all of the following actions: (i) declare the entire right, title, and interest
of such Assignor in each of the Patents and Copyrights vested in the Collateral
Agent for the benefit of the Secured Creditors, in which event such right,
title, and interest shall immediately vest in the Collateral Agent for the
benefit of the Secured Creditors, in which case the Collateral Agent shall be
entitled to exercise the power of attorney referred to in Section 5.1 hereof to
execute, cause to be acknowledged and notarized and to record said absolute
assignment with the applicable agency; (ii) take and practice or sell the
Patents and Copyrights; and (iii) direct such Assignor to refrain, in which
event such Assignor shall refrain, from practicing the Patents and using the
Copyrights directly or indirectly, and such Assignor shall execute such further
documents as the Collateral Agent may reasonably request further to confirm this
and to transfer ownership of the Patents and Copyrights to the Collateral Agent
for the benefit of the Secured Creditors.

                                   ARTICLE VI

                      PROVISIONS CONCERNING ALL COLLATERAL

        6.1 Protection of Collateral Agent's Security. Except as otherwise
permitted by the Secured Debt Agreements, each Assignor will do nothing to
impair the rights of the Collateral Agent in the Collateral. Each Assignor will
at all times maintain insurance, at such Assignor's own expense to the extent
and in the manner provided in the Secured Debt Agreements. Except to the extent
otherwise permitted to be retained by such Assignor or applied by such Assignor
pursuant to the terms of the Secured Debt Agreements, the Collateral Agent
shall, at the time any proceeds of such insurance are distributed to the Secured
Creditors, apply such proceeds in accordance with Section 7.4 hereof. Each
Assignor assumes all liability and responsibility in connection with the
Collateral acquired by it and the liability of such Assignor to pay the
Obligations shall in no way be affected or diminished by reason of the fact that
such Collateral may be lost, destroyed, stolen, damaged or for any reason
whatsoever unavailable to such Assignor.

                                       17
<PAGE>

        6.2 Warehouse Receipts Non-Negotiable. To the extent practicable, each
Assignor agrees that if any warehouse receipt or receipt in the nature of a
warehouse receipt is issued with respect to any of its Inventory, such Assignor
shall request that such warehouse receipt or receipt in the nature thereof shall
not be "negotiable" (as such term is used in Section 7-104 of the Uniform
Commercial Code as in effect in any relevant jurisdiction or under other
relevant law).

        6.3 Additional Information. Each Assignor will, at its own expense, from
time to time upon the reasonable request of the Collateral Agent, promptly (and
in any event within 10 Business Days after its receipt of the respective
request) furnish to the Collateral Agent such information with respect to the
Collateral (including the identity of the Collateral or such components thereof
as may have been requested by the Collateral Agent, the value and location of
such Collateral, etc.) as may be reasonably requested by the Collateral Agent.
Without limiting the forgoing, each Assignor agrees that it shall promptly (and
in any event within 10 Business Days after its receipt of the respective
request) furnish to the Collateral Agent such updated Annexes hereto as may from
time to time be reasonably requested by the Collateral Agent.

        6.4 Further Actions. Each Assignor will, at its own expense and upon the
reasonable request of the Collateral Agent, make, execute, endorse, acknowledge,
file and/or deliver to the Collateral Agent from time to time such lists,
descriptions and designations of its Collateral, warehouse receipts, receipts in
the nature of warehouse receipts, bills of lading, documents of title, vouchers,
invoices, schedules, confirmatory assignments, conveyances, financing
statements, transfer endorsements, certificates, reports, grants of security and
other assurances or instruments and take such further steps relating to the
Collateral and other property or rights covered by the security interest hereby
granted, which the Collateral Agent deems reasonably appropriate or advisable to
perfect, preserve or protect its security interest in the Collateral.

        6.5 Financing Statements. Each Assignor agrees to execute and deliver to
the Collateral Agent such financing statements, in form reasonably acceptable to
the Collateral Agent, as the Collateral Agent may from time to time reasonably
request or as are reasonably necessary or desirable in the opinion of the
Collateral Agent to establish and maintain a valid, enforceable, perfected
security interest in the Collateral as provided herein and the other rights and
security contemplated hereby. Each Assignor will pay any applicable filing fees,
recordation taxes and related expenses relating to its Collateral. Each Assignor
hereby authorizes the Collateral Agent to file any such financing statements
without the signature of such Assignor where permitted by law (and such
authorization includes describing the Collateral as "all assets" of such
Assignor or include a similar generic description as determined by the
Collateral Agent).

        6.6 Acknowledgment. The Collateral Agent in its sole capacity as
collateral agent for the benefit of the Lender Creditors with respect to the
Priority Credit Document Obligations hereby agrees and acknowledges that, to the
extent that it has possession or will have possession of any Collateral, it has
acquired or will acquire possession of Collateral and shall hold such Collateral
on behalf of itself as well as on behalf of the Collateral Agent in its sole
capacity as collateral agent for the benefit of the Secured Creditors with
respect to the Obligations not constituting Priority Credit Document
Obligations, in accordance with Sections 8-301(a)(2), 9-313(a) and 9-313(c) of
the UCC.

                                       18
<PAGE>

                                  ARTICLE VII

                 REMEDIES UPON OCCURRENCE OF AN EVENT OF DEFAULT

        7.1 Remedies; Obtaining the Collateral Upon Default. Each Assignor
agrees that, if any Event of Default shall have occurred and be continuing, then
and in every such case, the Collateral Agent, in addition to any rights now or
hereafter existing under applicable law and under the other provisions of this
Agreement, shall have all rights as a secured creditor under any UCC, and such
additional rights and remedies to which a secured creditor is entitled under the
laws in effect in all relevant jurisdictions and may:

        (i)     personally, or by agents or attorneys, immediately take
    possession of the Collateral or any part thereof, from such Assignor or any
    other Person who then has possession of any part thereof with or without
    notice or process of law, and for that purpose may enter upon such
    Assignor's premises where any of the Collateral is located and remove the
    same and use in connection with such removal any and all services, supplies,
    aids and other facilities of such Assignor;

        (ii)    instruct the obligor or obligors on any agreement, instrument or
    other obligation (including, without limitation, the Accounts and the
    Contracts) constituting the Collateral to make any payment required by the
    terms of such agreement, instrument or other obligation directly to the
    Collateral Agent and may exercise any and all remedies of such Assignor in
    respect of such Collateral;

        (iii)   instruct all banks which have entered into a control agreement
    with the Collateral Agent (including any Secured Creditor that has control
    over a Deposit Account) to transfer all monies, securities and instruments
    held by such depositary bank to the Cash Collateral Account;

        (iv)    sell, assign or otherwise liquidate any or all of the Collateral
    or any part thereof in accordance with Section 7.2 hereof, or direct such
    Assignor to sell, assign or otherwise liquidate any or all of the Collateral
    or any part thereof, and, in each case, take possession of the proceeds of
    any such sale or liquidation;

        (v)     take possession of the Collateral or any part thereof, by
    directing such Assignor in writing to deliver the same to the Collateral
    Agent at any reasonable place or places designated by the Collateral Agent,
    in which event such Assignor shall at its own expense:

                        (x)     forthwith cause the same to be moved to the
                place or places so designated by the Collateral Agent and there
                delivered to the Collateral Agent;

                        (y)     store and keep any Collateral so delivered to
                the Collateral Agent at such place or places pending further
                action by the Collateral Agent as provided in Section 7.2
                hereof; and

                                       19
<PAGE>

                        (z)     while the Collateral shall be so stored and
                kept, provide such security and maintenance services as shall be
                reasonably necessary to protect the same and to preserve and
                maintain it in good condition;

        (vi)    license or sublicense, whether on an exclusive or nonexclusive
    basis, any Marks, Domain Names, Patents or Copyrights included in the
    Collateral for such term and on such conditions and in such manner as the
    Collateral Agent shall in its sole judgment determine;

        (vii)   apply any monies constituting Collateral or proceeds thereof in
    accordance with the provisions of Section 7.4; and

        (viii)  take any other action as specified in clauses (1) through (5),
    inclusive, of Section 9-607 of the UCC;

it being understood that each Assignor's obligation so to deliver the Collateral
is of the essence of this Agreement and that, accordingly, upon application to a
court of equity having jurisdiction, the Collateral Agent shall be entitled to a
decree requiring specific performance by such Assignor of said obligation. By
accepting the benefits of this Agreement and each other Security Document, the
Secured Creditors expressly acknowledge and agree that, except as, and to the
extent, provided in Section 4(a) of Annex O attached hereto, this Agreement and
each other Security Document may be enforced only by the action of the
Collateral Agent acting upon the instructions of the Required Secured Creditors
and that no other Secured Creditor shall have any right individually to seek to
enforce or to enforce this Agreement or to realize upon the security to be
granted hereby, it being understood and agreed that such rights and remedies may
be exercised by the Collateral Agent or the holders of at least a majority of
the outstanding other Obligations, as the case may be, for the benefit of the
Secured Creditors upon the terms of this Agreement and the other Credit Party
Security Documents.

        7.2 Remedies; Disposition of the Collateral. If any Event of Default
shall have occurred and be continuing, then any Collateral repossessed by the
Collateral Agent under or pursuant to Section 7.1 hereof and any other
Collateral whether or not so repossessed by the Collateral Agent, may be sold,
assigned, leased or otherwise disposed of under one or more contracts or as an
entirety, and without the necessity of gathering at the place of sale the
property to be sold, and in general in such manner, at such time or times, at
such place or places and on such terms as the Collateral Agent may, in
compliance with any mandatory requirements of applicable law, determine to be
commercially reasonable. Any of the Collateral may be sold, leased or otherwise
disposed of, in the condition in which the same existed when taken by the
Collateral Agent or after any overhaul or repair at the expense of the relevant
Assignor which the Collateral Agent shall determine to be commercially
reasonable. Any such sale, lease or other disposition may be effected by means
of a public disposition or private disposition, effected in accordance with the
applicable requirements (in each case if and to the extent applicable) of
Sections 9-610 through 9-613 of the UCC and/or such other mandatory requirements
of applicable law as may apply to the respective disposition. The Collateral
Agent may, without notice or publication, adjourn any public or private
disposition or cause the same to be adjourned from time to time by announcement
at the time and place fixed for the disposition, and such disposition may be
made at any time or place to which the disposition may be so adjourned. To the
extent permitted by

                                       20
<PAGE>

any such requirement of law, the Collateral Agent may bid for and become the
purchaser (and may pay all or any portion of the purchase price by crediting
Obligations against the purchase price) of the Collateral or any item thereof,
offered for disposition in accordance with this Section 7.2 without
accountability to the relevant Assignor. If, under applicable law, the
Collateral Agent shall be permitted to make disposition of the Collateral within
a period of time which does not permit the giving of notice to the relevant
Assignor as hereinabove specified, the Collateral Agent need give such Assignor
only such notice of disposition as shall be required by such applicable law.
Each Assignor agrees to do or cause to be done all such other acts and things as
may be reasonably necessary to make such disposition or dispositions of all or
any portion of the Collateral valid and binding and in compliance with any and
all applicable laws, regulations, orders, writs, injunctions, decrees or awards
of any and all courts, arbitrators or governmental instrumentalities, domestic
or foreign, having jurisdiction over any such sale or sales, all at such
Assignor's expense.

        7.3 Waiver of Claims. Except as otherwise provided in this Agreement,
(a) EACH ASSIGNOR HEREBY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW,
NOTICE AND JUDICIAL HEARING IN CONNECTION WITH THE COLLATERAL AGENT'S TAKING
POSSESSION OR THE COLLATERAL AGENT'S DISPOSITION OF ANY OF THE COLLATERAL,
INCLUDING, WITHOUT LIMITATION, ANY AND ALL PRIOR NOTICE AND HEARING FOR ANY
PREJUDGMENT REMEDY OR REMEDIES, and (b) each Assignor hereby further waives, to
the extent permitted by law:

        (i)     all damages occasioned by such taking of possession or any such
    disposition except any damages which are the direct result of the Collateral
    Agent's gross negligence or willful misconduct (as determined by a court of
    competent jurisdiction in a final and non-appealable decision);

        (ii)    all other requirements as to the time, place and terms of sale
    or other requirements with respect to the enforcement of the Collateral
    Agent's rights hereunder; and

        (iii)   all rights of redemption, appraisement, valuation, stay,
    extension or moratorium now or hereafter in force under any applicable law
    in order to prevent or delay the enforcement of this Agreement or the
    absolute sale of the Collateral or any portion thereof, and each Assignor,
    for itself and all who may claim under it, insofar as it or they now or
    hereafter lawfully may, hereby waives the benefit of all such laws.

Any sale of, or the grant of options to purchase, or any other realization upon,
any Collateral shall operate to divest all right, title, interest, claim and
demand, either at law or in equity, of the relevant Assignor therein and
thereto, and shall be a perpetual bar both at law and in equity against such
Assignor and against any and all Persons claiming or attempting to claim the
Collateral so sold, optioned or realized upon, or any part thereof, from,
through and under such Assignor.

        7.4 Application of Proceeds. All moneys collected by the Collateral
Agent upon any sale or other disposition of any Collateral pursuant to the
enforcement of this Agreement or the exercise of any of the remedial provisions
hereof (or, if any other Security

                                       21
<PAGE>

Document requires proceeds of "collateral" thereunder to be applied in
accordance with the terms of this Agreement, by such "collateral agent"
thereunder pursuant to the enforcement of such Security Document or the exercise
of the remedial provisions thereof), together with all other moneys received by
the Collateral Agent hereunder in respect of the Collateral (or such "collateral
agent" under such other Security Documents) (including all monies received in
respect of post-petition interest) as a result of any such enforcement or the
exercise of any such remedial provisions or as a result of any distribution of
any Collateral (or "collateral" under any other Security Document, as the case
may be) upon the bankruptcy, arrangement, receivership, assignment for the
benefit of creditors or any other action or proceeding involving the
readjustment of the obligations and indebtedness of any Assignor, or the
application of any Collateral (or "collateral" under any other Security
Document, as the case may be) to the payment thereof or any distribution of
Collateral (or "collateral" under any other Security Document, as the case may
be) upon the liquidation or dissolution of any Assignor, or the winding up of
the assets or business of any Assignor or under any insurance policies insuring
any of the Collateral (or "collateral" under any other Security Document, as the
case may be), shall be applied as follows:

        (i)     first, to the payment of all amounts owing to the Collateral
    Agent of the type described in clauses (iv) and (v) of the definition of
    "Obligations";

        (ii)    second, to the extent proceeds remain after the application
    pursuant to preceding clause (i), an amount equal to the outstanding
    Priority Credit Document Obligations consisting of (I) amounts owing by the
    L/C Participants to the Issuing Lenders (plus all interest accrued pursuant
    to the Credit Agreement with respect thereto) with respect to Unpaid
    Drawings owing to the Issuing Lenders that have not been reimbursed by the
    Credit Parties (such amounts to be determined (x) taking into account any
    fluctuations in the Dollar Equivalent of any such Unpaid Drawings
    denominated in an Alternative Currency and (y) without regard to the
    adequacy of the Credit Linked-Deposits in the Credit-Linked Deposit Account)
    and (II) undrawn amounts with respect to Letters of Credit denominated in an
    Alternative Currency (taking the Dollar Equivalent thereof), in each case
    shall be paid to the respective Issuing Lender for such unreimbursed Unpaid
    Drawings as provided in Section 7.4(d) hereof and to cash collateralize such
    undrawn amounts for such Letters of Credit as provided in Section 7.4(c)
    hereof, with each such Issuing Lender receiving an amount equal to its
    outstanding Priority Credit Document Obligations as such or, if the proceeds
    are insufficient to pay in full all such Priority Credit Document
    Obligations, its Pro Rata Share of the amount remaining to be distributed;

        (iii)   third, to the extent proceeds remain after the application
    pursuant to preceding clauses (i) and (ii), an amount equal to the remaining
    outstanding Priority Credit Document Obligations (including all Unpaid
    Drawings (and interest thereon) that are not covered under preceding clause
    (ii)) shall be paid to the Lender Creditors as provided in Section 7.4(d)
    hereof, with each Lender Creditor receiving an amount equal to its remaining
    outstanding Priority Credit Document Obligations or, if the proceeds are
    insufficient to pay in full all such remaining Priority Credit Document
    Obligations, its Pro Rata Share of the amount remaining to be distributed;

                                       22
<PAGE>

        (iv)    fourth, to the extent proceeds remain after the application
    pursuant to preceding clauses (i) through (iii), inclusive, an amount equal
    to the remaining outstanding Obligations shall be paid to the Secured
    Creditors as provided in Section 7.4(d) hereof, with each Secured Creditor
    receiving an amount equal to its remaining outstanding Obligations or, if
    the proceeds are insufficient to pay in full all such remaining Obligations,
    its Pro Rata Share of the amount remaining to be distributed; and

        (v)     fifth, to the extent proceeds remain after the application
    pursuant to preceding clauses (i) through (iv), inclusive, and following the
    termination of this Agreement pursuant to Section 10.8(a) hereof, to the
    relevant Assignor or to whomever may be lawfully entitled to receive such
    surplus.

        (b)     For purposes of this Agreement, "Pro Rata Share" shall mean, (x)
when calculating a Lender Creditor's portion of any distribution or amount in
respect of Priority Credit Document Obligations, that amount (expressed as a
percentage) equal to a fraction the numerator of which is the then unpaid amount
of such Lender Creditor's Priority Credit Document Obligations, and the
denominator of which is the then outstanding amount of all Priority Credit
Document Obligations (or, in the case of Section 7.4(a)(ii) hereof, all Priority
Credit Document Obligations owing to the Issuing Lenders as provided in such
Section 7.4(a)(ii)), and (y) when calculating a Secured Creditors portion of any
remaining distribution or amount in respect of the obligations, that amount
(expressed as a percentage) equal to a fraction the numerator of which is the
then unpaid amount of such Secured Creditor's remaining Obligations and the
denominator of which is the then outstanding amount of all remaining
Obligations.

        (c)     Each of the Secured Creditors, by their acceptance of the
benefits hereof and of the other Security Documents, agrees and acknowledges
that if the Lender Creditors receive a distribution on account of undrawn
amounts with respect to Letters of Credit issued under the Credit Agreement
(which, except as otherwise provided in Section 7.4(a)(ii) hereof, shall only
occur after all outstanding Loans under the Credit Agreement and Unpaid Drawings
have been paid in full), such amounts shall be paid to the Administrative Agent
under the Credit Agreement and held by it, for the equal and ratable benefit of
the Lender Creditors, as cash security for the repayment of Obligations owing to
the Lender Creditors as such. If any amounts are held as cash security pursuant
to the immediately preceding sentence, then upon the termination of all
outstanding Letters of Credit under the Credit Agreement, and after the
application of all such cash security to the repayment of all Obligations owing
to the Lender Creditors after giving effect to the termination of all such
Letters of Credit, if there remains any excess cash, such excess cash shall be
returned by the Administrative Agent to the Collateral Agent for distribution in
accordance with Section 7.4(a) hereof.

        (d)     All payments required to be made hereunder shall be made (v) if
to the Lender Creditors, to the Administrative Agent for the account of the
Lender Creditors, (w) if to the Hedging Creditors, to the trustee, paying agent
or other similar representative (each, a "Representative") for the Hedging
Creditors or, in the absence of such a Representative, directly to the Hedging
Creditors, (x) if to the Additional Secured Creditors, directly to the
Additional Secured Creditors, (y) if to the Existing 2023 Senior Noteholders, to
the Trustee for the account of the Existing 2023 Senior Noteholders, and (z) if
to the Existing 2026 Senior Noteholders, to the Trustee for the account of the
Existing 2026 Senior Noteholders.

                                       23
<PAGE>

        (e)     For purposes of applying payments received in accordance with
this Section 7.4, the Collateral Agent shall be entitled to rely upon (i) the
Administrative Agent, (ii) the Representative or, in the absence of such a
Representative, upon the Hedging Creditors, (iii) the Additional Secured
Creditors and (iv) the Trustee for a determination of the outstanding
Obligations owed to the Lender Creditors, the Hedging Creditors, the Additional
Secured Creditors or the respective Existing Senior Noteholders, as the case may
be.

        (f)     It is understood that each Assignor shall remain liable with
respect to its Credit Document Obligations, Hedging Obligations and Additional
Secured Obligations to the extent of any deficiency between the amount of the
proceeds of the Collateral granted by it hereunder and the aggregate amount of
such Obligations.

        (g)     Notwithstanding anything to the contrary contained in this
Agreement or in any other Security Document, the maximum aggregate principal
amount of the Existing 2023 Senior Notes and the Existing 2026 Senior Notes
secured by the Collateral (and all other "collateral" under the other Security
Documents) shall be $110,000,000 (less any repayments of principal thereof made
after the date hereof) and $150,000,000 (less any repayments of principal
thereof made after the date hereof), respectively.

        (h)     Notwithstanding anything to the contrary contained in this
Agreement or in any other Security Document, the maximum amount of Additional
Secured Obligations secured by the Collateral (and all other "collateral" under
the other Security Documents) shall be limited as set forth in the definition of
"Obligations" contained in Article IX hereof.

        7.5 Remedies Cumulative. Each and every right, power and remedy hereby
specifically given to the Collateral Agent shall be in addition to every other
right, power and remedy specifically given to the Collateral Agent under this
Agreement, the other Secured Debt Agreements or now or hereafter existing at
law, in equity or by statute and each and every right, power and remedy whether
specifically herein given or otherwise existing may be exercised from time to
time or simultaneously and as often and in such order as may be deemed expedient
by the Collateral Agent. All such rights, powers and remedies shall be
cumulative and the exercise or the beginning of the exercise of one shall not be
deemed a waiver of the right to exercise any other or others. No delay or
omission of the Collateral Agent in the exercise of any such right, power or
remedy and no renewal or extension of any of the Obligations shall impair any
such right, power or remedy or shall be construed to be a waiver of any Default
or Event of Default or an acquiescence thereof. No notice to or demand on any
Assignor in any case shall entitle it to any other or further notice or demand
in similar or other circumstances or constitute a waiver of any of the rights of
the Collateral Agent to any other or further action in any circumstances without
notice or demand. In the event that the Collateral Agent shall bring any suit to
enforce any of its rights hereunder and shall be entitled to judgment, then in
such suit the Collateral Agent may recover reasonable expenses, including
reasonable attorneys' fees, and the amounts thereof shall be included in such
judgment.

        7.6 Discontinuance of Proceedings. In case the Collateral Agent shall
have instituted any proceeding to enforce any right, power or remedy under this
Agreement by foreclosure, sale, entry or otherwise, and such proceeding shall
have been discontinued or abandoned for any reason or shall have been determined
adversely to the Collateral Agent, then and in every such

                                       24
<PAGE>

case the relevant Assignor, the Collateral Agent and each holder of any of the
Obligations shall be restored to their former positions and rights hereunder
with respect to the Collateral subject to the security interest created under
this Agreement, and all rights, remedies and powers of the Collateral Agent
shall continue as if no such proceeding had been instituted.

                                  ARTICLE VIII

                                    INDEMNITY

        8.1 Indemnity. (a) Each Assignor jointly and severally agrees to
indemnify, reimburse and hold the Collateral Agent, each other Secured Creditor
(excluding the Existing Senior Noteholders) and their respective successors,
assigns, employees, affiliates and agents (hereinafter in this Section 8.1
referred to individually as "Indemnitee," and collectively as "Indemnitees")
harmless from any and all liabilities, obligations, damages, injuries,
penalties, claims, demands, actions, suits, judgments and any and all reasonable
costs, expenses or disbursements (including reasonable attorneys' fees and
expenses) (for the purposes of this Section 8.1 the foregoing are collectively
called "expenses") of whatsoever kind and nature imposed on, asserted against or
incurred by any of the Indemnitees in any way relating to or arising out of this
Agreement, any other Secured Debt Agreement or any other document executed in
connection herewith or therewith or in any other way connected with the
administration of the transactions contemplated hereby or thereby or the
enforcement of any of the terms of, or the preservation of any rights under any
thereof, or in any way relating to or arising out of the manufacture, ownership,
ordering, purchase, delivery, control, acceptance, lease, financing, possession,
operation, condition, sale, return or other disposition, or use of the
Collateral (including, without limitation, latent or other defects, whether or
not discoverable), the violation of the laws of any country, state or other
governmental body or unit, any tort (including, without limitation, claims
arising or imposed under the doctrine of strict liability, or for or on account
of injury to or the death of any Person (including any Indemnitee), or property
damage), or contract claim; provided, that no Indemnitee shall be indemnified
pursuant to this Section 8.1(a) for losses, damages or liabilities to the extent
caused by the gross negligence or willful misconduct of such Indemnitee (as
determined by a court of competent jurisdiction in a final and non-appealable
decision); and provided, further, that indemnification with respect to taxes
shall, except as set forth in Sections 8.1(b) and (c) hereof, be governed solely
and exclusively by Section 4.04 of the Credit Agreement. Each Assignor agrees
that upon written notice by any Indemnitee of the assertion of such a liability,
obligation, damage, injury, penalty, claim, demand, action, suit or judgment,
the relevant Assignor shall assume full responsibility for the defense thereof.
Each Indemnitee agrees to use its best efforts to promptly notify the relevant
Assignor of any such assertion of which such Indemnitee has knowledge.

        (b)     Without limiting the application of Section 8.1(a) hereof, each
Assignor agrees, jointly and severally, to pay or reimburse the Collateral Agent
for any and all reasonable fees, costs and expenses of whatever kind or nature
incurred in connection with the creation, preservation or protection of the
Collateral Agent's Liens on, and security interest in, the Collateral,
including, without limitation, all fees and taxes in connection with the
recording or filing of instruments and documents in public offices, payment or
discharge of any taxes or Liens upon or in respect of the Collateral, premiums
for insurance required by the Credit Documents to be maintained with respect to
the Collateral and all other fees, costs and expenses in connection

                                       25
<PAGE>

with protecting, maintaining or preserving the Collateral and the Collateral
Agent's interest therein, whether through judicial proceedings or otherwise, or
in defending or prosecuting any actions, suits or proceedings arising out of or
relating to the Collateral.

        (c)     Without limiting the application of Section 8.1(a) or (b)
hereof, each Assignor agrees, jointly and severally, to pay, indemnify and hold
each Indemnitee harmless from and against any reasonable loss, costs, damages
and expenses which such Indemnitee may suffer, expend or incur in consequence of
or growing out of any misrepresentation by any Assignor in this Agreement, any
other Secured Debt Agreement or in any writing contemplated by or made or
delivered pursuant to or in connection with this Agreement or any other Secured
Debt Agreement.

        (d)     If and to the extent that the obligations of any Assignor under
this Section 8.1 are unenforceable for any reason, such Assignor hereby agrees
to make the maximum contribution to the payment and satisfaction of such
obligations which is permissible under applicable law.

        8.2 Indemnity Obligations Secured by Collateral; Survival. Any amounts
paid by any Indemnitee as to which such Indemnitee has the right to
reimbursement shall constitute Obligations secured by the Collateral. The
indemnity obligations of each Assignor contained in this Article VIII shall
continue in full force and effect notwithstanding the full payment of all of the
other Obligations and notwithstanding the full payment of all the Notes issued,
and Loans made, under the Credit Agreement, the termination of all Letters of
Credit issued under the Credit Agreement, the termination of all Interest Rate
Protection Agreements and Other Hedging Agreements entered into with the Hedging
Creditors, the termination of all Additional Secured Agreements entered into
with the Additional Secured Creditors and the payment of all other Obligations
and notwithstanding the discharge thereof and the occurrence of the Termination
Date.

                                   ARTICLE IX

                                   DEFINITIONS

The following terms shall have the meanings herein specified. Such definitions
shall be equally applicable to the singular and plural forms of the terms
defined.

        "Account" shall mean any "account" as such term is defined in the
Uniform Commercial Code as in effect on the date hereof in the State of New
York, and in any event shall include, but shall not be limited to, all rights to
payment of any monetary obligation, whether or not earned by performance, (i)
for property that has been or is to be sold, leased, licensed, assigned or
otherwise disposed of, (ii) for services rendered or to be rendered, (iii) for a
policy of insurance issued or to be issued, (iv) for a secondary obligation
incurred or to be incurred, (v) for energy provided or to be provided, (vi) for
the use or hire of a vessel under a charter or other contract, (vii) arising out
of the use of a credit or charge card or information contained on or for use
with the card, or (viii) as winnings in a lottery or other game of chance
operated or sponsored by a State, governmental unit of a State, or person
licensed or authorized to operate the game by

                                       26
<PAGE>

a State or governmental unit of a State. Without limiting the foregoing, the
term "account" shall include all Health-Care-Insurance Receivables.

        "Additional Secured Agreement" shall have the meaning provided in the
recitals of this Agreement.

        "Additional Secured Creditor" shall have the meaning provided in the
recitals to this Agreement.

        "Additional Secured Obligations" shall have the meaning provided in the
definition of "Obligations" contained in this Article IX.

        "Administrative Agent" shall have the meaning provided in the recitals
of this Agreement.

        "Agreement" shall mean this Security Agreement as the same may be
amended, modified, restated and/or supplemented from time to time in accordance
with its terms.

        "As-Extracted Collateral" shall mean "as-extracted collateral" as such
term is defined in the Uniform Commercial Code as in effect on the date hereof
in the State of New York.

        "Assignor" shall have the meaning provided in the first paragraph of
this Agreement.

        "Borrower" shall have the meaning provided in the recitals of this
Agreement.

        "Cash Collateral Account" shall mean a non-interest bearing cash
collateral account maintained with, and in the sole dominion and control of, the
Collateral Agent for the benefit of the Secured Creditors.

        "Chattel Paper" shall mean "chattel paper" as such term is defined in
the Uniform Commercial Code as in effect on the date hereof in the State of New
York. Without limiting the foregoing, the term "Chattel Paper" shall in any
event include all Tangible Chattel Paper and all Electronic Chattel Paper.

        "Class" shall have the meaning provided in Section 10.2 of this
Agreement.

        "CNTA Basket" shall mean, at any time, the greater of (i) 10% of the
Consolidated Net Tangible Assets as of the Designated Date and (ii) any larger
amount of obligations permitted to be incurred and secured by the Borrower and
its Subsidiaries pursuant to the Existing Senior Notes Indenture without the
requirement to equally and ratably secure any of the Existing Senior Notes.

        "Collateral" shall have the meaning provided in Section 1.1(a) of this
Agreement.

        "Collateral Agent" shall have the meaning provided in the first
paragraph of this Agreement.

                                       27
<PAGE>

        "Commercial Tort Claims" shall mean "commercial tort claims" as such
term is defined in the Uniform Commercial Code as in effect on the date hereof
in the State of New York.

        "Consolidated Net Tangible Assets" shall have the meaning provided in
the Existing Senior Notes Indenture.

        "Contract Rights" shall mean all rights of any Assignor under each
Contract, including, without limitation, (i) any and all rights to receive and
demand payments under any or all Contracts, (ii) any and all rights to receive
and compel performance and exercise of remedies under any or all Contracts and
(iii) any and all other rights, interests and claims now existing or in the
future arising in connection with any or all Contracts.

        "Contracts" shall mean all contracts between any Assignor and one or
more additional parties (including, without limitation, any Interest Rate
Protection Agreements, Other Hedging Agreements, licensing agreements,
partnership agreements, joint venture agreements and limited liability company
agreements).

        "Copyrights" shall mean any United States or foreign copyright now or
hereafter owned by any Assignor, including any registrations of any copyrights,
in the United States Copyright Office or any foreign equivalent office, as well
as any application for a copyright registration now or hereafter made with the
United States Copyright Office or any foreign equivalent office by any Assignor.

        "Credit Agreement" shall have the meaning provided in the recitals of
this Agreement.

        "Credit Document Obligations" shall have the meaning provided in the
definition of "Obligations" in this Article IX.

        "Deposit Accounts" shall mean all "deposit accounts" as such term is
defined in the Uniform Commercial Code as in effect on the date hereof in the
State of New York.

        "Designated Date" shall mean, at any time, the latest of (a) the
Effective Date, (b) the most recent date, if any, subsequent to the Effective
Date on which any Credit Event shall have occurred and on which, immediately
prior to such Credit Event, the aggregate amount of the Primary Credit Document
Obligations shall have been less than the CNTA Basket on the Designated Date
theretofore in effect and (c) any date after the later of the dates referred to
in preceding clauses (a) and (b) on which the CNTA Basket shall have been
greater than on the Designated Date theretofore in effect.

        "Documents" shall mean "documents" as such term is defined in the
Uniform Commercial Code as in effect on the date hereof in the State of New
York.

        "Domain Names" shall mean all Internet domain names and associated URL
addresses now or hereafter owned by any Assignor.

                                       28
<PAGE>

        "Domestic Receivables Facility Property" shall mean, so long as the New
Domestic Receivables Facility is in effect, any promissory notes issued by, and
any Equity Interests in, Crompton Receivables Corporation or any successor
entity that is a purchaser of Accounts from the Borrower and/or one or more
Domestic Subsidiaries thereof pursuant to the New Domestic Receivables Facility
and any accounts, collections, records and other property sold pursuant to (or
otherwise subject to a Lien of) the New Domestic Receivables Facility and
sufficiently described therein within the meaning of Section 9-108 of the UCC,
in each case to the extent that a grant of a security interest in any such
property is prohibited by the terms of the New Domestic Receivables Facility.

        "Electronic Chattel Paper" shall mean "electronic chattel paper" as such
term is defined in the Uniform Commercial Code as in effect on the date hereof
in the State of New York.

        "Equipment" shall mean any "equipment" as such term is defined in the
Uniform Commercial Code as in effect on the date hereof in the State of New
York, and in any event, shall include, but shall not be limited to, all
machinery, equipment, furnishings, fixtures and vehicles now or hereafter owned
by any Assignor and any and all additions, substitutions and replacements of any
of the foregoing and all accessions thereto, wherever located, together with all
attachments, components, parts, equipment and accessories installed thereon or
affixed thereto.

        "Event of Default" shall mean any (A) Event of Default (or similar term)
under, and as defined in, (i) the Credit Agreement, (ii) any Interest Rate
Protection Agreement or Other Hedging Agreement entered into with a Hedging
Creditor and (iii) the Existing Senior Notes Indenture and shall in any event
include, without limitation, any payment default on any of the Obligations after
the expiration of any applicable grace period and (B) any payment default (after
the expiration of any applicable grace periods) of any Additional Secured
Obligations.

        "Existing Senior Note Event" shall have the meaning provided in Section
10.8(b) of this Agreement.

        "Existing Senior Noteholders" shall have the meaning provided in the
recitals of this Agreement.

        "Existing Senior Notes" shall have the meaning provided in the recitals
of the Agreement.

        "Existing Senior Notes Documents" shall mean, collectively, the Existing
2023 Senior Notes, the Existing 2026 Senior Notes and the Existing Senior Notes
Indenture.

        "Existing Senior Notes Obligations" shall have the meaning provided in
the definition of "Obligations" in this Article IX.

        "Existing 2023 Senior Noteholders" shall have the meaning provided in
the recitals of this Agreement.

                                       29
<PAGE>

        "Existing 2026 Senior Noteholders" shall have the meaning provided in
the recitals of this Agreement.

        "General Intangibles" shall mean "general intangibles" as such term is
defined in the Uniform Commercial Code as in effect on the date hereof in the
State of New York.

        "Goods" shall mean "goods" as such term is defined in the Uniform
Commercial Code as in effect on the date hereof in the State of New York.

        "Health-Care-Insurance Receivable" shall mean any "health-care-insurance
receivable" as such term is defined in the Uniform Commercial Code as in effect
on the date hereof in the State of New York.

        "Hedging Creditors" shall have the meaning provided in the recitals of
this Agreement.

        "Hedging Obligations" shall have the meaning provided in the definition
of "Obligations" in this Article IX.

        "Indemnitee" shall have the meaning provided in Section 8.1(a) of this
Agreement.

        "Instrument" shall mean "instruments" as such term is defined in the
Uniform Commercial Code as in effect on the date hereof in the State of New
York.

        "Inventory" shall mean merchandise, inventory and goods, and all
additions, substitutions and replacements thereof and all accessions thereto,
wherever located, together with all goods, supplies, incidentals, packaging
materials, labels, materials and any other items used or usable in
manufacturing, processing, packaging or shipping same, in all stages of
production from raw materials through work in process to finished goods, and all
products and proceeds of whatever sort and wherever located any portion thereof
which may be returned, rejected, reclaimed or repossessed by the Collateral
Agent from any Assignor's customers, and shall specifically include all
"inventory" as such term is defined in the Uniform Commercial Code as in effect
on the date hereof in the State of New York.

        "Investment Property" shall mean "investment property" as such term is
defined in the Uniform Commercial Code as in effect on the date hereof in the
State of New York.

        "Lender Creditors" shall have the meaning provided in the recitals of
this Agreement.

        "Lenders" shall have the meaning provided in the recitals of this
Agreement.

        "Letter-of-Credit Rights" shall mean "letter-of-credit rights" as such
term is defined in the Uniform Commercial Code as in effect on the date hereof
in the State of New York.

                                       30
<PAGE>

        "Location" of any Assignor, shall mean such Assignor's "location" as
determined pursuant to Section 9-307 of the UCC.

        "Marks" shall mean any trademarks, service marks and trade names now
held or hereafter acquired by any Assignor, including any registration or
application for registration of any trademarks and service marks now held or
hereafter acquired by any Assignor, which are registered or filed in the United
States Patent and Trademark Office or the equivalent thereof in any state of the
United States or any equivalent foreign office or agency, as well as any
unregistered trademarks and service marks used by an Assignor and any trade
dress including logos, designs, fictitious business names and other business
identifiers used by any Assignor.

        "New Domestic Receivables Facility" shall have the meaning provided in
the Credit Agreement; provided that, in the case of any refinancing,
replacement, extension or restatement of the New Domestic Receivables Facility
in effect on the Effective Date, in order for such New Domestic Receivables
Facility to be considered the "New Domestic Receivables Facility" for purposes
of this Agreement, such facility must expressly state that it constitutes the
"New Domestic Receivables Facility" for purposes of the Security Documents and
the Collateral Agent shall have acknowledged it as such in writing.

        "Notice of Security Entitlement" shall have the meaning provided in the
definition of "Obligations" contained in this Article IX.

        "Obligations" shall mean and include, as to any Assignor, all of the
following:

                (i)     the full and prompt payment when due (whether at stated
    maturity, by acceleration or otherwise) of all obligations, liabilities and
    indebtedness (including, without limitation, principal, premium, interest
    (including, without limitation, all interest that accrues after the
    commencement of any case, proceeding or other action relating to the
    bankruptcy, insolvency, reorganization or similar proceeding of any Assignor
    at the rate provided for in the respective documentation, whether or not a
    claim for post-petition interest is allowed in any such proceeding),
    reimbursement obligations under Letters of Credit, fees, costs and
    indemnities) of such Assignor and each other Assignor to the Lender
    Creditors, whether now existing or hereafter incurred under, arising out of,
    or in connection with, the Credit Agreement and the other Credit Documents
    to which such Assignor and each other Assignor is a party (including,
    without limitation, in the event such Assignor is a Subsidiary Guarantor,
    all such obligations, liabilities and indebtedness of such Assignor and each
    other Assignor under the Subsidiaries Guaranty) and the due performance and
    compliance by such Assignor and each other Assignor with all of the terms,
    conditions and agreements contained in the Credit Agreement and in such
    other Credit Documents (all such obligations, liabilities and indebtedness
    under this clause (i), except to the extent consisting of obligations or
    indebtedness with respect to Interest Rate Protection Agreements or Other
    Hedging Agreements, being herein collectively called the "Credit Document
    Obligations");

                (ii)    the full and prompt payment when due (whether at stated
    maturity, by acceleration or otherwise) of all obligations, liabilities and
    indebtedness (including, without limitation, all interest that accrues after
    the commencement of any case, proceed-

                                       31
<PAGE>

    ing or other action relating to the bankruptcy, insolvency, reorganization
    or similar proceeding of any Assignor at the rate provided for in the
    respective documentation, whether or not a claim for post-petition interest
    is allowed in any such proceeding) owing by such Assignor and each other
    Assignor to the Hedging Creditors, whether now existing or hereafter
    incurred under, arising out of or in connection with any Interest Rate
    Protection Agreement or Other Hedging Agreement, whether such Interest Rate
    Protection Agreement or Other Hedging Agreement is now in existence or
    hereinafter arising (including, without limitation, in the case of a
    Assignor that is a Subsidiary Guarantor, all obligations, liabilities and
    indebtedness of such Assignor and each other Assignor under the Subsidiaries
    Guaranty in respect of the Interest Rate Protection Agreements and Other
    Hedging Agreements), and the due performance and compliance by such Assignor
    and each other Assignor with all of the terms, conditions and agreements
    contained in each such Interest Rate Protection Agreement and Other Hedging
    Agreement (all such obligations, liabilities and indebtedness under this
    clause (ii) being herein collectively called the "Hedging Obligations");

                (iii)   the full and prompt payment when due (whether at the
    stated maturity, by acceleration or otherwise) of all obligations,
    liabilities and indebtedness (including, without limitation, principal,
    premium and interest (including, without limitation, all interest that
    accrues after the commencement of any case, proceeding or other action
    relating to the bankruptcy, insolvency, reorganization or similar proceeding
    of the Borrower at the rate provided for in the respective documentation,
    whether or not a claim for post-petition interest is allowed in any such
    proceeding)) owing by the Borrower to the Existing Senior Noteholders,
    whether now existing or hereafter incurred under, arising out of or in
    connection with the Existing Senior Notes and the other Existing Senior
    Notes Documents and the due performance and compliance by the Borrower with
    all of the terms, conditions and agreements contained in the Existing Senior
    Notes Documents (all such obligations, liabilities and indebtedness under
    this clause (iii) being herein collectively called the "Existing Senior
    Notes Obligations";

                (iv)    the full and prompt payment when due (whether at stated
    maturity, by acceleration or otherwise) of all obligations, liabilities and
    indebtedness (including, without limitation, all interest that accrues after
    the commencement of any case, proceeding or other action relating to the
    bankruptcy, insolvency, reorganization or similar proceeding of any Assignor
    at the rate provided for in the respective documentation, whether or not a
    claim for post-petition interest is allowed in any such proceeding) owing by
    such Assignor to the Additional Secured Creditors, whether now existing or
    hereafter incurred under, arising out of or in connection with any
    Additional Secured Agreement, whether such Additional Secured Agreement is
    now in existence or hereinafter arising, and the due performance and
    compliance by such Assignor with all of the terms, conditions and agreements
    contained in each such Additional Secured Agreement (all such obligations,
    liabilities and indebtedness under this clause (iv) being herein
    collectively called the "Additional Secured Obligations");

                (v)     any and all sums advanced by the Collateral Agent in
    order to preserve the Collateral or preserve its security interest in the
    Collateral;

                                       32
<PAGE>

                (vi)    in the event of any proceeding for the collection or
    enforcement of any indebtedness, obligations, or liabilities of such
    Assignor referred to in clauses (i) through (iii) above, after an Event of
    Default shall have occurred and be continuing, the reasonable expenses of
    retaking, holding, preparing for sale or lease, selling or otherwise
    disposing of or realizing on the Collateral, or of any exercise by the
    Collateral Agent of its rights hereunder, together with reasonable
    attorneys' fees and court costs; and

                (vii)   all amounts paid by any Indemnitee as to which such
    Indemnitee has the right to reimbursement under Section 8.1 of this
    Agreement;

        it being acknowledged and agreed that the "Obligations" shall include
extensions of credit of the types described above, whether outstanding on the
date of this Agreement or extended from time to time after the date of this
Agreement.

        Notwithstanding anything to the contrary contained herein, (x)
obligations, liabilities and indebtedness which would otherwise constitute
Additional Secured Obligations as defined in clause (iv) of this definition
shall not constitute "Obligations" for purposes of (or be secured pursuant to)
this Agreement or any other Security Document unless the Borrower shall have
delivered to the Collateral Agent a written Notice of Security Entitlement (each
a "Notice of Security Entitlement") with respect thereto as follows:

                Such written notice from the Borrower (i) shall state that it is
    a "Notice of Security Entitlement", (ii) shall be delivered to the
    Collateral Agent, (iii) shall describe the new Additional Secured Agreements
    and the related Additional Secured Obligations (and shall describe the
    Assignors obligated, as obligors or guarantors, with respect thereto) to be
    secured hereby (and under the other Security Documents) and guaranteed under
    the Subsidiaries Guaranty, (iv) shall state that it is delivered pursuant to
    Article IX of the Security Agreement, (v) shall reference the aggregate
    amount of such new Additional Secured Agreements and the related Additional
    Secured Obligations, and (vi) shall state that the new Additional Secured
    Obligations and the incurrence thereof does not violate, and may be incurred
    and secured hereunder and under the other Security Documents in accordance
    with, the applicable provisions of Sections 9.01 and 9.04 of the Credit
    Agreement;

        and (y) the Additional Creditors, by accepting the benefits of this
Agreement and the other Security Documents, hereby expressly acknowledge and
agree that the aggregate amount that they shall be entitled to receive from the
exercise of remedies in respect of (and the aggregate amount of Additional
Secured Obligations to be secured by) the Collateral under this Agreement, as
well as the "collateral" under all other Security Documents, will not exceed
$30,000,000 in the aggregate.

        "Patents" shall mean any patent now or hereafter owned by any Assignor
now or hereafter has any right, title or interest therein, and any divisions,
continuations (including, but not limited to, continuations-in-parts) and
improvements thereof, as well as any application for a patent now or hereafter
made by any Assignor.

                                       33
<PAGE>

        "Permits" shall mean, to the extent permitted to be assigned by the
terms thereof or by applicable law, all licenses, permits, rights, orders,
variances, franchises or authorizations of or from any governmental authority or
agency.

        "Priority Credit Document Obligations" shall mean Credit Document
Obligations in an aggregate amount equal to the CNTA Basket.

        "Pro Rata Share" shall have the meaning provided in Section 7.4(b) of
this Agreement.

        "Proceeds" shall mean all "proceeds" as such term is defined in the
Uniform Commercial Code as in effect in the State of New York on the date hereof
and, in any event, shall also include, but not be limited to, (i) any and all
proceeds of any insurance, indemnity, warranty or guaranty payable to the
Collateral Agent or any Assignor from time to time with respect to any of the
Collateral, (ii) any and all payments (in any form whatsoever) made or due and
payable to any Assignor from time to time in connection with any requisition,
confiscation, condemnation, seizure or forfeiture of all or any part of the
Collateral by any governmental authority (or any person acting under color of
governmental authority) and (iii) any and all other amounts from time to time
paid or payable under or in connection with any of the Collateral.

        "Registered Organization" shall have the meaning provided in the Uniform
Commercial Code as in effect in the State of New York.

        "Representative" shall have the meaning provided in Section 7.4(d) of
this Agreement.

        "Required Secured Creditors" shall mean (i) at any time when any Credit
Document Obligations are outstanding or any Commitments or Letters of Credit
under the Credit Agreement exist, the Required Lenders (or, to the extent
provided in Section 13.12 of the Credit Agreement, each of the Lenders), (ii) at
any time after all of the Credit Document Obligations have been paid in full and
the Total Commitment and Letters of Credit under the Credit Agreement have been
terminated and no further Commitments may be provided thereunder, the holders of
a majority of the aggregate outstanding Hedging Obligations and Additional
Secured Obligations (taken together) from time to time, and (iii) at any time
after all Credit Document Obligations, Hedging Obligations and Additional
Secured Obligations have been paid in full and the Total Commitment and all
Letters of Credit under the Credit Agreement have been terminated and all
Interest Rate Protection Agreements and Other Hedging Agreements entered into
with Hedging Creditors and all Additional Secured Agreements entered into with
Additional Secured Creditors have been terminated, the Trustee acting at the
direction of the Existing Senior Noteholders holding at least a majority of the
aggregate outstanding Existing Senior Note Obligations from time to time.

        "Requisite Creditors" shall have the meaning provided in Section 10.2 of
this Agreement.

        "Secured Creditors" shall have the meaning provided in the recitals of
this Agreement.

                                       34
<PAGE>

        "Secured Debt Agreements" shall mean and include this Agreement, the
other Credit Documents, the Interest Rate Protection Agreements and Other
Hedging Agreements entered into with a Hedging Creditor, the Additional Secured
Agreements entered into with an Additional Secured Creditor and the Existing
Senior Notes Documents.

        "Software" shall mean "software" as such term is defined in the Uniform
Commercial Code as in effect on the date hereof in the State of New York.

        "Supporting Obligations" shall mean any "supporting obligation" as such
term is defined in the Uniform Commercial Code as in effect on the date hereof
in the State of New York, now or hereafter owned by any Assignor, or in which
any Assignor has any rights, and, in any event, shall include, but shall not be
limited to all of such Assignor's rights in any Letter-of-Credit Right or
secondary obligation that supports the payment or performance of, and all
security for, any Account, Chattel Paper, Document, General Intangible,
Instrument or Investment Property.

        "Tangible Chattel Paper" shall mean "tangible chattel paper" as such
term is defined in the Uniform Commercial Code as in effect on the date hereof
in the State of New York.

        "Termination Date" shall have the meaning provided in Section 10.8(a) of
this Agreement.

        "Timber-to-be-Cut" shall mean "timber-to-be-cut" as such term is defined
in the Uniform Commercial Code as in effect on the date hereof in the State of
New York.

        "Trade Secret Rights" shall mean the rights of an Assignor in any Trade
Secret it holds.

        "Trade Secrets" shall mean any secretly-held existing data, information,
production procedures and other know-how relating to the design manufacture,
assembly, installation, use, operation, marketing, sale and/or servicing of any
products or business of an Assignor worldwide whether written or not.

        "Transmitting Utility" shall have the meaning given such term in Section
9-102(a)(80) of the UCC.

        "Trustee" shall have the meaning provided in the recitals of this
Agreement.

        "UCC" shall mean the Uniform Commercial Code as in effect from time to
time in the relevant jurisdiction.

                                   ARTICLE X

                                  MISCELLANEOUS

        10.1 Notices. Except as otherwise specified herein, all notices,
requests, demands or other communications to or upon the respective parties
hereto shall be sent or

                                       35
<PAGE>

delivered by mail, telegraph, telex, telecopy, cable or courier service and all
such notices and communications shall, when mailed, telegraphed, telexed,
telecopied, or cabled or sent by courier, be effective when deposited in the
mails, delivered to the telegraph company, cable company or overnight courier,
as the case may be, or sent by telex or telecopier, except that notices and
communications to the Collateral Agent or any Assignor shall not be effective
until received by the Collateral Agent or such Assignor, as the case may be. All
notices and other communications shall be in writing and addressed as follows:

        (a)     if to any Assignor, at c/o:

                Crompton Corporation
                199 Benson Road
                Middletown, Connecticut 06749
                Attention: Chief Financial Officer and General Counsel
                Telephone No.:  (203) 573-2000
                Telecopier No.: (203) 573-3711

        (b)     if to the Collateral Agent, at:

                Deutsche Bank AG New York Branch
                60 Wall Street
                New York, New York 10005
                Attention: Ms. Carin Keegan
                Telephone No.:  (212) 250-6083
                Telecopier No.: (212) 797-5690;

        (c)     if to any Lender Creditor (other than the Collateral Agent), at
    such address as such Lender Creditor shall have specified in the Credit
    Agreement;

        (d)     if to any Hedging Creditor, at such address as such Hedging
    Creditor shall have specified in writing to the Borrower and the Collateral
    Agent;

        (e)     if to any Additional Secured Creditor, at such address as such
    Additional Secured Creditor shall have specified in writing to the Borrower
    and the Collateral Agent;

        (f)     if to any Existing 2023 Senior Noteholder, to the Trustee at:

                        Deutsche Bank Trust Company Americas
                        222 S. Riverside Plaza, 24th Floor
                        Chicago, IL 60606-5808
                        Attention: Mr. George F. Kubin, Vice President
                        Telephone No.:  (312) 537-1159
                        Telecopier No.: (312) 537-1009

        (g)     if to any Existing 2026 Senior Noteholder, to the Trustee at:

                        Deutsche Bank Trust Company Americas

                                       36
<PAGE>

                        222 S. Riverside Plaza, 24th Floor
                        Chicago, IL 60606-5808
                        Attention: Mr. George F. Kubin, Vice President
                        Telephone No.:  (312) 537-1159
                        Telecopier No.: (312) 537-1009

or at such other address or addressed to such other individual as shall have
been furnished in writing by any Person described above to the party required to
give notice hereunder.

        10.2 Waiver; Amendment. Except as provided in Sections 10.8 and 10.12
hereof, none of the terms and conditions of this Agreement may be changed,
waived, modified or varied in any manner whatsoever unless in writing duly
signed by each Assignor directly affected thereby (it being understood that the
addition or release of any Assignor hereunder shall not constitute a change,
waiver, discharge or termination affecting any Assignor other than the Assignor
so added or released) and the Collateral Agent (with the written consent of the
Required Secured Creditors); provided, however, that any change, waiver,
modification or variance affecting the rights and benefits of a single Class of
Secured Creditors (and not all Secured Creditors in a like or similar manner)
also shall require the written consent of the Requisite Creditors of such
affected Class. Notwithstanding anything to the contrary contained above, it is
understood and agreed that the Required Lenders may agree to modifications to
this Agreement for the purpose, among other things, of securing additional
extensions of credit (including, without limitation, pursuant to the Credit
Agreement or any refinancing or extension thereof), with such changes not being
subject to the proviso to the immediately preceding sentence so long as such
obligations are permitted to be secured by the respective Secured Debt
Agreements. Furthermore, the proviso to the second preceding sentence shall not
apply to any release of Collateral effected in accordance with the requirements
of Section 10.8 of this Agreement, or any other release of Collateral or
termination of this Agreement so long as the Borrower certifies that such
actions will not violate the terms of any Secured Debt Agreement then in effect.
For the purpose of this Agreement, the term "Class" shall mean each class of
Secured Creditors, i.e., whether (w) the Lender Creditors as holders of the
Credit Document Obligations, (x) the Hedging Creditors as the holders of the
Hedging Obligations, (y) the Additional Secured Creditors as the holders of the
Additional Secured Obligations or (z) the Existing Senior Noteholders as holders
of the Existing Senior Note Obligations. For the purpose of this Agreement, the
term "Requisite Creditors" of any Class shall mean each of (w) with respect to
the Credit Document Obligations, the Required Lenders (or, to the extent
provided in Section 13.12 of the Credit Agreement, each of the Lenders), (x)
with respect to the Hedging Obligations, the holders of at least a majority of
all Hedging Obligations outstanding from time to time, (y) with respect to the
Additional Secured Obligations, the holders of at least a majority of all
Additional Secured Obligations outstanding from time to time, and (z) with
respect to the Existing Senior Note Obligations, the Trustee acting at the
direction of Existing Senior Noteholders holding at least a majority of all
Existing Senior Note Obligations from time to time.

        10.3 Obligations Absolute. The obligations of each Assignor hereunder
shall remain in full force and effect without regard to, and shall not be
impaired by, (a) any bankruptcy, insolvency, reorganization, arrangement,
readjustment, composition, liquidation or the like of such Assignor; (b) any
exercise or non-exercise, or any waiver of, any right, remedy, power or
privilege under or in respect of this Agreement or any other Secured Debt
Agreement;

                                       37
<PAGE>

or (c) any amendment to or modification of any Secured Debt Agreement or any
security for any of the Obligations; whether or not such Assignor shall have
notice or knowledge of any of the foregoing.

        10.4 Successors and Assigns. This Agreement shall create a continuing
security interest in the Collateral and shall (i) remain in full force and
effect, subject to release and/or termination as set forth in Section 10.8
hereof, (ii) be binding upon each Assignor, its successors and assigns;
provided, however, that no Assignor shall assign any of its rights or
obligations hereunder without the prior written consent of the Collateral Agent
(with the prior written consent of the Required Secured Creditors), and (iii)
inure, together with the rights and remedies of the Collateral Agent hereunder,
to the benefit of the Collateral Agent, the other Secured Creditors and their
respective successors, transferees and assigns. All agreements, statements,
representations and warranties made by each Assignor herein or in any
certificate or other instrument delivered by such Assignor or on its behalf
under this Agreement shall be considered to have been relied upon by the Secured
Creditors and shall survive the execution and delivery of this Agreement and the
other Secured Debt Agreements regardless of any investigation made by the
Secured Creditors or on their behalf.

        10.5 Headings Descriptive. The headings of the several sections of this
Agreement are inserted for convenience only and shall not in any way affect the
meaning or construction of any provision of this Agreement.

        10.6 GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY
TRIAL. (a) THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF
THE STATE OF NEW YORK OR, TO THE EXTENT APPLICABLE WITH RESPECT TO UNITED STATES
REGISTERED AND APPLIED-FOR MARKS, PATENTS AND COPYRIGHTS, FEDERAL LAW. ANY LEGAL
ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE COURTS
OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF
NEW YORK IN EACH CASE WHICH ARE LOCATED IN THE COUNTY OF NEW YORK, AND, BY
EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH ASSIGNOR HEREBY IRREVOCABLY
ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND
UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS IN ANY
SUCH ACTION OR PROCEEDING. EACH ASSIGNOR HEREBY FURTHER IRREVOCABLY WAIVES ANY
CLAIM THAT ANY SUCH COURTS LACK JURISDICTION OVER SUCH ASSIGNOR, AND AGREES NOT
TO PLEAD OR CLAIM IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS
AGREEMENT BROUGHT IN ANY OF THE AFORESAID COURTS THAT ANY SUCH COURT LACKS
JURISDICTION OVER SUCH ASSIGNOR. EACH ASSIGNOR FURTHER IRREVOCABLY CONSENTS TO
THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH
ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED
MAIL, POSTAGE PREPAID, TO ANY SUCH ASSIGNOR AT ITS ADDRESS FOR NOTICES AS
PROVIDED IN SECTION 10.1 ABOVE, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER
SUCH MAILING. EACH ASSIGNOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH
SERVICE

                                       38
<PAGE>

OF PROCESS AND FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN
ANY ACTION OR PROCEEDING COMMENCED HEREUNDER OR UNDER ANY OTHER CREDIT DOCUMENT
THAT SUCH SERVICE OF PROCESS WAS IN ANY WAY INVALID OR INEFFECTIVE. NOTHING
HEREIN SHALL AFFECT THE RIGHT OF THE COLLATERAL AGENT UNDER THIS AGREEMENT, OR
ANY SECURED CREDITOR, TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR
TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY ASSIGNOR IN ANY
OTHER JURISDICTION.

        (b)     EACH ASSIGNOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT
MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS
OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT BROUGHT IN
THE COURTS REFERRED TO IN CLAUSE (a) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES
AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR
PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

        (c)     EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES
ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY.

        10.7 Assignor's Duties. It is expressly agreed, anything herein
contained to the contrary notwithstanding, that each Assignor shall remain
liable to perform all of the obligations, if any, assumed by it with respect to
the Collateral and the Collateral Agent shall not have any obligations or
liabilities with respect to any Collateral by reason of or arising out of this
Agreement, nor shall the Collateral Agent be required or obligated in any manner
to perform or fulfill any of the obligations of any Assignor under or with
respect to any Collateral.

        10.8 Termination; Release. (a) After the Termination Date, this
Agreement shall terminate (provided that all indemnities set forth herein
including, without limitation in Section 8.1 hereof, shall survive such
termination) and the Collateral Agent, at the request and expense of the
respective Assignor, will promptly execute and deliver to such Assignor a proper
instrument or instruments (including Uniform Commercial Code termination
statements on form UCC-3 and releases in form recordable in the United States
Patent and Trademark Office and other applicable intellectual property
registries) acknowledging the satisfaction and termination of this Agreement,
and will duly assign, transfer and deliver to such Assignor (without recourse
and without any representation or warranty) such of the Collateral as may be in
the possession of the Collateral Agent and as has not theretofore been sold or
otherwise applied or released pursuant to this Agreement. As used in this
Agreement, "Termination Date" shall mean the date upon which the Total
Commitment and all Letters of Credit have been terminated, all Interest Rate
Protection Agreements and Other Hedging Agreements entered into with any Hedging
Creditor have been terminated, all Additional Secured Agreements entered into
with any Additional Secured Creditor have been terminated, no Note under the
Credit Agreement is outstanding and all Loans thereunder have been repaid in
full, and all other Obligations then due and payable have been paid in full;
provided, however, notwithstanding the foregoing, after all

                                       39
<PAGE>

Credit Document Obligations, Hedging Obligations and Additional Secured
Obligations have been paid in full, and the Total Commitment, all Letters of
Credit, all Interest Rate Protection Agreements and Other Hedging Agreements
entered into with a Hedging Creditor and all Additional Secured Agreements
entered into with an Additional Secured Creditor have been terminated, the
Termination Date shall occur unless an Event of Default under the Existing
Senior Notes Documents has occurred and is continuing at such time (in which
case such termination shall occur on the first date thereafter on which no Event
of Default under the Existing Senior Notes Documents exists and is continuing).

        (b)     In the event that any part of the Collateral is sold or
otherwise disposed of (to a Person other than a Credit Party) in connection with
a sale or other disposition permitted by the respective Secured Debt Agreements
or is otherwise released at the direction of the Required Secured Creditors, the
Collateral Agent, at the request, cost and expense of such Assignor, will duly
release from the security interest created hereby (and will execute and deliver
such documentation, including termination or partial release statements and the
like in connection therewith) and assign, transfer and deliver to such Assignor
(without recourse and without any representation or warranty) such of the
Collateral as is then being (or has been) so sold or otherwise disposed of, or
released, and as may be in the possession of the Collateral Agent and has not
theretofore been released pursuant to this Agreement. Any proceeds of Collateral
sold or otherwise disposed of as contemplated by the immediately preceding
sentence may be applied in accordance with the requirements of the Credit
Agreement; provided, however, upon the occurrence and during the continuance of
an Existing Senior Note Event, such proceeds shall be applied as provided in
Section 7.4 hereof. As used herein, an "Existing Senior Note Event" shall mean
the acceleration of the maturity of any Existing Senior Notes or the failure to
pay at final maturity any Existing Senior Notes, or the occurrence of any
default or event of default of the types specified in Section 5.01(6) or (7) of
the Existing Senior Notes Indenture; provided that no Existing Senior Note Event
shall be deemed to exist (x) at any time when no Existing Senior Note
Obligations are secured hereunder or (y) after all Existing Senior Note
Obligations have been repaid in full.

        (c)     At any time that an Assignor desires that the Collateral Agent
take any action to acknowledge or give effect to any release of Collateral
pursuant to the foregoing Section 10.8(a) or (b), such Assignor shall deliver to
the Collateral Agent a certificate signed by a principal executive officer of
such Assignor stating that the release of the respective Collateral is permitted
pursuant to such Section 10.8(a) or (b). If reasonably requested by the
Collateral Agent (although the Collateral Agent shall have no obligation to make
such request), the relevant Assignor shall furnish appropriate legal opinions
(from counsel reasonably acceptable to the Collateral Agent) to the effect set
forth in this Section 10.8(c).

        (d)     The Collateral Agent shall have no liability whatsoever to any
other Secured Creditor as the result of any release of Collateral by it in
accordance with (or which the Collateral Agent in the absence of gross
negligence and willful misconduct believes to be in accordance with) this
Section 10.8.

        10.9 Counterparts. This Agreement may be executed in any number of
counterparts and by the different parties hereto on separate counterparts, each
of which when so executed and delivered shall be an original, but all of which
shall together constitute one and the

                                       40
<PAGE>

same instrument. A set of counterparts executed by all the parties hereto shall
be lodged with the Borrower and the Collateral Agent.

        10.10 Severability. Any provision of this Agreement which 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.

        10.11 The Collateral Agent and the other Secured Creditors. The
Collateral Agent will hold in accordance with this Agreement all items of the
Collateral at any time received under this Agreement. It is expressly understood
and agreed that the obligations of the Collateral Agent as holder of the
Collateral and interests therein and with respect to the disposition thereof,
and otherwise under this Agreement, are only those expressly set forth in this
Agreement, Section 12 of the Credit Agreement and Annex O hereto. The Collateral
Agent shall act hereunder on the terms and conditions set forth herein, in
Section 12 of the Credit Agreement and in Annex O hereto, the terms of which
shall be deemed incorporated herein by reference as fully as if the same were
set forth herein in their entirety. In the event that any provision set forth in
Section 12 of the Credit Agreement in respect of the Collateral Agent conflicts
with any provision set forth in Annex O hereto, the provisions of Annex O hereto
shall govern (except that the Lenders shall remain obligated to indemnify the
Collateral Agent pursuant to Section 12 of the Credit Agreement, to the extent
the Collateral Agent is not indemnified by the Secured Creditors pursuant to
Annex O).

        10.12 Additional Assignors. It is understood and agreed that any
Subsidiary of the Borrower that is required to execute a counterpart of this
Agreement after the date hereof pursuant to the requirements of the respective
Secured Debt Agreements shall become an Assignor hereunder by executing a
counterpart hereof and delivering same to the Collateral Agent, or by executing
a Joinder Agreement substantially in the form of Exhibit O to the Credit
Agreement, (y) delivering supplements to Annexes A through F, inclusive, and H
through K, inclusive, hereto as are necessary to cause such Annexes to be
complete and accurate with respect to such additional Assignor on such date and
(z) taking all actions as specified in this Agreement as would have been taken
by such Assignor had it been an original party to this Agreement, in each case
with all documents required above to be delivered to the Collateral Agent and
with all documents and actions required above to be taken to the reasonable
satisfaction of the Collateral Agent.

        10.13 Limited Obligations. It is the desire and intent of each Assignor
and the Secured Creditors that this Agreement shall be enforced against each
Assignor to the fullest extent permissible under the laws and public policies
applied in each jurisdiction in which enforcement is sought. Notwithstanding
anything to the contrary contained herein, in furtherance of the foregoing, (i)
it is noted that with respect to each Assignor which has executed the
Subsidiaries Guaranty, the obligations of such Assignor thereunder has been
limited as provided therein, and (ii) with respect to each Assignor that is a
Subsidiary of the Borrower, the grant of the security interest hereunder by such
Assignors with respect to the Existing Senior Notes Obligations shall not
constitute a fraudulent transfer or conveyance for purposes of the Bankruptcy
Code, the Uniform Fraudulent Conveyance Act or any similar Federal or state law

                                       41
<PAGE>

and to effectuate the foregoing, the grant of the security interest hereunder by
each such Assignor with respect to the Existing Senior Notes Obligations shall
be limited to such amount as will, after giving effect to such maximum amount
and all other (contingent or otherwise) liabilities of such Assignor that are
relevant under such laws and after giving effect to any rights to contribution
pursuant to any agreement providing for an equitable contribution among such
Assignors, result in the Existing Senior Notes Obligations of such Assignors in
respect of such maximum amount not constituting a fraudulent transfer or
conveyance.

    [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS]

                                       42
<PAGE>

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

                                      CROMPTON CORPORATION,
                                        as an Assignor

                                        By: /s/ Barry J. Shainman
                                           ------------------------------------
                                        Name: Barry J. Shainman
                                        Title: Secretary

                                      CNK CHEMICAL REALTY CORPORATION,
                                        as an Assignor

                                      By: /s/ Arthur C. Fullerton
                                         --------------------------------------
                                         Name: Arthur C. Fullerton
                                         Title: Secretary

                                      CROMPTON COLORS INCORPORATED,
                                        as an Assignor

                                      By: /s/ Arthur C. Fullerton
                                         --------------------------------------
                                         Name: Arthur C. Fullerton
                                         Title: Secretary

                                      CROMPTON EUROPE FINANCIAL
                                        SERVICES COMPANY, as an Assignor

                                      By: /s/ Arthur C. Fullerton
                                         --------------------------------------
                                         Name: Arthur C. Fullerton
                                         Title: Secretary

                                      CROMPTON HOLDING CORPORATION,
                                        as an Assignor

                                      By: /s/ Arthur C. Fullerton
                                         --------------------------------------
                                         Name: Arthur C. Fullerton
                                         Title: Secretary

<PAGE>

                                      CROMPTON MONOCHEM, INC.,
                                        as an Assignor

                                      By: /s/ Arthur C. Fullerton
                                         --------------------------------------
                                         Name: Arthur C. Fullerton
                                         Title: Secretary

                                      CROMPTON SALES COMPANY, INC.,
                                        as an Assignor

                                      By: /c/ Arthur C. Fullerton
                                         --------------------------------------
                                         Name: Arthur C. Fullerton
                                         Title: Secretary

                                      DAVIS-STANDARD CORPORATION,
                                        as an Assignor

                                      By: /s/ Lewis A. Shaffer
                                         --------------------------------------
                                         Name: Lewis A Shaffer
                                         Title: Secretary

                                      GT SEED INTERNATIONAL COMPANY,
                                        as an Assignor

                                      By: /c/ Arthur C. Fullerton
                                         --------------------------------------
                                         Name: Arthur C. Fullerton
                                         Title: Secretary

                                      GT SEED TREATMENT, INC.,
                                        as an Assignor

                                      By: /s/ Arthur C. Fullerton
                                         --------------------------------------
                                         Name: Arthur C. Fullerton
                                         Title: Secretary

                                      KEM MANUFACTURING CORPORATION,
                                        as an Assignor

                                      By: /s/ Arthur C. Fullerton
                                         --------------------------------------
                                         Name: Arthur C. Fullerton
                                         Title: Secretary

<PAGE>

                                      MONOCHEM, INC.,
                                        as an Assignor

                                      By: /s/ Arthur C. Fullerton
                                         --------------------------------------
                                         Name: Arthur C. Fullerton
                                         Title: Secretary

                                      NAUGATUCK TREATMENT COMPANY,
                                        as an Assignor

                                      By: /s/ Arthur C. Fullerton
                                         --------------------------------------
                                         Name: Arthur C. Fullerton
                                         Title: Secretary

                                      UNIROYAL CHEMICAL COMPANY, INC.,
                                        a Delaware Corporation, as an Assignor

                                      By: /s/ Arthur C. Fullerton
                                         --------------------------------------
                                         Name: Arthur C. Fullerton
                                         Title: Secretary

                                      UNIROYAL CHEMICAL COMPANY, INC.,
                                        a New Jersey Corporation, as an Assignor

                                      By: /s/ Arthur C. Fullerton
                                         --------------------------------------
                                         Name: Arthur C. Fullerton
                                         Title: Secretary

                                      UNIROYAL CHEMICAL COMPANY
                                        LIMITED (DELAWARE), as an Assignor

                                      By: /s/ Arthur C. Fullerton
                                         --------------------------------------
                                         Name: Arthur C. Fullerton
                                         Title: Secretary

                                      UNIROYAL CHEMICAL EXPORT
                                        LIMITED, as an Assignor

                                      By: /s/ Arthur C. Fullerton
                                         --------------------------------------
                                         Name: Arthur C. Fullerton
                                         Title: Secretary

<PAGE>

                                      UNIROYAL CHEMICAL LEASING
                                        COMPANY, INC., as an Assignor

                                      By: /s/ Arthur C. Fullerton
                                         --------------------------------------
                                         Name: Arthur C. Fullerton
                                         Title: Secretary

                                      WEBER CITY ROAD LLC,
                                        as an Assignor

                                      By: /s/ Arthur C. Fullerton
                                         --------------------------------------
                                         Name: Arthur C. Fullerton
                                         Title: Secretary

<PAGE>

Accepted and Agreed to:

DEUTSCHE BANK AG NEW YORK BRANCH,
 as Collateral Agent for the Lender Creditors
 with respect to the Priority Credit Document
 Obligations

By: /s/ Carin M. Keegan
   ---------------------------------
   Name:  Carin M. Keegan
   Title: Vice President

By: /s/ Scottye Lindsey
   ---------------------------------
   Name:  Scottye Lindsey
   Title: Director

DEUTSCHE BANK AG NEW YORK BRANCH,
 as Collateral  Agent for the Secured  Creditors
 with respect to the Obligations not constituting
 Priority  Credit Document Obligations

By: /s/ Carin M. Keegan
   ---------------------------------
   Name:  Carin M. Keegan
   Title: Vice President

By: /s/ Scottye Lindsey
   ---------------------------------
   Name:  Scottye Lindsey
   Title: Director

<PAGE>

                                                                         ANNEX A
                                                                              to
                                                              SECURITY AGREEMENT

                       SCHEDULE OF CHIEF EXECUTIVE OFFICES

           Name of Assignor              Address(es) of Chief Executive Office
           ----------------              -------------------------------------

Each Assignor except those named below   199 Benson Road
                                         Middlebury, CT  06749

Monochem, Inc.                           36191 Highway 30
                                         Geismar, LA  70734

<PAGE>

                                                                         ANNEX B
                                                                              to
                                                              SECURITY AGREEMENT

                  SCHEDULE OF INVENTORY AND EQUIPMENT LOCATIONS

          Assignor                                 Location
          --------                                 --------

Crompton Colors Incorporated  500, 501, 502 Pear Street, Reading, PA 19601
                              10 Kingland St., Nutley, NJ 07110
                              31-43 - 77-85 Paris Street, Newark, NJ
                              189 - 203 Magazine St. Newark, NJ
                              2-4 Mary Street, Newark, NJ
                              58-66, 68-82 Amsterdam St., Newark, NJ
                              13-17, 19-29 Margaretta St. Newark, NJ

Crompton Monochem, Inc.       Rte 73, Geismar, LA 70734

Davis-Standard Corporation    1 Extrusion Drive, Pawcatuck, CT 06379
                              36 S. Adamsville Rd. Bridgewater Township, NJ
                              08876
                              Various foreign locations

Monochem, Inc.                Rte 73, Geismar, LA  70734

Crompton Corporation and      1320 Sams Ave, Harahan,  CT  70123
Uniroyal Chemical Company,    155 Tice Blvd., Woodcliff Lake,  NJ  07675
Inc.(1)                       Highway 225 North, Bay Minette, AL 36507
                              74 Amity Road, Bethany, CT 06524
                              280 Elms Street/Spencer Street, Naugatuck, CT
                              06770
                              1 Extrusion Drive, Pawcatuck, CT 06379
                              8220 W. Route 24, Mapleton, IL 61547
                              Highway 30, Geismar, LA 70734
                              Highway 3142, Taft, LA 70057-0310
                              1000 Convery Boulevard, Perth Amboy, NJ 08862-1932
                              36 South Adamsville Road, Somerville, NJ 08876
                              214 W. Ruby Avenue, Gastonia, NC 28054
                              100 Sonneborn Lane, Petrolia, PA 16050-0336
                              1231 Pope Street, Memphis, TN 38108
                              710 B. Bussey Road, Marshall, TX 75670
                              1000 Dupont Road, Morgantown, WV  26501
                              3018 Bell Avenue, Memphis, TN 38108
                              611 E. Northside Drive, Fort Worth, TX
                              1805 Fourth Street, Harvey, LA
                              15200 Almeda Road, Houston, TX
                              710-B Bussey Road, Marshall, TX

----------
(1) Uniroyal Chemical Company, Inc., a New Jersey corporation

<PAGE>

                                                                         ANNEX B
                                                                          Page 2

          Assignor                                 Location
          --------                                 --------

                              3500 South State Route 2, Friendly, WV
                              214 W Ruby Ave, Gastonia, NC
                              199 Benson Road, Middlebury, CT
                              One American Lane, Greenwich, CT
                              5777 Frantz Road, Dublin, OH
                              3211 Kanawha Turnpike, South Charleston, WV
                              771 Old Saw Mill River Road, Tarrytown, NY

<PAGE>

                                                                         ANNEX C
                                                                              to
                                                              SECURITY AGREEMENT

                  SCHEDULE OF LEGAL NAMES, TYPE OF ORGANIZATION
                  (AND WHETHER A REGISTERED ORGANIZATION AND/OR
             A TRANSMITTING UTILITY), JURISDICTION OF ORGANIZATION,
               LOCATION AND ORGANIZATIONAL IDENTIFICATION NUMBERS

<TABLE>
<CAPTION>
                          TYPE OF                                                                   ASSIGNOR'S
                        ORGANIZATION                                                                ORGANIZATION
                        (OR, IF THE                                         ASSIGNOR'S LOCATION     IDENTIFICATION
EXACT LEGAL             ASSIGNOR IS AN    REGISTERED                        (FOR PURPOSES OF        NUMBER (OR, IF IT   TRANSMITTING
NAME OF EACH            INDIVIDUAL, SO   ORGANIZATION?    JURISDICTION OF   NY UCC                  IT HAS NONE, SO     UTILITY?
PLEDGOR                   INDICATE)       (YES/NO)        ORGANIZATION      SECTION 9-307)          INDICATE)           (YES/NO)
----------------------  ---------------   -------------   ---------------   ---------------------   -----------------   ------------
<S>                                            <C>          <C>             <C>                       <C>                    <C>
CNK Chemical Realty      Corporation           Yes          Pennsylvania    199 Benson Road              0052034             No
Corporation                                                                 Middlebury, CT  06749

Crompton Colors          Corporation           Yes            Delaware      199 Benson Road              2448525             No
Incorporated                                                                Middlebury, CT  06749

Crompton Corporation     Corporation           Yes            Delaware      199 Benson Road              3046078             No
                                                                            Middlebury, CT  06749
Crompton Europe          Corporation           Yes            Delaware      199 Benson Road              2559401             No
Financial Services                                                          Middlebury, CT  06749
Company

Crompton Holding         Corporation           Yes            Delaware      199 Benson Road              2448496             No
Corporation                                                                 Middlebury, CT  06749

Crompton                 Corporation           Yes           Louisiana      199 Benson Road           CBU 35171342D          No
Monochem, Inc.                                                              Middlebury, CT  06749

Crompton Sales           Corporation           Yes            Delaware      199 Benson Road              3230776             No
Company, Inc.                                                               Middlebury, CT  06749

Davis-Standard           Corporation           Yes            Delaware      199 Benson Road              2448527             No
Corporation                                                                 Middlebury, CT  06749

GT Seed Inter-           Corporation           Yes             Texas        199 Benson Road            0112046400            No
national Company                                                            Middlebury, CT  06749

GT Seed                  Corporation           Yes           Minnesota      199 Benson Road               S-235              No
Treatment, Inc.                                                             Middlebury, CT  06749

KEM Manufacturing        Corporation           Yes            Georgia       199 Benson Road              J010671             No
Corporation                                                                 Middlebury, CT  06749
</TABLE>

<PAGE>

                                                                         Annex C
                                                                          Page 2

<TABLE>
<S>                                            <C>          <C>             <C>                        <C>                   <C>
Monochem, Inc.           Corporation           Yes           Louisiana      36191 Highway 30            25311150D            No
                                                                            Geismar, LA 70734

Naugatuck                Corporation           Yes          Connecticut     199 Benson Road              0032794             No
Treatment Company                                                           Middlebury, CT  06749

Uniroyal Chemical        Corporation           Yes           Delaware/      199 Benson Road              2523836             No
Company Limited                                               Bahamas       Middlebury, CT  06749
(Delaware)

Uniroyal Chemical        Corporation           Yes            Delaware      199 Benson Road              3230771             No
Company, Inc.(2)                                                            Middlebury, CT  06749

Uniroyal Chemical        Corporation           Yes           New Jersey     199 Benson Road            0100271711            No
Company, Inc.(3)                                                            Middlebury, CT  06749

Uniroyal Chemical        Corporation           Yes            Delaware      199 Benson Road              2506818             No
Export Limited                                                              Middlebury, CT  06749

Uniroyal Chemical        Corporation           Yes            Delaware      199 Benson Road              2647284             No
Leasing Company, Inc.                                                       Middlebury, CT  06749

Weber City Road LLC      Limited Liability     Yes           Louisiana      199 Benson Road             35129624K            No
                         Company                                            Middlebury, CT  06749
</TABLE>

----------
(2) Uniroyal Chemical Company, Inc., a Delaware corporation
(3) Uniroyal Chemical Company, Inc., a New Jersey corporation

<PAGE>

                                                                         ANNEX D
                                                                              to
                                                              SECURITY AGREEMENT

                     SCHEDULE OF TRADE AND FICTITIOUS NAMES

             Name of                          Trade and/or
             Assignor                        Fictitious Names
             --------                        ----------------

Uniroyal Chemical Company, Inc.(4)   Crompton Manufacturing
                                     Crompton Manufacturing Company

GT Seed Treatment, Inc.              Mist-O-Matic, Inc.

----------
(4) Uniroyal Chemical Company, Inc., a New Jersey corporation

<PAGE>

                                                                         ANNEX E
                                                                              to
                                                              SECURITY AGREEMENT

        DESCRIPTION OF CERTAIN SIGNIFICANT TRANSACTIONS OCCURRING WITHIN
              ONE YEAR PRIOR TO THE DATE OF THE SECURITY AGREEMENT

None.

<PAGE>

                                                                         ANNEX F
                                                                              to
                                                              SECURITY AGREEMENT

                          SCHEDULE OF DEPOSIT ACCOUNTS

<TABLE>
<CAPTION>
NAME OF         DESCRIPTION                 ACCOUNT        NAME OF BANK, ADDRESS
ASSIGNOR        OF DEPOSIT ACCOUNT          NUMBER         AND CONTACT INFORMATION
--------------  --------------------------  -------------  -----------------------
<S>             <C>                         <C>            <C>
Crompton        Crompton Corporation -      910-400-5385   JP Morgan Chase
Corporation     Concentration (Lead A/C)                   1 Chase Manhattan Plaza
                                                           New York, NY 10005

                Crompton -  Payroll         323181929      JP Morgan Chase
                Clearing Account                           1 Chase Manhattan Plaza
                                                           New York, NY 10005

                Crompton Corporation -      601-2-51796    JP Morgan Chase
                Manual Payroll Checks                      1 Chase Manhattan Plaza
                                                           New York, NY 10005

                Crompton Corporation -      601-8-26407    JP Morgan Chase
                Accounts Payable Account                   1 Chase Manhattan Plaza
                                                           New York, NY 10005

                Crompton Electronic         910-2-5289170  JP Morgan Chase
                Receipts Account                           1 Chase Manhattan Plaza
                                                           New York, NY 10005

                Crompton Corporation        910-2-677128   JP Morgan Chase
                International Clearing                     1 Chase Manhattan Plaza
                                                           New York, NY 10005

                Crompton Lock-Box 010642    22661          Mellon Bank
                Chicago                                    One Mellon Center
                                                           Pittsburgh, PA 15258

Davis-          Crompton  Corporation-      601-2-38967    JP Morgan Chase
Standard        Davis Standard Payroll                     1 Chase Manhattan Plaza
Corporation     Acct.                                      New York, NY 10005

                Davis Standard Lock Box     00588001       Fleet Bank
                                                           100 Federal Street
                                                           Boston, MA 02110

Uniroyal        Uniroyal Chemical Co.       40555094       Citibank
Chemical        Inc. - Concentration                       388 Greenwich Street
Company,                                                   New York, NY 10013
Inc.(5)

                Uniroyal Chemical Co.       38828655       Citibank
                Inc. - A/P                                 388 Greenwich Street
                                                           New York, NY 10013

                Uniroyal Chemical Co. -     323889417      JP Morgan Chase
                Wire Transfer Acct.                        1 Chase Manhattan Plaza
                                                           New York, NY 10005

                Manual Deposit Account      50316966       Fleet Bank
                                                           100 Federal Street
                                                           Boston, MA 02110

                Export Sales Documentary    451010567843   ABN AMRO Bank
                Collection                                 55 East 52nd Street
                                                           New York, NY 10055
</TABLE>

----------
(5) Uniroyal Chemical Company, Inc., a New Jersey corporation

<PAGE>

                                                                         ANNEX G
                                                                              to
                                                              SECURITY AGREEMENT

              FORM OF CONTROL AGREEMENT REGARDING DEPOSIT ACCOUNTS

        AGREEMENT (as amended, modified, restated and/or supplemented from time
to time, this "Agreement"), dated as of _______ __, ____, among the undersigned
assignor (the "Assignor"), DEUTSCHE BANK AG NEW YORK BRANCH, not in its
individual capacity but solely as Collateral Agent (the "Collateral Agent")
under the Security Agreement (as defined below) and ______ (the "Deposit Account
Bank"), as the bank (as defined in Section 9-102 of the UCC as in effect on the
date hereof in the State of New York (the "UCC")) with which one or more deposit
accounts (as defined in Section 9-102 of the UCC) are maintained by the Assignor
(with all such deposit accounts now or at any time in the future maintained by
the Assignor with the Deposit Account Bank being herein called the "Deposit
Accounts").

                              W I T N E S S E T H :

        WHEREAS, the Assignor, various other assignors and the Collateral Agent
have entered into a Security Agreement, dated as of August 16, 2004 (as amended,
amended and restated, modified or supplemented from time to time, the "Security
Agreement"), under which, among other things, in order to secure the payment of
the Obligations (as defined in the Security Agreement), the Assignor has granted
a security interest to the Collateral Agent for the benefit of the Secured
Creditors (as defined in the Security Agreement) in all of the right, title and
interest of the Assignor in and into any and all deposit accounts (as defined in
Section 9-102 of the UCC) and in all monies, securities, instruments and other
investments deposited therein from time to time (collectively, herein called the
"Collateral"); and

        WHEREAS, the Assignor desires that the Deposit Account Bank enter into
this Agreement in order to establish "control" (as defined in Section 9-104 of
the UCC) by the Collateral Agent in each Deposit Account at any time or from
time to time maintained with the Deposit Account Bank, and to provide for the
rights of the parties under this Agreement with respect to such Deposit
Accounts;

        NOW, THEREFORE, in consideration of the premises and the mutual promises
and agreements contained herein, and for other valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

        1.      Assignor's Dealings with Deposit Accounts; Notice of Exclusive
Control. Until the Deposit Account Bank shall have received from the Collateral
Agent a Notice of Exclusive Control (as defined below), the Assignor shall be
entitled to present items drawn on and otherwise to withdraw or direct the
disposition of funds from the Deposit Accounts and give instructions in respect
of the Deposit Accounts; provided, however, that the Assignor may not, and the
Deposit Account Bank agrees that it shall not permit the Assignor to, without
the Collateral Agent's prior written consent, close any Deposit Account. If the
Collateral Agent shall give to the Deposit Account Bank a notice of the
Collateral Agent's exclusive control of the

<PAGE>
                                                                         Annex G
                                                                           Page2

Deposit Accounts, which notice states that it is a "Notice of Exclusive Control"
(a "Notice of Exclusive Control"), only the Collateral Agent shall be entitled
to withdraw funds from the Deposit Accounts, to give any instructions in respect
of the Deposit Accounts and any funds held therein or credited thereto or
otherwise to deal with the Deposit Accounts.

        2.      Collateral Agent's Right to Give Instructions as to Deposit
Accounts. (a) Notwithstanding the foregoing or any separate agreement that the
Assignor may have with the Deposit Account Bank, the Collateral Agent shall be
entitled, for purposes of this Agreement, at any time to give the Deposit
Account Bank instructions as to the withdrawal or disposition of any funds from
time to time credited to any Deposit Account, or as to any other matters
relating to any Deposit Account or any other Collateral, without further consent
from the Assignor. The Assignor hereby irrevocably authorizes and instructs the
Deposit Account Bank, and the Deposit Account Bank hereby agrees, to comply with
any such instructions from the Collateral Agent without any further consent from
the Assignor. Such instructions may include the giving of stop payment orders
for any items being presented to any Deposit Account for payment. The Deposit
Account Bank shall be fully entitled to rely on, and shall comply with, such
instructions from the Collateral Agent even if such instructions are contrary to
any instructions or demands that the Assignor may give to the Deposit Account
Bank. In case of any conflict between instructions received by the Deposit
Account Bank from the Collateral Agent and the Assignor, the instructions from
the Collateral Agent shall prevail.

        (b)     It is understood and agreed that the Deposit Account Bank's duty
to comply with instructions from the Collateral Agent regarding the Deposit
Accounts is absolute, and the Deposit Account Bank shall be under no duty or
obligation, nor shall it have the authority, to inquire or determine whether or
not such instructions are in accordance with the Security Agreement or any other
document, nor seek confirmation thereof from the Assignor or any other person.

        3.      Assignor's Exculpation and Indemnification of Depository Bank.
The Assignor hereby irrevocably authorizes and instructs the Deposit Account
Bank to follow instructions from the Collateral Agent regarding the Deposit
Accounts even if the result of following such instructions from the Collateral
Agent is that the Deposit Account Bank dishonors items presented for payment
from any Deposit Account. The Assignor further confirms that the Deposit Account
Bank shall have no liability to the Assignor for wrongful dishonor of such items
in following such instructions from the Collateral Agent. The Deposit Account
Bank shall have no duty to inquire or determine whether the Assignor's
obligations to the Collateral Agent are in default or whether the Collateral
Agent is entitled, under any separate agreement between the Assignor and the
Collateral Agent, to give any such instructions. The Assignor further agrees to
be responsible for the Deposit Account Bank's customary charges and to indemnify
the Deposit Account Bank from and to hold the Deposit Account Bank harmless
against any loss, cost or expense that the Deposit Account Bank may sustain or
incur in acting upon instructions which the Deposit Account Bank believes in
good faith to be instructions from the Collateral Agent.

        4.      Subordination of Security Interests; Deposit Account Bank's
Recourse to Deposit Accounts. The Deposit Account Bank hereby subordinates any
claims and security

<PAGE>
                                                                         Annex G
                                                                           Page3

interests it may have against, or with respect to, any Deposit Account at any
time established or maintained with it by the Assignor (including any amounts,
investments, instruments or other Collateral from time to time on deposit
therein) to the security interests of the Collateral Agent (for the benefit of
the Secured Creditors) therein, and agrees that no amounts shall be charged by
it to, or withheld or set-off or otherwise recouped by it from, any Deposit
Account of the Assignor or any amounts, investments, instruments or other
Collateral from time to time on deposit therein; provided that the Deposit
Account Bank may, however, from time to time debit the Deposit Accounts for any
of its customary charges in maintaining the Deposit Accounts or for
reimbursement for the reversal of any provisional credits granted by the Deposit
Account Bank to any Deposit Account, to the extent, in each case, that the
Assignor has not separately paid or reimbursed the Deposit Account Bank
therefor.(1)

        5.      Representations, Warranties and Covenants of Deposit Account
Bank. The Deposit Account Bank represents and warrants to the Collateral Agent
that:

        (a)     The Deposit Account Bank constitutes a "bank" (as defined in
Section 9-102 of the UCC), that the jurisdiction (determined in accordance with
Section 9-304 of the UCC) of the Deposit Account Bank for purposes of each
Deposit Account maintained by the Assignor with the Deposit Account Bank shall
be one or more States within the United States.

        (b)     The Deposit Account Bank shall not permit any Assignor to
establish any demand, time, savings, passbook or other account with it which
does not constitute a "deposit account" (as defined in Section 9-102 of the
UCC).

        (c)     The account agreements between the Deposit Account Bank and the
Assignor relating to the establishment and general operation of the Deposit
Accounts provide, whether specifically or generally, that the laws of
______________(2) govern secured transactions relating to the Deposit Accounts
and that the Deposit Account Bank's "jurisdiction" for purposes of Section 9-304
of the UCC in respect of the Deposit Accounts is ___________________.(3) The
Deposit Account Bank will not, without the Collateral Agent's prior written
consent, amend any such account agreement so that the Deposit Account Bank's
jurisdiction for purposes of Section 9-304 of the UCC is other than a
jurisdiction permitted pursuant to preceding clause (a). All account agreements
in respect of each Deposit Account in existence on the date hereof are listed on
Annex A hereto and copies of all such account agreements have been furnished to
the Collateral Agent. The Deposit Account Bank will promptly furnish to the
Collateral Agent a copy of the account agreement for each Deposit Account
hereafter established by the Deposit Account Bank for the Assignor.

        (d)     The Deposit Account Bank has not entered and will not enter,
into any agreement with any other person by which the Deposit Account Bank is
obligated to comply

----------
(1)  If the respective Deposit Account Bank is unwilling to agree to this
paragraph, then the Collateral Agent may take the described in Section 3.9 of
the Security Agreement.
(2)  Inserted jurisdiction(s) must be consistent with requirements of preceding
clause (a).
(3)  See footnote 2.

<PAGE>
                                                                         Annex G
                                                                           Page4

with instructions from such other person as to the disposition of funds from any
Deposit Account or other dealings with any Deposit Account or other of the
Collateral.

        (e)     On the date hereof the Deposit Account Bank maintains no Deposit
Accounts for the Assignor other than the Deposit Accounts specifically
identified in Annex A hereto.

        (f)     Any items or funds received by the Deposit Account Bank for the
Assignor's account will be credited to said Deposit Accounts specified in
paragraph (e) above or to any other Deposit Accounts hereafter established by
the Deposit Account Bank for the Assignor in accordance with this Agreement.

        (g)     The Deposit Account Bank will promptly notify the Collateral
Agent of each Deposit Account hereafter established by the Deposit Account Bank
for the Assignor (which notice shall specify the account number of such Deposit
Account and the location at which the Deposit Account is maintained), and each
such new Deposit Account shall be subject to the terms of this Agreement in all
respects.

        6.      Deposit Account Statements and Information. The Deposit Account
Bank agrees, and is hereby authorized and instructed by the Assignor, to furnish
to the Collateral Agent, at its address indicated below and at the Collateral
Agent's written request, copies of all account statements and other information
relating to each Deposit Account that the Deposit Account Bank sends to the
Assignor and to disclose to the Collateral Agent all information requested by
the Collateral Agent regarding any Deposit Account.

        7.      Conflicting Agreements. This Agreement shall have control over
any conflicting agreement between the Deposit Account Bank and the Assignor.

        8.      Merger or Consolidation of Deposit Account Bank. Without the
execution or filing of any paper or any further act on the part of any of the
parties hereto, any bank into which the Deposit Account Bank may be merged or
with which it may be consolidated, or any bank resulting from any merger to
which the Deposit Account Bank shall be a party, shall be the successor of the
Deposit Account Bank hereunder and shall be bound by all provisions hereof which
are binding upon the Deposit Account Bank and shall be deemed to affirm as to
itself all representations and warranties of the Deposit Account Bank contained
herein.

        9.      Notices. (a) All notices and other communications provided for
in this Agreement shall be in writing (including facsimile) and sent to the
intended recipient at its address or telex or facsimile number set forth below:

<PAGE>
                                                                         Annex G
                                                                           Page5

                If to the Collateral Agent, at:

                Deutsche Bank AG New York Branch
                60 Wall Street
                New York, New York  10005
                Attention:  Ms. Carin Keegan
                Telephone No.: (212) 250-6083
                Telecopier No.: (212) 797-5690

                If to the Assignor, at:

                _______________

                _______________

                _______________

                If to the Deposit Account Bank, at:

                _______________

                _______________

                _______________

or, as to any party, to such other address or telex or facsimile number as such
party may designate from time to time by notice to the other parties.

        (b)     Except as otherwise provided herein, all notices and other
communications hereunder shall be delivered by hand or by commercial overnight
courier (delivery charges prepaid), or mailed, postage prepaid, or telexed or
faxed, addressed as aforesaid, and shall be effective (i) three business days
after being deposited in the mail (if mailed), (ii) when delivered (if delivered
by hand or courier) and (iii) or when transmitted with receipt confirmed (if
telexed or faxed); provided that notices to the Collateral Agent shall not be
effective until actually received by it.

        10.     Amendment. This Agreement may not be amended, modified or
supplemented except in writing executed and delivered by all the parties hereto.

        11.     Binding Agreement. This Agreement shall bind the parties hereto
and their successors and assign and shall inure to the benefit of the parties
hereto and their successors and assigns. Without limiting the provisions of the
immediately preceding sentence, the Collateral Agent at any time or from time to
time may designate in writing to the Deposit Account Bank a successor Collateral
Agent (at such time, if any, as such entity becomes the Collateral Agent under
the Security Agreement, or at any time thereafter) who shall thereafter succeed
to the rights of the existing Collateral Agent hereunder and shall be entitled
to all of the rights and benefits provided hereunder.

<PAGE>
                                                                         Annex G
                                                                           Page6

        12.     Continuing Obligations. The rights and powers granted herein to
the Collateral Agent have been granted in order to protect and further perfect
its security interests in the Deposit Accounts and other Collateral and are
powers coupled with an interest and will be affected neither by any purported
revocation by the Assignor of this Agreement or the rights granted to the
Collateral Agent hereunder or by the bankruptcy, insolvency, conservatorship or
receivership of the Assignor or the Deposit Account Bank or by the lapse of
time. The rights of the Collateral Agent hereunder and in respect of the Deposit
Accounts and the other Collateral, and the obligations of the Assignor and
Deposit Account Bank hereunder, shall continue in effect until the security
interests of Collateral Agent in the Deposit Accounts and such other Collateral
have been terminated and the Collateral Agent has notified the Deposit Account
Bank of such termination in writing.

        13.     Governing Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of New York.

        14.     Counterparts. This Agreement may be executed in any number of
counterparts, all of which shall constitute one and the same instrument, and any
party hereto may execute this Agreement by signing and delivering one or more
counterparts.

    [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS]

<PAGE>
                                                                         Annex G
                                                                           Page7

        IN WITNESS WHEREOF, the parties hereto have duly executed and delivered
this Agreement as of the date first written above.

                              Assignor:

                              [NAME OF ASSIGNOR]

                              By:
                                 -------------------------------
                                 Name:
                                 Title:

                              Collateral Agent:

                              DEUTSCHE BANK AG NEW YORK BRANCH,
                                as Collateral Agent for the Lender Creditors
                                with respect to the Priority Credit Document
                                Obligations

                              By:
                                 -------------------------------
                                 Name:
                                 Title:

                              By:
                                 -------------------------------
                                 Name:
                                 Title:

                              DEUTSCHE BANK AG NEW YORK BRANCH,
                                as Collateral  Agent for the Secured  Creditors
                                with respect to the Obligations not
                                constituting  Priority Credit Document
                                Obligations

                              By:
                                 -------------------------------
                                 Name:
                                 Title:

                              By:
                                 -------------------------------
                                 Name:
                                 Title:

<PAGE>
                                                                         Annex G
                                                                           Page8

                              Deposit Account Bank:

                              [NAME OF DEPOSIT ACCOUNT BANK]

                              By:
                                 -------------------------------
                                 Name:
                                 Title:

<PAGE>

                                                                         ANNEX H
                                                                              to
                                                              SECURITY AGREEMENT

                      DESCRIPTION OF COMMERCIAL TORT CLAIMS

1.      Dow AgroSciences LLC (Plaintiff) vs. Crompton Corporation and Uniroyal
        Chemical Company, Inc.(6) (Defendant). Case No. 1:03-CV-0654-SEB-JPG,
        United States District Court, Southern District of Indiana, Indianapolis
        Division.

        Plaintiff is seeking a declaratory judgment that it is not infringing
        any of Defendant's patents by selling its noviflumuron termiticide
        product and also to declare that Defendant's patents are invalid.
        Defendant has counterclaimed that Plaintiff is infringing defendant's
        patents and that defendant's patents are valid and enforceable.
        Defendant believes that the claim may be worth $20-25 million, but there
        is a lot of uncertainty on that because experts have not yet been
        retained.

----------
(6) Uniroyal Chemical Company, Inc., a Delaware corporation

                               (Graphic Omitted)

<PAGE>

                                                                         ANNEX I
                                                                              to
                                                              SECURITY AGREEMENT

                       SCHEDULE OF MARKS AND APPLICATIONS;
                       INTERNET DOMAIN NAME REGISTRATIONS

1.      MARKS AND APPLICATIONS:

        (a)     Registered Trademarks see Attachment 1.

        (b)     Pending Trademarks see Attachment 2.

2.      INTERNET DOMAIN NAME REGISTRATIONS:

        (a)     Crompton Corporation

        DOMAIN NAME                       REG. DATE   EXPIRATION
        ------------------------------------------------------------------------
        ckwitco.com                       06/01/99    10/20/05
        Cromptonchemical.com              02/28/02    02/28/05
        cromptonchemicals.com             02/28/05    02/28/05
        cromptoncorp.com                  12/11/99    12/11/06
        cromptonsucks.com                 07/18/02    07/18/09
        petadditives.com                  09/27/00    09/27/04
        uniroyalchem.com                  10/30/95    10/29/04
        uniroyalchemical.com              01/30/97    01/31/05
        uniroyal-chemical.com             01/30/97    01/31/05
        witco.com                         11/06/96    11/07/04
        witco-corp.com                    01/03/96    01/02/05
        witcocorporation.com              12/18/95    12/14/04
        witcopolymeradditives.com         09/27/00    09/27/04
        witcoranch.com                    04/16/02    04/16/04 (Renewal past due
                                                       - in redemption period)
        witcovinyladditives.com           09/27/00    09/27/04
        woodfiberplasticcomposites.com    08/30/02    08/30/04
        woodfiber-plasticcomposites.com   08/30/02    08/30/014
        woodfiberplasticscomposites.com   08/30/02    08/30/04
        woodplasticcomposite.com          01/07/02    01/07/05
        woodplasticcomposites.com         01/07/02    01/07/05
        woodplasticscomposites.com        01/07/02    01/07/05
        davisstandard.com                 04/11/97    04/12/06

        (b)     Davis-Standard Corporation

        DOMAIN NAME                       REG. DATE   EXPIRATION
        ------------------------------------------------------------------------
        davisstandard.com                 04/11/97    04/12/06
        davis-standard.com                06/25/97    06/24/06

<PAGE>

                                                                         ANNEX J
                                                                              to
                                                              SECURITY AGREEMENT

                               SCHEDULE OF PATENTS

See Attachment 1.

<PAGE>

                                                                         ANNEX K
                                                                              to
                                                              SECURITY AGREEMENT

                             SCHEDULE OF COPYRIGHTS

None.

<PAGE>

                                                                         ANNEX L
                                                                              to
                                                              SECURITY AGREEMENT

                       FORM OF GRANT OF SECURITY INTEREST
                           IN UNITED STATES TRADEMARKS

FOR GOOD AND VALUABLE CONSIDERATION, receipt and sufficiency of which are hereby
acknowledged, [Name of Grantor], a __________ _________ (the "Grantor") with
principal offices at ____________________________, hereby pledges and grants to
Deutsche Bank AG New York Branch, a duly licensed branch of Deutsche Bank AG, a
banking corporation organized and existing under the laws of the Federal
Republic of Germany, with principal offices at 60 Wall Street, New York, New
York 10005, as collateral agent for the equal and ratable benefit of the Lender
Creditors (as defined in the Security Agreement referred to below) and as
collateral agent for the equal and ratable benefit of the Secured Creditors (as
defined in the Security Agreement referred to below) (in such capacities and (in
either case) together with any successor collateral agent, the "Grantee"), a
continuing security interest in all of the Grantor's right, title and interest
in and to (i) the United States trademarks, trademark registrations and
trademark applications (the "Marks") set forth on Schedule A attached hereto,
(ii) all Proceeds (as such term is defined in the Security Agreement referred to
below) and products of the Marks, (iii) the goodwill of the businesses
symbolized by the Marks and (iv) all causes of action arising prior to or after
the date hereof for infringement of any of the Marks or unfair competition
regarding the same.

THIS GRANT is made to secure the prompt payment and performance when due of all
the Obligations of the Grantor, as such term is defined in the Security
Agreement among the Grantor, the other assignors from time to time party thereto
and the Grantee, dated as of August 16, 2004 (as amended, restated, modified
and/or supplemented from time to time, the "Security Agreement"). Upon the
occurrence of the Termination Date (as defined in the Security Agreement), the
Grantee shall execute, acknowledge, and deliver to the Grantor an instrument in

<PAGE>
                                                                         Annex L
                                                                           Page2

writing releasing the security interest in the Marks acquired under this Grant
and reassigning its interest in the Marks to the Grantor.

This Grant has been granted in conjunction with the security interest granted to
the Grantee under the Security Agreement. The rights and remedies of the Grantee
with respect to the security interest granted herein are as set forth in the
Security Agreement, all terms and provisions of which are incorporated herein by
reference. In the event that any provisions of this Grant are deemed to conflict
with the Security Agreement, the provisions of the Security Agreement shall
govern.

    [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS]

<PAGE>
                                                                         Annex L
                                                                           Page3

        IN WITNESS WHEREOF, the undersigned have executed this Grant as of the
____ day of ____________, ____.

                                               [NAME OF GRANTOR], Grantor

                                               By
                                                  --------------------------
                                                  Name:
                                                  Title:

                                               DEUTSCHE BANK AG NEW YORK BRANCH,
                                                as Collateral Agent and Grantee

                                               By
                                                  --------------------------
                                                  Name:
                                                  Title:

                                               By
                                                  --------------------------
                                                  Name:
                                                  Title:

<PAGE>

STATE OF ______________)
                       )  ss.:
COUNTY OF _____________)

On this ____ day of _________, ____, before me personally came ________
________________ who, being by me duly sworn, did state as follows: that [s]he
is ______________ of [Name of Grantor], that [s]he is authorized to execute the
foregoing Grant on behalf of said ____________ and that [s]he did so by
authority of the [Board of Directors] of said ____________.

                                                        ___________________
                                                           Notary Public

<PAGE>

STATE OF ______________)
                       )  ss:
COUNTY OF _____________)

On this ____ day of _________, ____, before me personally came ________
_____________________ who, being by me duly sworn, did state as follows: that
[s]he is __________________ of Deutsche Bank AG New York Branch, that [s]he is
authorized to execute the foregoing Grant on behalf of said corporation and that
[s]he did so by authority of the Board of Directors of said corporation.

                                                        ___________________
                                                           Notary Public

<PAGE>

                                                                      SCHEDULE A

        MARK                      REG. NO.                 REG. DATE
        ----                      --------                 ---------

<PAGE>

                                                                         ANNEX M
                                                                              to
                                                              SECURITY AGREEMENT

                       FORM OF GRANT OF SECURITY INTEREST
                            IN UNITED STATES PATENTS

FOR GOOD AND VALUABLE CONSIDERATION, receipt and sufficiency of which are hereby
acknowledged, [Name of Grantor], a __________ _________ (the "Grantor") with
principal offices at ____________________________, hereby grants to Deutsche
Bank AG New York Branch, a duly licensed branch of Deutsche Bank AG, a banking
corporation organized and existing under the laws of the Federal Republic of
Germany, with principal offices at 60 Wall Street, New York, New York 10005, as
collateral agent for the equal and ratable benefit of the Lender Creditors (as
defined in the Security Agreement referred to below) and as collateral agent for
the equal and ratable benefit of the Secured Creditors (as defined in the
Security Agreement referred to below) (in such capacities and (in either case)
together with any successor collateral agent, the "Grantee"), a continuing
security interest in all of the Grantor's rights, title and interest in and to
(i) the United States patents (the "Patents") set forth on Schedule A attached
hereto, in each case together with (ii) all Proceeds (as such term is defined in
the Security Agreement referred to below) and products of the Patents, and (iii)
all causes of action arising prior to or after the date hereof for infringement
of any of the Patents.

THIS GRANT is made to secure the prompt payment and performance when due of all
the Obligations of the Grantor, as such term is defined in the Security
Agreement among the Grantor, the other assignors from time to time party thereto
and the Grantee, dated as of August 16, 2004 (as amended, restated, modified
and/or supplemented from time to time, the "Security Agreement"). Upon the
occurrence of the Termination Date (as defined in the Security Agreement), the
Grantee shall execute, acknowledge, and deliver to the Grantor an instrument in
writing releasing the security interest in the Patents acquired under this Grant
and reassigning, its interest in the Patents to the Grantor.

<PAGE>
                                                                         Annex M
                                                                           Page2

This Grant has been granted in conjunction with the security interest granted to
the Grantee under the Security Agreement. The rights and remedies of the Grantee
with respect to the security interest granted herein are as set forth in the
Security Agreement, all terms and provisions of which are incorporated herein by
reference. In the event that any provisions of this Grant are deemed to conflict
with the Security Agreement, the provisions of the Security Agreement shall
govern.

    [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS]

<PAGE>
                                                                         Annex M
                                                                           Page3

        IN WITNESS WHEREOF, the undersigned have executed this Grant as of the
____ day of ____________, ____.

                                               [NAME OF GRANTOR], Grantor

                                               By
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                               DEUTSCHE BANK AG NEW YORK BRANCH,
                                                 as Collateral Agent and Grantee

                                               By
                                                 -------------------------------
                                                 Name:
                                                 Title:

                                               By
                                                 -------------------------------
                                                 Name:
                                                 Title:

<PAGE>

STATE OF ______________)
                       )  ss:
COUNTY OF______________)

On this ____ day of _________, ____ before me personally came ________
________________ who, being by me duly sworn, did state as follows: that [s]he
is ______________ of [Name of Grantor], that [s]he is authorized to execute the
foregoing Grant on behalf of said ____________ and that [s]he did so by
authority of the Board of Directors of said ____________.

                                                        ___________________
                                                           Notary Public

<PAGE>

STATE OF ______________)
                       )  ss:
COUNTY OF _____________)

On this ____ day of _________, ____, before me personally came ________
_____________________ who, being by me duly sworn, did state as follows: that
[s]he is __________________ of Deutsche Bank AG New York Branch, that [s]he is
authorized to execute the foregoing Grant on behalf of said corporation and that
[s]he did so by authority of the Board of Directors of said corporation.

                                                        ___________________
                                                           Notary Public

<PAGE>

                                                                      SCHEDULE A

        PATENT                    PATENT NO.                ISSUE DATE
        ------                    ----------                ----------

<PAGE>

                                                                         ANNEX N
                                                                              TO
                                                              SECURITY AGREEMENT

                       FORM OF GRANT OF SECURITY INTEREST
                           IN UNITED STATES COPYRIGHTS

        WHEREAS, [Name of Grantor], a _______________ _____________ (the
"Grantor"), having its chief executive office at , , is the owner of all right,
title and interest in and to the United States copyrights and associated United
States copyright registrations and applications for registration set forth in
Schedule A attached hereto;

        WHEREAS, DEUTSCHE BANK AG NEW YORK BRANCH, a duly licensed branch of
Deutsche Bank AG, a banking corporation organized and existing under the laws of
the Federal Republic of Germany, with principal offices at 60 Wall Street, New
York, New York 10005, as collateral agent for the equal and ratable benefit of
the Lender Creditors (as defined in the Security Agreement referred to below)
and as collateral agent for the equal and ratable benefit of the Secured
Creditors (as defined in the Security Agreement referred to below) (in such
capacities and (in either case) together with any successor collateral agent,
the "Grantee"), desires to acquire a continuing security interest in said
copyrights and copyright registrations and applications therefor; and

        WHEREAS, the Grantor is willing to grant to the Grantee a continuing
security interest in the copyrights and copyright registrations and applications
therefor described above to secure the prompt payment and performance when due
of all of the Obligations of the Grantor under the Security Agreement referred
to below.

        NOW, THEREFORE, for good and valuable consideration, the receipt of
which is hereby acknowledged, and subject to the terms and conditions of the
Security Agreement, dated as of August 16, 2004, made by the Grantor, the other
assignors from time to time party thereto and the Grantee (as amended, restated,
modified and/or supplemented from time to time, the "Security Agreement"), the
Grantor hereby assigns, pledges and grants to the Grantee, as collateral agent
for the equal and ratable benefit of the Lender Creditors and as collateral
agent for the equal and ratable benefit of the Secured Creditors, a continuing
security interest in, the copyrights and copyright registrations and
applications therefor set forth in Schedule A attached hereto.

<PAGE>
                                                                         Annex N
                                                                           Page2

        This Grant has been granted in conjunction with the security interest
granted to the Grantee under the Security Agreement. The rights and remedies of
the Grantee with respect to the security interest granted herein are as set
forth in the Security Agreement, all terms and provisions of which are
incorporated herein by reference. In the event that any provisions of this Grant
are deemed to conflict with the Security Agreement, the provisions of the
Security Agreement shall govern. Upon the occurrence of the Termination Date (as
defined in the Security Agreement), the Grantee shall execute, acknowledge and
deliver to the Grantor an instrument in writing releasing the security interest
in the copyrights and copyright registrations and applications therefor acquired
under this Grant and reassigning its interest in such copyrights and copyright
registrations and applications therefor to the Grantor.

    [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS]

<PAGE>
                                                                         Annex N
                                                                           Page3

        IN WITNESS WHEREOF, the undersigned have executed this Grant as of the
____ day of ____________, ____.

                                               [NAME OF GRANTOR], Grantor

                                               By
                                                 ---------------------------
                                                 Name:
                                                 Title:

                                               DEUTSCHE BANK AG NEW YORK BRANCH,
                                                 as Collateral Agent and Grantee

                                               By
                                                 ---------------------------
                                                 Name:
                                                 Title:

                                               By
                                                 ---------------------------
                                                 Name:
                                                 Title:

<PAGE>

STATE OF               )
                       )  ss:
COUNTY OF              )

On this __ day of _________, ____, before me personally came ___________
______________, who being duly sworn, did depose and say that [s]he is
___________________ of [Name of Grantor], that [s]he is authorized to execute
the foregoing Grant on behalf of said corporation and that [s]he did so by
authority of the Board of Directors of said corporation.

                                                        ___________________
                                                           Notary Public

<PAGE>

STATE OF ______________)
                       )  ss.:
COUNTY OF______________)

On this ____ day of _________, ____, before me personally came ________
__________________ who, being by me duly sworn, did state as follows: that [s]he
is __________________ of Deutsche Bank AG New York Branch, that [s]he is
authorized to execute the foregoing Grant on behalf of said __________ and that
[s]he did so by authority of the Board of Directors of said _____________.

                                                        ___________________
                                                           Notary Public

<PAGE>

                                                                         ANNEX O
                                                                              to
                                                              SECURITY AGREEMENT

                              THE COLLATERAL AGENT

        1. Appointment. The Secured Creditors, by their acceptance of the
benefits of the Security Agreement to which this Annex O is attached and each
other Security Document hereby irrevocably designate Deutsche Bank AG New York
Branch (and any successor Collateral Agent) to act as specified herein and
therein. Unless otherwise defined herein, all capitalized terms used herein (x)
and defined in the Security Agreement, are used herein as therein defined and
(y) not defined in the Security Agreement, are used herein as defined in the
Credit Agreement referenced in the Security Agreement. Each Secured Creditor
hereby irrevocable authorizes, and each holder of any Obligation by the
acceptance of such Obligation and by the acceptance of the benefits of the
Security Documents shall be deemed irrevocably to authorize, the Collateral
Agent to take such action on its behalf under the provisions of the Security
Documents and any instruments and agreements referred to therein and to exercise
such powers and to perform such duties thereunder as are specifically delegated
to or required of the Security Documents by the terms thereof and such other
powers as are reasonably incidental thereto. The Collateral Agent may perform
any of its duties hereunder or thereunder by or through its authorized agents,
sub-agents or employees.

        2. Nature of Duties. (a) The Collateral Agent shall have no duties or
responsibilities except those expressly set forth herein and in the Security
Documents. The duties of the Collateral Agent shall be mechanical and
administrative in nature; the Collateral Agent shall not have by reason of this
Agreement or any other Secured Debt Agreement a fiduciary relationship in
respect of any Secured Creditor; and nothing in this Agreement or any other
Secured Debt Agreement, expressed or implied, is intended to or shall be so
construed as to impose upon the Collateral Agent any obligations in respect of
the Security Documents except as expressly set forth herein and therein.

        (b) The Collateral Agent shall not be responsible for insuring the
Collateral or for the payment of taxes, charges or assessments or discharging of
Liens upon the collateral or otherwise as to the maintenance of the Collateral.

        (c) The Collateral Agent shall not be required to ascertain or inquire
as to the performance by any Assignor of any of the covenants or agreements
contained in the Security Agreement or any other Secured Debt Agreement.

        (d) The Collateral Agent shall be under no obligation or duty to take
any action under, or with respect to, any Security Document if taking such
action (i) would subject the Collateral Agent to a tax in any jurisdiction where
it is not then subject to a tax or (ii) would require the Collateral Agent to
qualify to do business, or obtain any license, in any jurisdiction where it is
not then so qualified or licensed or (iii) would subject the Collateral Agent to
in personam jurisdiction in any locations where it is not then so subject.

        (e) Notwithstanding any other provision of this Annex O, neither the
Collateral Agent nor any of its officers, directors, employees, affiliates or
agents shall, in each case in its individual capacity, be personally liable for
any action taken or omitted to be taken by

<PAGE>
                                                                         Annex O
                                                                           Page2

it in accordance with, or pursuant to this Annex O or any Security Document
except for its own gross negligence or willful misconduct (as determined in a
final, non-appealable decision by a court of competent jurisdiction).

        3. Lack of Reliance on the Collateral Agent. Independently and without
reliance upon the Collateral Agent, each Secured Creditor, to the extent it
deems appropriate, has made and shall continue to make (i) its own independent
investigation of the financial condition and affairs of each Assignor and its
Subsidiaries in connection with the making and the continuance of the
Obligations and the taking or not taking of any action in connection therewith,
and (ii) its own appraisal of the creditworthiness of each Assignor and its
Subsidiaries, and the Collateral Agent shall have no duty or responsibility,
either initially or on a continuing basis, to provide any Secured Creditor with
any credit or other information with respect thereto, whether coming into its
possession before the extension of any Obligations or the purchase of any notes
or at any time or times thereafter. The Collateral Agent shall not be
responsible in any manner whatsoever to any Secured Creditor for the correctness
of any recitals, statements, information, representations or warranties herein
or in any document, certificate or other writing delivered in connection
herewith or for the execution, effectiveness, genuineness, validity,
enforceability, perfection, collectibility, priority or sufficiency of any
Security Document or the security interests granted hereunder or the financial
condition of any Assignor or any Subsidiary of any Assignor or be required to
make any inquiry concerning either the performance or observance of any of the
terms, provisions or conditions of the Security Agreement, or the financial
condition of any Assignor or any Subsidiary of any Assignor, or the existence or
possible existence of any default or event of default. The Collateral Agent
makes no representations as to the value or condition of the Collateral or any
part thereof, or as to the title of any Assignor thereto or as to the security
afforded by any Security Document.

        4. Certain Rights of the Collateral Agent. (a) No Secured Creditor shall
have the right to cause the Collateral Agent to take any action with respect to
the Collateral, with only the Required Secured Creditors having the right to
direct the Collateral Agent to take any such action. If the Collateral Agent
shall request instructions from the Required Secured Creditors, with respect to
any act or action (including failure to act) in connection with any Security
Document, the Collateral Agent shall be entitled to refrain from such act or
taking such action unless and until it shall have received instructions from the
Required Secured Creditors and to the extent requested, appropriate
indemnification in respect of actions to be taken, and the Collateral Agent
shall not incur liability to any Person by reason of so refraining. Without
limiting the foregoing, no Secured Creditor shall have any right of action
whatsoever against the Collateral Agent as a result of the Collateral Agent
acting or refraining from acting hereunder in accordance with the instructions
of the Required Secured Creditors. Notwithstanding anything to the contrary
contained above in this Section 4(a), if at any time the principal of any
Obligations secured by the Security Documents has been accelerated, or the final
maturity date with respect to any such principal Obligations has occurred, and
as a result thereof one or more payment Events of Default (where the aggregate
principal amount of such Obligations accelerated or not paid at final maturity
equals or exceeds $50,000,000), which payment Events of Default shall have
continued in existence for at least 90 consecutive days after the date of such
acceleration or final maturity, and the Required Secured Creditors at such time
(determined without regard to this sentence) have not directed the Collateral
Agent to commence enforcement proceedings pursuant to any of the Security
Documents, then so long as such payment Event of

<PAGE>
                                                                         Annex O
                                                                           Page3

Default is continuing the Secured Creditors holding at least a majority of the
outstanding Obligations secured hereby subject to such payment Event of Default
shall constitute the Required Secured Creditors for purposes of causing the
Collateral Asset to commence enforcement proceedings pursuant to the Security
Documents, provided that in such event the Secured Creditors who would
constitute the Required Secured Creditors in the absence of this sentence shall
have the right to direct the manner and method of enforcement so long as such
directions do not materially delay or impair the taking of enforcement action.

        (b) Notwithstanding anything to the contrary contained herein, the
Collateral Agent is authorized, but not obligated, (i) to take any action
reasonably required to perfect or continue the perfection of the liens on the
Collateral for the benefit of the Secured Creditors and (ii) when instructions
from the Required Secured Creditors have been requested by the Collateral Agent
but have not yet been received, to take any action which the Collateral Agent,
in good faith, believes to be reasonably required to promote and protect the
interests of the Secured Creditors in the Collateral; provided that once
instructions have been received, the actions of the Collateral Agent shall be
governed thereby and the Collateral Agent shall not take any further action
which would be contrary thereto.

        (c) Notwithstanding anything to the contrary contained herein or in any
other Security Document, the Collateral Agent shall not be required to take any
action that exposes or, in the good faith judgment of the Collateral Agent may
expose, the Collateral Agent or its officers, directors, agents or employees to
personal liability, unless the Collateral Agent shall be adequately indemnified
as provided herein, or that is, or in the good faith judgment of the Collateral
Agent may be, contrary to any Security Document, any other Secured Debt Document
or applicable law.

        5. Reliance. The Collateral Agent shall be entitled to rely, and shall
be fully protected in relying, upon any note, writing, resolution, notice,
statement, certificate, telex, teletype or telescopes message, cablegram,
radiogram, order or other document or telephone message signed, sent or made by
the proper Person or entity, and, with respect to all legal matters pertaining
hereto or to any Security Document and its duties thereunder and hereunder, upon
advice of counsel selected by it.

        6. Indemnification. To the extent the Collateral Agent is not reimbursed
and indemnified by the Assignors under the Security Documents, the Secured
Creditors (other than the Existing Senior Noteholders) will reimburse and
indemnify the Collateral Agent, in proportion to their respective outstanding
principal amounts (including, for this purpose, the Stated Amount of outstanding
Letters of Credit of Obligations, for and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever which may be imposed
on, incurred by or asserted against the Collateral Agent in performing its
duties hereunder, or in any way relating to or arising out of its actions as
Collateral Agent in respect of any Security Documents except for those resulting
solely from the Collateral Agent's own gross negligence or willful misconduct
(as determined in a final, non-appealable decision by a court of competent
jurisdiction). The indemnities set forth in this Section 6 shall survive the
repayment of all Obligations, with the respective indemnification at such time
to be based upon the outstanding principal amounts (determined as described
above) of Obligations at the time of the respective occurrence upon which the
claim

<PAGE>
                                                                         Annex O
                                                                           Page4

against the Collateral Agent is based or, if same is not reasonably
determinable, based upon the outstanding principal amounts (determined as
described above) of Obligations as in effect immediately prior to the
termination of the Security Documents. The indemnities set forth in this Section
6 are in addition to any indemnities provided by the Lenders to the Collateral
Agent pursuant to the Credit Agreement, with the effect being that the Lenders
shall be responsible for indemnifying the Collateral Agent to the extent the
Collateral Agent does not receive payments pursuant to this Section 6 from the
Secured Creditors (although in such event, and upon the payment in full of all
such amounts owing to the Collateral Agent by the Lenders, the Lenders shall be
subrogated to any rights of the Collateral Agent to receive payment from the
Secured Creditors).

        7. The Collateral Agent in its Individual Capacity. With respect to its
obligations as a lender under the Credit Agreement and any other Credit
Documents to which the Collateral Agent is a party, and to act as agent under
one or more of such Credit Documents, the Collateral Agent shall have the rights
and powers specified therein and herein for a "Lender", and may exercise the
same rights and powers as though it were not performing the duties specified
herein; and the terms "Lenders," "Required Lenders," "holders of Notes," or any
similar terms shall, unless the context clearly otherwise indicates, include the
Collateral Agent in its individual capacity. The Collateral Agent and its
affiliates may accept deposits from, lend money to, and generally engage in any
kind of banking, investment banking, trust or other business with any Assignor
or any Affiliate or Subsidiary of any Assignor as if it were not performing the
duties specified herein or in the other Credit Documents, and may accept fees
and other consideration from the Assignors for services in connection with the
Credit Agreement, the other Credit Documents and otherwise without having to
account for the same to the Secured Creditors.

        8. Holders. The Collateral Agent may deem and treat the payee of any
note as the owner thereof for all purposes hereof unless and until written
notice of the assignment, transfer or endorsement thereof, as the case may be,
shall have been filed with the Collateral Agent. Any request, authority or
consent of any person or entity who, at the time of making such request or
giving such authority or consent, is the holder of any note, shall be final and
conclusive and binding on any subsequent holder, transferee, assignee or
endorsee, as the case may be, of such note or of any note or notes issued in
exchange therefor.

        9. Resignation by the Collateral Agent. (a) The Collateral Agent may
resign from the performance of all of its functions and duties hereunder and
under the Security Documents at any time by giving 15 Business Days' prior or
written notice to the Borrower, the Lender Creditors, the Hedging Creditors, the
Additional Secured Creditors and the Trustee. Such resignation shall take effect
upon the appointment of a successor Collateral Agent pursuant to clause (b) or
(c) below.

        (b) If a successor Collateral Agent shall not have been appointed within
said 15 Business Day period by the Required Secured Creditors, the Collateral
Agent, with the consent of the Borrower, which consent shall not be unreasonably
withheld or delayed, shall then appoint a successor Collateral Agent who shall
serve as Collateral Agent hereunder or thereunder until such time, if any, as
the Required Secured Creditors appoint a successor Collateral Agent as provided
above.

<PAGE>
                                                                         Annex O
                                                                           Page5

        (c) If no successor Collateral Agent has been appointed pursuant to
clause (b) above by the 15th Business Day after the date of such notice of
resignation was given by the Collateral Agent, as a result of a failure by the
Borrower to consent to the appointment of such a successor Collateral Agent, the
Required Secured Creditors shall then appoint a successor Collateral Agent who
shall serve as Collateral Agent hereunder or thereunder until such time, if any,
as the Required Secured Creditors appoint a successor Collateral Agent as
provided above.

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                        PAGE
                                                                                                        ----
<S>                                                                                                       <C>
ARTICLE I      SECURITY INTERESTS..........................................................................3

     1.1    Grant of Security Interests....................................................................3
     1.2    Power of Attorney..............................................................................6

ARTICLE II     GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS...........................................6

     2.1    Necessary Filings..............................................................................6
     2.2    No Liens.......................................................................................7
     2.3    Other Financing Statements.....................................................................7
     2.4    Chief Executive Office, Record Locations.......................................................7
     2.5    Location of Inventory and Equipment............................................................7
     2.6    Legal Names; Type of Organization (and Whether a Registered Organization and/or a
            Transmitting Utility); Jurisdiction of Organization; Location; Organizational
            Identification Numbers; Changes Thereto; etc...................................................8
     2.7    Trade Names; Etc...............................................................................8
     2.8    Certain Significant Transactions...............................................................8
     2.9    Non-UCC Property...............................................................................9
     2.10   As-Extracted Collateral; Timber-to-be-Cut......................................................9
     2.11   Recourse.......................................................................................9

ARTICLE III    SPECIAL PROVISIONS CONCERNING ACCOUNTS; CONTRACT RIGHTS; INSTRUMENTS;
               CHATTEL PAPER AND CERTAIN OTHER COLLATERAL..................................................9

     3.1    Maintenance of Records........................................................................10
     3.2    Direction to Account Debtors; Contracting Parties; etc........................................10
     3.3    Modification of Terms; etc....................................................................10
     3.4    Collection....................................................................................11
     3.5    Instruments...................................................................................11
     3.6    Assignors Remain Liable Under Accounts........................................................11
     3.7    Assignors Remain Liable Under Contracts.......................................................12
     3.8    Deposit Accounts; Etc.........................................................................12
     3.9    Letter-of-Credit Rights.......................................................................13
     3.10   Commercial Tort Claims........................................................................14
     3.11   Chattel Paper.................................................................................14
     3.12   Further Actions...............................................................................14

ARTICLE IV     SPECIAL PROVISIONS CONCERNING TRADEMARKS AND DOMAIN NAMES..................................14

     4.1    Additional Representations and Warranties.....................................................14
     4.2    Licenses and Assignments......................................................................15
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                                       <C>
     4.3    Infringements.................................................................................15
     4.4    Preservation of Marks and Domain Names........................................................15
     4.5    Maintenance of Registration...................................................................15
     4.6    Future Registered Marks and Domain Names......................................................16
     4.7    Remedies......................................................................................16

ARTICLE V      SPECIAL PROVISIONS CONCERNING PATENTS, COPYRIGHTS AND TRADE SECRETS........................16

     5.1    Additional Representations and Warranties.....................................................16
     5.2    Licenses and Assignments......................................................................17
     5.3    Infringements.................................................................................17
     5.4    Maintenance of Patents or Copyrights..........................................................17
     5.5    Prosecution of Patent or Copyright Applications...............................................18
     5.6    Other Patents and Copyrights..................................................................18
     5.7    Remedies......................................................................................18

ARTICLE VI     PROVISIONS CONCERNING ALL COLLATERAL.......................................................18

     6.1    Protection of Collateral Agent's Security.....................................................18
     6.2    Warehouse Receipts Non-Negotiable.............................................................19
     6.3    Additional Information........................................................................19
     6.4    Further Actions...............................................................................19
     6.5    Financing Statements..........................................................................19
     6.6    Acknowledgment................................................................................20

ARTICLE VII    REMEDIES UPON OCCURRENCE OF AN EVENT OF DEFAULT............................................20

     7.1    Remedies; Obtaining the Collateral Upon Default...............................................20
     7.2    Remedies; Disposition of the Collateral.......................................................21
     7.3    Waiver of Claims..............................................................................22
     7.4    Application of Proceeds.......................................................................23
     7.5    Remedies Cumulative...........................................................................25
     7.6    Discontinuance of Proceedings.................................................................26

ARTICLE VIII   INDEMNITY..................................................................................26

     8.1    Indemnity.....................................................................................26
     8.2    Indemnity Obligations Secured by Collateral; Survival.........................................27

ARTICLE IX     DEFINITIONS................................................................................28

ARTICLE X      MISCELLANEOUS..............................................................................37

     10.1   Notices.......................................................................................37
     10.2   Waiver; Amendment.............................................................................38
     10.3   Obligations Absolute..........................................................................39
     10.4   Successors and Assigns........................................................................39
     10.5   Headings Descriptive..........................................................................39
</TABLE>

<PAGE>

<TABLE>
     <S>                                                                                                  <C>
     10.6   GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL........................40
     10.7   Assignor's Duties.............................................................................41
     10.8   Termination; Release..........................................................................41
     10.9   Counterparts..................................................................................42
     10.10  Severability..................................................................................42
     10.11  The Collateral Agent and the other Secured Creditors..........................................43
     10.12  Additional Assignors..........................................................................43
     10.13  Limited Obligations...........................................................................43
</TABLE>

<TABLE>
<S>         <C>
ANNEX A     Schedule of Chief Executive Offices Address(es) of Chief Executive Office
ANNEX B     Schedule of Inventory and Equipment Locations
ANNEX C     Schedule of Legal Names, Type of Organization  (and Whether a Registered  Organization  and/or
            a Transmitting Utility),  Jurisdiction of Organization,  Location and Organizational
            Identification Numbers
ANNEX D     Schedule of Trade and Fictitious Names
ANNEX E     Description of Certain Significant Transactions Occurring Within One Year Prior to the Date of
            the Security Agreement
ANNEX F     Schedule of Deposit Accounts
ANNEX G     Form of Control Agreement Regarding Deposit Accounts
ANNEX H     Schedule of Commercial Tort Claims
ANNEX I     Schedule of Marks and Applications; Internet Domain Name Registrations
ANNEX J     Schedule of Patents
ANNEX K     Schedule of Copyrights
ANNEX L     Form of Grant of Security Interest in United States Trademarks
ANNEX M     Form of Grant of Security Interest in United States Patents
ANNEX N     Form of Grant of Security Interest in United States Copyrights
ANNEX O     The Collateral Agent
</TABLE>

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]<PAGE>

                                                                   EXHIBIT 10.48

================================================================================

                                PLEDGE AGREEMENT

                                      among

                              CROMPTON CORPORATION,

                           CERTAIN OF ITS SUBSIDIARIES
                         FROM TIME TO TIME PARTY HERETO

                                       and

                        DEUTSCHE BANK AG NEW YORK BRANCH,
                                   as PLEDGEE

                        --------------------------------

                           Dated as of August 16, 2004

                        --------------------------------

================================================================================

<PAGE>

                                PLEDGE AGREEMENT

        PLEDGE AGREEMENT (as amended, restated, modified and/or supplemented
from time to time, this "Agreement"), dated as of August 16, 2004, among each of
the undersigned pledgors (each, a "Pledgor" and, together with any other entity
that becomes a pledgor hereunder pursuant to Section 30 hereof, the "Pledgors")
and Deutsche Bank AG New York Branch, as collateral agent for the benefit of the
Lender Creditors (as defined below) and as collateral agent for the benefit of
all of the Secured Creditors (as defined below) (in such capacities and (in
either case) together with any successor collateral agent, the "Pledgee").
Except as otherwise defined herein, all capitalized terms used herein and
defined in the Credit Agreement (as defined below) shall be used herein as
therein defined. Notwithstanding anything herein to the contrary, (i) for
purposes of Section 3.1(i)(A) hereof and the first reference to "Pledgee" in
Section 3.2(c) hereof, the term "Pledgee" shall mean Deutsche Bank AG New York
Branch (together with any successor collateral agent), in its separate
individual capacity as collateral agent for the benefit of the Lender Creditors
with respect to the Priority Credit Document Obligations, (ii) for purposes of
Section 3.1(i)(B) hereof and the second reference to "Pledgee" in Section 3.2(c)
hereof, the term "Pledgee" shall mean Deutsche Bank AG New York Branch (together
with any successor collateral agent), in its separate individual capacity as
collateral agent for the benefit of all of the Secured Creditors with respect to
the Obligations not constituting Priority Credit Document Obligations, and (iii)
for purposes of all other provisions in this Agreement, the term "Pledgee" shall
mean (x) Deutsche Bank AG New York Branch (together with any successor
collateral agent), in its separate individual capacity as collateral agent for
the benefit of the Lender Creditors with respect to the Priority Credit Document
Obligations and (y) Deutsche Bank AG New York Branch (together with any
successor collateral agent), in its separate individual capacity as collateral
agent for the benefit of all of the Secured Creditors with respect to the
Obligations not constituting Priority Credit Document Obligations.

                              W I T N E S S E T H :

        WHEREAS, Crompton Corporation, a Delaware corporation (the "Borrower"),
the lenders from time to time party thereto (the "Lenders"), Deutsche Bank AG,
Cayman Islands Branch, as Deposit Bank, and Deutsche Bank AG New York Branch, as
administrative agent (together with any successor administrative agent, the
"Administrative Agent") have entered into a Credit Agreement, dated as of August
16, 2004, providing for the making of Loans to the Borrower, and the issuance
of, and participation in, Letters of Credit for the account of the Borrower, all
as contemplated therein (the Lenders, each Issuing Lender, the Administrative
Agent and the Pledgee are herein called the "Lender Creditors") (as used herein,
the term "Credit Agreement" means the Credit Agreement described above in this
paragraph, as the same may from time to time be amended, modified, extended,
renewed, replaced, restated, supplemented and/or refinanced from time to time,
and including any agreement extending the maturity of, or refinancing or
restructuring (including, but not limited to, the inclusion of additional
borrowers or guarantors thereunder or any increase in the amount borrowed) of
all or any portion of, the indebtedness under such credit agreement or any
successor credit agreement, whether or not with the same agent, trustee,
representative, lenders or holders);

<PAGE>

        WHEREAS, the Borrower and/or one or more of the other Pledgors may at
any time and from time to time enter into one or more Interest Rate Protection
Agreements or Other Hedging Agreements with one or more Lenders or any affiliate
thereof (each such Lender or affiliate, even if the respective Lender
subsequently ceases to be a Lender under the Credit Agreement for any reason,
together with such Lender's or affiliate's successors and assigns, if any,
collectively, the "Hedging Creditors");

        WHEREAS, pursuant to the Subsidiaries Guaranty, each Subsidiary
Guarantor has jointly and severally guaranteed to the Lender Creditors and the
Hedging Creditors the payment and performance when due of all Guaranteed
Obligations as described (and defined) therein;

        WHEREAS, the Borrower has, prior to the date hereof, issued (x)
$110,000,000 in aggregate principal amount of its 7.75% debentures due 2023 (the
"Existing 2023 Senior Notes", and with the holders from time to time of such
Existing 2023 Senior Notes being herein called the "Existing 2023 Senior
Noteholders") pursuant to the Indenture, dated as of February 1, 1993, between
the Borrower (as successor-in-interest to Witco Corporation) and Deutsche Bank
Trust Company Americas (as successor-in-interest to JPMorgan Chase Bank (which
in turn was a successor-in-interest to The Chase Manhattan Bank, N.A.)), as
trustee (together with any successor trustee, the "Trustee"), as amended by the
First Supplemental Indenture thereto, dated as of February 1, 1996, among the
Borrower, the Trustee and U.S. Bank, National Association, as trustee for the
Existing 2006 Senior Notes (as further amended, modified or supplemented from
time to time, the "Existing Senior Notes Indenture"), and (y) $150,000,000 in
aggregate principal amount of its 6.875% debentures due 2026 (the "Existing 2026
Senior Notes", and with the holders from time to time of such Existing 2026
Senior Notes being herein called the "Existing 2026 Senior Noteholders"; and (i)
the Existing 2026 Senior Noteholders, together with the Existing 2023 Senior
Noteholders, are collectively referred to herein as the "Existing Senior
Noteholders" and (ii) the Existing 2023 Senior Notes, together with the Existing
2026 Senior Notes, are collectively referred to herein as the "Existing Senior
Notes") pursuant to the Existing Senior Notes Indenture;

        WHEREAS, the Borrower and/or one or more of the other Pledgors have
entered into, or may in the future enter into, one or more agreements or
arrangements providing for (x) cash overdraft protection to be made available to
the Borrower and/or one or more of the other Pledgors as part of their cash
management system and/or (y) credit card lines of credit to be made available to
certain employees of the Borrower and/or one or more of the other Pledgors, in
each case, with one or more Lenders or any affiliate thereof (each such Lender
or affiliate, even if the respective Lender subsequently ceases to be a Lender
under the Credit Agreement for any reason, together with such Lender's or
affiliate's successors and assigns, if any, collectively, the "Additional
Secured Creditors"), which agreements or arrangements may, in accordance with
the terms thereof and to the extent permitted by the Credit Agreement and the
other Credit Documents, be (x) guaranteed by the Borrower and/or one or more of
the other Pledgors and (y) secured on an equal and ratable basis in an aggregate
amount not to exceed $30,000,000 with the other Obligations not constituting
Priority Credit Document Obligations as hereinafter provided (each such
agreement or arrangement, an "Additional Secured Agreement");

                                        2
<PAGE>

        WHEREAS, the Lender Creditors, the Hedging Creditors, the Existing
Senior Noteholders and the Additional Secured Creditors are collectively
referred to herein as the "Secured Creditors";

        WHEREAS, it is a condition precedent to (i) the making of Loans to, and
the issuance of, and participation in, Letters of Credit for the account of, the
Borrower under the Credit Agreement, (ii) the Hedging Creditors entering into
Interest Rate Protection Agreements and Other Hedging Agreements, and (iii) the
Additional Secured Creditors entering into Additional Secured Agreements, that
each Pledgor shall have executed and delivered to the Pledgee this Agreement;

        WHEREAS, because of the condition precedent described in the immediately
preceding recital, it is a requirement under the Existing Senior Notes Indenture
that the Borrower's obligations in respect of the Existing Senior Notes be
secured on an equal and ratable basis with a portion of the other Obligations
as, and to the extent, provided therein and herein; and

        WHEREAS, each Pledgor obtained benefits from the issuance by the
Borrower of the Existing Senior Notes and will obtain benefits from the
incurrence of Loans by the Borrower and the issuance of, and participation in,
Letters of Credit for the account of the Borrower under the Credit Agreement,
the entering into by the Borrower and/or one or more of the other Pledgors of
Interest Rate Protection Agreements or Other Hedging Agreements and the entering
into by the Borrower and/or one or more of the other Pledgors of Additional
Secured Agreements and, accordingly, desires to execute this Agreement in order
to satisfy the conditions described in the two preceding recitals and to induce
the Lenders to make Loans to the Borrower and issue, and/or participate in,
Letters of Credit for the account of the Borrower, the Hedging Creditors to
enter into Interest Rate Protection Agreements or Other Hedging Agreements with
the Borrower and/or one or more of the other Pledgors and the Additional Secured
Creditors to enter into Additional Secured Agreements with the Borrower and/or
one or more of the other Pledgors;

        NOW, THEREFORE, in consideration of the foregoing and other benefits
accruing to each Pledgor, the receipt and sufficiency of which are hereby
acknowledged, each Pledgor hereby makes the following representations and
warranties to the Pledgee for the benefit of the Secured Creditors and hereby
covenants and agrees with the Pledgee for the benefit of the Secured Creditors
as follows:

        1. SECURITY FOR OBLIGATIONS. This Agreement is made by each Pledgor for
the benefit of the Secured Creditors to secure:

        (i)     the full and prompt payment when due (whether at stated
    maturity, by acceleration or otherwise) of all obligations, liabilities and
    indebtedness (including, without limitation, principal, premium, interest
    (including, without limitation, all interest that accrues after the
    commencement of any case, proceeding or other action relating to the
    bankruptcy, insolvency, reorganization or similar proceeding of any Pledgor
    at the rate provided for in the respective documentation, whether or not a
    claim for post-petition interest is allowed in any such proceeding),
    reimbursement obligations under Letters of

                                        3
<PAGE>

    Credit, fees, costs and indemnities) of such Pledgor and each other Pledgor
    to the Lender Creditors, whether now existing or hereafter incurred under,
    arising out of, or in connection with, the Credit Agreement and the other
    Credit Documents to which such Pledgor and each other Pledgor is a party
    (including, without limitation, in the event such Pledgor is a Subsidiary
    Guarantor, all such obligations, liabilities and indebtedness of such
    Pledgor and each other Pledgor under the Subsidiaries Guaranty) and the due
    performance and compliance by such Pledgor and each other Pledgor with all
    of the terms, conditions and agreements contained in the Credit Agreement
    and in such other Credit Documents (all such obligations, liabilities and
    indebtedness under this clause (i), except to the extent consisting of
    obligations or indebtedness with respect to Interest Rate Protection
    Agreements or Other Hedging Agreements being herein collectively called the
    "Credit Document Obligations");

        (ii)    the full and prompt payment when due (whether at stated
    maturity, by acceleration or otherwise) of all obligations, liabilities and
    indebtedness (including, without limitation, all interest that accrues after
    the commencement of any case, proceeding or other action relating to the
    bankruptcy, insolvency, reorganization or similar proceeding of any Pledgor
    at the rate provided for in the respective documentation, whether or not a
    claim for post-petition interest is allowed in any such proceeding) owing by
    such Pledgor and each other Pledgor to the Hedging Creditors, whether now
    existing or hereafter incurred under, arising out of or in connection with
    any Interest Rate Protection Agreement or Other Hedging Agreement, whether
    such Interest Rate Protection Agreement or Other Hedging Agreement is now in
    existence or hereinafter arising (including, without limitation, in the case
    of a Pledgor that is a Subsidiary Guarantor, all obligations, liabilities
    and indebtedness of such Pledgor and each other Pledgor under the
    Subsidiaries Guaranty in respect of the Interest Rate Protection Agreements
    and Other Hedging Agreements), and the due performance and compliance by
    such Pledgor and each other Pledgor with all of the terms, conditions and
    agreements contained in each such Interest Rate Protection Agreement and
    Other Hedging Agreement (all such obligations, liabilities and indebtedness
    under this clause (ii) being herein collectively called the "Hedging
    Obligations");

        (iii)   the full and prompt payment when due (whether at the stated
    maturity, by acceleration or otherwise) of all obligations, liabilities and
    indebtedness (including, without limitation, principal, premium and interest
    (including, without limitation, all interest that accrues after the
    commencement of any case, proceeding or other action relating to the
    bankruptcy, insolvency, reorganization or similar proceeding of the Borrower
    at the rate provided for in the respective documentation, whether or not a
    claim for post-petition interest is allowed in any such proceeding)) owing
    by the Borrower to the Existing Senior Noteholders, whether now existing or
    hereafter incurred under, arising out of or in connection with the Existing
    Senior Notes and the other Existing Senior Notes Documents and the due
    performance and compliance by the Borrower with all of the terms, conditions
    and agreements contained in the Existing Senior Notes Documents (all such
    obligations, liabilities and indebtedness under this clause (iii) being
    herein collectively called the "Existing Senior Notes Obligations");

                                        4
<PAGE>

        (iv)    the full and prompt payment when due (whether at stated
    maturity, by acceleration or otherwise) of all obligations, liabilities and
    indebtedness (including, without limitation, all interest that accrues after
    the commencement of any case, proceeding or other action relating to the
    bankruptcy, insolvency, reorganization or similar proceeding of any Pledgor
    at the rate provided for in the respective documentation, whether or not a
    claim for post-petition interest is allowed in any such proceeding) owing by
    such Pledgor to the Additional Secured Creditors, whether now existing or
    hereafter incurred under, arising out of or in connection with any
    Additional Secured Agreement, whether such Additional Secured Agreement is
    now in existence or hereinafter arising, and the due performance and
    compliance by such Pledgor with all of the terms, conditions and agreements
    contained in each such Additional Secured Agreement (all such obligations,
    liabilities and indebtedness under this clause (iv) being herein
    collectively called the "Additional Secured Obligations");

        (v)     any and all sums advanced by the Pledgee in order to preserve
    the Collateral or preserve its security interest in the Collateral;

        (vi)    in the event of any proceeding for the collection or enforcement
    of any indebtedness, obligations, or liabilities of such Pledgor referred to
    in clauses (i) through (iv) above, after an Event of Default shall have
    occurred and be continuing, the reasonable expenses of retaking, holding,
    preparing for sale or lease, selling or otherwise disposing of or realizing
    on the Collateral, or of any exercise by the Pledgee of its rights
    hereunder, together with reasonable attorneys' fees and court costs; and

        (vii)   all amounts paid by any Indemnitee as to which such Indemnitee
    has the right to reimbursement under Section 8.1 of this Agreement;

all such obligations, liabilities, indebtedness, sums and expenses set forth in
clauses (i) through (vii) of this Section 1 being herein collectively called the
"Obligations", it being acknowledged and agreed that the "Obligations" shall
include extensions of credit of the types described above, whether outstanding
on the date of this Agreement or extended from time to time after the date of
this Agreement; provided that, notwithstanding anything to the contrary
contained herein, (x) obligations, liabilities and indebtedness which would
otherwise constitute Additional Secured Obligations as defined in clause (iv) of
this definition shall not constitute "Obligations" for purposes of (or be
secured pursuant to) this Agreement or any other Security Document unless the
Borrower shall have delivered to the Collateral Agent a Notice of Security
Entitlement (as defined in the Security Agreement) pursuant to, and in
accordance with the terms of, the Security Agreement and (y) the Additional
Secured Creditors, by accepting the benefits of this Agreement and the other
Security Documents, hereby expressly acknowledge and agree that the aggregate
amount that they shall be entitled to receive from the exercise of remedies in
respect of (and the aggregate amount of Additional Secured Obligations to be
secured by) the Collateral under this Agreement, as well as the "collateral"
under all other Security Documents, will not exceed $30,000,000 in the
aggregate.

        2. DEFINITIONS. (a) Unless otherwise defined herein, all capitalized
terms used herein and defined in the Credit Agreement shall be used herein as
therein defined. Reference to singular terms shall include the plural and vice
versa.

                                        5
<PAGE>

        (b)     The following capitalized terms used herein shall have the
definitions specified below:

        "Additional Secured Agreement" shall have the meaning provided in the
recitals hereto.

        "Additional Secured Creditor" shall have the meaning provided in the
recitals hereto.

        "Additional Secured Obligations" shall have the meaning set forth in
Section 1(iv) hereof.

        "Administrative Agent" shall have the meaning set forth in the recitals
hereto.

        "Adverse Claim" shall have the meaning given such term in Section
8-102(a)(1) of the UCC.

        "Agreement" shall have the meaning set forth in the first paragraph
hereof.

        "Borrower" shall have the meaning set forth in the recitals hereto.

        "Certificated Security" shall have the meaning given such term in
Section 8-102(a)(4) of the UCC.

        "Clearing Corporation" shall have the meaning given such term in Section
8-102(a)(5) of the UCC.

        "Collateral" shall have the meaning set forth in Section 3.1 hereof.

        "Collateral Accounts" shall mean any and all accounts established and
maintained by the Pledgee in the name of any Pledgor to which Collateral may be
credited.

        "Credit Agreement" shall have the meaning set forth in the recitals
hereto.

        "Credit Document Obligations" shall have the meaning set forth in
Section 1(i) hereof.

        "Domestic Corporation" shall have the meaning set forth in the
definition of "Stock."

        "Domestic Receivables Facility Property" shall mean, so long as the New
Domestic Receivables Facility is in effect, any promissory notes issued by, and
any Equity Interests in, Crompton Receivables Corporation or any successor
entity that is a purchaser of receivables from the Borrower and/or one or more
Domestic Subsidiaries thereof pursuant to the New Domestic Receivables Facility
and any accounts, collections, records and other property sold pursuant to (or
otherwise subject to a Lien of) the New Domestic Receivables Facility and
sufficiently described therein within the meaning of Section 9-108 of the UCC,
in each case to

                                        6
<PAGE>

the extent that a grant of a security interest in any such property is
prohibited by the terms of the New Domestic Receivables Facility.

        "Event of Default" shall mean any (A) Event of Default (or similar term)
under, and as defined in, (i) the Credit Agreement, (ii) any Interest Rate
Protection Agreement or Other Hedging Agreement entered into with a Hedging
Creditor and (iii) the Existing Senior Notes Indenture and shall in any event
include, without limitation, any payment default on any of the Obligations after
the expiration of any applicable grace period and (B) any payment default (after
the expiration of any applicable grace periods) of any Additional Secured
Obligations.

        "Exempted Foreign Entity" shall mean (a) any Foreign Corporation and any
limited liability company organized under the laws of a jurisdiction other than
the United States or any State or Territory thereof that, in any such case, is
treated for United States income tax purposes as a corporation or an association
taxable as a corporation for U.S. Federal income tax purposes and (b) Crompton
International Corporation, provided that Crompton International Corporation
shall cease to be an Exempted Foreign Entity to the extent that it is otherwise
required to be a Subsidiary Guarantor pursuant to the Credit Agreement.

        "Existing Senior Note Event" shall have the meaning in Section 20(b)
hereof.

        "Existing Senior Noteholders" shall have the meaning provided in the
recitals of hereto.

        "Existing Senior Notes" shall have the meaning provided in the recitals
hereto

        "Existing Senior Notes Documents" shall mean, collectively, the Existing
2023 Senior Notes, the Existing 2026 Senior Notes and the Existing Senior Notes
Indenture.

        "Existing Senior Notes Obligations" shall have the meaning provided in
the definition of "Obligations" in this Section 1(iii) hereof.

        "Existing 2023 Senior Noteholders" shall have the meaning provided in
the recitals of this Agreement.

        "Existing 2023 Senior Notes" shall have the meaning provided in the
recitals of this Agreement.

        "Existing 2026 Senior Noteholders" shall have the meaning provided in
the recitals of this Agreement.

        "Existing 2026 Senior Notes" shall have the meaning provided in the
recitals of this Agreement.

        "Financial Asset" shall have the meaning given such term in Section
8-102(a)(9) of the UCC.

        "Foreign Corporation" shall have the meaning set forth in the definition
of "Stock".

                                        7
<PAGE>

        "Hedging Creditors" shall have the meaning provided in the recitals
hereto.

        "Hedging Obligations" shall have the meaning provided in the definition
of "Obligations" in this Section 1(ii) hereof.

        "Indemnitees" shall have the meaning set forth in Section 11 hereof.

        "Instrument" shall have the meaning given such term in Section
9-102(a)(47) of the UCC.

        "Investment Property" shall have the meaning given such term in Section
9-102(a)(49) of the UCC.

        "Lender Creditors" shall have the meaning set forth in the recitals
hereto.

        "Lenders" shall have the meaning set forth in the recitals hereto.

        "Limited Liability Company Assets" shall mean all assets, whether
tangible or intangible and whether real, personal or mixed (including, without
limitation, all limited liability company capital and interest in other limited
liability companies), at any time owned Pledgor or represented by any Limited
Liability Company Interest.

        "Limited Liability Company Interests" shall mean the entire limited
liability company membership interest at any time owned by any Pledgor in any
limited liability company

        "Location" of any Pledgor has the meaning given such term in Section
9-307 of the UCC.

        "New Domestic Receivables Facility" shall have the meaning provided in
the Credit Agreement; provided that, in the case of any refinancing,
replacement, extension or restatement of the New Domestic Receivables Facility
in effect on the Effective Date, in order for such New Domestic Receivables
Facility to be considered the "New Domestic Receivables Facility" for purposes
of this Agreement, such facility must expressly state that it constitutes the
"New Domestic Receivables Facility" for purposes of the Security Documents and
the Collateral Agent shall have acknowledged it as such in writing.

        "Non-Voting Equity Interests" shall mean all Equity Interests of any
Person which are not Voting Equity Interests.

        "Notes" shall mean all promissory notes from time to time issued to, or
held by, each Pledgor.

        "Obligations" shall have the meaning set forth in Section 1 hereof.

        "Partnership Assets" shall mean all assets, whether tangible or
intangible and whether real, personal or mixed (including, without limitation,
all partnership capital and interest

                                        8
<PAGE>

in other partnerships), at any time owned by any Pledgor or represented by any
Partnership Interest.

        "Partnership Interest" shall mean the entire general partnership
interest or limited partnership interest at any time owned by any Pledgor in any
general partnership or limited partnership

        "Pledged Notes" shall mean all Notes at any time pledged or required to
be pledged hereunder.

        "Pledgee" shall have the meaning set forth in the first paragraph
hereof.

        "Pledgor" shall have the meaning set forth in the first paragraph
hereof.

        "Priority Credit Document Obligations" shall have the meaning provided
in the Security Agreement.

        "Proceeds" shall have the meaning given such term in Section
9-102(a)(64) of the UCC.

        "Registered Organization" shall have the meaning given such term in
Section 9-102(a)(70) of the UCC.

        "Required Lenders" shall have the meaning given such term in the Credit
Agreement.

        "Required Secured Creditors" shall have the meaning provided in the
Security Agreement.

        "Secured Creditors" shall have the meaning set forth in the recitals
hereto.

        "Secured Debt Agreements" shall mean and include this Agreement, the
other Credit Documents, the Interest Rate Protection Agreements and Other
Hedging Agreements entered into with a Hedging Creditor, the Additional Secured
Agreements entered into with an Additional Secured Creditor and the Existing
Senior Notes Documents.

        "Securities Account" shall have the meaning given such term in Section
8-501(a) of the UCC.

        "Securities Act" shall mean the Securities Act of 1933, as amended, as
in effect from time to time.

        "Securities Intermediary" shall have the meaning given such term in
Section 8-102(14) of the UCC.

        "Security" and "Securities" shall have the meaning given such term in
Section 8-102(a)(15) of the UCC and shall in any event also include all Stock
and all Notes.

                                        9
<PAGE>

        "Security Entitlement" shall have the meaning given such term in Section
8-102(a)(17) of the UCC.

        "Stock" shall mean (x) with respect to corporations incorporated under
the laws of the United States or any State or territory thereof or the District
of Columbia (each, a "Domestic Corporation"), all of the issued and outstanding
shares of capital stock of any Domestic Corporation at any time owned by any
Pledgor and (y) with respect to entities treated as corporations for U.S.
federal income tax purposes but that are not Domestic Corporations (each, a
"Foreign Corporation"), all of the issued and outstanding shares of capital
stock (or other similar Equity Interest) of any Foreign Corporation at any time
owned by any Pledgor.

        "Termination Date" shall have the meaning set forth in the Security
Agreement.

        "Transmitting Utility" has the meaning given such term in Section
9-102(a)(80) of the UCC.

        "Trustee" shall have the meaning provided in the recitals of this
Agreement.

        "UCC" shall mean the Uniform Commercial Code as in effect in the State
of New York from time to time; provided that all references herein to specific
Sections or subsections of the UCC are references to such Sections or
subsections, as the case may be, of the Uniform Commercial Code as in effect in
the State of New York on the date hereof.

        "Uncertificated Security" shall have the meaning given such term in
Section 8-102(a)(18) of the UCC.

        "Voting Equity Interests" of any Person shall mean all classes of Equity
Interests of such Person entitled to vote.

        3. PLEDGE OF SECURITIES, ETC.

        3.1 Pledge. (i) Each Pledgor does hereby (A) assign and transfer unto
the Pledgee in its capacity solely as collateral agent for the equal and ratable
benefit of the Lender Creditors, and does hereby pledge and grant to the Pledgee
in its capacity solely as collateral agent for the equal and ratable benefit of
the Lender Creditors, in each case as security for the prompt payment and
performance when due of all Priority Credit Document Obligations, a continuing
security interest in all of the right, title and interest of such Pledgor in, to
and under all of the following property (and all rights therein) of such
Pledgor, or in which or to which such Pledgor has any rights, in each case
whether now existing or hereafter from time to time acquired, and (B) separately
assign and transfer unto the Pledgee in its capacity solely as collateral agent
for the equal and ratable benefit of all of the Secured Creditors, and does
hereby separately pledge and grant to the Pledgee in its capacity solely as
collateral agent for the equal and ratable benefit of all of the Secured
Creditors, in each case as security for the prompt payment and performance when
due of all Obligations not constituting Priority Credit Document Obligations, a
separate continuing security interest in all of the right, title and interest of
such Pledgor in, to and under all of the following property (and all rights
therein) of such Pledgor, or in which or to which such Pledgor has any rights,
in each case whether now existing or hereafter from time to time acquired (it
being understood and agreed by the parties hereto that (x) the

                                       10
<PAGE>

security interest granted herein (i) to the Pledgee in its capacity solely as
collateral agent for the equal and ratable benefit of the Lender Creditors to
secure the Priority Credit Document Obligations shall have a first priority
distribution right as provided in Section 7.4 of the Security Agreement and (ii)
to the Pledgee in its capacity solely as collateral agent for the equal and
ratable benefit of all of the Secured Creditors to secure Obligations not
constituting Priority Credit Document Obligations shall be subject to the
security interest granted herein for the benefit of the Lender Creditors to
secure Priority Credit Document Obligations and shall only be entitled to a
distribution as provided in Section 7.4 of the Security Agreement after all
Priority Credit Document Obligations have been paid in full as provided in such
Section 7.4 of the Security Agreement, and (y) the grants of security interest
hereunder constitute two separate and distinct grants of security and Liens, one
in favor of the Pledgee in its capacity as collateral agent for the equal and
ratable benefit of the Lender Creditors to secure Priority Credit Document
Obligations and the second in favor of the Pledgee in its capacity as collateral
agent for the equal and ratable benefit of all of the Secured Creditors to
secure Obligations not constituting Priority Credit Document Obligations):

                (a)     each of the Collateral Accounts, including any and all
        assets of whatever type or kind deposited by such Pledgor in any such
        Collateral Account, whether now owned or hereafter acquired, existing or
        arising, including, without limitation, all Financial Assets, Investment
        Property, monies, checks, drafts, Instruments, Securities or interests
        therein of any type or nature deposited in such Collateral Account, and
        all investments and all certificates and other Instruments (including
        depository receipts, if any) from time to time representing or
        evidencing the same, and all dividends, interest, distributions, cash
        and other property from time to time received, receivable or otherwise
        distributed in respect of or in exchange for any or all of the
        foregoing;

                (b)     all Securities owned or held by such Pledgor from time
        to time and all options and warrants owned by such Pledgor from time to
        time to purchase Securities;

                (c)     all Limited Liability Company Interests owned by such
        Pledgor from time to time and all of its right, title and interest in
        each limited liability company to which each such Limited Liability
        Company Interest relates, whether now existing or hereafter acquired,
        including, without limitation, to the fullest extent permitted under the
        terms and provisions of the documents and agreements governing such
        Limited Liability Company Interests and applicable law:

                        (A)     all its capital therein and its interest in all
                profits, income, surpluses, losses, Limited Liability Company
                Assets and other distributions to which such Pledgor shall at
                any time be entitled in respect of such Limited Liability
                Company Interests;

                        (B)     all other payments due or to become due to such
                Pledgor in respect of Limited Liability Company Interests,
                whether under any limited liability company agreement or
                otherwise, whether as contractual obligations, damages,
                insurance proceeds or otherwise;

                                       11
<PAGE>

                        (C)     all of its claims, rights, powers, privileges,
                authority, options, security interests, liens and remedies, if
                any, under any limited liability company agreement or operating
                agreement, or at law or otherwise in respect of such Limited
                Liability Company Interests;

                        (D)     all present and future claims, if any, of such
                Pledgor against any such limited liability company for monies
                loaned or advanced, for services rendered or otherwise;

                        (E)     all of such Pledgor's rights under any limited
                liability company agreement or operating agreement or at law to
                exercise and enforce every right, power, remedy, authority,
                option and privilege of such Pledgor relating to such Limited
                Liability Company Interests, including any power to terminate,
                cancel or modify any such limited liability company agreement or
                operating agreement, to execute any instruments and to take any
                and all other action on behalf of and in the name of any of such
                Pledgor in respect of such Limited Liability Company Interests
                and any such limited liability company, to make determinations,
                to exercise any election (including, but not limited to,
                election of remedies) or option or to give or receive any
                notice, consent, amendment, waiver or approval, together with
                full power and authority to demand, receive, enforce, collect or
                receipt for any of the foregoing or for any Limited Liability
                Company Asset, to enforce or execute any checks, or other
                instruments or orders, to file any claims and to take any action
                in connection with any of the foregoing; and

                        (F)     all other property hereafter delivered in
                substitution for or in addition to any of the foregoing, all
                certificates and instruments representing or evidencing such
                other property and all cash, securities, interest, dividends,
                rights and other property at any time and from time to time
                received, receivable or otherwise distributed in respect of or
                in exchange for any or all thereof;

                (d)     all Partnership Interests owned by such Pledgor from
        time to time and all of its right, title and interest in each
        partnership to which each such Partnership Interest relates, whether now
        existing or hereafter acquired, including, without limitation, to the
        fullest extent permitted under the terms and provisions of the documents
        and agreements governing such Partnership Interests and applicable law:

                        (A)     all its capital therein and its interest in all
                profits, income, surpluses, losses, Partnership Assets and other
                distributions to which such Pledgor shall at any time be
                entitled in respect of such Partnership Interests;

                        (B)     all other payments due or to become due to such
                Pledgor in respect of Partnership Interests, whether under any
                partnership agreement or otherwise, whether as contractual
                obligations, damages, insurance proceeds or otherwise;

                        (C)     all of its claims, rights, powers, privileges,
                authority, options, security interests, liens and remedies, if
                any, under any partnership agreement or

                                       12
<PAGE>

                operating agreement, or at law or otherwise in respect of such
                Partnership Interests;

                        (D)     all present and future claims, if any, of such
                Pledgor against any such partnership for monies loaned or
                advanced, for services rendered or otherwise;

                        (E)     all of such Pledgor's rights under any
                partnership agreement or operating agreement or at law to
                exercise and enforce every right, power, remedy, authority,
                option and privilege of such Pledgor relating to such
                Partnership Interests, including any power to terminate, cancel
                or modify any partnership agreement or operating agreement, to
                execute any instruments and to take any and all other action on
                behalf of and in the name of such Pledgor in respect of such
                Partnership Interests and any such partnership, to make
                determinations, to exercise any election (including, but not
                limited to, election of remedies) or option or to give or
                receive any notice, consent, amendment, waiver or approval,
                together with full power and authority to demand, receive,
                enforce, collect or receipt for any of the foregoing or for any
                Partnership Asset, to enforce or execute any checks, or other
                instruments or orders, to file any claims and to take any action
                in connection with any of the foregoing; and

                        (F)     all other property hereafter delivered in
                substitution for or in addition to any of the foregoing, all
                certificates and instruments representing or evidencing such
                other property and all cash, securities, interest, dividends,
                rights and other property at any time and from time to time
                received, receivable or otherwise distributed in respect of or
                in exchange for any or all thereof;

                (e)     all Financial Assets and Investment Property owned by
        such Pledgor from time to time;

                (f)     all Security Entitlements owned by such Pledgor from
        time to time in any and all of the foregoing; and

                (g)     all Proceeds of any and all of the foregoing;

all of the foregoing, to the extent now existing or hereinafter from time to
time acquired, collectively the "Collateral"; provided that (x) except in the
circumstances and to the extent provided by Section 8.12 of the Credit Agreement
(in which case this clause (x) shall no longer be applicable), no Pledgor shall
be required at any time to pledge hereunder, and the term "Collateral" shall not
include, and the security interest granted under this Agreement shall not attach
to, more than 65% of the total combined voting power of all classes of Voting
Equity Interests of any Exempted Foreign Entity, (y) each Pledgor shall be
required to pledge hereunder 100% of the Non-Voting Equity Interests of each
Exempted Foreign Entity at any time and from time to time acquired by such
Pledgor, which Non-Voting Equity Interests shall not be subject to the
limitations described in preceding clause (x), and (z) the term "Collateral"
shall not include, and the security interest granted under this Agreement shall
not attach to, the Domestic Receivables Facility Property and the Proceeds
thereof (other than the cash Proceeds received by

                                       13
<PAGE>

the respective Assignor from the sale of the respective Accounts to the buyer of
such Accounts pursuant to the New Domestic Receivables Facility).

        3.2 Procedures. (a) To the extent that any Pledgor at any time or from
time to time owns, acquires or obtains any right, title or interest in any
Collateral, such Collateral shall automatically (and without the taking of any
action by such Pledgor) be pledged pursuant to Section 3.1 of this Agreement
and, in addition thereto, such Pledgor shall (to the extent provided below) take
the following actions as set forth below (as promptly as practicable and, in any
event, within 10 Business Days (or such longer period if consented to by the
Pledgee in writing in its sole discretion) after it obtains such Collateral) for
the benefit of the Pledgee and the other Secured Creditors:

        (i)     with respect to a Certificated Security (other than a
    Certificated Security credited on the books of a Clearing Corporation or
    Securities Intermediary), such Pledgor shall physically deliver such
    Certificated Security to the Pledgee, endorsed to the Pledgee or endorsed in
    blank;

        (ii)    with respect to an Uncertificated Security of a Domestic
    Subsidiary (other than an Uncertificated Security credited on the books of a
    Clearing Corporation or Securities Intermediary), such Pledgor shall
    promptly notify the Pledgee thereof and, upon the Pledgee's request, cause
    the issuer of such Uncertificated Security to duly authorize, execute and
    deliver to the Pledgee, an agreement for the benefit of the Pledgee and the
    other Secured Creditors substantially in the form of Annex H hereto
    (appropriately completed to the satisfaction of the Pledgee and with such
    modifications, if any, as shall be satisfactory to the Pledgee) pursuant to
    which such issuer agrees to comply with any and all instructions originated
    by the Pledgee without further consent by the registered owner and not to
    comply with instructions regarding such Uncertificated Security of a
    Domestic Subsidiary (and any Partnership Interests and Limited Liability
    Company Interests issued by such issuer) originated by any other Person
    other than a court of competent jurisdiction;

        (iii)   with respect to a Certificated Security, Uncertificated
    Security, Partnership Interest or Limited Liability Company Interest
    credited on the books of a Clearing Corporation or Securities Intermediary
    (including a Federal Reserve Bank, Participants Trust Company or The
    Depository Trust Company), such Pledgor shall promptly notify the Pledgee
    thereof and, upon the Pledgee's request, shall promptly take (x) all actions
    required (i) to comply with the applicable rules of such Clearing
    Corporation or Securities Intermediary and (ii) to perfect the security
    interest of the Pledgee under applicable law (including, in any event, under
    Sections 9-314(a), (b) and (c), 9-106 and 8-106(d) of the UCC) and (y) such
    other actions as the Pledgee deems necessary or desirable to effect the
    foregoing;

        (iv)    with respect to a Partnership Interest or a Limited Liability
    Company Interest (other than a Partnership Interest or Limited Liability
    Company Interest credited on the books of a Clearing Corporation or
    Securities Intermediary), (1) if such Partnership Interest or Limited
    Liability Company Interest is represented by a certificate and is a Security
    for purposes of the UCC, the procedure set forth in Section 3.2(a)(i)

                                       14
<PAGE>

    hereof shall apply thereto, and (2) if such Partnership Interest or Limited
    Liability Company Interest is not represented by a certificate and is a
    Security for purposes of the UCC, the procedure set forth in Section
    3.2(a)(ii) hereof shall apply thereto;

        (v)     with respect to any Note that is an Intercompany Note and any
    other Note with a principal amount in excess of $250,000 held by a Pledgor,
    such Pledgor shall physically deliver such Note to the Pledgee, endorsed in
    blank, or, at the request of the Pledgee, endorsed to the Pledgee; and

        (vi)    with respect to cash proceeds from any of the Collateral
    described in Section 3.1 hereof with respect to which the Pledgee is
    entitled to retain physical possession of pursuant to the terms of this
    Agreement, (i) establishment by the Pledgee of a cash account in the name of
    such Pledgor over which the Pledgee shall have "control" within the meaning
    of the UCC and at any time any Default or Event of Default is in existence
    no withdrawals or transfers may be made therefrom by any Person except with
    the prior written consent of the Pledgee and (ii) deposit of such cash in
    such cash account.

        (b)     In addition to the actions required to be taken pursuant to
Section 3.2(a) hereof, each Pledgor shall take the following additional actions
with respect to the Collateral:

        (i)     with respect to all Collateral of such Pledgor whereby or with
    respect to which the Pledgee may obtain "control" thereof within the meaning
    of Section 8-106 of the UCC (or under any provision of the UCC as same may
    be amended or supplemented from time to time, or under the laws of any
    relevant State other than the State of New York), such Pledgor shall take
    all actions as may be requested from time to time by the Pledgee so that
    "control" of such Collateral is obtained and at all times held by the
    Pledgee; and

        (ii)    each Pledgor shall from time to time cause appropriate financing
    statements (on appropriate forms) under the Uniform Commercial Code as in
    effect in the various relevant States, covering all Collateral hereunder
    (with the form of such financing statements to be satisfactory to the
    Pledgee), to be filed in the relevant filing offices so that at all times
    the Pledgee's security interest in all Investment Property and other
    Collateral which can be perfected by the filing of such financing statements
    (in each case to the maximum extent perfection by filing may be obtained
    under the laws of the relevant States, including, without limitation,
    Section 9-312(a) of the UCC) is so perfected.

        (c)     The Pledgee in its sole capacity as collateral agent for the
benefit of the Lender Creditors with respect to the Priority Credit Document
Obligations hereby agrees and acknowledges that, to the extent that it has
possession or will have possession of any Collateral, it has acquired or will
acquire possession of Collateral and shall hold such Collateral on behalf of
itself as well as on behalf of the Pledgee in its sole capacity as collateral
agent for the benefit of the Secured Creditors with respect to the Obligations
not constituting Priority Credit Document Obligations, in accordance with
Sections 8-301(a)(2), 9-313(a) and 9-313(c) of the UCC.

                                       15
<PAGE>

        3.3 Subsequently Acquired Collateral. If any Pledgor shall acquire (by
purchase, stock dividend, distribution or otherwise) any additional Collateral
at any time or from time to time after the date hereof, (i) such Collateral
shall automatically (and without any further action being required to be taken)
be subject to the pledge and security interests created pursuant to Section 3.1
hereof, (ii) such Pledgor will thereafter take (or cause to be taken) all action
(as promptly as practicable and, in any event, within 10 Business Days (or such
longer period if consented to by the Pledgee in writing in its sole discretion)
after it obtains such Collateral) with respect to such Collateral in accordance
with the procedures set forth in Section 3.2 hereof, and (iii) will promptly
thereafter deliver to the Pledgee (x) a certificate executed by an authorized
officer of such Pledgor describing such Collateral and certifying that the same
has been duly pledged in favor of the Pledgee (for the benefit of the Secured
Creditors) hereunder and (y) supplements to Annexes A through G hereto as are
necessary to cause such Annexes to be complete and accurate at such time.
Without limiting the foregoing, each Pledgor shall be required to pledge
hereunder the Equity Interests of any Exempted Foreign Entity at any time and
from time to time after the date hereof acquired by such Pledgor, provided that
(x) except in the circumstances and to the extent provided by Section 8.12 of
the Credit Agreement, no Pledgor shall be required at any time to pledge
hereunder more than 65% of the total combined voting power of all classes of
Voting Equity Interests of any Exempted Foreign Entity and (y) each Pledgor
shall be required to pledge hereunder 100% of the Non-Voting Equity Interests of
each Exempted Foreign Entity at any time and from time to time acquired by such
Pledgor.

        3.4 Transfer Taxes. Each pledge of Collateral under Section 3.1 or
Section 3.3 hereof shall be accompanied by any transfer tax stamps required in
connection with the pledge of such Collateral.

        3.5 Certain Representations and Warranties Regarding the Collateral.
Each Pledgor represents and warrants that on the date hereof: (i) each
Subsidiary of such Pledgor, and the direct ownership thereof, is listed in Annex
B hereto; (ii) the Stock (and any warrants or options to purchase Stock) held by
such Pledgor consists of the number and type of shares of the stock (or warrants
or options to purchase any stock) of the corporations as described in Annex C
hereto; (iii) such Stock referenced in clause (ii) of this paragraph constitutes
that percentage of the issued and outstanding capital stock of the issuing
corporation as is set forth in Annex C hereto; (iv) the Notes held by such
Pledgor consist of the promissory notes described in Annex D hereto where such
Pledgor is listed as the lender; (v) the Limited Liability Company Interests
held by such Pledgor consist of the number and type of interests of the Persons
described in Annex E hereto; (vi) each such Limited Liability Company Interest
referenced in clause (v) of this paragraph constitutes that percentage of the
issued and outstanding equity interest of the issuing Person as set forth in
Annex E hereto; (vii) the Partnership Interests held by such Pledgor consist of
the number and type of interests of the Persons described in Annex F hereto;
(viii) each such Partnership Interest referenced in clause (viii) of this
paragraph constitutes that percentage or portion of the entire partnership
interest of the Partnership as set forth in Annex F hereto; (ix) the exact
address of each chief executive office of such Pledgor is listed on Annex G
hereto; (x) the Pledgor has complied with the respective procedure set forth in
Section 3.2(a) hereof with respect to each item of Collateral described in
Annexes C through F hereto; and (xi) such Pledgor owns no other Securities,
Stock, Notes, Limited Liability Company Interests or Partnership Interests.

                                       16
<PAGE>

        4. APPOINTMENT OF SUB-AGENTS; ENDORSEMENTS, ETC. The Pledgee shall have
the right to appoint one or more sub-agents for the purpose of retaining
physical possession of the Collateral, which may be held (in the discretion of
the Pledgee) in the name of the relevant Pledgor, endorsed or assigned in blank
or in favor of the Pledgee or any nominee or nominees of the Pledgee or a
sub-agent appointed by the Pledgee.

        5. VOTING, ETC., WHILE NO EVENT OF DEFAULT. Unless and until there shall
have occurred and be continuing any Event of Default, each Pledgor shall be
entitled to exercise any and all voting and other consensual rights pertaining
to the Collateral owned by it, and to give consents, waivers or ratifications in
respect thereof; provided that, in each case, no vote shall be cast or any
consent, waiver or ratification given or any action taken or omitted to be taken
which would violate, result in a breach of any covenant contained in, or be
inconsistent with any of the terms of any Secured Debt Agreement, or which could
reasonably be expected to have the effect of impairing the value of the
Collateral or any part thereof or the position or interests of the Pledgee or
any other Secured Creditor in the Collateral, unless expressly permitted by the
terms of the Secured Debt Agreements. All such rights of each Pledgor to vote
and to give consents, waivers and ratifications shall cease in case an Event of
Default has occurred and is continuing, and the Pledgee chooses to exercise the
rights granted to it pursuant to Section 7 hereof.

        6. DIVIDENDS AND OTHER DISTRIBUTIONS. Unless and until there shall have
occurred and be continuing an Event of Default, all cash dividends, cash
distributions, cash Proceeds and other cash amounts payable in respect of the
Collateral shall be paid to the respective Pledgor. The Pledgee shall be
entitled to receive directly, and to retain as part of the Collateral:

        (i)     all other or additional stock, notes, certificates, limited
    liability company interests, partnership interests, instruments or other
    securities or property (including, but not limited to, cash dividends other
    than as set forth above) paid or distributed by way of dividend or otherwise
    in respect of the Collateral;

        (ii)    all other or additional stock, notes, certificates, limited
    liability company interests, partnership interests, instruments or other
    securities or property (including, but not limited to, cash (although such
    cash may be paid directly to the respective Pledgor so long as no Event of
    Default then exists)) paid or distributed in respect of the Collateral by
    way of stock-split, spin-off, split-up, reclassification, combination of
    shares or similar rearrangement; and

        (iii)   all other or additional stock, notes, certificates, limited
    liability company interests, partnership interests, instruments or other
    securities or property (including, but not limited to, cash) which may be
    paid in respect of the Collateral by reason of any consolidation, merger,
    exchange of stock, conveyance of assets, liquidation or similar corporate or
    other reorganization.

Nothing contained in this Section 6 shall limit or restrict in any way the
Pledgee's right to receive the proceeds of the Collateral in any form in
accordance with Section 3 of this Agreement. All dividends, distributions or
other payments which are received by any Pledgor

                                       17
<PAGE>

contrary to the provisions of this Section 6 or Section 7 hereof shall be
received in trust for the benefit of the Pledgee, shall be segregated from other
property or funds of such Pledgor and shall be forthwith paid over to the
Pledgee as Collateral in the same form as so received (with any necessary
endorsement).

        7. REMEDIES IN CASE OF AN EVENT OF DEFAULT. (a) If there shall have
occurred and be continuing an Event of Default, then and in every such case, the
Pledgee shall be entitled to exercise all of the rights, powers and remedies
(whether vested in it by this Agreement, any other Secured Debt Agreement or by
law) for the protection and enforcement of its rights in respect of the
Collateral, and the Pledgee shall be entitled to exercise all the rights and
remedies of a secured party under the UCC as in effect in any relevant
jurisdiction and also shall be entitled, without limitation, to exercise the
following rights, which each Pledgor hereby agrees to be commercially
reasonable:

        (i)     to receive all amounts payable in respect of the Collateral
    otherwise payable under Section 6 hereof to the respective Pledgor;

        (ii)    to transfer all or any part of the Collateral into the Pledgee's
    name or the name of its nominee or nominees;

        (iii)   to accelerate any Pledged Note which may be accelerated in
    accordance with its terms, and take any other lawful action to collect upon
    any Pledged Note (including, without limitation, to make any demand for
    payment thereon) and exercise all rights and remedies with respect to any
    collateral securing or any guaranty guarantying any such Pledged Note;

        (iv)    to vote (and exercise all rights and powers in respect of
    voting) all or any part of the Collateral (whether or not transferred into
    the name of the Pledgee) and give all consents, waivers and ratifications in
    respect of the Collateral and otherwise act with respect thereto as though
    it were the outright owner thereof (each Pledgor hereby irrevocably
    constituting and appointing the Pledgee the proxy and attorney-in-fact of
    such Pledgor, with full power of substitution to do so);

        (v)     at any time and from time to time to sell, assign and deliver,
    or grant options to purchase, all or any part of the Collateral, or any
    interest therein, at any public or private sale, without demand of
    performance, advertisement or, notice of intention to sell or of the time or
    place of sale or adjournment thereof or to redeem or otherwise purchase or
    dispose (all of which are hereby waived by each Pledgor), for cash, on
    credit or for other property, for immediate or future delivery without any
    assumption of credit risk, and for such price or prices and on such terms as
    the Pledgee in its absolute discretion may determine, provided at least 10
    days' written notice of the time and place of any such sale shall be given
    to the respective Pledgor. The Pledgee shall not be obligated to make any
    such sale of Collateral regardless of whether any such notice of sale has
    theretofore been given. Each Pledgor hereby waives and releases to the
    fullest extent permitted by law any right or equity of redemption with
    respect to the Collateral, whether before or after sale hereunder, and all
    rights, if any, of marshalling the Collateral and any other security or the
    Obligations or otherwise. At any such sale, unless prohibited

                                       18
<PAGE>

    by applicable law, the Pledgee on behalf of the Secured Creditors may bid
    for and purchase all or any part of the Collateral so sold free from any
    such right or equity of redemption. Neither the Pledgee nor any other
    Secured Creditor shall be liable for failure to collect or realize upon any
    or all of the Collateral or for any delay in so doing nor shall any of them
    be under any obligation to take any action whatsoever with regard thereto;
    and

        (vi)    to set off any and all Collateral against any and all
    Obligations, and to withdraw any and all cash or other Collateral from any
    and all Collateral Accounts and to apply such cash and other Collateral to
    the payment of any and all Obligations.

        (b)     If there shall have occurred and be continuing any Event of
Default, then and in every such case, the Pledgee shall be entitled to vote (and
exercise all rights and powers in respect of voting) all or any part of the
Collateral (whether or not transferred into the name of the Pledgee) and give
all consents, waivers and ratifications in respect of the Collateral and
otherwise act with respect thereto as though it were the outright owner thereof
(each Pledgor hereby irrevocably constituting and appointing the Pledgee the
proxy and attorney-in-fact of such Pledgor, with full power of substitution to
do so).

        8. REMEDIES, CUMULATIVE, ETC. Each and every right, power and remedy of
the Pledgee provided for in this Agreement or in any other Secured Debt
Agreement, or now or hereafter existing at law or in equity or by statute shall
be cumulative and concurrent and shall be in addition to every other such right,
power or remedy. The exercise or beginning of the exercise by the Pledgee or any
other Secured Creditor of any one or more of the rights, powers or remedies
provided for in this Agreement or any other Secured Debt Agreement or now or
hereafter existing at law or in equity or by statute or otherwise shall not
preclude the simultaneous or later exercise by the Pledgee or any other Secured
Creditor of all such other rights, powers or remedies, and no failure or delay
on the part of the Pledgee or any other Secured Creditor to exercise any such
right, power or remedy shall operate as a waiver thereof. Notice to or demand on
any Pledgor in any case shall entitle it to any other or further notice or
demand in similar or other circumstances or constitute a waiver of any of the
rights of the Pledgee or any other Secured Creditor to any other or further
action in any circumstances without notice or demand. The Secured Creditors
agree that, except as set forth in Annex O to the Security Agreement, this
Agreement may be enforced only by the action of the Pledgee, in each case,
acting upon the instructions of the Required Secured Creditors, and that no
other Secured Creditor shall have any right individually to seek to enforce or
to enforce this Agreement or to realize upon the security to be granted hereby,
it being understood and agreed that such rights and remedies may be exercised by
the Pledgee for the benefit of the Secured Creditors upon the terms of this
Agreement and the Security Agreement.

        9. APPLICATION OF PROCEEDS. (a) All monies collected by the Pledgee upon
any sale or other disposition of any Collateral pursuant to the enforcement of
this Agreement or the exercise of any of the remedial provisions hereof,
together with all monies received by the Pledgee hereunder in respect of the
Collateral (including all monies received in respect of post-petition interest)
as a result of any such enforcement or the exercise of any such remedial
provisions or as a result of any distribution of any Collateral upon the
bankruptcy, arrangement, receivership, assignment for the benefit of creditors
or any other action or

                                       19
<PAGE>

proceeding involving the readjustment of the obligations and indebtedness of any
Pledgor, or the application of any Collateral to the payment thereof or any
distribution of Collateral upon the liquidation or dissolution of any Pledgor,
or the winding up of the assets or business of any Pledgor or under any
insurance policies insuring any of the Collateral, shall be applied in the
manner provided in the Security Agreement.

        (b)     It is understood and agreed that each Pledgor shall remain
liable with respect to its Obligations to the extent of any deficiency between
the amount of the proceeds of the Collateral pledged by it hereunder and the
aggregate amount of such Obligations.

        10. PURCHASERS OF COLLATERAL. Upon any sale of the Collateral by the
Pledgee hereunder (whether by virtue of the power of sale herein granted,
pursuant to judicial process or otherwise), the receipt of the Pledgee or the
officer making such 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 Pledgee or such officer or be answerable in any way for the
misapplication or nonapplication thereof.

        11. INDEMNITY. Each Pledgor jointly and severally agrees (i) to
indemnify, reimburse and hold harmless the Pledgee and each other Secured
Creditor (other than the Existing Senior Noteholders) and their respective
successors, assigns, employees, agents and affiliates (individually an
"Indemnitee", and collectively, the "Indemnitees") from and against any and all
obligations, damages, injuries, penalties, claims, demands, losses, judgments
and liabilities (including, without limitation, liabilities for penalties) of
whatsoever kind or nature, and (ii) to reimburse each Indemnitee for all
reasonable costs, expenses and disbursements, including reasonable attorneys'
fees and expenses, in each case arising out of or resulting from this Agreement
or the exercise by any Indemnitee of any right or remedy granted to it hereunder
or under any other Secured Debt Agreement (but excluding (x) any obligations,
damages, injuries, penalties, claims, demands, losses, judgments and liabilities
(including, without limitation, liabilities for penalties) or expenses of
whatsoever kind or nature to the extent incurred or arising by reason of gross
negligence or willful misconduct of such Indemnitee (as determined by a court of
competent jurisdiction in a final and non-appealable decision) and (y) any Taxes
indemnification with respect to which is governed by Section 4.04 of the Credit
Agreement)). In no event shall the Pledgee hereunder be liable, in the absence
of gross negligence or willful misconduct on its part (as determined by a court
of competent jurisdiction in a final and non-appealable decision), for any
matter or thing in connection with this Agreement other than to account for
monies or other property actually received by it in accordance with the terms
hereof. If and to the extent that the obligations of any Pledgor under this
Section 11 are unenforceable for any reason, such Pledgor hereby agrees to make
the maximum contribution to the payment and satisfaction of such obligations
which is permissible under applicable law. The indemnity obligations of each
Pledgor contained in this Section 11 shall continue in full force and effect
notwithstanding the full payment of all the Loans and Notes issued under the
Credit Agreement, the termination of all Letters of Credit and all Interest Rate
Protection Agreements and Other Hedging Agreements entered into with a Hedging
Creditor, the termination of all Additional Secured Agreements entered into with
an Additional Secured Creditor and the payment of all other Obligations and
notwithstanding the discharge thereof.

                                       20
<PAGE>

        12. PLEDGEE NOT A PARTNER OR LIMITED LIABILITY COMPANY MEMBER. (a)
Nothing herein shall be construed to make the Pledgee or any other Secured
Creditor liable as a member of any limited liability company or as a partner of
any partnership and neither the Pledgee nor any other Secured Creditor by virtue
of this Agreement or otherwise (except as referred to in the following sentence)
shall have any of the duties, obligations or liabilities of a member of any
limited liability company or as a partner in any partnership. The parties hereto
expressly agree that, unless the Pledgee shall become the absolute owner of
Collateral consisting of a Limited Liability Company Interest or a Partnership
Interest pursuant hereto, this Agreement shall not be construed as creating a
partnership or joint venture among the Pledgee, any other Secured Creditor, any
Pledgor and/or any other Person.

        (b)     Except as provided in the last sentence of paragraph (a) of this
Section 12, the Pledgee, by accepting this Agreement, did not intend to become a
member of any limited liability company or a partner of any partnership or
otherwise be deemed to be a co-venturer with respect to any Pledgor, any limited
liability company, partnership and/or any other Person either before or after an
Event of Default shall have occurred. The Pledgee shall have only those powers
set forth herein and the Secured Creditors shall assume none of the duties,
obligations or liabilities of a member of any limited liability company or as a
partner of any partnership or any Pledgor except as provided in the last
sentence of paragraph (a) of this Section 12.

        (c)     The Pledgee and the other Secured Creditors shall not be
obligated to perform or discharge any obligation of any Pledgor as a result of
the pledge hereby effected.

        (d)     The acceptance by the Pledgee of this Agreement, with all the
rights, powers, privileges and authority so created, shall not at any time or in
any event obligate the Pledgee or any other Secured Creditor to appear in or
defend any action or proceeding relating to the Collateral to which it is not a
party, or to take any action hereunder or thereunder, or to expend any money or
incur any expenses or perform or discharge any obligation, duty or liability
under the Collateral.

        13. FURTHER ASSURANCES; POWER-OF-ATTORNEY. (a) Each Pledgor agrees that
it will join with the Pledgee in executing and, at such Pledgor's own expense,
file and refile under the UCC or other applicable law such financing statements,
continuation statements and other documents, in form reasonably acceptable to
the Pledgee, in such offices as the Pledgee (acting on its own or on the
instructions of the Required Secured Creditors) may reasonably deem necessary or
appropriate and wherever required or permitted by law in order to perfect and
preserve the Pledgee's security interest in the Collateral hereunder and hereby
authorizes the Pledgee to file financing statements and amendments thereto
relative to all or any part of the Collateral (including, without limitation,
financing statements which list the Collateral specifically and/or "all assets"
as collateral) without the signature of such Pledgor where permitted by law, and
agrees to do such further acts and things and to execute and deliver to the
Pledgee such additional conveyances, assignments, agreements and instruments as
the Pledgee may reasonably require or deem advisable to carry into effect the
purposes of this Agreement or to further assure and confirm unto the Pledgee its
rights, powers and remedies hereunder or thereunder.

                                       21
<PAGE>

        (b)     Each Pledgor hereby constitutes and appoints the Pledgee its
true and lawful attorney-in-fact, irrevocably, with full authority in the place
and stead of such Pledgor and in the name of such Pledgor or otherwise, from
time to time after the occurrence and during the continuance of an Event of
Default, in the Pledgee's discretion, to act, require, demand, receive and give
acquittance for any and all monies and claims for monies due or to become due to
such Pledgor under or arising out of the Collateral, to endorse any checks or
other instruments or orders in connection therewith and to file any claims or
take any action or institute any proceedings and to execute any instrument which
the Pledgee may deem necessary or advisable to accomplish the purposes of this
Agreement, which appointment as attorney is coupled with an interest.

        14. THE PLEDGEE AS COLLATERAL AGENT. The Pledgee will hold in accordance
with this Agreement all items of the Collateral at any time received under this
Agreement. It is expressly understood, acknowledged and agreed by each Secured
Creditor that by accepting the benefits of this Agreement each such Secured
Creditor acknowledges and agrees that the obligations of the Pledgee as holder
of the Collateral and interests therein and with respect to the disposition
thereof, and otherwise under this Agreement, are only those expressly set forth
in this Agreement, in Section 12 of the Credit Agreement and in Annex O to the
Security Agreement. The Pledgee shall act hereunder on the terms and conditions
set forth herein, in Section 12 of the Credit Agreement and in Annex O to the
Security Agreement, the terms of which shall be deemed incorporated herein by
reference as fully as if the same were set forth herein in their entirety.

        15. TRANSFER BY THE PLEDGORS. Except as permitted pursuant to the
Secured Debt Agreements, no Pledgor will sell or otherwise dispose of, grant any
option with respect to, or mortgage, pledge or otherwise encumber any of the
Collateral or any interest therein.

        16. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PLEDGORS. (a) Each
Pledgor represents, warrants and covenants as to itself and each of its
Subsidiaries that:

        (i)     it is the legal, beneficial and record owner of, and has good
    and marketable title to, all of its Collateral consisting of one or more
    Securities, Partnership Interests and Limited Liability Company Interests
    and that it has sufficient interest in all of its Collateral in which a
    security interest is purported to be created hereunder for such security
    interest to attach (subject, in each case, to no pledge, lien, mortgage,
    hypothecation, security interest, charge, option, Adverse Claim or other
    encumbrance whatsoever, except the liens and security interests created by
    this Agreement);

        (ii)    it has full power, authority and legal right to pledge all the
    Collateral pledged by it pursuant to this Agreement;

        (iii)   this Agreement has been duly authorized, executed and delivered
    by such Pledgor and constitutes a legal, valid and binding obligation of
    such Pledgor enforceable against such Pledgor in accordance with its terms,
    except to the extent that the enforceability hereof may be limited by
    applicable bankruptcy, insolvency, reorganization, moratorium

                                       22
<PAGE>

    or other similar laws affecting creditors' rights generally and by general
    equitable principles (regardless of whether enforcement is sought in equity
    or at law);

        (iv)    except to the extent already obtained or made, no consent of any
    other party (including, without limitation, any stockholder, partner, member
    or creditor of such Pledgor or any of its Subsidiaries) and no consent,
    license, permit, approval or authorization of, exemption by, notice or
    report to, or registration, filing or declaration with, any governmental
    authority is required to be obtained by such Pledgor in connection with (a)
    the execution, delivery or performance of this Agreement by such Pledgor,
    (b) the validity or enforceability of this Agreement against such Pledgor
    (except as set forth in clause (iii) above), (c) the perfection or
    enforceability of the Pledgee's security interest in such Pledgor's
    Collateral or (d) except for compliance with or as may be required by
    applicable laws, the exercise by the Pledgee of any of its rights or
    remedies provided herein;

        (v)     neither the execution, delivery or performance by such Pledgor
    of this Agreement, or any other Secured Debt Agreement to which it is a
    party, nor compliance by it with the terms and provisions hereof and thereof
    nor the consummation of the transactions contemplated therein: (i) will
    contravene any provision of any applicable law, statute, rule or regulation,
    or any applicable order, writ, injunction or decree of any court, arbitrator
    or governmental instrumentality, domestic or foreign, applicable to such
    Pledgor; (ii) will conflict or be inconsistent with or result in any breach
    of any of the terms, covenants, conditions or provisions of, or constitute a
    default under, or result in the creation or imposition of (or the obligation
    to create or impose) any Lien (except pursuant to the Security Documents)
    upon any of the properties or assets of such Pledgor or any of its
    Subsidiaries pursuant to the terms of any indenture, lease, mortgage, deed
    of trust, credit agreement, loan agreement or any other material agreement,
    contract or other instrument to which such Pledgor or any of its
    Subsidiaries is a party or is otherwise bound, or by which it or any of its
    properties or assets is bound or to which it may be subject; or (iii) will
    violate any provision of the certificate of incorporation, by-laws,
    certificate of partnership, partnership agreement, certificate of formation
    or limited liability company agreement (or equivalent organizational
    documents), as the case may be, of such Pledgor or any of its Subsidiaries;

        (vi)    all of such Pledgor's Collateral (consisting of Securities,
    Limited Liability Company Interests and Partnership Interests) has been duly
    and validly issued, is fully paid and non-assessable and is subject to no
    options to purchase or similar rights;

        (vii)   each of such Pledgor's Pledged Notes constitutes, or when
    executed by the obligor thereof will constitute, the legal, valid and
    binding obligation of such obligor, enforceable in accordance with its
    terms, except to the extent that the enforceability thereof may be limited
    by applicable bankruptcy, insolvency, reorganization, moratorium or other
    similar laws affecting creditors' rights generally and by general equitable
    principles (regardless of whether enforcement is sought in equity or at
    law);

        (viii)  the pledge, collateral assignment and delivery to the Pledgee of
    such Pledgor's Collateral consisting of Certificated Securities and Pledged
    Notes pursuant to

                                       23
<PAGE>

    this Agreement creates a valid and perfected first priority security
    interest in such Certificated Securities and Pledged Notes, and the proceeds
    thereof, subject to no prior Lien or encumbrance or to any agreement
    purporting to grant to any third party a Lien or encumbrance on the property
    or assets of such Pledgor which would include the Securities (other than the
    liens and security interests permitted under the Secured Debt Agreements
    then in effect) and the Pledgee is entitled to all the rights, priorities
    and benefits afforded by the UCC or other relevant law as enacted in any
    relevant jurisdiction to perfect security interests in respect of such
    Collateral; and

        (ix)    "control" (as defined in Section 8-106 of the UCC) has been
    obtained by the Pledgee over all of such Pledgor's Collateral consisting of
    Securities (including, without limitation, Notes which are Securities) with
    respect to which such "control" may be obtained pursuant to Section 8-106 of
    the UCC, except to the extent that the obligation of the applicable Pledgor
    to provide the Pledgee with "control" of such Collateral has not yet arisen
    under this Agreement; provided that in the case of the Pledgee obtaining
    "control" over Collateral consisting of a Security Entitlement, such Pledgor
    shall have taken all steps in its control so that the Pledgee obtains
    "control" over such Security Entitlement.

        (b)     Each Pledgor covenants and agrees that it will defend the
Pledgee's right, title and security interest in and to such Pledgor's Collateral
and the proceeds thereof against the claims and demands of all persons
whomsoever; and each Pledgor covenants and agrees that it will have like title
to and right to pledge any other property at any time hereafter pledged to the
Pledgee by such Pledgor as Collateral hereunder and will likewise defend the
right thereto and security interest therein of the Pledgee and the other Secured
Creditors.

        (c)     Each Pledgor covenants and agrees that it will take no action
which would violate any of the terms of any Secured Debt Agreement.

        (d)     Notwithstanding anything to the contrary contained in the Credit
Agreement, each Pledgor covenants and agrees that in no event shall such Pledgor
enter into a control or similar agreement with respect to any Uncertificated
Security held by such Pledgor representing the Equity Interests in any Foreign
Subsidiary of such Pledgor other than in favor of the Pledgee.

        17. LEGAL NAMES; TYPE OF ORGANIZATION (AND WHETHER A REGISTERED
ORGANIZATION AND/OR A TRANSMITTING UTILITY); JURISDICTION OF ORGANIZATION;
LOCATION; ORGANIZATIONAL IDENTIFICATION NUMBERS; CHANGES THERETO; ETC. The exact
legal name of each Pledgor, the type of organization of such Pledgor, whether or
not such Pledgor is a Registered Organization, the jurisdiction of organization
of such Pledgor, such Pledgor's Location, the organizational identification
number (if any) of each Pledgor, and whether or not such Pledgor is a
Transmitting Utility, is listed on Annex A hereto for such Pledgor. No Pledgor
shall change its legal name, its type of organization, its status as a
Registered Organization (in the case of a Registered Organization), its status
as a Transmitting Utility or as a Person which is not a Transmitting Utility, as
the case may be, its jurisdiction of organization, its Location, or its
organizational identification number

                                       24
<PAGE>

(if any), except that any such changes shall be permitted (so long as not in
violation of the applicable requirements of the Secured Debt Agreements and so
long as same do not involve (x) a Registered Organization ceasing to constitute
same or (y) any Pledgor changing its jurisdiction of organization or Location
from the United States or a State thereof to a jurisdiction of organization or
Location, as the case may be, outside the United States or a State thereof) if
(i) it shall have given to the Pledgee not less than 15 days' prior written
notice of each change to the information listed on Annex A (as adjusted for any
subsequent changes thereto previously made in accordance with this sentence),
together with a supplement to Annex A which shall correct all information
contained therein for such Pledgor, and (ii) in connection with such change or
changes, it shall have taken all action reasonably requested by the Pledgee to
maintain the security interests of the Pledgee in the Collateral intended to be
granted hereby at all times fully perfected and in full force and effect. In
addition, to the extent that any Pledgor does not have an organizational
identification number on the date hereof and later obtains one, such Pledgor
shall promptly thereafter deliver a notification of the Pledgee of such
organizational identification number (to the extent such organizational
identification number is required to perfect the Pledgee's security interests
hereunder) and shall take all actions reasonably satisfactory to the Pledgee to
the extent necessary to maintain the security interest of the Pledgee in the
Collateral intended to be granted hereby fully perfected and in full force and
effect.

        18. PLEDGORS' OBLIGATIONS ABSOLUTE, ETC. The obligations of each Pledgor
under this Agreement shall be absolute and unconditional and shall remain in
full force and effect without regard to, and shall not be released, suspended,
discharged, terminated or otherwise affected by, any circumstance or occurrence
whatsoever (other than termination of this Agreement or release of Collateral
pursuant to Section 20 hereof), including, without limitation:

        (i)     any renewal, extension, amendment or modification of, or
    addition or supplement to or deletion from any Secured Debt Agreement (other
    than this Agreement in accordance with its terms), or any other instrument
    or agreement referred to therein, or any assignment or transfer of any
    thereof;

        (ii)    any waiver, consent, extension, indulgence or other action or
    inaction under or in respect of any such agreement or instrument including,
    without limitation, this Agreement (other than a waiver, consent or
    extension with respect to this Agreement in accordance with its terms);

        (iii)   any furnishing of any additional security to the Pledgee or its
    assignee or any acceptance thereof or any release of any security by the
    Pledgee or its assignee;

        (iv)    any limitation on any party's liability or obligations under any
    such instrument or agreement or any invalidity or unenforceability, in whole
    or in part, of any such instrument or agreement or any term thereof; or

        (v)     any bankruptcy, insolvency, reorganization, composition,
    adjustment, dissolution, liquidation or other like proceeding relating to
    any Pledgor or any Subsidiary of any Pledgor, or any action taken with
    respect to this Agreement by any trustee or receiver, or by any court, in
    any such proceeding, whether or not such Pledgor shall have notice or
    knowledge of any of the foregoing.

                                       25
<PAGE>

        19. SALE OF COLLATERAL WITHOUT REGISTRATION. (a) If an Event of Default
shall have occurred and be continuing and any Pledgor shall have received from
the Pledgee a written request or requests that such Pledgor cause any
registration, qualification or compliance under any federal or state securities
law or laws to be effected with respect to all or any part of the Collateral
consisting of Securities, Limited Liability Company Interests or Partnership
Interests, such Pledgor as soon as practicable and at its expense will use its
best efforts to cause such registration to be effected (and be kept effective)
and will use its best efforts to cause such qualification and compliance to be
effected (and be kept effective) as may be so requested and as would permit or
facilitate the sale and distribution of such Collateral consisting of
Securities, Limited Liability Company Interests or Partnership Interests,
including, without limitation, registration under the Securities Act, as then in
effect (or any similar statute then in effect), appropriate qualifications under
applicable blue sky or other state securities laws and appropriate compliance
with any other governmental requirements; provided, that the Pledgee shall
furnish to such Pledgor such information regarding the Pledgee as such Pledgor
may request in writing and as shall be required in connection with any such
registration, qualification or compliance. Each Pledgor will cause the Pledgee
to be kept reasonably advised in writing as to the progress of each such
registration, qualification or compliance and as to the completion thereof, will
furnish to the Pledgee such number of prospectuses, offering circulars and other
documents incident thereto as the Pledgee from time to time may reasonably
request, and will indemnify, to the extent permitted by law, the Pledgee and all
other Secured Creditors participating in the distribution of such Collateral
consisting of Securities, Limited Liability Company Interests or Partnership
Interests against all claims, losses, damages and liabilities caused by any
untrue statement (or alleged untrue statement) of a material fact contained
therein (or in any related registration statement, notification or the like) or
by any omission (or alleged omission) to state therein (or in any related
registration statement, notification or the like) a material fact required to be
stated therein or necessary to make the statements therein not misleading,
except insofar as the same may have been caused by an untrue statement or
omission based upon information furnished in writing to such Pledgor by the
Pledgee or such other Secured Creditor expressly for use therein.

        (b) If at any time when the Pledgee shall determine to exercise its
right to sell all or any part of the Collateral consisting of Securities,
Limited Liability Company Interests or Partnership Interests pursuant to Section
7 hereof, and such Collateral or the part thereof to be sold shall not, for any
reason whatsoever, be effectively registered under the Securities Act, as then
in effect, the Pledgee may, in its sole and absolute discretion, sell such
Collateral or part thereof by private sale in such manner and under such
circumstances as the Pledgee may deem necessary or advisable in order that such
sale may legally be effected without such registration. Without limiting the
generality of the foregoing, in any such event the Pledgee, in its sole and
absolute discretion (i) may proceed to make such private sale notwithstanding
that a registration statement for the purpose of registering such Collateral or
part thereof shall have been filed under such Securities Act, (ii) may approach
and negotiate with a single possible purchaser to effect such sale, and (iii)
may restrict such sale to a purchaser who will represent and agree that such
purchaser is purchasing for its own account, for investment, and not with a view
to the distribution or sale of such Collateral or part thereof. In the event of
any such sale, the Pledgee shall incur no responsibility or liability for
selling all or any part of the Collateral at a price which the Pledgee, in its
sole and absolute discretion, may in good faith deem reasonable under

                                       26
<PAGE>

the circumstances, notwithstanding the possibility that a substantially higher
price might be realized if the sale were deferred until the registration as
aforesaid.

        20. TERMINATION; RELEASE. (a) On the Termination Date, this Agreement
shall terminate (provided that all indemnities set forth herein including,
without limitation, in Section 11 hereof shall survive any such termination) and
the Pledgee, at the request and expense of such Pledgor, will execute if
necessary and deliver to such Pledgor a proper instrument or instruments
acknowledging the satisfaction and termination of this Agreement (including,
without limitation, UCC termination statements and instruments of satisfaction,
discharge and/or reconveyance), and will duly release from the security interest
created hereby and assign, transfer and deliver to such Pledgor (without
recourse and without any representation or warranty) such of the Collateral as
may be in the possession of the Pledgee and as has not theretofore been sold or
otherwise applied or released pursuant to this Agreement, together with any
moneys at the time held by the Pledgee or any of its sub-agents hereunder and,
with respect to any Collateral consisting of an Uncertificated Security, a
Partnership Interest or a Limited Liability Company Interest (other than an
Uncertificated Security, Partnership Interest or Limited Liability Company
Interest credited on the books of a Clearing Corporation or Securities
Intermediary), a termination of the agreement relating thereto executed and
delivered by the issuer of such Uncertificated Security pursuant to Section
3.2(a)(ii) or by the respective partnership or limited liability company
pursuant to Section 3.2(a)(iv)(2).

        (b)     In the event that any part of the Collateral is sold or
otherwise disposed of (to a Person other than a Credit Party) in connection with
a sale or other disposition permitted by the respective Secured Debt Agreements
or is otherwise released at the direction of the Required Secured Creditors, the
Pledgee, at the request, cost and expense of such Pledgor, will duly release
from the security interest created hereby (and will execute and deliver such
documentation, including termination or partial release statements and the like
in connection therewith) and assign, transfer and deliver to such Pledgor
(without recourse and without any representation or warranty) such of the
Collateral as is then being (or has been) so sold or otherwise disposed of, or
released, and as may be in the possession of the Pledgee and has not theretofore
been released pursuant to this Agreement. Any proceeds of Collateral sold or
otherwise disposed of as contemplated by the immediately preceding sentence may
be applied in accordance with the requirements of the Credit Agreement;
provided, however, upon the occurrence and during the continuance of an Existing
Senior Note Event, such proceeds shall be applied as provided in Section 9(a)
hereof. As used herein, an "Existing Senior Note Event" shall mean the
acceleration of the maturity of any Existing Senior Notes or the failure to pay
at final maturity any Existing Senior Notes, or the occurrence of any default or
event of default of the types specified in Section 5.01(6) or (7) of the
Existing Senior Notes Indenture; provided that no Existing Senior Note Event
shall be deemed to exist (x) at any time when no Existing Senior Note
Obligations are secured hereunder or (y) after all Existing Senior Note
Obligations have been repaid in full.

        (c)     At any time that any Pledgor desires that Collateral be released
as provided in the foregoing Section 20(a) or (b), it shall deliver to the
Pledgee (and the relevant sub-agent, if any, designated pursuant to Section 4
hereof) a certificate signed by an authorized officer of such Pledgor stating
that the release of the respective Collateral is permitted pursuant to Section
20(a) or (b) hereof. If reasonably requested by the Pledgee (although the
Pledgee

                                       27
<PAGE>

shall have no obligation to make any such request), the relevant Pledgor shall
furnish appropriate legal opinions (from counsel, reasonably acceptable to the
Pledgee) to the effect set forth in the immediately preceding sentence.

        (d)     The Pledgee shall have no liability whatsoever to any other
Secured Creditor as the result of any release of Collateral by it in accordance
with (or which the Pledgee in the absence of gross negligence and willful
misconduct believes to be in accordance with) this Section 20.

        21. NOTICES, ETC. Except as otherwise specified herein, all notices,
requests, demands or other communications to or upon the respective parties
hereto shall be sent or delivered by mail, telegraph, telex, telecopy, cable or
courier service and all such notices and communications shall, when mailed,
telegraphed, telexed, telecopied, or cabled or sent by courier, be effective
when deposited in the mails, delivered to the telegraph company, cable company
or overnight courier, as the case may be, or sent by telex or telecopier, except
that notices and communications to the Pledgee or any Pledgor shall not be
effective until received by the Pledgee or such Pledgor, as the case may be. All
notices and other communications shall be in writing and addressed as follows:

        (a)     if to any Pledgor, at c/o:

                Crompton Corporation
                199 Benson Road
                Middlebury, CT 06749
                Attention: Chief Financial Officer and General Counsel
                Telephone No.: (203) 573-2000
                Telecopier No.: (203) 573-3711

        (b)     if to the Pledgee, at:

                Deutsche Bank AG New York Branch
                60 Wall Street
                New York, New York  10005
                Attention:  Ms. Carin Keegan
                Telephone No.: (212) 250-6083
                Telecopier No.: (212) 797-5690

        (c)     if to any Lender Creditor, either (x) to the Administrative
    Agent, at the address of the Administrative Agent specified in the Credit
    Agreement, or (y) at such address as such Lender Creditor shall have
    specified in the Credit Agreement;

        (d)     if to any Hedging Creditor, at such address as such Hedging
    Creditor shall have specified in writing to the Borrower and the Pledgee;

        (e)     if to any Additional Secured Creditor, at such address as such
    Additional Secured Creditor shall have specified in writing to the Borrower
    and the Pledgee;

        (f)     if to the Trustee, at the address specified in the Security
    Agreement;

                                       28
<PAGE>

or at such other address or addressed to such other individual as shall have
been furnished in writing by any Person described above to the party required to
give notice hereunder.

        22. WAIVER; AMENDMENT. Except as provided in Sections 30 and 32 hereof,
none of the terms and conditions of this Agreement may be changed, waived,
modified or varied in any manner whatsoever except in accordance with the
requirements specified in the Security Agreement.

        23. SUCCESSORS AND ASSIGNS. This Agreement shall create a continuing
security interest in the Collateral and shall (i) remain in full force and
effect, subject to release and/or termination as set forth in Section 20, (ii)
be binding upon each Pledgor, its successors and assigns; provided, however,
that no Pledgor shall assign any of its rights or obligations hereunder without
the prior written consent of the Pledgee (with the prior written consent of the
Required Secured Creditors), and (iii) inure, together with the rights and
remedies of the Pledgee hereunder, to the benefit of the Pledgee, the other
Secured Creditors and their respective successors, transferees and assigns. All
agreements, statements, representations and warranties made by each Pledgor
herein or in any certificate or other instrument delivered by such Pledgor or on
its behalf under this Agreement shall be considered to have been relied upon by
the Secured Creditors and shall survive the execution and delivery of this
Agreement and the other Secured Debt Agreements regardless of any investigation
made by the Secured Creditors or on their behalf.

        24. HEADINGS DESCRIPTIVE. The headings of the several Sections of this
Agreement are inserted for convenience only and shall not in any way affect the
meaning or construction of any provision of this Agreement.

        25. GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY
TRIAL. (a) THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF
THE STATE OF NEW YORK. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS
AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED
STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, IN EACH CASE WHICH ARE LOCATED IN
THE COUNTY OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH
PLEDGOR HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY,
GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE AFORESAID
COURTS. EACH PLEDGOR HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH
COURTS LACK PERSONAL JURISDICTION OVER SUCH PLEDGOR, AND AGREES NOT TO PLEAD OR
CLAIM IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT BROUGHT
IN ANY OF THE AFORESAID COURTS THAT ANY SUCH COURT LACKS PERSONAL JURISDICTION
OVER SUCH PLEDGOR. EACH PLEDGOR FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF
PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING
BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE
PREPAID, TO ANY SUCH PLEDGOR AT ITS ADDRESS FOR NOTICES AS PROVIDED IN SECTION
21 ABOVE, SUCH SERVICE TO

                                       29
<PAGE>

BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING. EACH PLEDGOR HEREBY IRREVOCABLY
WAIVES ANY OBJECTION TO SUCH SERVICE OF PROCESS AND FURTHER IRREVOCABLY WAIVES
AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR PROCEEDING COMMENCED HEREUNDER
OR UNDER ANY OTHER CREDIT DOCUMENT THAT SUCH SERVICE OF PROCESS WAS IN ANY WAY
INVALID OR INEFFECTIVE. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE PLEDGEE
UNDER THIS AGREEMENT, OR ANY SECURED CREDITOR, TO SERVE PROCESS IN ANY OTHER
MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED
AGAINST ANY PLEDGOR IN ANY OTHER JURISDICTION.

        (b)     EACH PLEDGOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT
MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS
OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER
CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (a) ABOVE AND HEREBY
FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT
THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN
AN INCONVENIENT FORUM.

        (c)     EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES
ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING
OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER CREDIT DOCUMENTS OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

        26. PLEDGOR'S DUTIES. It is expressly agreed, anything herein contained
to the contrary notwithstanding, that each Pledgor shall remain liable to
perform all of the obligations, if any, assumed by it with respect to the
Collateral and the Pledgee shall not have any obligations or liabilities with
respect to any Collateral by reason of or arising out of this Agreement, except
for the safekeeping of Collateral actually in Pledgor's possession, nor shall
the Pledgee be required or obligated in any manner to perform or fulfill any of
the obligations of any Pledgor under or with respect to any Collateral.

        27. COUNTERPARTS. This Agreement may be executed in any number of
counterparts and by the different parties hereto on separate counterparts, each
of which when so executed and delivered shall be an original, but all of which
shall together constitute one and the same instrument. A set of counterparts
executed by all the parties hereto shall be lodged with each Pledgor and the
Pledgee.

        28. SEVERABILITY. Any provision of this Agreement which 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.

                                       30
<PAGE>

        29. RECOURSE. This Agreement is made with full recourse to each Pledgor
and pursuant to and upon all the representations, warranties, covenants and
agreements on the part of such Pledgor contained herein and in the other Secured
Debt Agreements.

        30. ADDITIONAL PLEDGORS. It is understood and agreed that any Subsidiary
of the Borrower that is required to become a party to this Agreement after the
date hereof pursuant to the requirements of the Credit Agreement or any other
Credit Document, shall become a Pledgor hereunder by (x) executing a counterpart
hereof (or a Joinder Agreement substantially in the form of Exhibit O to the
Credit Agreement in lieu thereof) and delivering same to the Pledgee, (y)
delivering supplements to Annexes A through G, hereto as are necessary to cause
such annexes to be complete and accurate with respect to such additional Pledgor
on such date and (z) taking all actions as specified in this Agreement as would
have been taken by such Pledgor had it been an original party to this Agreement,
in each case with all documents required above to be delivered to the Pledgee
and with all documents and actions required above to be taken to the reasonable
satisfaction of the Pledgee.

        31. LIMITED OBLIGATIONS. It is the desire and intent of each Pledgor and
the Secured Creditors that this Agreement shall be enforced against each Pledgor
to the fullest extent permissible under the laws and public policies applied in
each jurisdiction in which enforcement is sought. Notwithstanding anything to
the contrary contained herein, in furtherance of the foregoing, (i) it is noted
that with respect to each Pledgor which has executed the Subsidiaries Guaranty,
the obligations of such Pledgor thereunder has been limited as provided therein,
and (ii) with respect to each Pledgor that is a Subsidiary of the Borrower, the
grant of the security interest hereunder by each such Pledgor with respect to
the Existing Senior Notes Obligations shall not constitute a fraudulent transfer
or conveyance for purposes of the Bankruptcy Code, the Uniform Fraudulent
Conveyance Act or any similar Federal or state law and to effectuate the
foregoing, the grant of the security interest hereunder by each such Pledgor
with respect to the Existing Senior Notes Obligations shall be limited to such
amount as will, after giving effect to such maximum amount and all other
(contingent or otherwise) liabilities of such Pledgor that are relevant under
such laws and after giving effect to any rights to contribution pursuant to any
agreement providing for an equitable contribution among such Pledgors, result in
the Existing Senior Notes Obligations of such Pledgors in respect of such
maximum amount not constituting a fraudulent transfer or conveyance.

        32. RELEASE OF PLEDGORS. If at any time all of the Equity Interests of
any Pledgor owned by the Borrower or any of its Subsidiaries are sold (to a
Person other than a Credit Party) in a transaction permitted pursuant to the
Credit Agreement (and which does not violate the terms of any other Secured Debt
Agreement then in effect), then, such Pledgor shall be released as a Pledgor
pursuant to this Agreement without any further action hereunder (it being
understood that the sale of all of the Equity Interests in any Person that owns,
directly or indirectly, all of the Equity Interests in any Pledgor shall be
deemed to be a sale of all of the Equity Interests in such Pledgor for purposes
of this Section), and the Pledgee is authorized and directed to execute and
deliver such instruments of release as are reasonably satisfactory to such
Pledgor. At any time that the Borrower desires that a Pledgor be released from
this Agreement as provided in this Section 32, the Borrower shall deliver to the
Pledgee a certificate signed by a principal executive officer of the Borrower
stating that the release of such Pledgor is permitted pursuant to this Section
32. If requested by Pledgee (although the Pledgee shall have no

                                       31
<PAGE>

obligation to make any such request), the Borrower shall furnish legal opinions
(from counsel acceptable to the Pledgee) to the effect set forth in the
immediately preceding sentence. The Pledgee shall have no liability whatsoever
to any other Secured Creditor as a result of the release of any Pledgor by it in
accordance with, or which it believes to be in accordance with, this Section 32.

                                     * * * *

                                       32
<PAGE>

        IN WITNESS WHEREOF, each Pledgor and the Pledgee have caused this
Agreement to be executed by their duly elected officers duly authorized as of
the date first above written.

Address:

199 Benson Road                         CROMPTON CORPORATION,
Middlebury, Connecticut, 06762            as a Pledgor
Tel: 203-
Fax: 203-
                                        By: /s/ Barry J. Shainman
                                            ------------------------------------
                                            Name: Barry J. Shainman
                                            Title: Secretary

199 Benson Road                         CNK CHEMICAL REALTY CORPORATION,
Middlebury, Connecticut, 06762            as a Pledgor
Tel: 203-
Fax: 203-
                                        By: /s/ Arthur C. Fullerton
                                            ------------------------------------
                                            Name: Arthur C. Fullerton
                                            Title: Secretary

199 Benson Road                         CROMPTON COLORS INCORPORATED,
Middlebury, Connecticut, 06762            as a Pledgor
Tel: 203-
Fax: 203-
                                        By: /s/ Arthur C. Fullerton
                                            ------------------------------------
                                            Name: Arthur C. Fullerton
                                            Title: Secretary

199 Benson Road                         CROMPTON EUROPE FINANCIAL
Middlebury, Connecticut, 06762            SERVICES COMPANY, as a Pledgor
Tel: 203-
Fax: 203-
                                        By: /s/ Arthur C. Fullerton
                                            ------------------------------------
                                            Name: Arthur C. Fullerton
                                            Title: Secretary

199 Benson Road                         CROMPTON HOLDING CORPORATION,
Middlebury, Connecticut, 06762            as a Pledgor
Tel: 203-
Fax: 203-
                                        By: /s/ Arthur C. Fullerton
                                            ------------------------------------
                                            Name: Arthur C. Fullerton
                                            Title: Secretary

<PAGE>

199 Benson Road                         CROMPTON MONOCHEM, INC.,
Middlebury, Connecticut, 06762            as a Pledgor
Tel: 203-
Fax: 203-
                                        By: /s/ Arthur C. Fullerton
                                            ------------------------------------
                                            Name: Arthur C. Fullerton
                                            Title: Secretary

199 Benson Road                         CROMPTON SALES COMPANY, INC.,
Middlebury, Connecticut, 06762            as a Pledgor
Tel: 203-
Fax: 203-
                                        By: /s/ Arthur C. Fullerton
                                            ------------------------------------
                                            Name: Arthur C. Fullerton
                                            Title: Secretary

199 Benson Road                         DAVIS-STANDARD CORPORATION,
Middlebury, Connecticut, 06762            as a Pledgor
Tel: 203-
Fax: 203-
                                        By: /s/ Lewis A. Shaffer
                                            ------------------------------------
                                            Name: Lewis A. Shaffer
                                            Title: Secretary

199 Benson Road                         GT SEED INTERNATIONAL COMPANY,
Middlebury, Connecticut, 06762            as a Pledgor
Tel: 203-
Fax: 203-
                                        By: /s/ Arthur C. Fullerton
                                            ------------------------------------
                                            Name: Arthur C. Fullerton
                                            Title: Secretary

199 Benson Road                         GT SEED TREATMENT, INC.,
Middlebury, Connecticut, 06762            as a Pledgor
Tel: 203-
Fax: 203-
                                        By: /s/ Arthur C. Fullerton
                                            ------------------------------------
                                            Name: Arthur C. Fullerton
                                            Title: Secretary

199 Benson Road                         KEM MANUFACTURING CORPORATION,
Middlebury, Connecticut, 06762            as a Pledgor
Tel:
Fax:
                                        By: /s/ Arthur C. Fullerton
                                            ------------------------------------
                                            Name: Arthur C. Fullerton
                                            Title: Secretary

<PAGE>

36191 Highway 30                        MONOCHEM, INC.,
Geismar, LA 70734                         as a Pledgor
Tel:
Fax:
                                        By: /s/ Arthur C. Fullerton
                                            ------------------------------------
                                            Name: Arthur C. Fullerton
                                            Title: Secretary

199 Benson Road                         NAUGATUCK TREATMENT COMPANY,
Middlebury, Connecticut, 06762            as a Pledgor
Tel: 203-
Fax: 203-
                                        By: /s/ Arthur C. Fullerton
                                            ------------------------------------
                                            Name: Arthur C. Fullerton
                                            Title: Secretary

199 Benson Road                         UNIROYAL CHEMICAL COMPANY, INC.,
Middlebury, Connecticut, 06762            a Delaware Corporation, as a Pledgor
Tel: 203-
Fax: 203-
                                        By: /s/ Arthur C. Fullerton
                                            ------------------------------------
                                            Name: Arthur C. Fullerton
                                            Title: Secretary

199 Benson Road                         UNIROYAL CHEMICAL COMPANY, INC.,
Middlebury, Connecticut, 06762            a New Jersey Corporation, as a Pledgor
Tel: 203-
Fax: 203-
                                        By: /s/ Arthur C. Fullerton
                                            ------------------------------------
                                            Name: Arthur C. Fullerton
                                            Title: Secretary

199 Benson Road                         UNIROYAL CHEMICAL COMPANY
Middlebury, Connecticut, 06762            LIMITED (DELAWARE), as a Pledgor
Tel: 203-
Fax: 203-
                                        By: /s/ Arthur C. Fullerton
                                            ------------------------------------
                                            Name: Arthur C. Fullerton
                                            Title: Secretary

199 Benson Road                         UNIROYAL CHEMICAL EXPORT
Middlebury, Connecticut, 06762            LIMITED, as a Pledgor
Tel: 203-
Fax: 203-
                                        By: /s/ Arthur C. Fullerton
                                            ------------------------------------
                                            Name: Arthur C. Fullerton
                                            Title: Secretary

<PAGE>

199 Benson Road                         UNIROYAL CHEMICAL LEASING
Middlebury, Connecticut, 06762            COMPANY, INC., as a Pledgor
Tel: 203-
Fax: 203-
                                        By: /s/ Arthur C. Fullerton
                                            ------------------------------------
                                            Name: Arthur C. Fullerton
                                            Title: Secretary

199 Benson Road                         WEBER CITY ROAD LLC,
Middlebury, Connecticut, 06762            as a Pledgor
Tel: 203-
Fax: 203-
                                        By: /s/ Arthur C. Fullerton
                                            ------------------------------------
                                            Name: Arthur C. Fullerton
                                            Title: Secretary

<PAGE>

Accepted and Agreed to:

DEUTSCHE BANK AG NEW YORK BRANCH,
 as  Collateral   Agent  for  the  Lender
 Creditors  with respect to the Priority
 Credit Document Obligations

By: /s/ Carin M. Keegan
    ---------------------------------
    Name: Carin M. Keegan
    Title: Vice President

By: /s/  Scottye Lindsey
    ---------------------------------
    Name: Scottye Lindsey
    Title: Director

DEUTSCHE BANK AG NEW YORK BRANCH,
 as  Collateral  Agent  for  the  Secured
 Creditors  with respect  to the
 Obligations  not  constituting  Priority
 Credit Document Obligations

By: /s/ Carin M. Keegan
    ---------------------------------
    Name: Carin M. Keegan
    Title: Vice President

By: /s/  Scottye Lindsey
    ---------------------------------
    Name: Scottye Lindsey
    Title: Director

<PAGE>

                                                                         ANNEX A
                                                                              to
                                                                PLEDGE AGREEMENT

                  SCHEDULE OF LEGAL NAMES, TYPE OF ORGANIZATION
                  (AND WHETHER A REGISTERED ORGANIZATION AND/OR
             A TRANSMITTING UTILITY), JURISDICTION OF ORGANIZATION,
               LOCATION AND ORGANIZATIONAL IDENTIFICATION NUMBERS

<TABLE>
<CAPTION>
                                                                                           PLEDGOR'S
                                                                                           ORGANIZATION
                                                                    PLEDGOR'S LOCATION     IDENTIFICATION
                                    REGISTERED                      (for purposes of       NUMBER (or, if   TRANSMITTING
EXACT LEGAL NAME OF EACH            ORGANIZATION?  JURISDICTION OF  NY UCC                 it has none, so  UTILITY?
PLEDGOR                             (YES/NO)       ORGANIZATION     section  9-307)        indicate)        (Yes/No)
----------------------------------  -------------  ---------------  ---------------------  ---------------  ------------
<S>                                      <C>         <C>            <C>                     <C>                  <C>
CNK Chemical Realty Corporation          Yes         Pennsylvania   199 Benson Road            0052034           No
                                                                    Middlebury, CT  06749

Crompton Colors Incorporated             Yes           Delaware     199 Benson Road            2448525           No
                                                                    Middlebury, CT  06749

Crompton Corporation                     Yes           Delaware     199 Benson Road            3046078           No
                                                                    Middlebury, CT  06749

Crompton Europe Financial Services       Yes           Delaware     199 Benson Road            2559401           No
Company                                                             Middlebury, CT  06749

Crompton Holding Corporation             Yes           Delaware     199 Benson Road            2448496           No
                                                                    Middlebury, CT  06749

Crompton Monochem, Inc.                  Yes          Louisiana     199 Benson Road         CBU 35171342D        No
                                                                    Middlebury, CT  06749

Crompton Sales Company, Inc.             Yes           Delaware     199 Benson Road            3230776           No
                                                                    Middlebury, CT  06749

Davis-Standard Corporation               Yes           Delaware     199 Benson Road            2448527           No
                                                                    Middlebury, CT  06749

GT Seed International Company            Yes            Texas       199 Benson Road          0112046400          No
                                                                    Middlebury, CT  06749

GT Seed Treatment, Inc.                  Yes          Minnesota     199 Benson Road             S-235            No
                                                                    Middlebury, CT  06749

KEM Manufacturing Corporation            Yes           Georgia      199 Benson Road            J010671           No
                                                                    Middlebury, CT  06749
</TABLE>

<PAGE>

                                                                         Annex A
                                                                          Page 2

<TABLE>
<S>                                      <C>         <C>            <C>                      <C>                 <C>
Monochem, Inc.                           Yes          Louisiana     36191 Highway 30          25311150D          No
                                                                    Geismar, LA 70734

Naugatuck Treatment Company              Yes         Connecticut    199 Benson Road            0032794           No
                                                                    Middlebury, CT  06749

Uniroyal Chemical Company Limited        Yes          Delaware/     199 Benson Road            2523836           No
(Delaware)                                             Bahamas      Middlebury, CT  06749

Uniroyal Chemical Company, Inc.(1)       Yes           Delaware     199 Benson Road            3230771           No
                                                                    Middlebury, CT  06749

Uniroyal Chemical Company, Inc.(2)       Yes          New Jersey    199 Benson Road          0100271711          No
                                                                    Middlebury, CT  06749

Uniroyal Chemical Export Limited         Yes           Delaware     199 Benson Road            2506818           No
                                                                    Middlebury, CT  06749

Uniroyal Chemical Leasing Company,       Yes           Delaware     199 Benson Road            2647284           No
Inc.                                                                Middlebury, CT  06749

Weber City Road LLC                      Yes          Louisiana     199 Benson Road           35129624K          No
                                                                    Middlebury, CT  06749
</TABLE>

----------
(1) Uniroyal Chemical Company, Inc., a Delaware corporation
(2) Uniroyal Chemical Company, Inc., a New Jersey corporation

<PAGE>

                                                                         ANNEX B
                                                                              to
                                                                PLEDGE AGREEMENT

                            SCHEDULE OF SUBSIDIARIES

<TABLE>
<CAPTION>
                                        PERCENTAGE OWNERSHIP
                                        (Direct Owner if not               JURISDICTION OF   SUBSIDIARY
SUBSIDIARY NAME                         Borrower)                          ORGANIZATION      GUARANTOR?
-------------------------------------   --------------------------------   ---------------   ----------
<S>                                     <C>                                <C>               <C>
9056-0921 Quebec Inc.                   100% (UCCI)                        Canada

Assured Insurance Company               100%                               Vermont

Baxenden Chemicals Limited              53.5% (Witco Corporation U.K.      United Kingdom
                                        Limited)

Baxenden Scandinavia A.S.               100% (Baxenden Chemicals           Denmark
                                        Limited)

CK Witco Specialties Thailand Limited   100% (CIC)                         Thailand

CNK Chemical Realty Corporation         100% (UCCI)                        Pennsylvania      Yes

Crompton & Knowles of Canada Limited    100% (UCCI)                        Canada

Crompton & Knowles Receivables          100% (UCCI)                        Delaware
Corporation

Crompton (Uniroyal Chemical)            100% (Crompton Europe Limited)     United Kingdom
Registrations Limited

Crompton Agribusiness Pty. Limited      100%  (Crompton Specialties        Australia
                                        Pty Limited)

Crompton B.V.                           100% (Witco Europe Investment      Netherlands
                                        Partners)

Crompton Chemical (Pty) Limited         100% (UCCI)                        South Africa

Crompton Chemical S.r.l.                100% (Crompton Holdings B.V.)      Italy

Crompton Chemicals B.V.                 100% (Crompton Chemical S.r.l.)    Netherlands

Crompton Co./Cie                        100% (Crompton Netherlands B.V.)   Canada

Crompton Colors Incorporated            100%  (Crompton Holding            Delaware          Yes
                                        Corporation)

Crompton Corporation Limitada           100% (CIC)                         Chile

Crompton Corporation S.A. de C.V.       13% (CIC); and                     Mexico
                                        87% (Crompton Holding S.A. de
                                        C.V.)

Crompton de Colombia Limitada           100% (CIC)                         Colombia

Crompton Espana S.L.                    100% (CIC)                         Spain

Crompton Europe B.V.                    100% (Crompton Holdings B.V.)      Netherlands

Crompton Europe Financial Services      100%                               Delaware          Yes
Company

Crompton Europe Limited                 100% (UCCI)                        Scotland

Crompton European Holdings B.V.         100% (Crompton Overseas B.V.)      Netherlands
</TABLE>

<PAGE>
                                                                         Annex B
                                                                          Page 2

<TABLE>
<CAPTION>
                                        PERCENTAGE OWNERSHIP
                                        (Direct Owner if not               JURISDICTION OF   SUBSIDIARY
SUBSIDIARY NAME                         Borrower)                          ORGANIZATION      GUARANTOR?
-------------------------------------   --------------------------------   ---------------   ----------
<S>                                     <C>                                <C>               <C>
Crompton Financial Holdings             100% (Witco Ireland                Ireland
                                        Investment Co. Ltd.)

Crompton GmbH                           100% (Crompton Holdings GmbH)      Germany

Crompton Grand Banks Inc.               100% (CIC)                         Canada

Crompton Holding Corporation            100% (UCCI)                        Delaware          Yes

Crompton Holding S.A de C.V.            100% (UCCI)                        Mexico

Crompton Holdings B.V.                  15% (Crompton Co./Cie);            Netherlands
                                        85% (Crompton European
                                        Holdings B.V.)

Crompton Holdings GmbH                  5.59% (UCCI); 93.68% (CIC)         Germany

Crompton Inc.                           51.7% (CIC); 13.04% (UCCI)         Korea

Crompton International Corporation      100%                               New Jersey
("CIC")

Crompton International Sales            100% (Uniroyal Chemical            Barbados
Corporation                             Export Limited)

Crompton Investments S.A.S.             100% (Crompton Overseas B.V.)      France

Crompton Limitada                       15% (CIC)                          Brazil
                                        85% (Crompton LLC)

Crompton Limited                        100% (CIC)                         Japan

Crompton LLC                            100% (Crompton Co./Cie)            Delaware

Crompton Monochem, Inc.                 100% (UCCI)                        Louisiana         Yes

Crompton N.V.                           100% (CIC)                         Belgium

Crompton Netherlands B.V.               100% (Crompton European            Netherlands
                                        Holdings B.V.)

Crompton Overseas B.V.                  100% (Crompton Technology          Netherlands
                                        B.V.)

Crompton Quimica S.A.C.I                89.6% (CIC); 10.3% (UCCI)          Argentina

Crompton S.A.                           100% (CIC)                         Switzerland

Crompton S.A.S.                         100% (Crompton Investments         France
                                        S.A.S.)

Crompton Sales Company, Inc.            100% (UCCI)                        Delaware          Yes

Crompton Services B.V.B.A.              100% (Crompton Co./Cie)            Belgium

Crompton Servicios S.A. de C.V.         100% (CIC)                         Mexico

Crompton Specialties Asia Pacific       100% (CIC)                         Singapore
Pte. Limited

Crompton Specialties GmbH               100% (Crompton Holdings GmbH)      Germany

Crompton Specialties Holding Company    100% (CIC)                         China-Hong Kong
Limited

Crompton Specialties Limited            100% (CIC)                         Taiwan

Crompton Specialties Limited            100% (CIC)                         China-Hong Kong
</TABLE>

<PAGE>
                                                                         Annex B
                                                                          Page 3

<TABLE>
<CAPTION>
                                        PERCENTAGE OWNERSHIP
                                        (Direct Owner if not               JURISDICTION OF   SUBSIDIARY
SUBSIDIARY NAME                         Borrower)                          ORGANIZATION      GUARANTOR?
-------------------------------------   --------------------------------   ---------------   ----------
<S>                                     <C>                                <C>               <C>
Crompton Specialties Limited            92% (UCCI)                         Thailand

Crompton Specialties Nanjing Company    100% (CIC)                         China-PRC
Limited

Crompton Specialties Pte. Limited       100% (CIC)                         Singapore

Crompton Specialties Pty. Limited       100% (UCCI)                        Australia

Crompton Specialties S.A.               100% (CIC)                         Ecuador

Crompton Specialties Sdn. Bhd.          100% (CIC)                         Malaysia

Crompton Specialties Shanghai Company   100% (CIC)                         China-PRC
Limited

Crompton Technology B.V.                55.7% (GT Seed International       Netherlands
                                        Company); 44.2% (CIC)

Crompton Vinyl Additives GmbH           100% (Crompton GmbH)               Germany

Crompton, Inc.                          100% (CIC)                         Philippines

Crompton-CNCCC Danyang Chemical         85% (CIC)                          China-PRC
Company Limited

Davis-Standard (Deutschland) GmbH       100% (Davis-Standard               Germany
                                        Corporation)

Davis-Standard Corporation              100% (Crompton Holding             Delaware          Yes
                                        Corporation)

Davis-Standard France S.A.R.L.          51% (UCCI); 48% (9056-0921         France
                                        Quebec Inc.)

Davis-Standard GmbH                     100% (Davis-Standard               Germany
                                        (Deutschland) GmbH)

Davis-Standard Limited                  100% (Crompton Europe Limited)     United Kingdom

D-S Brookes Limited                     100% (Davis-Standard Limited)      United Kingdom

Fasting Jonk N.V.                       100%  (Jonk B.V.)                  Netherlands

GT Seed International Company           100%  (UCCI)                       Texas             Yes

GT Seed Treatment, Inc.                 100%  (UCCI)                       Minnesota         Yes

Handelsmaatschappij Camphina N.V.       100%  (Jonk B.V.)                  Netherlands

Isofoam Limited                         100% (Baxenden Chemicals           United Kingdom
                                        Limited)

Jonk B.V.                               100% (Crompton B.V.)               Netherlands

KEM Manufacturing Corporation           100%  (UCCI)                       Georgia           Yes

Lucia KaarsenFabriek N.V.               100%  (Jonk B.V.)                  Netherlands

Monochem, Inc.                          100%  (UCCI)                       Louisiana         Yes

Nanjing Crompton Shuguang               85% (CIC)                          China-PRC
Organosilicon Specialties Co., Ltd.

Naugatuck Treatment Company             100%  (UCCI)                       Connecticut       Yes
</TABLE>

<PAGE>

                                                                         ANNEX B
                                                                          Page 4

<TABLE>
<CAPTION>
                                        PERCENTAGE OWNERSHIP
                                        (Direct Owner if not               JURISDICTION OF   SUBSIDIARY
SUBSIDIARY NAME                         Borrower)                          ORGANIZATION      GUARANTOR?
-------------------------------------   --------------------------------   ---------------   ----------
<S>                                     <C>                               <C>                 <C>
Nerap Expeditie B.V.                    100%  (Crompton B.V.)             Netherlands

PT Crompton Indonesia                   100% (CIC)                        Indonesia

Unicorb Limited                         100% (UCCI)                       United Kingdom

Uniroyal Chemical Company Limited       100% (UCCI)                       Delaware / Bahamas  Yes
(Delaware)

Uniroyal Chemical Company, Inc.         100% (UCCI)                       Delaware            Yes

Uniroyal Chemical Company, Inc.         80.64% (Crompton                  New Jersey          Yes
("UCCI")                                Corporation); 19.36%
                                        (Crompton Holdings GmbH)

Uniroyal Chemical Export Limited        100%  (UCCI)                      Delaware            Yes

Uniroyal Chemical Leasing Company,      100%  (UCCI)                      Delaware            Yes
Inc.

Uniroyal Chemical Mexico S.A. de C.V.   100%  (Crompton Holdings S.A.     Mexico
                                        de C.V.)

Uniroyal Chemical S.A.                  100% (UCCI)                       Spain

Uniroyal Chemical S.A.R.L.              100% (UCCI)                       Switzerland

Uniroyal Chemical Taiwan Limited        80%  (UCCI)                       Taiwan

Weber City Road LLC                     100% (UCCI)                       Louisiana           Yes

Witco Corporation U.K. Limited          100% (CIC)                        United Kingdom

Witco Europe Investment Partners        99% (Witco Investment             Delaware
                                        Holdings B.V.); 1% (Witco
                                        Investments B.V.)

Witco Investment Holdings B.V.          100% (Crompton Overseas B.V.)     Netherlands

Witco Investments B.V.                  100% (Witco Investment            Netherlands
                                        Holdings B.V.)

Witco Ireland Investment Company        99% (Crompton B.V;                Ireland
Limited                                 1% (CIC)

Witco Polymers and Resins B.V.          100% (Crompton B.V.)              Netherlands

Witco Warmtekracht B.V.                 100% (Crompton B.V.)              Netherlands
</TABLE>

<PAGE>

                                                                         ANNEX C
                                                                              to
                                                                PLEDGE AGREEMENT

                                SCHEDULE OF STOCK

1.      Crompton Corporation

<TABLE>
<CAPTION>
                                                                                                   SUB-CLAUSE OF
NAME OF                                                                                            SECTION 3.2(a)
ISSUING                    TYPE OF         NUMBER OF       CERTIFICATE          PERCENTAGE           OF PLEDGE
CORPORATION                SHARES           SHARES             NO.                OWNED              AGREEMENT
------------------------------------------------------------------------------------------------------------------
<S>                        <C>              <C>                <C>                <C>               <C>
Assured Insurance           Common          100,000             3                  100%                 (i)
Company

Enenco, Incorporated       Capital            100               2                  50%                  (i)

                           Capital            200               4                                       (i)

                           Capital            600               6                                       (i)

                           Capital            800               8                                       (i)

                           Capital            600               10                                      (i)

                           Capital            600               12                                      (i)

                           Capital            600               14                                      (i)

                           Capital            300               16                                      (i)

                           Capital            200               18                                      (i)

Uniroyal Chemical           Common            100               15                80.64%                (i)
Company, Inc.(3)

Crompton Europe             Common            500               02                 100%                 (i)
Financial Services
Company

Crompton                    Common            130               3                  65%                  (i)
International
Corporation                 Common            70               N/A                 35%              Not Pledged
</TABLE>

                              [Continued next page]

----------
(3) Uniroyal Chemical Company, Inc., a New Jersey corporation

<PAGE>

                                                                         Annex C
                                                                          Page 2

2.      Crompton Holding Corporation

<TABLE>
<CAPTION>
                                                                                                   SUB-CLAUSE OF
NAME OF                                                                                            SECTION 3.2(a)
ISSUING                    TYPE OF         NUMBER OF       CERTIFICATE          PERCENTAGE           OF PLEDGE
CORPORATION                SHARES           SHARES             NO.                OWNED              AGREEMENT
------------------------------------------------------------------------------------------------------------------
<S>                         <C>               <C>               <C>                <C>                  <C>
Crompton Colors             Common            500               4                  100%                 (i)
Incorporated

Davis-Standard              Common            500               2                  100%                 (i)
Corporation
</TABLE>

3.      Uniroyal Chemical Company, Inc., a New Jersey corporation

<TABLE>
<CAPTION>
                                                                                                   SUB-CLAUSE OF
NAME OF                                                                                            SECTION 3.2(a)
ISSUING                    TYPE OF         NUMBER OF       CERTIFICATE          PERCENTAGE           OF PLEDGE
CORPORATION                SHARES           SHARES             NO.                OWNED              AGREEMENT
------------------------------------------------------------------------------------------------------------------
<S>                         <C>             <C>                 <C>                <C>                  <C>
CNK Chemical Realty         Common            100               10                 100%                 (i)
Corporation

Crompton Holding            Common            750               5                  100%                 (i)
Corporation

Crompton Monochem,          Common           1,000              2                  100%                 (i)
Inc.

Crompton Sales              Common            100               3                  100%                 (i)
Company, Inc.

GT Seed International       Common            100               4                  100%                 (i)
Company

GT Seed Treatment,          Common          116,310             2                  100%                 (i)
Inc.

KEM Manufacturing           Common           5,000              2                  100%                 (i)
Corporation

Monochem, Inc.              Common          502,020             1                  100%                 (i)

Naugatuck Treatment         Common            100               3                  100%                 (i)
Company

Uniroyal Chemical           Common           3,997              12                 100%                 (i)
Company Limited
(Delaware)

Uniroyal Chemical           Common            100               3                  100%                 (i)
Company, Inc.(4)
</TABLE>

----------
(4) Uniroyal Chemical Company, Inc., a Delaware corporation

<PAGE>

                                                                         Annex C
                                                                          Page 3

<TABLE>
<CAPTION>
                                                                                                   SUB-CLAUSE OF
NAME OF                                                                                            SECTION 3.2(a)
ISSUING                    TYPE OF         NUMBER OF       CERTIFICATE          PERCENTAGE           OF PLEDGE
CORPORATION                SHARES           SHARES             NO.                OWNED              AGREEMENT
------------------------------------------------------------------------------------------------------------------
<S>                        <C>               <C>          <C>                     <C>               <C>
Uniroyal Chemical           Common            100               1                  100%                 (i)
Export Limited

Uniroyal Chemical           Common            100               1                  100%                 (i)
Leasing Company, Inc.

NPC Services, Inc.          Common           12.75              8                 12.75%                (i)

Crompton & Knowles         Common]           1,000        Uncertificated           100%             Not Pledged
Receivables Corporation
</TABLE>

                            SCHEDULE OF FOREIGN STOCK

4.      Uniroyal Chemical Company, Inc., a New Jersey corporation

<TABLE>
<CAPTION>
                                                                                                SUB-CLAUSE OF
NAME OF                                                                                         SECTION 3.2(a)
ISSUING                   TYPE OF          NUMBER OF       CERTIFICATE       PERCENTAGE           OF PLEDGE
CORPORATION               SHARES            SHARES             NO.             OWNED              AGREEMENT
---------------------------------------------------------------------------------------------------------------
<S>                    <C>                <C>              <C>                     <C>          <C>
Unicorb Limited        Not specified       636,943               3                 65%              (i)

                       Not specified          2            Not specified           35%          Not pledged

Crompton Europe        Not specified      1,103,291              7                 65%              (i)
Limited
                       Not specified       594,091         Not specified           35%          Not pledged
</TABLE>

<PAGE>

                                                                         Annex C
                                                                          Page 4

<TABLE>
<CAPTION>
                                                                                                SUB-CLAUSE OF
NAME OF                                                                                         SECTION 3.2(a)
ISSUING                   TYPE OF          NUMBER OF       CERTIFICATE       PERCENTAGE           OF PLEDGE
CORPORATION               SHARES            SHARES             NO.             OWNED              AGREEMENT
-------------------------------------------------------------------------------------------------------------
<S>                    <C>              <C>                <C>                    <C>           <C>
Crompton Chemical      Not specified         25,000        Not specified           65%              (i)
(Pty) Ltd.

                       Not specified         25,000        Not specified           35%          Not pledged

Uniroyal Chemical      Not specified     Not specified     Not specified           65%              (i)
S.A.

                       Not specified     Not specified     Not specified           35%          Not pledged

9056-0921 Quebec Inc.     (Common             164              CA-4                65%              (i)

                          (Common              88          Not specified           35%          Not pledged

                        PPreferred            650              PA-4                65%              (i)

                        PPreferred            350          Not specified           35%          Not pledged

Crompton & Knowles     Not specified           98               C-8                65%              (i)
of Canada Limited

                       Not specified       Approx. 53      Not specified           35%          Not pledged

Crompton Specialties   Not specified        325,000             14                 65%              (i)
Pty. Limited

                       Not specified        175,000        Not specified           35%          Not pledged

Crompton Specialties   Not specified    Approx. 318,500    Not specified          59.8%             (i)
Limited

                       Not specified    Approx. 154,113    Not specified          32.2%             (i)
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                                                              SUB-CLAUSE OF
NAME OF                                                                                       SECTION 3.2(a)
ISSUING                    TYPE OF         NUMBER OF         CERTIFICATE        PERCENTAGE    OF PLEDGE
CORPORATION                SHARES          SHARES            NO.                OWNED         AGREEMENT
-------------------------------------------------------------------------------------------------------------
<S>                    <C>              <C>                <C>                    <C>           <C>
Crompton Holding       Not specified    54,188,661.15       Not specified           65%             (i)
S.A. de C.V.

                       Not specified    29,178,509.85       Not specified           35%         Not pledged

Crompton Quimica       Not specified        31,622          Not specified           6.7%            (i)
S.A.C.I.

                       Not specified        17,027          Not specified           3.6%        Not pledged

Crompton Holdings      Not specified       499,850         Uncertificated          3.63%            N/A
GmbH

                       Not specified       269,150         Uncertificated          2.27%        Not pledged

Uniroyal Chemical      Not specified        25,000         Uncertificated           65%             N/A
S.A.R.L.

                       Not specified       Approx.         Uncertificated           35%         Not pledged
                                           13,461.5

Uniroyal Chemical      Not specified    Not specified       Not specified           52%             N/A
Taiwan Limited

                       Not specified    Not specified       Not specified           28%         Not pledged

                       Not specified    Not specified       Not specified          32.2%        Not pledged

Davis-Standard         Not specified    Not specified       Not specified         33.15%%           N/A
France S.A.R.L.

                       Not specified    Not specified       Not specified          17.85%       Not pledged
</TABLE>

<PAGE>

                                                                         Annex C
                                                                          Page 6

5.      Davis-Standard Corporation

<TABLE>
<CAPTION>
                                                                                                SUB-CLAUSE OF
NAME OF                                                                                         SECTION 3.2(a)
ISSUING                   TYPE OF          NUMBER OF       CERTIFICATE       PERCENTAGE           OF PLEDGE
CORPORATION               SHARES            SHARES             NO.             OWNED              AGREEMENT
-------------------------------------------------------------------------------------------------------------
<S>                    <C>                 <C>             <C>                      <C>         <C>
Davis-Standard         Not specified        Approx.        Uncertificated           65%            N/A
(Deutschland) GmbH                         25,564.59

                       Not specified        Approx.        Uncertificated           35%         Not pledged
                                           13,765.55
</TABLE>

6.      GT Seed International Company

<TABLE>
<CAPTION>
                                                                                                SUB-CLAUSE OF
NAME OF                                                                                         SECTION 3.2(a)
ISSUING                   TYPE OF          NUMBER OF       CERTIFICATE       PERCENTAGE           OF PLEDGE
CORPORATION               SHARES            SHARES             NO.             OWNED              AGREEMENT
-------------------------------------------------------------------------------------------------------------
<S>                    <C>              <C>                <C>                     <C>          <C>
Crompton Technology    Not specified    Approx. 656.9      Uncertificated          37.05%          N/A
B.V.

                       Not specified    Approx. 396.1      Uncertificated          19.95%       Not pledged
</TABLE>

<PAGE>

                                                                         ANNEX D
                                                                              to
                                                                PLEDGE AGREEMENT

                                SCHEDULE OF NOTES

1.      Global Intercompany Note, dated as of the Effective Date, by each
        Pledgor, as payor, in favor of each other Pledgor, as payee.

2.      Promissory Note, dated December 22, 2000, by Ruby Park, LLC payable to
        Crompton Corporation.

3.      Promissory Note, dated March 11, 1999, by Stoney Creek Technologies, LLC
        payable to Crompton Corporation (f/n/a Witco Corporation).

<PAGE>

                                                                         ANNEX E
                                                                              to
                                                                PLEDGE AGREEMENT

                 SCHEDULE OF LIMITED LIABILITY COMPANY INTERESTS

1.      Uniroyal Chemical Company, Inc., a New Jersey corporation

     NAME OF                                                    SUB-CLAUSE OF
 ISSUING LIMITED           TYPE OF            PERCENTAGE        SECTION 3.2(a)
LIABILITY COMPANY          INTEREST             OWNED        OF PLEDGE AGREEMENT
--------------------------------------------------------------------------------
  Weber City LLC       Membership Units         100%                (ii)

    Rubicon LLC      Class A Common Units        50%                (i)

<PAGE>

                                                                         ANNEX F
                                                                              to
                                                                PLEDGE AGREEMENT

                        SCHEDULE OF PARTNERSHIP INTERESTS

None.

<PAGE>

                                                                         ANNEX G
                                                                              to
                                                                PLEDGE AGREEMENT

                       SCHEDULE OF CHIEF EXECUTIVE OFFICES

           Name of Pledgor                 Address(es) of Chief Executive Office
           ---------------                 -------------------------------------
Each Pledgor except those named below      199 Benson Road
                                           Middlebury, CT  06749

Monochem, Inc.                             36191 Highway 30
                                           Geismar, LA 70734

<PAGE>

                                                                         ANNEX H
                                                                              to
                                                                PLEDGE AGREEMENT

             FORM OF AGREEMENT REGARDING UNCERTIFICATED SECURITIES,
          LIMITED LIABILITY COMPANY INTERESTS AND PARTNERSHIP INTERESTS

AGREEMENT (as amended, restated, modified and/or supplemented from time to time,
this "Agreement"), dated as of [_______ __, 200_], among the undersigned pledgor
(the "Pledgor"), Deutsche Bank AG New York Branch, not in its individual
capacity but solely as Collateral Agent (the "Pledgee"), and [__________], as
the issuer of the [Uncertificated Securities] [Limited Liability Company
Interests] [Partnership Interests] (as defined below) (the "Issuer"). Except as
otherwise defined herein, all capitalized terms used herein and defined in the
Pledge Agreement (as defined below) shall be used as herein as therein defined.

                              W I T N E S S E T H :

WHEREAS, the Pledgor, certain of its affiliates and the Pledgee have entered
into a Pledge Agreement, dated as of August 16, 2004 (as amended, restated,
modified and/or supplemented from time to time, the " Pledge Agreement"), under
which, among other things, in order to secure the payment of the Obligations (as
defined in the Pledge Agreement), the Pledgor has or will pledge to the Pledgee
for the benefit of the Secured Creditors (as defined in the Pledge Agreement),
and grant a security interest in favor of the Pledgee for the benefit of the
Secured Creditors in, all of the right, title and interest of the Pledgor in and
to any and all ["uncertificated securities" (as defined in Section 8-102(a)(18)
of the Uniform Commercial Code, as adopted in the State of New York)
("Uncertificated Securities")] [Partnership Interests (as defined in the Pledge
Agreement)] [Limited Liability Company Interests (as defined in the Pledge
Agreement)], from time to time issued by the Issuer, whether now existing or
hereafter from time to time acquired by the Pledgor (with all of such
[Uncertificated Securities] [Partnership Interests] [Limited Liability Company
Interests] being herein collectively called the "Issuer Pledged Interests"); and

WHEREAS, the Pledgor desires the Issuer to enter into this Agreement in order to
perfect the security interest of the Pledgee under the Pledge Agreement in the
Issuer Pledged Interests, to vest in the Pledgee control of the Issuer Pledge
Interests and to provide for the rights of the parties under this Agreement;

NOW THEREFORE, in consideration of the premises and the mutual promises and
agreements contained herein, and for other valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto hereby
agree as follows:

1.  The Pledgor hereby irrevocably authorizes and directs the Issuer, and the
Issuer hereby agrees, to comply with any and all instructions and orders
originated by the Pledgee (and its successors and assigns) regarding any and all
of the Issuer Pledged Interests without the further consent by the registered
owner (including the Pledgor), and, following its receipt of a notice from the
Pledgee stating that the Pledgee is exercising exclusive control of the Issuer
Pledged Interests, not to comply with any instructions or orders regarding any
or all of the Issuer Pledged Interests originated by any person or entity other
than the Pledgee (and its successors and assigns) or a court of competent
jurisdiction; provided, however, until such time as the Issuer

<PAGE>

                                                                         Annex H
                                                                          Page 2

receives a notice from the Pledgee stating that the Pledgee is exercising
exclusive control of the Issuer Pledged Interests, the Issuer may comply with
any and all instructions and orders originated by the Pledgor.

2.  The Issuer hereby certifies that (i) no notice of any security interest,
lien or other encumbrance or claim affecting the Issuer Pledged Interests (other
than the security interest of the Pledgee) has been received by it, and (ii) the
security interest of the Pledgee in the Issuer Pledged Interests has been
registered in the books and records of the Issuer.

3.  The Issuer hereby represents and warrants that (i) the pledge by the Pledgor
of, and the granting by the Pledgor of a security interest in, the Issuer
Pledged Interests to the Pledgee, for the benefit of the Secured Creditors, does
not violate the charter, by-laws, partnership agreement, membership agreement or
any other agreement governing the Issuer or the Issuer Pledged Interests, and
(ii) the Issuer Pledged Interests consisting of capital stock of a corporation
are fully paid and nonassessable.

4.  All notices, statements of accounts, reports, prospectuses, financial
statements and other communications to be sent to the Pledgor by the Issuer in
respect of the Issuer will also be sent to the Pledgee at the following address:

                        Deutsche Bank AG New York Branch
                        60 Wall Street
                        New York, New York  10005
                        Attention:  Ms. Carin Keegan
                        Telephone No.: (212) 250-6083
                        Telecopier No.: (212) 797-5690

5.  Following its receipt of a notice from the Pledgee stating that the Pledgee
is exercising exclusive control of the Issuer Pledged Interests and until the
Pledgee shall have delivered written notice to the Issuer that all of the
Obligations have been paid in full and this Agreement is terminated, the Issuer
will send any and all redemptions, distributions, interest or other payments in
respect of the Issuer Pledged Interests from the Issuer for the account of the
Pledgee only by wire transfers to such account as the Pledgee shall instruct.

6.  Except as expressly provided otherwise in Sections 4 and 5, all notices,
instructions, orders and communications hereunder shall be sent or delivered by
mail, telegraph, telex, telecopy, cable or overnight courier service and all
such notices and communications shall, when mailed, telexed, telecopied, cabled
or sent by overnight courier, be effective when deposited in the mails or
delivered to overnight courier, prepaid and properly addressed for delivery on
such or the next Business Day, or sent by telex or telecopier, except that
notices and communications to the Pledgee or the Issuer shall not be effective
until received. All notices and other communications shall be in writing and
addressed as follows:

(a)     if to the Pledgor, at c/o:

                        Crompton Corporation
                        199 Benson Road
                        Middlebury, CT 06749

<PAGE>

                                                                         Annex H
                                                                          Page 3

                        Attention: Chief Financial Officer and General Counsel
                        Telephone No.: (203) 573-2000
                        Telecopier No.: (203) 573-3711

(b)     if to the Pledgee, at the address given in Section 4 hereof;

(c)     if to the Issuer, at:

                        ________________________
                        ________________________
                        ________________________

or at such other address as shall have been furnished in writing by any Person
described above to the party required to give notice hereunder. As used in this
Section 6, "Business Day" means any day other than a Saturday, Sunday, or other
day in which banks in New York are authorized to remain closed.

7.  This Agreement shall be binding upon the successors and assigns of the
Pledgor and the Issuer and shall inure to the benefit of and be enforceable by
the Pledgee and its successors and assigns. This Agreement may be executed in
any number of counterparts, each of which shall be an original, but all of which
shall constitute one instrument. In the event that any provision of this
Agreement shall prove to be invalid or unenforceable, such provision shall be
deemed to be severable from the other provisions of this Agreement which shall
remain binding on all parties hereto. None of the terms and conditions of this
Agreement may be changed, waived, modified or varied in any manner whatsoever
except in writing signed by the Pledgee, the Issuer and the Pledgor.

8.  This Agreement shall be governed by and construed in accordance with the law
of the State of New York.

<PAGE>

                                                                         Annex H
                                                                          Page 4

IN WITNESS WHEREOF, the Pledgor, the Pledgee and the Issuer have caused this
Agreement to be executed by their duly elected officers duly authorized as of
the date first above written.

                                        [                     ],
                                         ---------------------
                                           as Pledgor

                                        By
                                           --------------------------------
                                           Name:
                                           Title:

                                        DEUTSCHE BANK AG NEW YORK BRANCH,
                                         not in its individual capacity but
                                         solely as Collateral Agent for the
                                         Lender Creditors with respect to the
                                         Priority Credit Document Obligations

                                        By
                                           --------------------------------
                                           Name:
                                           Title:

                                        By
                                           --------------------------------
                                           Name:
                                           Title:

                                        DEUTSCHE BANK AG NEW YORK BRANCH,
                                         not in its individual capacity but
                                         solely as Collateral Agent for the
                                         Secured Creditors with respect to the
                                         Obligations not constituting Priority
                                         Credit Document Obligations

                                        By
                                           --------------------------------
                                           Name:
                                           Title:

                                        By
                                           --------------------------------
                                           Name:
                                           Title:

<PAGE>

                                                                         Annex H
                                                                          Page 5

                                           [                     ],
                                            ---------------------
                                           as the Issuer

                                        By
                                           --------------------------------
                                           Name:
                                           Title:

<PAGE>

1.  SECURITY FOR OBLIGATIONS...................................................3

2.  DEFINITIONS................................................................5

3.  PLEDGE OF SECURITIES, ETC.................................................10

      3.1 Pledge..............................................................10
      3.2 Procedures..........................................................14
      3.3 Subsequently Acquired Collateral....................................16
      3.4 Transfer Taxes......................................................16
      3.5 Certain Representations and Warranties Regarding the
          Collateral..........................................................16

4.  APPOINTMENT OF SUB-AGENTS; ENDORSEMENTS, ETC..............................17

5.  VOTING, ETC., WHILE NO EVENT OF DEFAULT...................................17

6.  DIVIDENDS AND OTHER DISTRIBUTIONS.........................................17

7.  REMEDIES IN CASE OF AN EVENT OF DEFAULT...................................18

8.  REMEDIES, CUMULATIVE, ETC.................................................19

9.  APPLICATION OF PROCEEDS...................................................19

10. PURCHASERS OF COLLATERAL..................................................20

11. INDEMNITY.................................................................20

12. PLEDGEE NOT A PARTNER OR LIMITED LIABILITY COMPANY MEMBER.................21

13. FURTHER ASSURANCES; POWER-OF-ATTORNEY.....................................21

14. THE PLEDGEE AS COLLATERAL AGENT...........................................22

15. TRANSFER BY THE PLEDGORS..................................................22

16. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PLEDGORS.................22

17. LEGAL NAMES; TYPE OF ORGANIZATION (AND WHETHER A REGISTERED
      ORGANIZATION AND/OR A TRANSMITTING UTILITY); JURISDICTION
      OF ORGANIZATION; LOCATION; ORGANIZATIONAL IDENTIFICATION
      NUMBERS; CHANGES THERETO; ETC...........................................24

18. PLEDGORS' OBLIGATIONS ABSOLUTE, ETC.......................................25

19. SALE OF COLLATERAL WITHOUT REGISTRATION...................................26

20. TERMINATION; RELEASE......................................................27

<PAGE>

21. NOTICES, ETC..............................................................28

22. WAIVER; AMENDMENT.........................................................29

23. SUCCESSORS AND ASSIGNS....................................................29

24. HEADINGS DESCRIPTIVE......................................................29

25. GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF
      JURY TRIAL..............................................................29

26. PLEDGOR'S DUTIES..........................................................30

27. COUNTERPARTS..............................................................30

28. SEVERABILITY..............................................................30

29. RECOURSE..................................................................31

30. ADDITIONAL PLEDGORS.......................................................31

31. LIMITED OBLIGATIONS.......................................................31

32. RELEASE OF PLEDGORS.......................................................31

ANNEX A  -     SCHEDULE OF LEGAL NAMES, TYPE OF ORGANIZATION (AND WHETHER A
               REGISTERED ORGANIZATION AND/OR A TRANSMITTING UTILITY),
               JURISDICTION OF ORGANIZATION, LOCATION AND ORGANIZATIONAL
               IDENTIFICATION NUMBERS

ANNEX B  -     SCHEDULE OF SUBSIDIARIES
ANNEX C  -     SCHEDULE OF STOCK
ANNEX D  -     SCHEDULE OF NOTES
ANNEX E  -     SCHEDULE OF LIMITED LIABILITY COMPANY INTERESTS
ANNEX F  -     SCHEDULE OF PARTNERSHIP INTERESTS
ANNEX G  -     SCHEDULE OF CHIEF EXECUTIVE OFFICES
ANNEX H  -     FORM OF AGREEMENT REGARDING UNCERTIFICATED SECURITIES, LIMITED
               LIABILITY COMPANY INTERESTS AND PARTNERSHIP INTERESTS

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