EX 10.1

EXHIBITS

Exhibit A	2007 Budget
Exhibit B	Act of Cash Sale
Exhibit C	Assignment and Assumption Agreement
Exhibit D	Bill of Sale
Exhibit E	Chinese Trademark License Agreement
Exhibit F	Patent Assignment
Exhibit G	Purchaser Master Supply Agreement
Exhibit H	Purchaser’s Knowledge
Exhibit I	Sellers’ Knowledge
Exhibit J	Trademark Assignment
Exhibit K	Accounts Payable Note
Exhibit L	Accounts Receivable Note
Exhibit M	Survey Requirements
Exhibit N	Form of Legal Opinion
Exhibit China	Chinese Employee Arrangements

SCHEDULES

Schedule 1.1(a)	Business Employees
Schedule 1.1(b)	Business Guarantees
Schedule 1.1(c)	Calculation Principles
Schedule 1.1(d)	Chemtura Master Supply Agreement Products
Schedule 1.1(e)	Designated Agreements
Schedule 1.1(f)	Geismar Facility
Schedule 1.1(g)	Geismar Retained Land
Schedule 1.1(h)	License Agreements
Schedule 1.1(i)	Monochem Facility
Schedule 1.1(j)	Naugalube Equipment
Schedule 1.1(k)	Net Working Capital Threshold Amount
Schedule 1.1(l)	Non-U.S. Employees
Schedule 1.1(m)	Permitted Liens
Schedule 1.1(n)	Purchaser Master Supply Agreement Products
Schedule 1.1(o)	Rubber Chemicals Business
Schedule 1.1(p)	Shared Contracts
Schedule 2.1(d)	Naugatuck Equipment
Schedule 2.1(f)(i)	Transferred Trademarks
Schedule 2.1(f)(ii)	Transferred Technology
Schedule 2.1(f)(iii)	Transferred Patents
Schedule 2.1(g)	Transferred IT Assets
Schedule 2.2	Assigned Permits
Schedule 2.2(a)	Transferred IT Contracts
Schedule 2.2(b)	Other Contracts
Schedule 2.4(k)	Intercompany Agreements

vii

Schedule 2.4(p)	Retained IT Assets
Schedule 3.2(b)	Additional Adjustments
Schedule 4.3(a)	Governmental Consents
Schedule 4.3(b)	Other Consents
Schedule 4.4	Financial Statements
Schedule 4.5	No Adverse Effects or Changes
Schedule 4.6	Title to Assets
Schedule 4.7(a)	Sufficiency of Assets
Schedule 4.7(b)	Condition of Assets
Schedule 4.8(a)	Real Property
Schedule 4.8(c)	Leased Real Property
Schedule 4.9(a)	Equipment - EPDM Business
Schedule 4.9(b)	Equipment - Rubber Chemicals Business
Schedule 4.9(c)	PPD Equipment
Schedule 4.9(d)	Leased Personal Property
Schedule 4.9(e)	Production Changes
Schedule 4.10(a)	Relations with Customers and Suppliers
Schedule 4.10(b)	Material Customers and Material Suppliers
Schedule 4.11(a)	Accounts Receivable
Schedule 4.11(b)	Security Deposits
Schedule 4.12	Proceedings
Schedule 4.13(a)	Application and Registration Numbers
Schedule 4.13(b)(i)	Licenses In
Schedule 4.13(b)(ii)	Licenses Out
Schedule 4.13(b)(iii)	IP Royalty Payments
Schedule 4.13(c)	Infringement and Liens
Schedule 4.13(h)	Intellectual Property Agreements Restricting Disposition of Inventory
Schedule 4.14(a)	Material Contracts
Schedule 4.14(b)	Force and Effect of Material Contracts
Schedule 4.15	Permits
Schedule 4.16(a)	Inventory; Locations
Schedule 4.16(b)	Inventory Consigned to Third Parties
Schedule 4.16(c)	Inventory Held on Consignment
Schedule 4.16(d)	Inventory; Physical Possession
Schedule 4.17(a)	Benefit Plans
Schedule 4.19	Taxes
Schedule 4.20	No Defaults or Violations
Schedule 4.21	Environmental Matters
Schedule 4.21(b)	Environmental Permits
Schedule 4.21(i)	Releases of Hazardous Substances
Schedule 4.22	Conduct of the Business
Schedule 4.24	Budgeted EBITDA for the EPDM Business
Schedule 5.3	Purchaser Consents
Schedule 6.2	Preservation of Business
Schedule 6.12	Purchaser’s Option

viii

Schedule 6.14	Chemtura’s Option
Schedule 6.15	Decommissioning of Wastewater Tank
Schedule 6.17(a)	Report of Independent Auditors
Schedule 6.21	Intellectual Property Rights Actions
Schedule 6.24	Key Employees
Schedule 7.11	Contracts to be Terminated
Schedule 7.14	Resolution of Title V Violation
Schedule 11.1(a)	Excluded Business Employees
Schedule 11.1(b)	Connecticut Employees
Schedule 11.4	Applicable Products
Schedule 11.5	Retention Payments
Schedule 11.7	Foreign Employees and Applicable Foreign Benefit Plans
Schedule 12.9(a)	Conduct and Control

ASSET PURCHASE AND SALE AGREEMENT

THIS ASSET PURCHASE AND SALE AGREEMENT is made as of the 3rd day of February, 2007 by and among Lion Copolymer, LLC, a limited liability company organized under the laws of the State of Delaware (the “Purchaser”), CHEMTURA CORPORATION, a corporation organized under the laws of the State of Delaware (“Chemtura”), CHEMTURA CANADA CO./CIE, a corporation organized under the laws of Nova Scotia, CHEMTURA INDUSTRIA QUIMICA DO BRASIL LIMITADA, a limited liability company organized under the laws of Brazil, CHEMTURA ITALY S.R.L., a limited liability company organized under the laws of Italy, CHEMTURA CORPORATION, S.A. DE C.V., a limited liability corporation organized under the laws of Mexico, CHEMTURA NETHERLANDS B.V., a private company with limited liability organized under the laws of the Netherlands, MONOCHEM, INC., a corporation organized under the laws of the State of Louisiana (“Monochem”), and UNIROYAL CHEMICAL TAIWAN LTD., a limited liability company organized under the laws of Taiwan.

WITNESSETH:

WHEREAS, the Purchaser desires to purchase from the Sellers (as defined below), and the Sellers desire to sell to the Purchaser, certain assets used in the conduct of the Business (as defined below) by the Sellers, and the Purchaser desires to assume from the Sellers, and the Sellers desire to assign to the Purchaser, certain obligations and liabilities relating to the Business, all upon the terms and subject to the conditions contained herein.

NOW, THEREFORE, in consideration of the foregoing and the mutual representations, warranties, covenants and agreements herein contained, the Purchaser and the Sellers hereby agree as follows:

ARTICLE 1.

DEFINITIONS

1.1 Definitions. The following terms shall have the following meanings for the purposes of this Agreement:

“2006 EPDM EBITDA” shall mean the EBITDA for the EPDM Business for the year ended December 31, 2006 determined in accordance with the Calculation Principles and as set forth on the Reconciliation.

“2006 Pre-Signing Financial Statements” shall have the meaning set forth in Section 4.4, subject to revision pursuant to Section 6.29.

“2006 Rubber Chemicals EBITDA” shall mean the EBITDA for the Rubber Chemicals Business for the year ended December 31, 2006 determined in accordance with the Calculation Principles and as set forth on the Reconciliation.

“2007 Budget” shall mean the budgets for each of the EPDM Business and the Rubber Chemicals Business for the year ending December 31, 2007 prepared by Chemtura and attached hereto as Exhibit A.

“Accounting Firm” shall have the meaning set forth in Section 3.2(c)(iv).

“Accounts Payable” shall have the meaning set forth in Section 2.6(b).

“Accounts Payable Note” shall have the meaning set forth in Section 3.1(a)(ii).

“Accounts Receivable” shall mean (a) all trade accounts receivable and other rights to payment from customers of any Seller to the extent arising out of or related to the Business or the Assets and the full benefit of all security for such accounts or rights to payment, including all trade accounts receivable representing amounts receivable in respect of goods shipped or products sold or services rendered to customers of any Seller to the extent arising out of or related to the Business or the Assets, (b) all other accounts or notes receivable of any Seller to the extent arising out of or related to the Business or the Assets and the full benefit of all security for such accounts or notes and (c) any claim, remedy or other right related to any of the foregoing, but excluding any such items in (a) through (c) above to the extent arising out of or relating to the PPD Products manufactured at the Non-U.S. Facilities (except those sold to Manufacture Française des Pneumatiques Michelin or Continental AG or their respective Affiliates, which for the avoidance of doubt are Accounts Receivable for all purposes of this Agreement and are not Retained PPD Receivables) (the “Retained PPD Receivables”).

“Accounts Receivable Note” shall have the meaning set forth in Section 6.28.

“Acquired Rights Directive” shall have the meaning set forth in Section 11.7(a).

“Act of Cash Sale” shall mean an act of cash sale or other transfer/deed of land to be delivered at the Closing by the applicable Seller conveying to the Purchaser the Transferred Owned Real Property owned by such Seller, substantially in the form set forth in Exhibit B.

“Affiliate” shall mean, with respect to any specified Person, any other Person which, directly or indirectly, controls, is under common control with or is controlled by such specified Person. The term “control” as used in the preceding sentence shall mean, (a) with respect to a corporation or other business entity, the right to exercise, directly or indirectly, more than (i) 50% of the voting rights attributable to the shares or other ownership interests of such corporation or other business entity or (ii) for purposes of Sections 4.14(a)(v) and 6.2(d), 20% of the voting rights attributable to the shares or other ownership interests of such corporation or other business entity, or (b) with respect to any Person other than a corporation, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person.

“Agreement” shall mean this Asset Purchase and Sale Agreement, including all Exhibits and Schedules hereto.

“Antitrust Division” shall mean the Antitrust Division of the United States Department of Justice.

“Area of Concern” or “AOC” shall mean those areas described as “Areas of Concern” in the Phase II and shall include any additional or new Areas of Concern that may arise out of or be designated as a part of the Phase II.

“Assets” shall mean the Purchased Assets, the Assigned Permits and the Purchased Contracts.

“Assigned Permits” shall have the meaning set forth in Section 2.2.

“Assignment and Assumption Agreement” shall mean an assignment and assumption agreement substantially in the form set forth in Exhibit C.

“Assumed Obligations” shall have the meaning set forth in Section 2.5.

“Audited Special Purpose Financial Statements” shall have the meaning set forth in Section 6.17(a).

“Benefit Plan” shall have the meaning set forth in Section 4.17(a)(i).

“Benefit Program” shall have the meaning set forth in Section 4.17(a)(ii).

“Bill of Sale” shall mean a bill of sale substantially in the form set forth in Exhibit D.

“Bulk Sales Laws” shall mean the bulk-transfer provisions of the Uniform Commercial Code (or any similar Law).

“Business” shall mean, collectively, the EPDM Business, the Monochem Business and the Rubber Chemicals Business, excluding the Excluded Assets and the Retained Obligations.

“Business Day” shall mean any day of the year other than (a) any Saturday or Sunday or (b) any other day on which banks located in New York, New York are required or authorized to be closed for business.

“Business Employees” shall mean all employees of any of the Sellers or their Affiliates who, immediately prior to the Closing Date, (a) are non-manufacturing employees and work exclusively in connection with the Business and are listed on Schedule 1.1(a), (b) are employed at the Geismar Facility or (c) are employed by the Chinese Joint Venture, including, in each case, any such employee on a leave of absence or who is not otherwise actively at work. For the avoidance of doubt, Chemtura’s Vice President and General Manager, Process Chemicals and Polymers, shall not be deemed to be a Business Employee.

“Business Guarantee” shall mean any guarantee, indemnity, performance bond, letter of credit, deposit or other security or contingent obligation in the nature of a financial obligation, including letters of comfort or support, entered into or granted by any Seller or any of their Affiliates in relation to or arising out of any Liabilities of any Seller or any of their Affiliates in connection with the Business that is set forth on Schedule 1.1(b).

“Business Material Adverse Effect” shall mean any (i) change in or effect on the condition (financial or otherwise), business, results of operations or assets and liabilities of the Business, taken as a whole, that is material and adverse to the Business or (ii) change or effect that prevents the consummation by any of the Sellers of any of the transactions contemplated by this Agreement; provided, however, that none of the following shall be deemed to constitute and none of the following shall be taken into account in determining whether there has been a Business Material Adverse Effect: any adverse change or effect arising from or relating to (a) general business or economic conditions, (b) national or international political or social conditions, including the engagement by the United States in war or major hostilities or the occurrence of any terrorist attack upon the United States, (c) the taking of any action contemplated by this Agreement or any Related Agreement or consented to by the Purchaser or (d) the disclosure of this Agreement or any Related Agreement or the transactions contemplated hereby or thereby as permitted by this Agreement and the Confidentiality Agreement, except in the case of clause (a) or (b) to the extent the Business suffers a disproportionately adverse impact from such adverse change or effect as compared to other businesses in the same industry.

“Business Portion” shall have the meaning set forth in Section 2.3(c).

“Calculation Principles” shall mean the accounting principles set forth on Schedule 1.1(c), as applied on a consistent basis by the Sellers, subject to revision pursuant to Section 6.29.

“Chemtura” shall have the meaning set forth in the Preamble.

“Chemtura Master Supply Agreement” shall mean a master supply agreement between the Purchaser and Chemtura with respect to the supply to the Purchaser by Chemtura of the products set forth on Schedule 1.1(d) in a form to be agreed to between Chemtura and the Purchaser in accordance with Section 6.25.

“Chemtura Names” shall mean the business names, brand names, trade names, trademarks, service marks and domain names “Chemtura,” “Crompton,” “Great Lakes” and “Uniroyal,” any business name, brand name, trade name, trademark, service mark or domain name that includes “Chemtura,” “Crompton,” “Great Lakes” or “Uniroyal,” any portion thereof, any and all other derivatives thereof and any and all logos consistently used by Sellers in combination therewith prior to the Closing.

“Chinese Consents” shall mean the Consents required to be obtained from the relevant Governmental Authorities in connection with a transfer of an equity interest in the Chinese Joint Venture.

“Chinese Joint Venture” shall mean Chemtura-CNCCC Danyang Chemical Company, Limited (CCDCCL), a Chinese-foreign equity joint venture registered in the People’s Republic of China formed pursuant to that certain Equity Joint Venture Contract, dated August 19, 2000, as amended from time to time.

“Chinese Joint Venture Assets” shall have the meaning set forth in Section 4.6(b).

“Chinese Joint Venture Intellectual Property” shall mean all Intellectual Property owned by the Chinese Joint Venture.

“Chinese Trademark License Agreement” shall mean a trademark license agreement between Chemtura and the Purchaser, substantially in the form set forth in Exhibit E.

“Claim Notice” shall have the meaning set forth in Section 12.5.

“Closing” shall mean the consummation of the transactions contemplated herein as contemplated by Article 9.

“Closing Date” shall mean the date on which the Closing occurs.

“Closing Proration Amount” shall have the meaning set forth in Section 2.7.

“Closing Statement” shall have the meaning set forth in Section 3.2(c)(ii).

“Closing Working Capital Amount” shall mean the Working Capital as of the Closing Date set forth on the final Closing Statement.

“Code” shall mean the United States Internal Revenue Code of 1986, as amended.

“Competing Business” shall have the meaning set forth in Section 6.11(a)(i).

“Confidential Information” shall have the meaning set forth in Section 6.8(c).

“Confidentiality Agreement” shall mean the confidentiality agreement, dated August 2, 2006, between Chemtura and Lion Chemical Capital, LLC.

“Consent” shall mean a consent, authorization or approval of a Person, or a filing or registration with a Person.

“Contract” shall mean a contract, lease, license, sales order, purchase order, indenture, mortgage, note, bond, warrant, instrument or other agreement, arrangement, understanding or commitment that is binding on a Person or its property.

“Current Liabilities” shall mean all current liabilities of the Sellers reflected in the most recent Pre-Signing Financial Statements and current liabilities of the type described therein arising in the ordinary course and in accordance with this Agreement from September 30, 2006 through the Closing, in each case to the extent arising out of or with respect to the Assets or the Business and determined in accordance with the Calculation Principles, but excluding any current liabilities of the Sellers that (i) are part of the Retained Obligations, (ii) relate to any of the proceedings listed on Schedule 4.12, (iii) arise out of or with respect to the Excluded Assets or (iv) are otherwise contemplated to be retained by the Sellers hereunder.

“Debt Financing” shall have the meaning set forth in Section 5.5(a).

“Designated Agreements” shall mean those agreements specified in Schedule 1.1(e).

“Disclosing Party” shall have the meaning set forth in Section 6.8(d).

“Dollars” or numbers preceded by the symbol “$” shall mean amounts in United States dollars.

“EBITDA” means earnings before taxes, interest income and expense, depreciation and amortization expense, determined in accordance with the Calculation Principles, applied in a manner consistent with the preparation of the Pre-Signing Financial Statements.

“Employee Exhibit” shall mean Exhibit China and any other applicable employee Exhibit pursuant to Section 11.3.

“Encumbrance” shall mean, with respect to the Transferred Owned Real Property, a Lien, lease, license, covenant, option, restriction, easement, servitude, right of way or other encumbrance or title defect.

“Enforceability Limitations” shall mean limitations on enforcement and other remedies imposed by or arising under or in connection with applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other similar Laws affecting creditors’ rights generally from time to time in effect or general principles of equity.

“Environmental Claim” shall mean any notice or Proceeding commenced by or threatened in writing by a Governmental Authority or Person against any Purchaser Indemnified Party or Seller Indemnified Party, as the case may be, that claims the existence of an Environmental Violation or asserts or alleges any Environmental Liabilities.

“Environmental Law” shall mean all Laws governing or relating to pollution or protection of human health and safety (including worker health and safety) or the environment (including ambient air, surface water, ground water, land, surface or subsurface strata, and natural resources), including: (i) those providing liability in connection with or imposing cleanup, investigatory or remediation obligations relative to any Release or threatened Release of Hazardous Substances; and (ii) those otherwise relating to any environmental aspect of the manufacture, processing, distribution, use, treatment, storage, disposal, emission, discharge, transport or handling of Hazardous Substances (including, without limitation, the federal Occupational Safety and Health Act, and any supernational, regional, state, local or provincial counterparts or analogues thereto).

“Environmental Liability” shall mean any and all Losses, Liabilities, costs (including investigative, monitoring, containment, disposal and remediation costs and court costs and other costs of administrative or judicial proceedings), fines and penalties, judgments, awards or damages (including personal injury and property damages based on or arising out of exposure to Hazardous Substances), natural resource damages and assessments, third party claims, injunctive relief (including the costs of equipment and controls required to restore the operations to compliance with Environmental Law as in effect on the Closing) including fees (including reasonable attorney, expert, engineering and consultant fees) arising under or with respect to (a) any Environmental Laws or (b) any Environmental Violations.

“Environmental Permit” shall mean all Permits under any Environmental Laws for the lawful operation of the Business as it was conducted immediately prior to the Closing Date.

“Environmental Violations” shall mean any and all acts, omissions, conditions, Releases, or incidents related to the operations of the Sellers (before the Closing) or the Purchaser or subsequent owners or operators (after the Closing) at the Geismar Facility or the Monochem Facility or the operations of the Chinese Joint Venture that violate any Environmental Law.

“EPDM Business” shall mean the Sellers’ business of producing, marketing and selling ethylene propylene diene monomer rubber and ethylene propylene copolymer and terpolymer rubber.

“Equity Financing” shall have the meaning set forth in Section 5.5(b).

“ERISA” shall mean the United States Employee Retirement Income Security Act of 1974, as amended.

“ERISA Affiliate” shall mean, with respect to any Person, any corporation, trade or business which, together with such Person, is a member of a controlled group of corporations or a group of trades or businesses under common control within the meaning of section 414 of the Code.

“ERISA Group” shall have the meaning set forth in Section 4.17(d).

“Estimated Closing Statement” shall have the meaning set forth in Section 3.2(c)(i).

“Estimated Working Capital Amount” shall have the meaning set forth in Section 3.2(c)(i).

“Evaluation Material” shall have the meaning set forth in Section 13.18.

“Excluded Assets” shall have the meaning set forth in Section 2.4.

“Factored Accounts Receivable” shall mean the Foreign Accounts Receivable that, as of 12:00:01 a.m. (eastern time) on the Closing Date, shall have been converted to cash following the factoring of such receivables by the applicable Sellers pursuant to the General Conditions for Factoring Operations, dated June 25, 2003, between Crompton Chemical S.R.L. and Mediofactoring SpA; General Conditions for Factoring Operations, dated June 25, 2003, between Crompton Europe B.V. and Mediofactoring SpA; General Conditions for Factoring Operations, dated June 25, 2003, between Crompton VA GmbH and Mediofactoring SpA and General Conditions for Factoring Operations, dated June 25, 2003, between Crompton GmbH and Mediofactoring SpA.

“Financeability Letter” shall have the meaning set forth in Section 5.5(a).

“FIRPTA” shall mean the Foreign Investment Real Property Tax Act, as amended.

“Foreign Accounts Receivable” shall mean all Accounts Receivable of Chemtura Italy S.R.L., Chemtura Corporation, S.A. de C.V., Chemtura Industria Quimica do Brasil Limitada, Uniroyal Chemical Europe B.V. and Uniroyal Chemical Taiwan Ltd.

“Foreign Benefit Plans” shall mean any employee benefit plan, contract, program, policy or arrangement (including any type of plan or arrangement described in Section 4.17(a)) for the benefit of any Non-U.S. Employee.

“Foreign Implementation Agreements” means the various agreements to be executed by the Purchaser (or its designated Affiliates), on the one hand, and the applicable Sellers, on the other hand, for the purpose of implementing the transfer and conveyance on the Closing Date of certain Purchased Assets and Assumed Obligations in Mexico and Brazil to the Purchaser (or its designated Affiliates) by the applicable Sellers, if the parties determine that such agreements are necessary in order to comply with applicable Law.

“FTC” shall mean the Federal Trade Commission.

“GAAP” shall mean accounting principles generally accepted in the United States.

“Geismar Facility” shall mean the Real Property owned by Chemtura and located at 36191 Highway 30, Geismar, Louisiana 70734 and as more particularly described on Schedule 1.1(f), excluding the Geismar Retained Land.

“Geismar Landfill” shall mean the closed landfill at the Geismar Facility, more particularly described as Cell A and Cell B and covered by the RCRA Permit.

“Geismar Response Action Costs” shall mean any and all costs and expenses incurred in connection with the Geismar Response Actions, including: costs and expenses of environmental consultants; costs and expenses of treating and disposing of Hazardous Substances; costs and expenses of conducting sampling and monitoring; and reimbursements of costs and expenses incurred by any Governmental Authority relating to any of the foregoing excluding (a) any lost profits arising from a temporary shutdown of the Geismar Facility in order to undertake any response actions and (b) any internal personnel costs of the Purchaser for overseeing the Geismar Response Action (other than, for the avoidance of doubt, costs that the Purchaser incurs subject to paragraph 2.1 of Schedule 12.9(a)). As used herein, the term “temporary” shall mean a shut down or shut downs of no more than 48 hours total over a running 365 day annual period, but the term “shut down” shall not include any periods of time when the Geismar Facility is shut down for reasons unrelated to the Geismar Response Actions.

“Geismar Response Actions” shall mean those actions conducted under the supervision of any applicable Governmental Authority on or after the Closing Date, to implement RCRA corrective action obligations at the Geismar Facility arising out of actions, events or circumstances that occurred before the Closing Date, including any investigation and/or remediation obligations contained in the Geismar Facility’s Modified Hazardous Waste Post-Closure Permit, dated March 23, 1998, Permit No. LAD008194060-PC-1 (the “RCRA Permit”), and any RCRA Permit renewal.

“Geismar Retained Land” shall mean the parcel of Real Property located in close proximity to the Geismar Facility and as more particularly shown on Schedule 1.1(g).

“Governmental Authority” shall mean any federal, state, provincial, local or foreign government or subdivision thereof, or any entity, body or authority exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to any federal, state, provincial, local or foreign government.

“Governmental Required Consent” shall mean, with respect to a Person, (i) the Chinese Consents related to the transfer of the 100% equity interest in the Chinese Joint Venture from Chemtura to the Purchaser and (ii) the approvals and consents required for the transfer of any Environmental Permit.

“Ground Lease” shall mean a ground lease between Chemtura and the Purchaser providing for the lease by Chemtura to the Purchaser of Building 112 located at the Naugatuck Site in a form to be agreed to between Chemtura and the Purchaser in accordance with Section 6.25.

“Group Contract” shall mean any Contract under which (a) the Business and (b) at least one other business unit of any Seller or any of their respective Affiliates purchase or sell goods or services on a joint basis or otherwise have rights or obligations.

“Hazardous Substance” shall mean any chemical, pollutant, contaminant, waste, toxic or hazardous substance or material, crude oil, petroleum and petroleum products or by-products, polychlorinated biphenyls, asbestos or asbestos-containing materials, lead or lead-based paints or materials, free crystalline silicates or silica, natural gas, natural gas liquids, liquefied natural gas, or synthetic gas usable for fuel (or mixtures of natural gas and such synthetic gas), or radioactive material and any and all other terms of similar import, substances, or materials including wastes that are identified, listed, regulated or as to which liability may be imposed at any time under Environmental Laws whether or not such substance or material is defined as hazardous under the Environmental Laws.

“HSR Act” shall mean the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

“Indemnified Person” shall mean the Person or Persons entitled to, or claiming a right to, indemnification under Article 12.

“Indemnifying Person” shall mean the Person or Persons claimed by the Indemnified Person to be obligated to provide indemnification under Article 12.

“Information and Records” shall have the meaning set forth in Section 2.1(e).

“Initial Purchase Price” shall have the meaning set forth in Section 3.1(a)(i).

“Intellectual Property” shall mean all of the following rights, title, or interest in or arising under the laws of the United States, any state, any other country, or international treaty regime, whether or not filed, perfected, registered, or recorded, including all renewals thereof: (i) certificates of invention and other indicia of invention ownership, patents, patent applications, and patent rights, including any such rights granted upon any reissue, reexamination, division, extension, provisional, continuation, or continuation-in-part applications, and equivalent or similar rights anywhere in the world in inventions and discoveries; (ii) rights associated with works of authorship and literary property rights, including copyrights, copyright applications and copyright registrations, and moral rights; (iii) rights relating to know-how or trade secrets, including ideas, concepts, methods, techniques, inventions (whether patentable or unpatentable), and other works, whether or not developed or reduced to practice, rights in industrial property, customer, vendor, and prospect lists, and all associated information or databases, and other confidential or proprietary information; (iv) trademarks, service marks, logos, images, trade dress, domain names, trade names, and service names, whether or not registered, and the goodwill associated therewith; and (v) any rights analogous to those set forth in the preceding clauses and any other proprietary rights relating to intangible property anywhere in the world, including all intellectual property rights in and to customer lists, databases, data collections, engineering data, manufacturing and production processes and procedures, design documents and analyses, diagrams, documentation, drawings, formulae, marketing plans, methodologies, processes, program listings, protocols, sales data, schematics, specifications, computer data, computer programs and software (in any form including source code and executable or object code), web sites, and other forms of technology (whether or not embodied in any tangible form and including all tangible embodiments of the foregoing such as blueprints, compilations of information, instruction manuals, notebooks, prototypes, reports, samples, studies, and summaries).

“Intellectual Property Claim” shall mean the assertion by any Person of a claim (whether asserted in writing, by action, suit or proceeding or otherwise) that any Seller’s ownership, use, marketing, sale or distribution of any Inventory, equipment, Intellectual Property or other Property is violative of any ownership of or right to use any Intellectual Property of such Person.

“Interim Financial Statements” shall have the meaning set forth in Section 6.17(b).

“Inventory” shall mean (a) all supplies, materials and other inventories of raw materials and works-in-progress owned by the Sellers and located at the Geismar Facility, to the extent used or held for use in the Business and (b) all inventories of finished goods owned by the Sellers wherever located, including any inventories on consignment and any inventories located in warehouses or similar facilities, to the extent used in or held for use or sale by or in the Business, other than the Retained PPD Inventory.

“IRS” shall mean the United States Internal Revenue Service.

“Known Pre-Closing Environmental Liabilities” shall mean all Environmental Liabilities, Environmental Claims or Losses including the Geismar Response Action Costs based on, arising out of, or related to the Geismar Landfill, the Wastewater Tank Decommissioning Action Costs, the Phase II, the Sellers’ Financial Assurance Obligations, the AOCs and the SWMUs.

“Law” shall mean (a) the civil code and all treaties, laws, statutes, and ordinances (including common law) of any Governmental Authority and (b) any order, injunction, judgment, directive, rule or regulation of any Governmental Authority of competent jurisdiction, having the effect of law.

“LDEQ” shall mean the Louisiana Department of Environmental Quality.

“Leased Real Property” shall have the meaning set forth in Section 4.8(c).

“Liabilities” shall mean any and all debts, liabilities, obligations, commitments, responsibilities, fines, penalties and sanctions, absolute or contingent, matured or unmatured, liquidated or unliquidated, joint, several or individual, asserted or unasserted, accrued or unaccrued, known or unknown, due or to become due, whenever arising, including any costs, expenses, interest, reasonable attorneys’ fees, disbursements and expense of counsel, expert and consulting fees and costs related thereto or to the investigation or defense thereof.

“LIBOR Rate” shall have the meaning set forth in Section 3.2(c)(vii).

“License Agreements” shall mean (a) the Chinese Trademark License Agreement and (b) the license agreements pursuant to which the Sellers will license to the Purchaser the Intellectual Property, if any, used in and necessary for the conduct of, or developed primarily for use in, the Business as it is presently conducted and not transferred to the Purchaser as part of the Transferred Intellectual Property, including the Intellectual Property set forth in part A of Schedule 1.1(h), and the license agreement or agreements pursuant to which the Purchaser will license the patents and trademarks set forth in part B of Schedule 1.1(h) to Chemtura, in the case of clause (b) in a form to be agreed to between Chemtura and the Purchaser in accordance with Section 6.25.

“Lien” shall mean, for any property or asset of a Person, a lien, security interest, mortgage, pledge, charge, servitude or encumbrance in, of or on such property or asset in favor of any other Person, except those in favor, or for the benefit, of the Purchaser. The term “Lien” shall also include title exceptions and encumbrances affecting Real Property, including reservations, exceptions, encroachments, easements, servitudes, rights-of-way, covenants, conditions, restrictions and leases.

“Loss” or “Losses” shall mean any and all Liabilities, damages, awards, judgments, losses, settlement payments, Taxes, reasonable costs and reasonable expenses (including reasonable fees for legal, accounting and similar expenses, court costs and other costs of administrative proceedings or litigation), fines or penalties, in each case whether known or unknown, suspected or unsuspected.

“Material Contracts” shall have the meaning set forth in Section 4.14(b).

“Material Customer” shall have the meaning set forth in Section 4.10.

“Material Licenses” shall have the meaning set forth in Section 4.13(b).

“Material Supplier” shall have the meaning set forth in Section 4.10.

“Monochem” shall have the meaning set forth in the Preamble.

“Monochem Business” shall mean the provision of plant utilities services as currently conducted by Monochem.

“Monochem Facility” shall mean the Real Property owned by Monochem and located at 4266 Highway 73, Geismar, Louisiana and as more particularly described on Schedule 1.1(i).

“Naugalube Equipment” shall mean all equipment, machinery and spare parts owned by a Seller and used or held for use exclusively for the production of Naugalube® 438 L and Naugard® FA33 and located at the Geismar Facility, and in each case as set forth on Schedule 1.1(j).

“Naugalube Intellectual Property” shall mean all Intellectual Property owned by a Seller and used or held for use primarily for the production of Naugalube® 438L or Naugard® FA33.

“Naugatuck Equipment” shall have the meaning set forth in Section 2.1(d).

“Naugatuck Site” shall mean the facilities of Chemtura and its Affiliates located in Naugatuck, Connecticut.

“Naugatuck Technical Service Equipment” shall have the meaning set forth in Section 6.13(a).

“Net Working Capital Threshold Amount” shall mean (a) $54,500,000 (comprising (i) Working Capital of the EPDM Business and the Monochem Business of $38,600,000, plus (ii) Accounts Receivable of the Rubber Chemicals Business of $15,900,000), plus (b) $8,900,000 (comprising (i) an estimate of Inventory of the Rubber Chemicals Business of $16,800,000, less (ii) an estimate of Accounts Payable of the Rubber Chemicals Business of $7,900,000), in each case subject to adjustment pursuant to Section 6.29. As of the Closing, the amount in clause (b) of this definition shall be replaced with an amount equal to (A) the actual Inventory of the Rubber Chemicals Business as of the Closing Date as calculated in accordance with the methodology set forth in Schedule 1.1(k), less (B) the actual Accounts Payable of the Rubber Chemicals Business as of the Closing Date as calculated in accordance with the methodology set forth in Schedule 1.1(k).

“Non-Business Portion” shall have the meaning set forth in Section 2.3(c).

“Non-U.S. Employee” shall mean any Business Employee who (a) is employed by the Chinese Joint Venture or (b) whose primary place of employment is in a non-U.S. jurisdiction and who is identified as a Non-U.S. Employee on Schedule 1.1(l).

“Non-U.S. Facilities” shall mean the applicable Seller’s facility located at each of the following locations: (a) K.M. 14.5 Carr. Tampico-Altamira, Col. Laguna De La Puerta, Altamira, Tamaulipas, Mexico; (b) 5333-Caixa Postal 202, Rio Claro, San Paulo, Brazil; (c) 3-1 Hsing King Road, Ta Shi Industrial Zone, Kaoshiung, Taiwan; and (d) Via Pico Della Mirandola No. 8, Latina Scalo, Italy.

“Notice of Acceptance” shall have the meaning set forth in Section 3.2(c)(iii)(A).

“Notice of Disagreement” shall have the meaning set forth in Section 3.2(c)(iii)(B).

“Offered Employees” shall have the meaning set forth in Section 11.1.

“Offers of Employment” shall have the meaning set forth in Section 11.1.

“Other Chemtura Business” shall mean any current or former business or operations of Chemtura or any of its Affiliates other than the Business.

“Outbound Licenses” shall have the meaning set forth in Section 4.13(b).

“Patent Assignment” shall mean a patent assignment by the applicable Seller in favor of the Purchaser substantially in the form set forth in Exhibit F.

“PBGC” shall have the meaning set forth in Section 4.17(d).

“Permit” shall mean all registrations, filings, permits, Consents, licenses, certificates, variances and similar rights granted by or obtained from any Governmental Authority.

“Permitted Liens” shall mean: (a) Liens for Taxes that are not yet delinquent or that are being contested in good faith by appropriate Proceedings for which adequate reserves have been established in accordance with the Calculation Principles and with the past practices of the Business; (b) workers’, mechanics’, materialmen’s, repairmen’s, suppliers’, carriers’ or similar Liens arising in the ordinary course of business with respect to obligations that are not yet delinquent; (c) zoning or other similar governmental restrictions that do not materially impair or interfere with the current use of such real property, leases or leasehold estates or the conduct of the Business; (d) Liens that secure Assumed Obligations and are set forth in Schedule 1.1(m); (e) Liens that do not secure any monetary obligations and that do not materially impair the value of the property subject to such Lien or the use of such property in the conduct of the Business; (f) Liens arising from leases of personal property that are Material Contracts; (g) Liens set forth in Schedule 1.1(m) and (h) easements, servitudes, rights-of-way and any other matters disclosed in the title policies for the Geismar Facility and the Monochem Facility delivered to or obtained by the Purchaser or its lenders in connection with the transactions contemplated by this Agreement and accepted by the Purchaser.

“Person” shall mean any individual, corporation, proprietorship, firm, partnership, limited partnership, limited liability company, trust, association or other entity.

“Phase II” shall mean all investigation or monitoring required as part of the RCRA Facility Investigation Phase II Work Plan as approved by the LDEQ in or about November 2006 including any additional investigation, analysis, testing, or studies that arise out of, or relate to the implementation of or any results obtained from or that may be required as a follow-up to the RCRA Facility Investigation Phase II Work Plan.

“Pilot Plant Equipment” shall have the meaning set forth in Section 6.13(b).

“PPD Equipment” shall have the meaning set forth in Section 2.4(r).

“PPD Products” shall mean antiozonant products produced from the chemical intermediate para-amino di-phenyl amine, known as “4ADPA”.

“Pre-Closing Tax Period” shall mean (a) with respect to U.S. federal or state income Taxes related to the Chinese Joint Venture, any Tax period ending on or before the Closing Date and (b) with respect to any other Taxes, any Tax period ending before the Closing Date.

“Pre-Closing Tax Return” shall have the meaning set forth in Section 6.10(a)(i).

“Pre-Signing Financial Statements” shall have the meaning set forth in Section 4.4.

“Premerger Notification Provision” shall mean any provision of foreign Law requiring (a) the submission of information and material to a Governmental Authority responsible for enforcing the antitrust and competition Laws, regulating monopolies, substantial lessening of competition, dominance and cartel conduct and (b) the parties to delay the consummation of the Closing until the termination of a specified waiting period or clearance and/or approval has otherwise been obtained. For the avoidance of doubt, these filings only pertain to competition and not to any other regulatory or national security filing relating to a merger, acquisition or joint venture.

“Privileged Documents” shall mean attorney-work product, attorney-client communications and other items protected by the attorney-client privilege.

“Proceeding” shall mean an action, suit or legal, administrative, arbitral or alternative dispute resolution proceeding.

“Prohibited Product” shall have the meaning set forth in Section 6.11(a)(i).

“Property” shall mean any interest in any kind of property or asset, whether real (immovable), personal (movable) or mixed and whether tangible or intangible.

“Property Taxes” shall have the meaning set forth in Section 6.10(c).

“Proposed Adjustments” shall have the meaning set forth in Section 3.2(c)(iii)(B).

“Proposed Transfer” shall have the meaning set forth in Section 13.6(b).

“Purchase Price” shall have the meaning set forth in Section 3.1(a).

“Purchased Assets” shall have the meaning set forth in Section 2.1.

“Purchased Contracts” shall have the meaning set forth in Section 2.2.

“Purchaser” shall have the meaning set forth in the Preamble.

“Purchaser Confidential Information” shall have the meaning set forth in Section 6.8(c).

“Purchaser Indemnified Party” shall have the meaning set forth in Section 12.2.

“Purchaser Master Supply Agreement” shall mean a master supply agreement between the Purchaser and Chemtura with respect to the supply to Chemtura by the Purchaser of the products set forth on Schedule 1.1(n) produced at the Geismar Facility, substantially in the form set forth in Exhibit G.

“Purchaser’s Financial Assurance Obligations” shall have the meaning set forth in Section 2.5(j).

“Purchaser’s Knowledge” or any similar expression with regard to the knowledge or awareness of or receipt of notice by the Purchaser, shall mean the actual knowledge of any of the Persons listed on Exhibit H after reasonable inquiry of those senior employees of the Purchaser whom such Persons reasonably believe would have actual knowledge of the matters represented.

“Purchaser’s Option” shall have the meaning set forth in Schedule 6.12.

“RCRA” shall have the meaning set forth in Section 2.5(j).

“RCRA Permit” shall have the meaning set forth in the definition of Geismar Response Actions.

“Real Property” means all land and other immovable property, together with all buildings, structures, improvements and fixtures thereon and all servitudes, easements and other rights, benefits and interests appurtenant thereto.

“Receivables Securitization Agreements” means (a) the Fourth Amended and Restated Receivables Sale Agreement, dated as of September 28, 2006, among Crompton & Knowles Receivables Corporation, Chemtura, ABN AMRO Bank N.V. and the other banks and liquidity providers named therein and (b) the Amended and Restated Receivables Purchase Agreement, dated as of September 28, 2006, among Crompton & Knowles Receivables Corporation, Chemtura, Bio-Lab Inc. and Great Lakes Chemical Corporation, as consented to by ABN AMRO Bank N.V.

“Receiving Party” shall have the meaning set forth in Section 6.8(d).

“Reconciliation” shall have the meaning set forth in Section 6.17(a).

“Registered Intellectual Property” shall have the meaning set forth in Section 4.13(a).

“Related Agreement” shall mean any Contract that is to be entered into at the Closing, including the Accounts Payable Note, the Accounts Receivable Note, the Acts of Cash Sale, the Assignment and Assumption Agreement, the Bill of Sale, the Chemtura Master Supply Agreement, the Foreign Implementation Agreements, the Ground Lease, the License Agreements, the Patent Assignment, the Purchaser Master Supply Agreement, the Trademark Assignment and the Transition Services Agreement; provided, however, that, solely for purposes of Article 12 of this Agreement, the term “Related Agreement” shall not include the Chemtura Master Supply Agreement, the Ground Lease, the License Agreements, the Purchaser Master Supply Agreement and the Transition Services Agreement. The Related Agreements executed by a specified Person shall be referred to as “such Person’s Related Agreements,” “its Related Agreements” or other similar expression.

“Release” shall mean any release, spill, emission, overflow, leaking, pumping, pouring, dumping, emptying, discharge, disposing, deposit, injection, escaping, leaching, seepage, infiltration or migration, whether intentional or accidental, authorized or unauthorized, into the environment or into or out of any property.

“Relevant Month” means the most recently completed calendar month ending at least five days prior to the Closing for which Interim Financial Statements shall be delivered to the Purchaser pursuant to Section 6.17(b).

“Representatives” shall mean, as to any Person, such Person’s Affiliates and its and their respective directors, officers, members, employees, agents, advisors (including financial advisors, counsel and accountants), shareholders, owners and controlling persons.

“Restricted Areas” shall have the meaning set forth in Section 12.9(a).

“Retained IT Assets” shall have the meaning set forth in Section 2.4(p).

“Retained Obligations” shall have the meaning set forth in Section 2.6.

“Retained PPD Inventory” shall mean all finished goods inventory of PPD Products located at the Non-U.S. Facilities and owned by a Seller.

“Retained PPD Receivables” shall have the meaning set forth in the definition of Accounts Receivable.

“Retained Product Claims” shall have the meaning set forth in Section 2.6(i).

“Rubber Chemicals Business” shall mean the Sellers’ business of producing, marketing and selling the products set forth on Part A of Schedule 1.1(o) and the Sellers’ business of granulating, marketing and selling the products set forth on Part B of Schedule 1.1(o), but excluding the marketing and sale of Celogen® OT and Celogen® AZ blends for use in any application other than rubber, but including the business conducted by the Chinese Joint Venture.

“SAP Letter Agreement” shall mean the letter agreement, dated December 28, 2006, as amended, between Chemtura Corporation and Lion Chemical Capital, LLC, relating to certain SAP licenses obtained by Chemtura and to be assigned to the Purchaser hereunder and thereunder.

“Seller” shall mean, individually, Chemtura, Chemtura Canada Co./Cie, Chemtura Industria Quimica do Brasil Limitada, Chemtura Italy S.r.l., Chemtura Corporation, S.A. de C.V., Chemtura Netherlands B.V., Monochem and Uniroyal Chemical Taiwan Ltd., and the term “Sellers” shall mean all such entities collectively.

“Seller Confidential Information” shall have the meaning set forth in Section 6.8(a).

“Seller Indemnified Party” shall have the meaning set forth in Section 12.3.

“Seller Plans” shall mean, collectively, the Benefit Plans and the Benefit Programs.

“Sellers’ Financial Assurance Obligations” shall have the meaning set forth in Section 2.6(h).

“Sellers’ Knowledge” or any similar expression with regard to the knowledge or awareness of or receipt of notice by any Seller, shall mean the actual knowledge of any of the Persons listed on Exhibit I after reasonable inquiry of those senior employees of any Seller whom such Persons reasonably believe would have actual knowledge of the matters represented.

“Sellers’ Offsite Environmental Liability” shall mean any Loss, Environmental Claims or Environmental Liabilities resulting from the Release of Hazardous Substances from any Property (i) in connection with the operations of the Sellers at the Geismar Facility or the Monochem Facility or the operations of the Chinese Joint Venture, in each case before the Closing Date, and (ii) at which any Seller (in connection with the operations of the Geismar Facility or the Monochem Facility) by contract, agreement or otherwise arranged for the disposal, storage or treatment of Hazardous Substances generated, owned or possessed by any Seller or the Chinese Joint Venture, including any such arrangement related to the Sellers’ obligations under this Agreement and (iii) at which the Chinese Joint Venture by contract, agreement or otherwise arranged, prior to the Closing Date, for the disposal, storage or treatment of Hazardous Substances generated, owned or possessed by the Chinese Joint Venture.

“Shared Contracts” shall mean those Group Contracts set forth on Schedule 1.1(p).

“Solid Waste Management Unit” or “SWMU” shall mean those areas referred to as “Solid Waste Management Units” in the Phase II and shall include any additional or new Solid Waste Management Units that may arise out of or be designated as a part of the Phase II.

“Straddle Period” means any Tax period that begins before the Closing Date and ends on or after the Closing Date.

“Straddle Period Tax Return” shall have the meaning set forth in Section 6.10(a)(ii).

“Tax” or “Taxes” shall mean (a) all taxes, charges, fees, duties, levies or other assessments (including income, gross receipts, net proceeds, ad valorem, turnover, real and personal property (tangible and intangible), sales, use, franchise, excise, goods and services, value added, stamp, user, transfer, fuel, excess profits, occupational, interest equalization, windfall profits, severance, payroll, unemployment and Social Security taxes) which are imposed by any Governmental Authority, and such term shall include any interest, penalties or additions to tax attributable thereto (or to the nonpayment thereof), whether disputed or not, and (b) any liability for the payment of any amounts of the type described in clause (a) of this definition as a result of being a member of an affiliated, consolidated, combined or unitary group for any period, as a result of any tax sharing, tax indemnity or tax allocation agreement, arrangement or understanding, or as a result of being liable for another Person’s taxes as a transferee or successor, by contract or otherwise.

“Tax Return” shall mean any report, declaration, statement, return or other information required to be supplied to a Governmental Authority in connection with any Taxes, including any schedule or attachment thereto and any amendment thereof.

“Tax Statute of Limitations Date” shall mean the expiration of the applicable statute of limitations with respect to any Tax, including any extensions thereof (or if such date is not a Business Day, the next Business Day).

“Technology” shall mean trade secrets, proprietary information and know-how, including inventions, discoveries, formulae, practices, processes, procedures, ideas, specifications, engineering data, interpretations of any data, software, firmware, programs, source codes, databases, data collections, customer lists, supplier lists, pricing and cost information, business and marketing plans, manufacturing and production processes, in each case that is not the subject of a patent or patent application or a registration or application for registration with any Governmental Authority.

“Term Sheet” shall have the meaning set forth in Section 5.5(a).

“Third Party Claim” shall have the meaning set forth in Section 12.6.

“Title and Authorization Warranty” shall mean a representation or warranty in Section 4.1, 4.2, 4.6, 4.8(b), 4.13(c)(iv), 4.13(c)(vi), 5.1 or 5.2.

“Title Commitments” shall have the meaning set forth in Section 7.16.

“Title IV Plan” shall have the meaning set forth in Section 4.17(d).

“Trademark Assignment” shall mean a trademark assignment by the Sellers in favor of the Purchaser substantially in the form set forth in Exhibit J.

“Transfer Taxes” shall have the meaning set forth in Section 6.10(d).

“Transferred Employee” shall have the meaning set forth in Section 11.1.

“Transferred Intellectual Property” shall have the meaning set forth in Section 2.1(f).

“Transferred IT Assets” shall have the meaning set forth in Section 2.1(g).

“Transferred IT Contracts” shall have the meaning set forth in Section 2.2(a).

“Transferred Owned Real Property” shall mean the Geismar Facility and the Monochem Facility.

“Transferred Patents” shall have the meaning set forth in Section 2.1(f)(iii).

“Transferred Technology” shall have the meaning set forth in Section 2.1(f)(ii).

“Transferred Trademarks” shall have the meaning set forth in Section 2.1(f)(i).

“Transition Services Agreement” shall mean a transition services agreement in a form to be agreed to between Chemtura and the Purchaser in accordance with Section 6.25.

“UK Employees” shall have the meaning set forth in Section 11.7(a).

“Unknown Pre-Closing Environmental Liabilities” shall mean all Environmental Liabilities, Environmental Claims or Losses based on, arising out of, or related to any acts, events, conditions or circumstances, or occurrences associated with, or arising or occurring in connection with or related to the operations of the Sellers at the Geismar Facility or the Monochem Facility or the operations of the Chinese Joint Venture, in each case before the Closing Date, including any claims based on alleged exposure of any individual or individuals to asbestos or other Hazardous Substances but shall not include the Known Pre-Closing Environmental Liabilities.

“Unresolved Adjustments” shall have the meaning set forth in Section 3.2(c)(iv).

“Unresolved Comments” shall have the meaning set forth in Section 6.29(a)(iii).

“Warranty Costs” shall have the meaning set forth in Section 6.19.

“Warranty Obligations” shall have the meaning set forth in Section 6.19.

“Wastewater Tank” shall have the meaning set forth in Section 6.15.

“Wastewater Tank Decommissioning” shall have the meaning set forth in Section 6.15.

“Wastewater Tank Decommissioning Action Costs” shall mean any and all costs and expenses incurred in connection with the Wastewater Tank Decommissioning, including: costs and expenses of environmental consultants; costs and expenses of treating and disposing of the contents of the Wastewater Tank; costs and expenses of conducting sampling and monitoring; and reimbursements of costs and expenses incurred by or paid to any Governmental Authority relating to any of the foregoing as well as the costs of reasonably removing sludge and bottoms from the wastewater tank referred to as tank WV-302 located on the Geismar Facility.

“Working Capital” shall mean (a) the sum of (i) the amount equal to the Accounts Receivable and the Inventory, in each case net of related reserves and determined in accordance with the Calculation Principles (except in the case of the amount of the Inventory of the Rubber Chemicals Business which shall be determined in accordance with the methodology set forth in Schedule 1.1(k)), but in each case excluding all Excluded Assets, and (ii) the principal amount of the Accounts Receivable Note, minus (b) the sum of (i) the amount equal to the Current Liabilities and (ii) the principal amount of the Accounts Payable Note. Notwithstanding the foregoing, solely for purposes of the preparation of the Estimated Closing Statement pursuant to Section 3.2(c), (A) the amount in clause (a)(ii) of this definition of “Working Capital” shall be the aggregate amount of all Foreign Accounts Receivable (excluding the Factored Accounts Receivable and net of related reserves and VAT taxes) as of 12:00:01 a.m. (eastern time) on the Closing Date and (B) the amount in clause (b)(ii) of this definition of “Working Capital” shall be calculated using the aggregate amount of all Accounts Payable as of 12:00:01 a.m. (eastern time) on the Closing Date determined in accordance with the Calculation Principles (except in the case of Accounts Payable of the Rubber Chemicals Business which shall be determined in accordance with the methodology set forth in Schedule 1.1(k)). For the avoidance of doubt, no assets and liabilities shall be double counted in the above calculation of Working Capital.

“Working Capital Adjustment Amount” shall mean the amount (which may be a positive or negative number) equal to (a) the Closing Working Capital Amount, minus (b) the Estimated Working Capital Amount.

1.2 Other Definitional Provisions and Interpretation. The headings preceding the text of Articles and Sections included in this Agreement and the headings to Exhibits and Schedules attached to this Agreement are for convenience only and shall not be deemed part of this Agreement or be given any effect in interpreting this Agreement. The use of the masculine, feminine or neuter gender or the singular or plural form of words herein shall not limit any provision of this Agreement. The use of the terms “including” or “include” shall in all cases herein mean “including, without limitation” or “include, without limitation,” respectively. Reference to any Person includes such Person’s successors and assigns to the extent such successors and assigns are permitted by the terms of any applicable agreement. Reference to a Person in a particular capacity excludes such Person in any other capacity or individually. Reference to any agreement (including this Agreement), document or instrument means such agreement, document or instrument as amended or modified and in effect from time to time in accordance with the terms thereof and, if applicable, the terms hereof. Underscored references to Articles, Sections, paragraphs, clauses, Exhibits or Schedules shall refer to those portions of this Agreement. The use of the terms “hereunder,” “hereof,” “hereto” and words of similar import shall refer to this Agreement as a whole and not to any particular Article, Section, paragraph or clause of, or Exhibit or Schedule to, this Agreement. Terms, other than those defined or referenced in Section 1.1, may be defined elsewhere in the text of this Agreement and, unless otherwise indicated, shall have the specified meaning throughout this Agreement.

ARTICLE 2.

PURCHASE AND SALE OF ASSETS; ASSUMPTION OF ASSUMED OBLIGATIONS

2.1 Purchase and Sale of Assets. Upon the terms and subject to the conditions of this Agreement, at the Closing, each Seller shall sell, assign, convey, transfer and deliver to the Purchaser, and the Purchaser shall purchase and acquire from such Seller, and take assignment and delivery from such Seller of, all of such Seller’s right, title and interest in and to the following assets, properties and rights, as the same shall exist on the Closing Date (but excluding the Purchased Contracts and Assigned Permits, which are specifically addressed in Section 2.2, and the Excluded Assets, and excluding the assets, properties and rights of the Chinese Joint Venture) (the “Purchased Assets”):

(a) Inventory. The Inventory;

(b) Transferred Owned Real Property. The Transferred Owned Real Property;

(c) Geismar Equipment. All equipment, machinery, furniture, spare parts, furnishings, tooling, dies, vehicles, office equipment and supplies, computer hardware, corporeal movables and other items of tangible personal property that are owned by a Seller and located at the Geismar Facility;

(d) Naugatuck Equipment. The equipment located at the Naugatuck Site and set forth on Schedule 2.1(d) (the “Naugatuck Equipment”);

(e) Information and Records. Except as otherwise provided in Section 2.4(w), all customer lists, supplier lists, price lists, sales records, invoices, product specifications, advertising materials, cost and pricing manuals, training manuals, engineering data, maintenance schedules, operating and production records, order lists, copies of Tax and financial records and credit records of customers, and other documents (such documents, “Information and Records”) related to the Purchased Assets, Purchased Contracts and Assumed Obligations, including compilations of any of the foregoing, in each case whether in hard copy or electronic format and supplied in their current formats and that (i) are owned by a Seller and used primarily in or have arisen primarily from the conduct of the Business or are necessary for the ongoing operations of the Business (which in the case of Information and Records that are necessary for the ongoing operations of Other Chemtura Businesses will be retained by the Sellers and made available to the Purchaser pursuant to Section 6.6(b)) or (ii) must be delivered to the Purchaser under applicable Law; provided, that (A) the Sellers shall be entitled to retain copies of such Information and Records and (B) where originals of such Information and Records must be retained by any Seller under applicable Law, the Sellers will provide the Purchaser with a copy of the same;

(f) Intellectual Property. Except for patents and patent applications which are addressed in Section 2.1(f)(iii), all Intellectual Property owned by any Seller and used primarily in the Business (the “Transferred Intellectual Property,” which for the avoidance of doubt, includes the Intellectual Property licensed by the applicable Seller to the Chinese Joint Venture except for the following licensed marks: TUEX, MONEX, METHAZATE, BUTAZATE and ETHAZATE), and all rights to sue for past, present and future infringement and remedies related thereto. The Transferred Intellectual Property includes the following:

(i) Trademarks. All trade names, domain names, trademarks, service marks, trade dress and logos owned by any Seller that are used primarily in the conduct of the Business, together with all translations, adaptations, derivations and combinations thereof and all goodwill associated therewith, including the registrations and applications for registration for the foregoing and the material unregistered trademarks set forth on Schedule 2.1(f)(i) (the “Transferred Trademarks”) (it being understood, for the avoidance of doubt, that the Transferred Trademarks shall not include the Chemtura Names);

(ii) Technology. All Technology owned by any Seller that (A) is described on Schedule 2.1(f)(ii) or (B) arose primarily from the conduct of the Business and has been or is currently used or held for use primarily in the Business (the “Transferred Technology”); and

(iii) Patents. All patents and patent applications owned by the Sellers that are set forth on Schedule 2.1(f)(iii) (the “Transferred Patents”).

(g) Transferred IT Assets. All information technology assets, hardware, systems, databases, networks, and infrastructure of any Seller that are used or held for use primarily in the conduct of the Business, including those set forth on Schedule 2.1(g) (the “Transferred IT Assets”);

(h) Accounts Receivable. All Accounts Receivable other than the Foreign Accounts Receivable;

(i) Goodwill. All of the customer relationships and related goodwill of the Sellers to the extent resulting from the conduct of the Business by the Sellers (it being understood, for the avoidance of doubt, that such goodwill shall not include any goodwill associated with the Chemtura Names, Other Chemtura Businesses or Excluded Assets or any goodwill to the extent associated with continuing customers of Other Chemtura Businesses);

(j) Monochem. All of the assets, properties and rights of Monochem;

(k) Chinese Joint Venture. All of Chemtura’s equity interest in the Chinese Joint Venture; and

(l) Other Business Assets. All assets (real or personal, tangible or intangible), other than those of a nature or type described in the foregoing clauses (a) through (k), owned by a Seller and used primarily in the EPDM Business or the Rubber Chemicals Business, but excluding the PPD Equipment.

Notwithstanding the foregoing, the transfer of the Purchased Assets pursuant to this Agreement shall not include the assumption of any of the Liabilities of the Sellers related to the Purchased Assets unless the Purchaser expressly assumes any such Liabilities pursuant to Section 2.5.

2.2 Assignment of Permits and Contracts. Except as provided in Sections 2.3 and 2.4, upon the terms and subject to the conditions of this Agreement, at the Closing, each Seller shall assign and transfer to the Purchaser, and the Purchaser shall take assignment of, all of such Seller’s right, title and interest in and to all Permits related to the Business or the Assets to the extent such Permits are transferable by such Seller (including the Permits listed on Schedule 2.2 but excluding Permits of the Chinese Joint Venture) (collectively, the “Assigned Permits”), and in and to the following Contracts or contractual rights of such Seller (excluding, in each case, Contracts to which the Chinese Joint Venture is a party but no Seller is a party or contractual rights solely of the Chinese Joint Venture) (such Contracts and contractual rights, the “Purchased Contracts”):

(a) Transferred IT Contracts. All Contracts for the provision of software, hardware, systems, networks, infrastructure, communications, support and information technology that are used primarily in the conduct of the Business, including those set forth on Schedule 2.2(a) (the “Transferred IT Contracts”);

(b) Other Contracts. Other than the Shared Contracts, the other Contracts related to the Business set forth on Schedule 2.2(b) and all other Contracts relating primarily to the Business (it being understood that, on the fifth Business Day prior to the Closing, the Sellers shall provide the Purchaser with an updated version of Schedule 2.2(b) reflecting the Contracts relating primarily to the Business that were entered into by a Seller on or after the date of this Agreement not in violation of Section 6.2 of this Agreement);

(c) Non-Disclosure Obligations. Except to the extent related to the Excluded Assets or Retained Obligations, all non-disclosure, confidentiality and similar obligations owed to any Seller to the extent related to the Business, including confidentiality agreements related to the sale of the Business (other than confidentiality agreements related to the sale of the Business the assignment or disclosure of which to the Purchaser would constitute a breach thereof);

(d) Claims. Except to the extent related to the Excluded Assets or Retained Obligations, all warranty rights and indemnities against third parties, in each case to the extent arising from the conduct of the Business by any Seller and not arising under rights of subrogation under a Seller Plan;

(e) Employee Non-Compete and Confidentiality Obligations. All rights with respect to any obligation of any Business Employee owed to any Seller to refrain from competing with the Business or to keep information regarding the Business confidential, in each case to the extent such rights are transferable; and

(f) Shared Contracts. Subject to Section 2.3(c), Sellers’ rights under the Shared Contracts to the extent relating to the conduct of the Business.

2.3 Certain Provisions Regarding Assignments.

(a) Anything in this Agreement to the contrary notwithstanding, neither this Agreement nor any of the actions taken hereunder shall constitute an assignment or an agreement to assign or transfer any Purchased Contract or any claim, right, benefit or obligation thereunder or resulting therefrom if (i) an assignment or transfer thereof, without the Consent of a third party thereto, would constitute a breach or violation thereof, result in a material loss or diminution thereof or impose any Liability on any Seller and (ii) such Consent is not obtained at or prior to the Closing, in which case the provisions of Section 2.3(b) will apply.

(b) If the parties are not successful in obtaining a required third party Consent with respect to any Purchased Contract as contemplated by Section 2.3(a) at or prior to the Closing, then until such time as such Consent is obtained (i) the Purchaser shall be entitled to the benefits of any such Contract accruing after the Closing to the extent (and only to the extent) that the applicable Seller may provide such benefits (y) without violating the terms of such Contract and (z) without incurring any material expense (unless the Purchaser has committed to promptly reimburse the applicable Seller therefor) or otherwise taking any material actions or measures (such as hiring additional employees) and (ii) the Purchaser shall perform at its sole expense the obligations of the applicable Seller to be performed after the Closing under such Contract to the extent (and only to the extent) the applicable Seller is providing benefits under such Contract to the Purchaser in accordance with clause (i) of this Section 2.3(b). The terms of this Section 2.3(b) shall not apply with respect to Shared Contracts, it being understood that the treatment of Shared Contracts is addressed in Section 2.3(c).

(c) Prior to the Closing and consistent with applicable Law, each Seller and the Purchaser shall use their commercially reasonable efforts to work together (and, if necessary and desirable, to work with the third parties party to the Shared Contracts) in an effort to (i) divide, modify and/or replicate (in whole or in part) the respective rights and obligations under and in respect of the Shared Contracts and (ii) if possible, novate the respective rights and obligations under and in respect of the Shared Contracts, such that, effective as of the Closing, (A) the Purchaser is the beneficiary of the rights and is responsible for the obligations related to that portion of the Shared Contract included in the Purchased Contracts (the “Business Portion”) (so that, after the Closing, the applicable Seller shall have no rights or obligations with respect to the Business Portion of the Shared Contract) and (B) the applicable Seller is the beneficiary of the rights and is responsible for the obligations related to the Shared Contract other than the Business Portion (the “Non-Business Portion”) (so that, after the Closing, the Purchaser shall have no rights or obligations with respect to the Non-Business Portion of the Shared Contract). If the parties are not able to enter into an arrangement to formally divide, modify and/or replicate one or more Shared Contracts prior to the Closing as contemplated by the previous sentence, then (1) the Purchaser shall be entitled to the benefits of the Business Portion of any such Shared Contract accruing after the Closing to the extent (and only to the extent) that the applicable Seller may provide such benefits (y) without violating the terms of such Shared Contract and (z) without incurring any material expense (unless the Purchaser has committed to promptly reimburse the applicable Seller therefor) or otherwise taking any material actions or measures (such as hiring additional employees) and (2) the Purchaser shall perform at its sole expense the obligations of the applicable Seller to be performed after the Closing under the Business Portion of such Shared Contract to the extent (and only to the extent) the applicable Seller is providing benefits under such Shared Contract to the Purchaser in accordance with clause (1) of this Section 2.3(c).

2.4 Excluded Assets. Notwithstanding the provisions of Sections 2.1 and 2.2, no Seller shall sell, assign, convey, transfer or deliver to the Purchaser, and the Purchaser shall not purchase, acquire or take assignment or delivery of, any assets, properties or rights other than the Assets (collectively, the “Excluded Assets”). Without limiting the foregoing, the Excluded Assets shall include:

(a) Cash. All cash, certificates of deposit, bank deposits, negotiable instruments, marketable securities and other cash equivalents, together with all accrued but unpaid interest thereon;

(b) Real Property. All Real Property owned by the Sellers and their Affiliates, other than the Transferred Owned Real Property;

(d) Tax Refunds; Tax Returns. All claims for and rights to receive refunds, rebates or similar payments of Taxes to the extent such Taxes were paid by or on behalf of any Seller or any of its Affiliates (other than the Chinese Joint Venture), all Tax Returns and all notes, worksheets, files or documents relating thereto;

(e) Corporate Records. All minute books and corporate records of the Sellers or any of their Affiliates (other than the Chinese Joint Venture), whether in hard copy or electronic format;

(f) Employee Records. All personnel, employee compensation, medical and benefits and labor relations records relating to employees or past employees of the Sellers or any of their Affiliates (other than the Chinese Joint Venture), whether in hard copy or electronic format; provided, however, that the Sellers shall deliver to the Purchaser copies of such records for employees who are Transferred Employees (i) as to the Transferred Employees that are Non-U.S. Employees, upon a showing of employee consent to such delivery, and (ii) as to the other Transferred Employees, unless such employee’s consent is required by Law therefor, in which event such records shall not be made available to the Purchaser without such employee’s consent to such delivery;

(g) Other Records. All books and records not transferred pursuant to Section 2.1(e), including financial records, in each case whether in hard copy or electronic format;

(h) Sale Documents. Except as otherwise provided in Section 2.1(e), books and records prepared or received in connection with the proposed sale of the Business, including offers received from prospective purchasers, and the right, title and interest of the Sellers under this Agreement or any Related Agreement;

(i) Disposed Assets. All assets sold or otherwise disposed of, and rights expiring or terminated, in the ordinary course of business and not in violation of this Agreement during the period from the date of this Agreement until the Closing Date;

(j) Insurance. Any insurance policies or insurance coverage relating to the Assets or the Business and any prepaid insurance assets or insurance receivables related thereto;

(k) Intercompany Agreements. Except as set forth on Schedule 2.4(k), all Contracts solely between the Sellers or any Seller (on the one hand) and any one or more Affiliates (other than the Chinese Joint Venture) of any Seller (on the other hand);

(l) Group Contracts. All Group Contracts other than the respective Business Portions of the Shared Contracts;

(m) Intellectual Property. All right, title and interest in or to any Intellectual Property or other intangible property or rights owned by, or leased or licensed to, any Seller or any of their Affiliates (other than the Chinese Joint Venture) (such excluded Intellectual Property to include the Naugalube Intellectual Property and the Intellectual Property related to B-Nine® and Maleic Hydrazides), other than the Transferred Intellectual Property, the Transferred IT Contracts, any Purchased Contracts relating to Intellectual Property and the rights of the Purchaser under the License Agreements;

(n) Non-Disclosure Obligations. All non-disclosure, confidentiality and similar rights or obligations to the extent related to any Other Chemtura Business;

(o) Employee Non-Compete Obligations. All rights with respect to any obligation of any Business Employee to refrain from competing with any Other Chemtura Business;

(p) Retained IT Assets. The information technology assets, systems, networks and Contracts of any Seller that are not used or held for use primarily in connection with the Business, including as set forth on Schedule 2.4(p) (the “Retained IT Assets”);

(q) Rubicon. All right, title and interest of Chemtura and its Affiliates in and to Rubicon LLC;

(r) PPD Equipment. All equipment and machinery that are owned by a Seller and used or held for use in the Rubber Chemicals Business exclusively in the production of PPD Products at the Non-U.S. Facilities (the “PPD Equipment”);

(s) Claims. All warranty rights and indemnities against third parties, in each case to the extent related to the Excluded Assets or Retained Obligations;

(t) Benefit Plans. All of the Seller Plans;

(u) Retained PPD Assets. The Retained PPD Inventory and the Retained PPD Receivables;

(v) Foreign Accounts Receivable. The Foreign Accounts Receivable;

(w) Privileged Documents. Any Privileged Documents to the extent relating to any Excluded Asset or any Retained Liability; and

(x) Other Assets. All other assets (real or personal, tangible or intangible) and Contracts of the Sellers not included in the Purchased Assets, Assigned Permits or Purchased Contracts.

None of the Excluded Assets shall be included in the term “Assets,” “Purchased Assets,” “Purchased Contracts,” “Assigned Permits” or any other term defined in Section 2.1 or 2.2.

2.5 Assumed Obligations. Upon the terms and subject to the conditions of this Agreement, at the Closing, the Purchaser shall assume and agree to pay, perform and discharge only the following Liabilities of the Sellers and their Affiliates (the “Assumed Obligations”):

(a) Current Liabilities. All Current Liabilities;

(b) Purchased Contracts. All Liabilities under the Purchased Contracts, including the Business Portion of the Shared Contracts, relating to the period after the Closing (subject to Section 2.5(c));

(i) subject to clause (iii) below, all Liabilities arising with respect to the products produced by or on behalf of the Purchaser after the Closing or the services of the Business delivered or provided by or on behalf of the Purchaser after the Closing, in each case whether arising under warranty, contract, equity, tort, strict liability, product liability, statute or otherwise;

(ii) all Liabilities with respect to any product of the Business produced by or on behalf of any Seller prior to the Closing and sold or delivered by or on behalf of the Purchaser after the Closing (whether arising under warranty, contract, equity, tort, strict liability, product liability, statute or otherwise), to the extent that:

(A) the Purchaser has changed in any substantive manner the terms or scope of any product warranty associated with such product from the applicable warranty offered by the Business as of the date hereof or, at the Purchaser’s election, as of the Closing;

(B) a product produced by or on behalf of the Purchaser after the Closing and having the same product specifications as the applicable product produced by or on behalf of a Seller prior to the Closing was sold or delivered by or on behalf of the Purchaser or the Business on a date earlier than the date of sale or delivery of such product produced by or on behalf of a Seller; or

(C) such product was sold or delivered by or on behalf of the Purchaser or the Business following the first anniversary of the Closing Date, provided that such period of sale or delivery shall be extended to 18 months following the Closing Date with respect to those products of the Business on which Chemtura and the Purchaser shall agree on or prior to the Closing (together with any other products of the Business on which the parties are unable to agree, so long as the Purchaser has a good faith basis for so extending such period);

(iii) all Liabilities with respect to any Flexzone® 7-L products produced by or on behalf of the Seller prior to the Closing that are commingled with Flexzone® 7-L products produced by or on behalf of the Purchaser after the Closing (whether arising under warranty, contract, equity, tort, strict liability, product liability, statute or otherwise), to the extent that:

(A) such Flexzone® 7-L products produced by the Purchaser after the Closing are determined, following an investigation by the parties, not to have conformed to the Purchaser’s product specifications; or

(B) such Flexzone® 7-L product was sold or delivered by or on behalf of the Purchaser following the 20th day after the Closing Date;

(d) Employee Obligations. All Liabilities to or with respect to the Transferred Employees occurring after the Closing and relating solely to the period after the Closing, except as provided in Article 11 or any Employee Exhibit;

(e) Permits. All Liabilities under the Assigned Permits relating to the period after the Closing;

(f) Intellectual Property Liabilities. All Liabilities in connection with the Transferred Intellectual Property relating to the period after the Closing;

(g) Taxes. All Taxes, fees and other amounts for which the Purchaser is responsible pursuant to Sections 6.10(b), (c) and (d);

(h) Permitted Liens. All Liabilities under the Permitted Liens relating to the period after the Closing;

(i) Environmental Liabilities. All Environmental Liabilities that are the responsibility of the Purchaser under Section 12.9; and

(j) Financial Assurance. All Liabilities with respect to financial assurance and any closure obligations under the Resource Conservation and Recovery Act (“RCRA”), or any state equivalent, related to (i) the Drum Storage Area, tank PR 202, tank PV-42 (to the extent operated after the Closing) and the Trilene Gel Tank, (ii) any other unit operated by the Purchaser and regulated under the RCRA Permit, a subsequent Permit issued pursuant to RCRA or interim status, including, for the avoidance of doubt, all financial assurance obligations associated with the closure of any such units pursuant to RCRA and (iii) any requirement to provide financial assurance for corrective obligations under the RCRA Permit, a subsequent Permit issued pursuant to RCRA or interim status to the extent of the Purchaser’s obligations under Section 12.9 (“Purchaser’s Financial Assurance Obligations”).

2.6 Retained Obligations. Notwithstanding any other provision of this Agreement, except for the Assumed Obligations, the Purchaser shall not assume or otherwise be liable or responsible for any other Liabilities of the Sellers or their Affiliates (collectively, the “Retained Obligations”). Without limiting the generality of the foregoing, the Retained Obligations shall include the following:

(a) Taxes. All Liabilities for Taxes imposed on or relating to the Business or the Assets for any taxable period or portion thereof ending prior to the Closing Date, and any Liabilities for Taxes imposed on or relating to any Seller for any period, except that Taxes governed by Sections 6.10(b), (c) and (d) shall be allocated between the Sellers and the Purchaser as set forth therein;

(b) Accounts Payable. All accounts and notes payable of the Business as of the Closing and all related accruals (“Accounts Payable”);

(c) Pre-Closing Operation of the Business. Other than the Liabilities assumed by the Purchaser pursuant to Section 2.5, all Liabilities to the extent arising out of the ownership or operation of the Business or the Assets by any Seller or any of its Affiliates prior to the Closing;

(d) Employee Liabilities. All Liabilities of any Seller or any of its Affiliates to or with respect to its employees, including the Business Employees, except as provided in Article 11 or any Employee Exhibit.

(e) Antitrust Proceedings. All Liabilities to the extent arising out of or related to private and governmental antitrust or competition law Proceedings arising out of the sale of any product or service related to the Business prior to the Closing, including those set forth on Schedule 4.12;

(f) Sellers’ Offsite Environmental Liabilities. All Sellers’ Offsite Environmental Liabilities;

(g) Environmental Liabilities. All Environmental Liabilities that are the responsibility of the Sellers under Section 12.9;

(h) Financial Assurance. All Liabilities with respect to financial assurance and any closure obligations under RCRA, or any state equivalent, related to: (i) the Toluene Tar Tank, the incinerator, the Geismar Landfill, the UBOB tank, tank PV-42 (to the extent it is not operated after the Closing), including, for the avoidance of doubt, all financial assurance obligations associated with the closure of any such units pursuant to the RCRA, and (ii) any requirement to provide financial assurance for the corrective obligations under the RCRA Permit, a subsequent Permit issued pursuant to RCRA or interim status to the extent of the Seller’s obligations under Section 12.9 (“Sellers’ Financial Assurance Obligations”);

(i) Product Claims. Except to the extent specifically assumed by the Purchaser pursuant to Section 2.5(c)(ii) or (iii), all Liabilities arising with respect to the services of the Business delivered or provided prior to the Closing and the products produced or sold by any Seller prior to the Closing and whether arising under warranty, contract, equity, tort, strict liability, product liability, statute or otherwise, but excluding Environmental Liabilities (the “Retained Product Claims”);

(j) Excluded Assets. All Liabilities of any Seller or any of its Affiliates to the extent arising out of or related to the Excluded Assets; and

(k) Monochem. Other than Liabilities assumed by the Purchaser pursuant to Section 2.5, all Liabilities of Monochem.

2.7 Prorations. Each Seller and the Purchaser agree that all of the items listed below relating to the Business or the Assets will be prorated as of the Closing Date on a per diem basis, with the applicable Seller liable to the extent such items relate to any time period up to and including the Closing Date and the Purchaser liable to the extent such items relate to periods after the Closing Date (it being understood that the proration of Taxes is addressed in Section 6.10):

(a) rents, license fees, registration fees and other items payable periodically under any Purchased Contract (any such amounts that are paid on a monthly basis shall be prorated solely for the month of Closing);

(b) the amount of any registration fees or similar charges which in any case are payable periodically by the applicable Seller with respect to any of the Assigned Permits (any such amounts that are paid on a monthly basis shall be prorated solely for the month of Closing); and

(c) the amount of sewer rents and charges for water, electricity and other utilities and fuel (any such amounts that are paid on a monthly basis shall be prorated solely for the month of Closing).

For the avoidance of doubt, no amount included within the Working Capital Adjustment Amount shall be included in the prorations pursuant to this Section 2.7. At least five Business Days prior to the Closing, the Sellers shall deliver to the Purchaser a written statement setting forth the actual (to the extent available at the Closing Date) or estimated amounts in respect of the items described above that are to be prorated as well as the Taxes that are to be prorated pursuant to Section 6.10 (the aggregate of such actual amounts, after being agreed to by the Purchaser, being the “Closing Proration Amount”). On the Closing Date, Chemtura or the Purchaser, as applicable, shall pay to the other party the Closing Proration Amount. To the extent that the actual amounts for any items to be prorated are not available at the Closing Date, the proration of such amounts shall be calculated and appropriate adjustments shall be paid by Chemtura or the Purchaser, as applicable, as soon as reasonably practicable after the actual amounts become available. The Sellers and the Purchaser shall furnish each other with such documents and other records as may be reasonably requested in order to confirm all adjustments and proration calculations made pursuant to this Section 2.7.

ARTICLE 3.

PURCHASE PRICE; ADJUSTMENT; ALLOCATION

3.1 Payment of Purchase Price.

(a) In addition to the assumption by the Purchaser of the Assumed Obligations, the Purchaser shall pay to Chemtura, in consideration for the Assets, a purchase price equal to the sum of the following (the “Purchase Price”):

(i) an amount equal to (A) $162,500,000, less (B) the amount of the Factored Accounts Receivable (net of related reserves and VAT taxes) as reflected on the Estimated Closing Statement and discounted proportionately at an annual rate of seven percent (7%) from the scheduled payment dates set forth in the Accounts Receivable Note, in immediately available funds, subject to adjustment pursuant to Section 3.2 (the “Initial Purchase Price”); and

(ii) a promissory note in original principal amount equal to the aggregate amount of all Accounts Payable as reflected on the Estimated Closing Statement issued by the Purchaser to Chemtura substantially in the form set forth in Exhibit K (the “Accounts Payable Note”), such promissory note shall (1) have a term of 90 days, (2) be payable bi-weekly in equal installments, (3) be unsecured and (4) bear no interest.

(b) All payments made hereunder shall be made in accordance with Section 13.4 and to such account or accounts as the receiving party shall designate in writing to the paying party not less than two Business Days prior to the applicable payment date.

3.2 Purchase Price Adjustments.

(a) Capital Expenditures Adjustments.

(i) If (A) the aggregate amount of actual capital expenditures made or accrued by the Business during the period beginning on January 1, 2007 and ending on the Closing Date is (B) less than the budgeted capital expenditures for the same period as set forth on the 2007 Budget, then (C) the Initial Purchase Price will be reduced by the amount of such deficiency.

(ii) If (A) the capital expenditures made or accrued by the Business during the year ended December 31, 2006, determined in accordance with the Calculation Principles and as set forth on the Reconciliation, is (B) less than $7.5 million, then (C) the Initial Purchase Price will be reduced by the amount of such deficiency.

(b) Additional Adjustments. The Initial Purchase Price shall be subject to further possible adjustments pursuant to Schedule 3.2(b).

(i) No more than five and no less than three Business Days prior to the Closing Date, the Sellers will prepare and deliver to the Purchaser a calculation and statement of the estimated Working Capital as of 12:00:01 a.m. (eastern time) on the Closing Date (the “Estimated Closing Statement”). The Sellers will prepare the Estimated Closing Statement in good faith, in accordance with the Calculation Principles, and using the same level of prudence as used in the preparation of the Audited Special Purpose Financial Statements, subject to the Purchaser’s good faith review and reasonable satisfaction. If the Working Capital as set forth on the Estimated Closing Statement (the “Estimated Working Capital Amount”) is less than the Net Working Capital Threshold Amount, then the Initial Purchase Price will be reduced by the amount of such deficiency. If the Estimated Working Capital Amount is greater than the Net Working Capital Threshold Amount, then the Initial Purchase Price will be increased by the amount of such excess.

(ii) As soon as practicable but in no event later than 90 days following the Closing Date, the Purchaser will prepare and deliver to Chemtura a calculation and statement of the Working Capital as of 12:00:01 a.m. (eastern time) on the Closing Date and the proposed Working Capital Adjustment Amount (the “Closing Statement”). In connection with the preparation of the initial draft of the Closing Statement and only if a shutdown of the Geismar Facility would not be reasonably required in connection therewith, Chemtura and the Purchaser (and, if desired, their respective outside experts) shall cooperate in taking a physical inventory of the Inventory located at the Geismar Facility on a date not earlier than three days prior to the Closing Date, and shall obtain confirmation letters from each location where Inventory was held as of the Closing Date. The Purchaser will prepare the Closing Statement in good faith in accordance with the Calculation Principles, applied in a consistent manner with, and using the same level of prudence as used in the preparation of, the Audited Special Purpose Financial Statements.

(iii) Chemtura shall review the initial draft of the Closing Statement during the 30-day period commencing on the date that Chemtura receives the initial draft of the Closing Statement. At or prior to the end of such 30 day period, Chemtura may deliver a notice to the Purchaser either:

(A) confirming that no adjustments are proposed by Chemtura to the initial draft of the Closing Statement (a “Notice of Acceptance”); or

(B) to the effect that Chemtura disagrees with the initial draft of the Closing Statement (a “Notice of Disagreement”), specifying the nature of such disagreement and the adjustments that Chemtura seeks to the initial draft of the Closing Statement (collectively, the “Proposed Adjustments”).

(iv) To the extent that there are any Proposed Adjustments, the Purchaser will, no later than 30 days after its receipt of the Proposed Adjustments, notify Chemtura which of the Proposed Adjustments it accepts (if any) and which of the Proposed Adjustments it rejects (if any). Chemtura and the Purchaser shall seek in good faith to resolve any differences that remain in relation to the Proposed Adjustments and to reach agreement in writing on any Proposed Adjustments not accepted by the Purchaser. If any of the Proposed Adjustments are not so resolved (the “Unresolved Adjustments”) within 30 days after Chemtura’s receipt of the Purchaser’s notice relating to the Proposed Adjustments, the Unresolved Adjustments shall be submitted at the request of either Chemtura or the Purchaser to a mutually acceptable internationally recognized independent public accounting firm as shall be agreed upon by the parties hereto in writing (the “Accounting Firm”) for arbitration. The scope of the review by the Accounting Firm shall be limited to (i) a determination of whether the Unresolved Adjustments are appropriate taking into account the standards of preparation of the initial draft of the Closing Statement as set forth in Section 3.2(c)(ii) and (ii) based on its determinations of the matters described in clause (i) and taking into account the Proposed Adjustments previously accepted by the Purchaser, if any, the delivery of a final Closing Statement including the final Working Capital Adjustment Amount. The Accounting Firm is not to make or be asked to make any determination other than as set forth in the previous sentence. Chemtura and the Purchaser shall use commercially reasonable efforts to cause the Accounting Firm to render its written decision resolving the matters submitted to it as promptly as practicable after such submission of the Unresolved Adjustments. Judgment may be entered upon the determination of the Accounting Firm in any court having jurisdiction over the party against which such determination is to be enforced. The Purchaser shall bear and pay a portion of the fees and disbursements of the Accounting Firm determined by multiplying (1) the fees and disbursements of the Accounting Firm by (2) a quotient equal to (X) the total amount of the Proposed Adjustments that are ultimately applied to the Closing Statement, whether because such adjustment was accepted by the Purchaser or applied by the Accounting Firm in determining the final Closing Statement, divided by (Y) the total amount of the originally Proposed Adjustments. Chemtura shall bear the amount of the fees and disbursements of the Accounting Firm that are not the responsibility of the Purchaser as set forth in the preceding sentence. The fees and disbursements (if any) of the Purchaser’s outside experts incurred in connection with the preparation and certification of the initial draft of the Closing Statement and their review of any Proposed Adjustments or Unresolved Adjustments shall be borne by the Purchaser, and the fees and disbursements (if any) of Chemtura’s outside experts incurred in connection with their review of the draft Closing Statement and any Proposed Adjustments or Unresolved Adjustments shall be borne by Chemtura.

(v) The Closing Statement shall become final and binding on all parties, and shall have the effect of an arbitral award, upon the earliest of (i) the date that a Notice of Acceptance is delivered to the Purchaser pursuant to Section 3.2(c)(iii)(A) (in which case the final Working Capital Adjustment Amount shall be as set forth in the Closing Statement delivered pursuant to Section 3.2(c)(ii)), (ii) the date that is one day after the 30 day review period specified in Section 3.2(c)(iii) has ended if no Notice of Disagreement has been delivered to the Purchaser pursuant to Section 3.2(c)(iii)(B) during such 30 day period (in which case the final Working Capital Adjustment Amount shall be as set forth in the Closing Statement delivered pursuant to Section 3.2(c)(ii)), (iii) the date of an agreement in writing by the Sellers and the Purchaser that the Closing Statement, together with any modifications thereto agreed by the Sellers and the Purchaser, are final and binding (in which case the final Working Capital Adjustment Amount shall be as so agreed upon by the parties) and (iv) the date on which the Accounting Firm resolves in writing any disputed matters (in which case the final Working Capital Adjustment Amount shall be as determined by the Accounting Firm pursuant to Section 3.2(c)(iv)).

(vi) Each of the Sellers, on the one hand, and the Purchaser, on the other hand, shall reasonably cooperate with each other and provide the other (and such other’s independent auditors) with reasonable access to any books, records, working papers and employees as the other may reasonably request, in each case in connection with the preparation and review of the Closing Statement pursuant to this Section 3.2(c).

(vii) The Purchase Price shall be increased by the absolute value of the final Working Capital Adjustment Amount if the final Working Capital Adjustment Amount is positive and decreased by the absolute value of the final Working Capital Adjustment Amount if the final Working Capital Adjustment Amount is negative. If the final Working Capital Adjustment Amount is a negative number, the Sellers shall, within two Business Days after the Closing Statement becomes final and binding on the parties (as provided in Section 3.2(c)(v)), make payment by wire transfer in immediately available funds to one or more accounts designated by the Purchaser of the absolute value of such amount together with a sum equivalent to interest thereon at a rate equal to the LIBOR Rate, accrued from the Closing Date to and including the date of payment and calculated on the basis of the actual number of days elapsed divided by 360. If the final Working Capital Adjustment Amount is a positive number, the Purchaser shall, within two Business Days after the Closing Statement becomes final and binding on the parties (as provided in Section 3.2(c)(v)), make payment by wire transfer in immediately available funds to an account designated by Chemtura of the absolute value of such amount together with a sum equivalent to interest thereon at a rate equal to the LIBOR Rate, accrued from the Closing Date to and including the date of payment and calculated on the basis of the actual number of days elapsed divided by 360. “LIBOR Rate” shall mean the closing rate of interest announced publicly by the British Bankers Association as its three month LIBOR rate for U.S. dollars on the Business Day preceding the date of determination, which for purposes of this Section 3.2(c)(vii) shall be the day the Closing Statement becomes final and binding on the parties (as provided in Section 3.2(c)(v)). The parties agree that any amounts paid pursuant to this Section 3.2(c)(vii) shall be allocated in a manner that is consistent with the allocation of the Purchase Price pursuant to Section 3.4.

3.3 Withholding. The Purchaser shall be entitled to deduct and withhold from the consideration otherwise payable pursuant to this Agreement to any Seller such amounts as the Purchaser is required to deduct and withhold under the Code, or any provision of state, local or foreign tax law, with respect to the making of such payment. To the extent that amounts are so withheld by the Purchaser, such withheld amounts shall be treated for all purposes of this Agreement as having been paid to the Seller in respect of whom such deduction and withholding was made by the Purchaser.

3.4 Allocation of Consideration for Assets. Following the Closing, Chemtura and the Purchaser shall use commercially reasonable efforts to agree on an allocation of the Purchase Price, together with all Assumed Obligations assumed by Purchaser, among the Assets, the Accounts Receivable Note and the Purchaser’s Option in accordance with section 1060 of the Code. If Chemtura and the Purchaser are not able to agree on such allocation prior to the date that is four months after the Closing Date, Chemtura and the Purchaser shall jointly retain an appraiser to value the Assets and prepare such allocation, with the cost of, and any expenses associated with, such appraisal to be borne fifty percent by the Sellers and fifty percent by the Purchaser. Following the final determination of the allocation, each of the Purchaser and the Sellers shall (and shall cause their respective Affiliates to) file all necessary Tax Returns and other forms (including Internal Revenue Service Form 8594) to report the transactions contemplated herein for U.S. federal, state, local and non-United States income Tax purposes in accordance with such allocation, and shall not take any position inconsistent with such allocation (or any adjustment to such allocation). Any adjustment to the Purchase Price for the Assets shall be allocated as provided in Treasury Regulation section 1.1060-1 and, in the event of such adjustment, the Purchaser and the Sellers agree to revise and amend such allocation and Form 8594 within 30 days of such adjustment. Notwithstanding the foregoing, prior to the Closing, Chemtura and the Purchaser shall agree upon the portion of the Purchase Price to be allocated to the Transferred Owned Real Property (which allocation shall be comprised only of a portion of the Initial Purchase Price) so that the applicable Act of Cash Sale may reflect such amount and recite that it was received all in cash and for purposes of determining the fair market value of the Transferred Owned Real Property pursuant to Section 6.17, and such allocation shall not be modified after the Closing without the prior written agreement of Chemtura and the Purchaser.

ARTICLE 4.

REPRESENTATIONS AND WARRANTIES OF SELLERS

The Sellers, jointly and severally, represent and warrant to the Purchaser as follows:

4.1 Due Organization. Each Seller and the Chinese Joint Venture (a) is a corporation, limited liability company, limited liability corporation or private company with limited liability (as the case may be) duly organized, validly existing and, solely with respect to those of such entities that are domiciled in jurisdictions that recognize the concept of good standing, in good standing under the laws of the jurisdiction of its formation, (b) has the requisite power and authority to own, operate and lease its properties and to conduct its business as presently conducted, and (c) other than such jurisdictions in which the failure to be qualified or in good standing would not reasonably be expected to have a Business Material Adverse Effect, is duly qualified to do business and is in good standing as a foreign entity in each jurisdiction that recognizes the concept of good standing and in which its ownership of Assets and its historic conduct of the Business makes such qualification necessary.

4.2 Due Authorization. Each Seller has full corporate, limited liability company, limited liability corporation or private company with limited liability (as the case may be) power and authority to execute, deliver and perform this Agreement and its Related Agreements and to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance by each Seller of this Agreement and its Related Agreements and the consummation by such Seller of the transactions contemplated hereby and thereby have been duly authorized by all necessary action, including the approval (if required) of the board of directors (or similar governing body) of such Seller. Each Seller has duly and validly executed and delivered this Agreement and, at or prior to the Closing, such Seller will have duly and validly executed and delivered each of its Related Agreements. Assuming the due authorization, execution and delivery of this Agreement and its Related Agreements by the Purchaser, this Agreement constitutes, and each Related Agreement will upon the Closing constitute, the legal, valid and binding obligation of each Seller party thereto, enforceable against it in accordance with its respective terms, subject to the Enforceability Limitations.

4.3 Consents and Approvals; Authority Relative to this Agreement.

(a) Except (i) for the Governmental Required Consents and (ii) as set forth on Schedule 4.3(a), no material Consent of or with any Governmental Authority is necessary in connection with (1) the execution, delivery or performance of this Agreement by any Seller or of any of the applicable Related Agreements by any Seller or (2) the consummation of any of the transactions contemplated hereby or thereby by any Seller.

(b) Other than in the cases of clauses (2) and (3) below, any such items that would not reasonably be expected to have a Business Material Adverse Effect, and except (i) as set forth on Schedule 4.3(a) or Schedule 4.3(b), and subject to obtaining the Governmental Required Consents, the execution, delivery and performance of this Agreement and of the applicable Related Agreements by each Seller, and the consummation of the transactions contemplated hereby and thereby by each Seller, do not and will not: (1) violate any material Law applicable to or binding on any Seller or any Assets; (2) constitute a breach or default of, or permit cancellation of, or result in the creation of any Lien upon any of the Assets, or result in or constitute a circumstance which, with or without notice or lapse of time or both, would constitute any of the foregoing under, any Purchased Contract or any Contract to which any Seller or the Chinese Joint Venture is a party or any Contract by which any Seller or the Chinese Joint Venture, or any of such Seller’s or the Chinese Joint Venture’s respective assets is bound or by which any of the Assets are bound; (3) permit the acceleration of the maturity of any indebtedness of any Seller or the Chinese Joint Venture or any of their respective Affiliates or indebtedness secured by any of their respective assets or any indebtedness secured by the Assets; or (4) violate or conflict with any provision of the certificate of incorporation or by-laws (or similar organizational documents) of any Seller or the Chinese Joint Venture. This Section 4.3(b) does not apply to the Transferred Intellectual Property or the Purchased Contracts relating to the Transferred Intellectual Property.

4.4 Financial Statements. Schedule 4.4 sets forth the unaudited special purpose financial statements of the Business (a) as of September 30, 2006 and for the nine-month period then ended (the “2006 Pre-Signing Financial Statements”), and (b) as of December 31, 2005 and for the year then ended, in each case together with any footnotes and schedules thereto (referred to collectively as the “Pre-Signing Financial Statements”). The Pre-Signing Financial Statements (i) were prepared from the books and records of the Sellers and the Business, (ii) fairly present, in all material respects, the net assets and revenues and expenses of the Business as of the dates and for the periods indicated therein, and (iii) were prepared in accordance with the Calculation Principles, except (A) as set forth in the footnotes thereto, and (B) that the interim Pre-Signing Financial Statements described in clause (a) above are subject to normal year-end adjustments.

4.5 No Adverse Effects or Changes. Except (a) with respect to the Excluded Assets and the Retained Obligations, (b) as otherwise contemplated by this Agreement or (c) as set forth on Schedule 4.5, since September 30, 2006, (i) the Business has not suffered any event which has had or would reasonably be expected to have a Business Material Adverse Effect and (ii) the Business has been conducted in the ordinary course and in substantially the same manner as previously conducted.

4.6 Title to Assets.

(a) Except as set forth on Schedule 4.6, one or more of the Sellers has good and marketable title to, a valid and subsisting leasehold interest in or a valid right to use, each of the Assets free and clear of any Lien other than Permitted Liens, including on and as of the Closing Date, any Lien associated with the Receivables Securitization Agreements. Subject to obtaining and making all applicable Consents, each Seller (as applicable) has the right to sell, convey, transfer, assign and deliver the Assets owned, leased or used by it, as applicable, to the Purchaser and at the Closing such Seller shall convey to the Purchaser good and marketable title to, valid and subsisting leasehold interests in, or a valid right to use (as applicable), such Assets, free and clear of any Lien (other than Permitted Liens). This Section 4.6(a) does not apply to (a) title to Transferred Owned Real Property, which is addressed solely in Section 4.8 and (b) title to Transferred Intellectual Property, which is addressed solely in Section 4.13.

(b) The Chinese Joint Venture has good and marketable title to, a valid leasehold interest in or a valid right to use, each of its assets, properties and rights free and clear of any Lien other than Permitted Liens (the “Chinese Joint Venture Assets”), including on and as of the Closing Date, any Lien associated with the Receivables Securitization Agreements.

4.7 Assets.

(a) Except as set forth on Schedule 4.7(a), the Assets and the Chinese Joint Venture Assets, together with the Group Contracts identified on Schedule 4.7(a), the PPD Equipment, the Retained PPD Inventory and the rights and services to be provided by the Sellers to the Purchaser under the Chemtura Master Supply Agreement, the Transition Services Agreement, the License Agreements and the Ground Lease, constitute all the properties, assets and rights necessary to operate the Business in all material respects as it is currently conducted by the Sellers and the Chinese Joint Venture.

(b) Except as set forth on Schedule 4.7(b), (i) the Assets located at the Geismar Facility and the Monochem Facility that are tangible personal property, buildings, structures, improvements or fixtures are, taken as a whole and having due regard for their age and length of use, in good repair and good operating condition, ordinary wear and tear excepted, and are suitable for use in the Business as currently conducted and (ii) the Chinese Joint Venture Assets that are tangible personal property, buildings, structures, improvements or fixtures are, taken as a whole and having due regard for their age and length of use, in good repair and good operating condition, ordinary wear and tear excepted, and are suitable for use in the Business as currently conducted. The parties acknowledge and agree that the Sellers’ financial obligations with respect to the repair, upgrade or replacement of any Assets disclosed on Part A of Schedule 4.7(b) as exceptions to this Section 4.7(b) shall be as set forth on Part B of Schedule 4.7(b).

4.8 Real Property.

(a) Except as set forth on Schedule 4.8(a), the Transferred Owned Real Property is the only Real Property currently used by the Sellers or the Chinese Joint Venture in connection with the Business.

(b) (i) Subject to the Permitted Liens, the applicable Seller has the right to sell, convey, transfer, assign and deliver the Transferred Owned Real Property to the Purchaser, and (ii) at the Closing such Seller shall sell, convey, transfer, assign and deliver to the Purchaser good and marketable fee simple title to and absolute ownership of each Transferred Owned Real Property with limited warranties of title and limited warranties of condition consistent with the warranties set forth herein, free and clear of all Liens and Encumbrances (other than the Permitted Liens and all easements, servitudes, rights of way or other agreements of record with respect thereto). For the avoidance of doubt, no Transferred Owned Real Property is or shall be, immediately following the consummation of the Closing, subject to any lease or option, other than the Option Agreement dated as of May 5, 1998 between Uniroyal Chemical Company, Inc. and Air Liquide America Corporation.

(c) Schedule 4.8(c) sets forth (i) a true and complete list of all Real Property leased by any Seller or the Chinese Joint Venture and used in connection with the Business or constituting a part of the Assets (the “Leased Real Property”) and (ii) a true and correct list of all leases pursuant to which any Seller or the Chinese Joint Venture leases the Leased Real Property. The Sellers have made available to the Purchaser a true and complete copy of each such lease. To the Sellers’ Knowledge, no material default exists under any of the leases associated with the Leased Real Property. The applicable Seller or the Chinese Joint Venture enjoys quiet and peaceful possession of all such Leased Real Property in which it is the tenant.

4.9 Equipment; Leased Personal Property.

(a) Schedule 4.9(a) includes a true and complete list by location of all of the equipment, machinery and other corporeal movables owned by a Seller and used or held for use primarily in the conduct of the EPDM Business and having an individual net book value in excess of $50,000.

(b) Schedule 4.9(b) sets forth a true and complete list by location of all the equipment, machinery and other corporeal movables owned by a Seller or the Chinese Joint Venture and used or held for use primarily in the conduct of the Rubber Chemicals Business and having an individual net book value in excess of $50,000, other than the PPD Equipment.

(c) Schedule 4.9(c) sets forth a true and complete list by location of the PPD Equipment having an individual net book value in excess of $50,000.

(d) Schedule 4.9(d) sets forth a list of each lease to which any Seller or the Chinese Joint Venture is a party with respect to tangible personal property used or held for use primarily in the conduct of the Business having aggregate remaining minimum lease payments in excess of $50,000. The Sellers have made available to the Purchaser true and complete copies of all the tangible personal property leases set forth on Schedule 4.9(d) (excluding tangible personal property leases that the Sellers have provided in redacted form or determined to withhold, in each case due to confidentiality restrictions, and which tangible personal property leases are described on Schedule 4.9(d)).

(e) The spare parts constituting a part of the Assets and those constituting a part of the Chinese Joint Venture Assets are in quantities reasonably sufficient to conduct the continuing operations of the Business (taking into account the matters described in Schedule 4.9(e)).

4.10 Customers and Suppliers. Except as set forth on Schedule 4.10(a), to the Sellers’ Knowledge, there is no material dispute that relates to the Business between any Seller or the Chinese Joint Venture (on the one hand) and any Material Customer of or Material Supplier to such Seller or the Chinese Joint Venture (on the other hand). To the Sellers’ Knowledge, since January 1, 2006, and except for the expiration of any Purchased Contract in accordance with its terms, no Material Customer or Material Supplier has notified any of the Sellers or the Chinese Joint Venture in writing that it has cancelled or otherwise terminated its relationship with the Business or materially and adversely reduced the level of business done with the Business, either as a result of the transactions contemplated hereby or otherwise. “Material Customer” shall mean the 20 largest customers of each of the EPDM Business and the Rubber Chemicals Business and the four largest customers of the Monochem Business (in each case as measured by Dollar amounts of purchases of products or services from each such business) during fiscal year 2006 to date, as set forth on Schedule 4.10(b). “Material Supplier” shall mean the 10 largest suppliers of each of the EPDM Business and the Rubber Chemicals Business at the Geismar Facility and the seven largest suppliers of the Monochem Business (in each case as measured by Dollar amounts paid by each such business for products or services) during fiscal year 2006 to date, as set forth on Schedule 4.10(b).

4.11 Accounts Receivable.

(a) Except as set forth on Schedule 4.11(a), all Accounts Receivable that are reflected on the most recent Pre-Signing Financial Statements, to the extent uncollected as of the date hereof, and the Accounts Receivable reflected, since the date of the most recent Pre-Signing Financial Statements, on the books of the Business are valid and existing and reflect amounts due arising from bona fide sales actually made or bona fide services actually performed by one or more of the Sellers or the Chinese Joint Venture in the ordinary course of business. Schedule 4.11(a) contains a correct and complete aging schedule as of September 30, 2006 of all Accounts Receivable. The reserve for doubtful accounts on the most recent Pre-Signing Financial Statements has been calculated generally in accordance with the Calculation Principles. To the Sellers’ Knowledge, as of the date of this Agreement, there are no facts or circumstances that could reasonably be expected to result in any material increase in the uncollectibility or delinquency in payment of the Accounts Receivable as a class in excess of the reserves therefor set forth on the most recent Pre-Signing Financial Statements.

(b) Schedule 4.11(b) identifies all unreturned security deposits and other deposits made by, or held by, any Person with respect to the Business for the benefit of any Seller or the Chinese Joint Venture that are reflected on the most recent Pre-Signing Financial Statements and any made since September 30, 2006, in each case as of the date of this Agreement. Neither any Seller nor the Chinese Joint Venture is holding any security deposits with respect to the Business for the benefit of any other Person.

4.12 Proceedings. Except as set forth on Schedule 4.12, as of the date of this Agreement, there are no Proceedings pending or, to the Sellers’ Knowledge, threatened against any Seller or the Chinese Joint Venture that relate to the Business or any Asset before any arbitrator, court or other Governmental Authority, in each case which, if adversely determined, would (a) be reasonably likely to have a Business Material Adverse Effect, (b) be reasonably likely to result in damages over $100,000 or (c) enjoin or otherwise prohibit or restrict any of the transactions contemplated by this Agreement. Except as set forth on Schedule 4.12, the operation of the Business by each Seller and the Chinese Joint Venture is not subject to any order, judgment, decree, injunction, stipulation or consent order of or with any arbitrator, court or other Governmental Authority, other than any such orders having application to industry-wide matters. Neither any Seller (in relation to its conduct of the Business) nor the Chinese Joint Venture has entered into any agreement to settle or compromise any Proceeding pending or threatened against it which has involved any obligation other than the payment of money and for which it has any continuing obligation.

4.13 Intellectual Property.

(a) Schedule 4.13(a) sets forth a true and complete list of all patents and patent applications and all registrations and applications for registrations for all Intellectual Property owned by any Seller or the Chinese Joint Venture and that are used in or necessary for the conduct of the Business (the “Registered Intellectual Property”).

(b) Schedule 4.13(b)(i) sets forth a true and complete list of all licenses and other Contracts, other than “off the shelf” commercially available software programs purchased or licensed for less than $100,000 in the aggregate, pursuant to which any Seller or the Chinese Joint Venture licenses from a third party Intellectual Property used in the conduct of the Business (the “Material Licenses”). Schedule 4.13(b)(ii) sets forth a true and complete list of all licenses and other Contracts pursuant to which any Seller or the Chinese Joint Venture licenses to a third party any Transferred Intellectual Property (the “Outbound Licenses”). The Sellers have made available to the Purchaser a true and complete copy of each of the Material Licenses and the Outbound Licenses (excluding Material Licenses and Outbound Licenses that the Sellers have provided in redacted form or determined to withhold, in each case due to confidentiality restrictions or because such licenses relate to Other Chemtura Businesses). To the Sellers’ Knowledge, the Material Licenses and Outbound Licenses are in full force and effect, and neither any Seller nor the Chinese Joint Venture has taken any action or failed to take any action that would constitute a breach of any Material Licenses or Outbound Licenses. Except as set forth on Schedule 4.13(b)(iii), neither any Seller nor the Chinese Joint Venture pays any royalty or other compensation to any Person for the right to use any Intellectual Property that is material to the Business.

(i) to the Sellers’ Knowledge, the use of the Transferred Intellectual Property as currently used by the Sellers in the conduct of the Business or by any party who is a licensee under such Transferred Intellectual Property from any Seller, and the conduct of the Business as conducted by the Sellers for the 12 months preceding the date hereof, does not infringe, dilute, misappropriate or otherwise violate the Intellectual Property rights of any other Person;

(ii) to the Sellers’ Knowledge, the use of the Chinese Joint Venture Intellectual Property by the Chinese Joint Venture in the conduct of its business or by any party who is a licensee under such Chinese Joint Venture Intellectual Property from the Chinese Joint Venture, and the conduct of the Business as conducted by the Chinese Joint Venture for the 12 months preceding the date hereof, does not infringe, dilute, misappropriate or otherwise violate the Intellectual Property rights of any other Person;

(iii) no Proceedings have been instituted and are pending and neither any Seller nor the Chinese Joint Venture has received a written notice or threat from any Person which: (A) assert an ownership interest in any Transferred Intellectual Property or any Chinese Joint Venture Intellectual Property, (B) allege that the conduct of the Business by any Seller or the Chinese Joint Venture violates any rights relating to Intellectual Property of any Person or (C) challenge the validity or enforceability of the Transferred Intellectual Property; and to Seller’s Knowledge, no basis for any of the foregoing exists;

(iv) the Sellers are the sole and exclusive owners of the Transferred Intellectual Property, free and clear of any Lien other than Permitted Liens;

(v) Subject to obtaining and making all applicable Consents, each Seller (as applicable) has the right to sell, convey, transfer, assign and deliver the Transferred Intellectual Property and the Purchased Contracts related to the Transferred Intellectual Property to the Purchaser and at the Closing such Seller shall convey to the Purchaser good and marketable title to such Transferred Intellectual Property and the Purchased Contracts related to the Transferred Intellectual Property, free and clear of any Lien (other than Permitted Liens).

(vi) the Chinese Joint Venture is the sole and exclusive owner of the Chinese Joint Venture Intellectual Property, free and clear of any Lien other than Permitted Liens;

(vii) the Sellers and the Chinese Joint Venture have taken reasonable measures to protect the confidentiality of the trade secrets and confidential information with respect to the Transferred Intellectual Property and the Chinese Joint Venture Intellectual Property, respectively; and

(viii) neither any Seller nor the Chinese Joint Venture has filed any Proceeding or sent any written notice of a violation, infringement, misuse or misappropriation by any Person of Sellers’ rights to, or in connection with, the Transferred Intellectual Property or the Chinese Joint Venture Intellectual Property and, to the Sellers’ Knowledge, none of the Transferred Intellectual Property or the Chinese Joint Venture Intellectual Property is being infringed, diluted, misappropriated or otherwise violated by any Person. With respect to the Registered Intellectual Property, all fees, including registration, maintenance and renewal fees, that were due and payable to any applicable United States or other Governmental Authority have been paid.

(d) The Transferred Intellectual Property together with the Intellectual Property licensed to the Purchaser under the License Agreements constitute all of the Intellectual Property necessary for the conduct of the Business as it is presently conducted.

(e) Other than the Governmental Required Consents, no Consent of or with any Governmental Authority is necessary in connection with (i) the assignment of the Transferred Intellectual Property and the Purchased Contracts relating to Intellectual Property contemplated in this Agreement or (ii) the execution, delivery or performance of the License Agreements by any Seller.

(f) The assignment of the Transferred Intellectual Property and the Purchased Contracts relating to Intellectual Property as contemplated in this Agreement, and the execution, delivery or performance of the License Agreements by any Seller, and the execution and performance by Chemtura under the Chemtura Master Supply Agreement, including the granting of the licenses contained therein by the Purchaser to Chemtura, do not and will not: (i) violate any Law applicable to or binding on any Seller or any of the Transferred Intellectual Property, any Purchased Contracts relating to Intellectual Property or the License Agreements; (ii) constitute a breach or default of, or permit cancellation of, or result in the creation of any Lien upon any of the Transferred Intellectual Property, any Purchased Contracts relating to Intellectual Property or the License Agreements, or result in or constitute a circumstance which, with or without notice or lapse of time or both, would constitute any of the foregoing under any Purchased Contract relating to Intellectual Property or by which any of the Transferred Intellectual Property is bound; (iii) permit the acceleration of the maturity of any indebtedness of any Seller or any of its respective Affiliates secured by the Transferred Intellectual Property or any Purchased Contracts relating to Intellectual Property or (iv) violate or conflict with any provision of the certificate of incorporation or by-laws (or similar organizational documents) of any Seller.

(g) The Sellers and the Chinese Joint Venture are in compliance in all material respects with all Laws applicable to or binding on them or any of the Transferred Intellectual Property, the Chinese Joint Venture Intellectual Property and the Purchased Contracts relating to Intellectual Property.

(h) Except as set forth on Schedule 4.13(h), the Inventory is not subject to any agreement pursuant to which any Seller (or following the Closing, the Purchaser) is authorized to use any Intellectual Property in connection with the manufacture, marketing, sale or other distribution or disposition of any Inventory or other agreement that limits, conditions or restricts any Seller’s or the Chinese Joint Venture’s (or upon and following the consummation of the Closing, the Purchaser’s) right to sell or otherwise dispose of such Inventory. No Inventory is the subject of any Intellectual Property Claim.

4.14 Contracts.

(a) Schedule 4.14(a) is a true and complete list, as of the date of this Agreement, of all the Contracts of the following types to which (1) any Seller or the Chinese Joint Venture is a party (but only if such Contract primarily relates to the Business) or (2) any of the Assets is subject:

(i) any collective bargaining agreement;

(ii) any Contract with any Business Employee (other than a Non-U.S. Employee) related to the terms and conditions of employment, other than a Contract on the Sellers’ standard form Contract with Business Employees related to the terms and conditions of employment previously made available to the Purchaser and other than Benefit Plans and Benefit Programs;

(iii) the Sellers’ standard form Contract under which any Business Employee (other than a Non-U.S. Employee) has any obligation to any Seller to refrain from competing with the Business or to keep information regarding the Business confidential;

(iv) any Contract pursuant to which any Seller has made or will make loans or advances, or has incurred, or is obligated to incur (whether on an absolute or contingent basis), indebtedness for borrowed money or has become a guarantor or surety or pledged its credit for or otherwise become responsible for or is otherwise liable for or obligated with respect to any undertaking of another Person (except for endorsements for collection or deposit of negotiable instruments in transactions in the ordinary course of business);

(v) any Contract with (A) any Affiliate of any Seller (including any Contract between one or more Sellers and the Chinese Joint Venture but excluding any contract with or relating to any Seller Plan) or (B) any officer or director of any Seller or the Chinese Joint Venture (other than employment agreements or similar arrangements relating to their employment);

(vi) any Contract (including a purchase order) with any customer or supplier with whom the Sellers or the Chinese Joint Venture have entered into Contracts (including purchase orders) which, in the aggregate, have or are expected to have a commitment of more than $250,000 on an annual basis;

(vii) any Contract involving a partnership, joint venture or other cooperative undertaking or other arrangement involving a sharing of profits or expenses;

(viii) any Contract involving any non-competition or similar restrictions binding on any owner of the Business, including with respect to the geographical area of operations or scope or type of business of any owner of the Business;

(ix) any Contract for any capital expenditures or leasehold improvements involving the payment of more than $100,000;

(x) any Contract that, if terminated prior to its expiration in accordance with its terms, would reasonably be expected to have a Business Material Adverse Effect;

(xi) any Contract that imposes or evidences any Lien for borrowed money or material Lien (other than a Permitted Lien) on any of the Assets.

(xii) any consignment Contract;

(xiii) any lease with respect to Real Property or any of the other material Assets;

(xiv) any Contract to sell, lease or dispose of any Asset, in each case other than in the ordinary course of business or in connection with the matters described in Schedule 4.9(e);

(xv) any Contract for storage, processing, terminalling, delivery, shipment or transportation of Assets, including any Contract with any warehouseman, processor or bailee;

(xvi) any sales agency, sales representative, distributorship or marketing Contract;

(xvii) any other Contract providing for future payments by any Seller or the Chinese Joint Venture in excess of $100,000 on an annual basis that cannot be terminated upon 90 days’ notice by such Seller or the Chinese Joint Venture (and, following the Closing, by the Purchaser) without penalty or premium; and

(xviii) any other Contract entered into outside the ordinary course of business the absence of which would have a Business Material Adverse Effect.

(b) The Sellers have made available to the Purchaser a true and complete copy of each Contract or form of Contract that is listed on Schedule 4.14(a) (the “Material Contracts”) (excluding Contracts that the Sellers have provided in redacted form or determined to withhold, in each case due to confidentiality restrictions or because such Contracts relate to Other Chemtura Businesses). Except as set forth on Schedule 4.14(b), to the Sellers’ Knowledge, the Material Contracts are in full force and effect.

4.15 Permits. Except as set forth on Schedule 4.15, each Seller and the Chinese Joint Venture possesses or has applied for all material Permits required by applicable Law for such Seller or the Chinese Joint Venture to conduct the Business as currently conducted. Schedule 4.15 is a true and complete list of all Permits (other than Environmental Permits) held by the Sellers and the Chinese Joint Venture in connection with the Business and material to the operation of the Business. Except as set forth on Schedule 4.15, each Seller and the Chinese Joint Venture is and has been for the 12 months preceding the date hereof in material compliance with all Permits held in connection with the Business applicable to or binding on it or any of its Assets, and since January 1, 2006, neither any Seller nor the Chinese Joint Venture has received any written notice from a Governmental Authority that (i) alleges that any Seller or the Chinese Joint Venture is not in material compliance with any Permit or (ii) alleges that any Seller or the Chinese Joint Venture does not possess any Permit required by applicable Law for such Seller to conduct the Business as currently conducted. This Section 4.15 does not relate to the Environmental Permits, which are addressed in Section 4.21.

4.16 Inventory.

(a) The Inventory reflected in the most recent Pre-Signing Financial Statements is fairly valued in accordance with the Calculation Principles. The Inventory, taken as a whole, consists of a quality and is in quantities sufficient and reasonable for the operation of the Business as contemplated by the 2007 Budget. Finished goods constituting Inventory are saleable in the ordinary course of business except for obsolete items and items of below-standard quality all of which will at the Closing have been written down to net realizable value on the Estimated Closing Statement. The inventory obsolescence policies of the Sellers and the Chinese Joint Venture with respect to the Business are appropriate for the nature of the products sold. Schedule 4.16(a) sets forth a list of the places where Inventories were located as of the date indicated therein, which is in each case within five Business Days of the date hereof.

(b) Except pursuant to the Purchased Contracts set forth on Schedule 4.16(b), no Inventory is consigned to any Person.

(c) Except pursuant to the Purchased Contracts set forth on Schedule 4.16(c), no inventory is held by any Seller on consignment from any Person or subject to any sale-or-return, sale-on-approval or repurchase agreement with any supplier.

(d) Except as set forth on Schedule 4.16(d), all of the Inventory is in the physical possession of a Seller, located in a warehouse or a similar facility or is in transit to or from a customer or supplier of a Seller or from a warehouse or such similar facility.

4.17 Benefit Plans.

(a) Schedule 4.17(a) lists each of the following which is sponsored, maintained or contributed to by the Sellers or any of their ERISA Affiliates for the benefit of Business Employees (other than any Non-U.S. Employees), other than any Foreign Benefit Plans (except as provided in Section 4.17(c) below). To the extent applicable, all matters relating to Non-U.S. Employees and Foreign Benefit Plans are set forth in Exhibit China, Section 11.7 and Schedule 11.7, or, with respect to other Non-U.S. Employees and Foreign Benefit Plans, will be addressed in accordance with Section 11.3.

(i) each “employee benefit plan,” as such term is defined in section 3(3) of ERISA (“Benefit Plan”); and

(ii) each written personnel policy pertaining to compensation and benefits matters, written stock option plan, stock purchase plan, stock appreciation rights arrangement, phantom stock plan, collective bargaining agreement, bonus plan or arrangement, incentive award plan or arrangement, vacation policy, severance pay plan, policy or agreement, deferred compensation agreement or arrangement, executive compensation or supplemental income arrangement, severance agreement, change in control agreement and each other employee benefit plan, agreement, arrangement, program, practice or understanding which is not described in Section 4.17(a)(i) (each a “Benefit Program”).

(b) True, correct and complete copies of each of the Benefit Plans and Benefit Programs, including all amendments thereto, have been made available to the Purchaser.

(c) Each Benefit Plan, Benefit Program and Foreign Benefit Plan complies with and has been administered in form and in operation in all material respects in accordance with its terms and will all applicable requirements of Law.

(d) As to any employee benefit plan subject to Title IV of ERISA sponsored, maintained or contributed to by the Sellers or any of their ERISA Affiliates (collectively, the “ERISA Group”) for the benefit of the employees of the ERISA Group or former employees of the ERISA Group or which has been so sponsored, maintained or contributed to within six years prior to the Closing Date for the benefit of such individuals (a “Title IV Plan”), there has been no event or condition which presents the risk of plan termination, no accumulated funding deficiency, whether or not waived, within the meaning of section 302 of ERISA or section 412 of the Code has been incurred, no reportable event within the meaning of section 4043 of ERISA (for which the disclosure requirements of Regulation section 4043.1 et seq., promulgated by the Pension Benefit Guaranty Corporation (“PBGC”) have not been waived) has occurred, no notice of intent to terminate the Title IV Plan has been given under section 4041 of ERISA, no proceeding has been instituted under section 4042 of ERISA to terminate the Title IV Plan, and no liability to the PBGC has been incurred (other than premiums incurred in the normal operation of such employee benefit plans);

(e) With respect to any Title IV Plan, no withdrawal liability, within the meaning of section 4201 of ERISA, has been incurred, which withdrawal liability has not been satisfied, and all contributions (including installments) to such plan required by section 302 of ERISA and section 412 of the Code have been timely made.

4.18 Employment and Labor Matters.

(a) The Sellers have made available to the Purchaser a true and complete list of Business Employees as of February 2, 2007 containing, for each Business Employee, the job title or position, date of commencement of employment or engagement, current compensation including bonus eligibility percentage and sick and paid-time-off and vacation leave that is accrued or credited but unused or unpaid as of the date on which the list described herein was completed. There is, and since January 1, 2005 there has been, no labor strike, material labor dispute, material labor slow-down, material work stoppage pending or, to the Sellers’ Knowledge, threatened, against any Seller or the Chinese Joint Venture and relating to the Business. None of the Business Employees are covered by any collective bargaining agreement and, to the Sellers’ Knowledge, no representation petition has been filed by any such employee and is pending before the National Labor Relations Board (or any similar non-U.S. Governmental Authority) and, since January 1, 2005, to the Sellers’ Knowledge no union organizing campaign with respect to the Business has been in progress or has been threatened.

(b) With regard to the Business Employees, the Sellers and the Chinese Joint Venture are in compliance in all material respects with all applicable Laws relating to employment and employment practices, terms and conditions of employment, and wages and hours, and, to the Sellers’ Knowledge, are not engaged in any unfair labor practice or unlawful employment practice. In addition, there are no material pending or unremedied grievances, or material pending or unremedied unfair labor practice charges, or material pending or unremedied arbitration proceedings against any Seller or the Chinese Joint Venture with respect to the Business.

(c) With regard to the Business Employees, the Sellers and the Chinese Joint Venture have not received written notice of any material charge or complaint since January 1, 2005 before the Equal Employment Opportunity Commission or the Department of Labor or any state, local or foreign agency of similar jurisdiction relating to the Sellers, and the Sellers and the Chinese Joint Venture have not, to the Sellers’ Knowledge, received any notice of any such material threatened charge or complaint against any Seller before the Equal Employment Opportunity Commission or the Department of Labor or any state, local or foreign agency of similar jurisdiction relating to the Sellers or the Chinese Joint Venture.

(d) With regard to the Business Employees, the Sellers and the Chinese Joint Venture have not received written notice of any material complaint or claim since January 1, 2006 from any Business Employee that has been or will be filed in any federal, state, city or foreign court of competent jurisdiction arising out of the employment with or separation of employment from the Sellers or the Chinese Joint Venture.

4.19 Taxes. Except as otherwise set forth on Schedule 4.19:

(a) All material Tax Returns with respect to the Assets or the Business that are required to be filed before the Closing Date have been or will be timely filed, the information provided on such Tax Returns is or will be complete and accurate in all material respects, and all Taxes shown to be due on such Tax Returns have been or will be paid in full, to the extent that a failure to file such Tax Returns or pay such Taxes, or an inaccuracy in such Tax Returns, as applicable, would reasonably be expected to result in Purchaser being liable for such Taxes or would reasonably be expected to give rise to a Lien on the Assets. There are no currently pending or, to the Sellers’ Knowledge, threatened, audits, administrative or judicial proceedings, or any deficiency or refund litigation, with respect to Taxes (i) that could affect the Assets or the Business after the Closing or (ii) of the Chinese Joint Venture.

(b) All material federal, state and foreign Tax Returns required to be filed by or for the Chinese Joint Venture in respect of Taxes have been timely filed. Each such Tax Return is true and correct in all material respects. All Taxes owed by or with respect to the Chinese Joint Venture have been timely paid.

(c) The Chinese Joint Venture has not granted (and is not subject to) any waiver or extension that is currently in effect of the period of limitations for the assessment or payment of any Taxes or the filing of any Tax Return. No material unpaid Tax assessment, deficiency or adjustment has been assessed or asserted in writing against or with respect to the Chinese Joint Venture by any Governmental Authority.

(d) The Chinese Joint Venture will not be required to include any amount in income for any Taxable period ending on or after the Closing Date as a result of a change in accounting method for any Taxable period ending before the Closing Date or pursuant to any agreement with any Governmental Authority with respect to any such Taxable period. The Chinese Joint Venture will not be required to include in any period ending after the Closing Date any income that accrued in a prior period but was not recognized in any prior period as a result of the installment method of accounting, the completed contract method of accounting, the long-term contract method of accounting, the cash method of accounting, or otherwise.

(e) The Chinese Joint Venture is not a party to or does not have any obligation under any tax-sharing, tax indemnity or tax allocation agreement or similar arrangement, nor does the Chinese Joint Venture have any Liability or potential Liability to another party under any such agreement or arrangement.

(f) The Chinese Joint Venture has not executed or entered into with the IRS, or any other Governmental Authority, a closing agreement pursuant to section 7121 of the Code or any similar provision of state, local, foreign or other Tax law, that will require any increase in taxable income, or any reduction in Tax deductions or Tax credits for, the Chinese Joint Venture for any Taxable period ending after the Closing Date.

(g) No Seller that is a foreign person within the meaning of section 1445(f)(3) of the Code is transferring a “United States real property interest” within the meaning of section 897(c) of the Code.

(h) The Chinese Joint Venture is, and at all times since its inception has been, classified as an association taxable as a corporation for U.S. federal income tax purposes under Treasury Regulation section 301.7701-3(b).

4.20 No Defaults or Violations.

(a) Except as set forth on Schedule 4.20, since January 1, 2006, none of the Sellers nor the Chinese Joint Venture has breached the provisions of, and none of the Sellers nor the Chinese Joint Venture is in default under the terms of or has triggered any termination rights under or obligation to deliver any collateral, credit support, advance payment or adequate assurances under, any Material Contract and, to the Sellers’ Knowledge, no other party to any such Material Contract has, since January 1, 2006, breached any material provision thereof or is in material default thereunder or has triggered any termination rights thereunder or obligation to deliver any collateral, credit support, advance payment or adequate assurances thereunder.

(b) Excluding (i) matters relating to Taxes, which are addressed in Section 4.19, (ii) environmental matters, which are addressed in Section 4.21, (iii) Intellectual Property matters, which are addressed in Section 4.13, (iv) matters relating to Permits, which are addressed in Section 4.15, and (v) employee benefits and employee matters, which are addressed in Sections 4.17 and 4.18 or the Employee Exhibits, the Sellers (in relation to the Business) and the Chinese Joint Venture are in compliance in all material respects with all Laws applicable to or binding on them or any of the Assets or the Chinese Joint Venture Assets and, since January 1, 2006, neither any Seller (in relation to the Business) nor the Chinese Joint Venture has received any written notice from a Governmental Authority that alleges that any Seller or the Chinese Joint Venture is not in compliance in all material respects with any Law applicable to the conduct of the Business.

4.21 Environmental Matters. Except as set forth on Schedule 4.21:

(a) The Sellers (in relation to the Geismar Facility, the Monochem Facility and the Business) and the Chinese Joint Venture are in compliance with all applicable Environmental Laws.

(b) Schedule 4.21(b) is a true and complete list of all Environmental Permits held by the Sellers and the Chinese Joint Venture in connection with the operation of the Business. The Sellers and the Chinese Joint Venture are in possession of all Environmental Permits required for their operation of the Business and are in compliance with all of the requirements and limitations included in such Environmental Permits.

(c) Each Seller and the Chinese Joint Venture has timely filed applications for the renewal of such Environmental Permits as may be necessary. There are no facts, circumstances or conditions that could reasonably be expected to lead to the revocation or denial of applications for the renewal of such Environmental Permits on terms less favorable than what are currently in effect. There are no pending challenges to any Environmental Permit.

(d) None of the Sellers or their respective Affiliates (in relation to the Geismar Facility, the Monochem Facility and the Business) or the Chinese Joint Venture or its Affiliates have, within five years prior to the Closing Date and other than has already been provided to the Purchaser, received any notice from any Governmental Authority claiming or asserting that (i) the operation of the Business at any location or using any of the tangible Assets by any Seller or the Chinese Joint Venture, or any of their respective Affiliates, is in violation of, or otherwise subject to any liability under any Environmental Law or Environmental Permit, or (ii) any Seller or any of its respective Affiliates (in relation to the Business) or the Chinese Joint Venture or any of its respective Affiliates is responsible (or potentially responsible) for the cleanup of any Hazardous Substances at any location.

(e) No orders, judgments or injunctions under any Environmental Law remain in force and effect and apply to the operations of, or impose any on-going liabilities or obligations on any Seller or the Chinese Joint Venture.

(f) To the Sellers’ Knowledge, no facts, events or conditions relating to the Business and tangible Assets exist that would be reasonably likely to prevent continued compliance with Environmental Laws.

(g) Neither any Seller (in relation to the operation of the Business and tangible Assets) nor the Chinese Joint Venture is the subject of any pending or threatened Proceeding in any forum, judicial or administrative, involving a demand for damages, injunctive relief, penalties or other potential liability with respect to any Environmental Violations or Environmental Claims.

(h) The Sellers and the Chinese Joint Venture have conducted off-site disposal of hazardous waste only in compliance with applicable laws. To the Sellers’ Knowledge, neither any Seller nor the Chinese Joint Venture has transported off-site for treatment, storage or disposal any Hazardous Substances from its operations that could reasonably give rise to liabilities under any Environmental Law.

(i) As provided in Schedule 4.21(i) and except for Releases authorized by Environmental Permits, the Sellers have disclosed all Releases of Hazardous Substances known or that they have reason to know on, from, or to the Geismar Facility or the Monochem Facility that either (A) exceeded the reportable quantity during the last three years or (B) are on going and are reaching the soils and/or groundwater at the Geismar Facility or the Monochem Facility.

(j) Neither any Seller nor the Chinese Joint Venture have assumed or agreed to bear any liabilities or obligations of any third party under any Environmental Law other than in connection with contractual agreements with the contractors performing the Geismar Response Actions.

(k) The Sellers have made available to the Purchaser (i) all material reports and studies regarding the extent and nature of soil and groundwater contamination resulting from Releases of Hazardous Substances from, on, at or under the Real Property and related material communications with Governmental Authorities, (ii) all material notices and communications with Governmental Authorities related to non-compliance with Environmental Laws and Environmental Permits during 2006 and (iii) the most recent corporate PSM audit report.

4.22 Conduct of the Business. Except as set forth on Schedule 4.22, Chemtura and its Affiliates conduct the Business only through the Sellers and the Chinese Joint Venture and not through any other Person or any division or direct or indirect subsidiary or Affiliate of any Seller (other than the Chinese Joint Venture).

4.23 Foreign Corrupt Practices. Since January 1, 2002, none of the Sellers nor the Chinese Joint Venture, any of their respective Affiliates, directors or officers or, to the Sellers’ Knowledge, any representative, employee or agent thereof, has, for or on behalf of the Business or in connection with this Agreement or the transactions contemplated hereby (a) made any unlawful payment to a foreign or domestic government official or employee or (b) violated in any material respect any applicable provision of the U.S. Foreign Corrupt Practices Act, as amended.

4.24 EBITDA for the EPDM Business. Based solely on information available to Chemtura as of the date hereof and assumptions believed by Chemtura to be reasonable as of the date hereof, to the Sellers’ Knowledge, there is no reason to believe that EBITDA for the EPDM Business for the 12 months ended December 31, 2007 will be less than the amount set forth on Schedule 4.24 (assuming operation of the EPDM Business in a manner generally consistent with the 2007 Budget).

4.25 Sale of Products. No product manufactured or sold by the Business during the 12-month period immediately preceding the date hereof has been the subject of any Seller-initiated or the Chinese Joint Venture-initiated or other recall, and, to the Sellers’ Knowledge, no event has occurred and no condition or circumstance exists that would reasonably be expected to give rise to any such recall. During the 12-month period immediately preceding the date hereof, there has not been any material level of product returns by customers of the Business, considered in the aggregate, in respect of products supplied by the Business.

4.26 Chinese Joint Venture. Chemtura is the owner of 90% of the equity in the Chinese Joint Venture, free and clear of all Liens.

ARTICLE 5.

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

The Purchaser represents and warrants to the Sellers as follows:

5.1 Due Incorporation. The Purchaser is a limited liability company duly organized, validly existing and in good standing under the laws of Delaware, and has all requisite limited liability company power and authority to own, operate and lease its assets and to conduct its business as presently conducted.

5.2 Due Authorization. The Purchaser has full limited liability company power and authority to execute, deliver and perform this Agreement and its Related Agreements and to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance by the Purchaser of this Agreement and its Related Agreements and the consummation by the Purchaser of the transactions contemplated hereby and thereby have been duly authorized by all necessary limited liability company action. The Purchaser has duly and validly executed and delivered this Agreement and, at or prior to the Closing, will have duly and validly executed and delivered each of its Related Agreements. Assuming the due authorization, execution and delivery of this Agreement and the Related Agreements by each Seller (as applicable), this Agreement constitutes, and each of the Related Agreements will after the Closing constitute, the Purchaser’s legal, valid and binding obligation, enforceable against it in accordance with its respective terms, subject to the Enforceability Limitations.

5.3 Consents and Approvals; Authority Relative to this Agreement.

(a) Except for the Governmental Required Consents or as set forth on Schedule 5.3, no Consent of or with any Governmental Authority is necessary in connection with the execution, delivery or performance by the Purchaser of this Agreement or any of its Related Agreements or the consummation by the Purchaser of the transactions contemplated hereby or thereby.

(b) Except for the Governmental Required Consents or as set forth on Schedule 5.3, the execution, delivery and performance by the Purchaser of this Agreement and its Related Agreements, and the consummation by the Purchaser of the transactions contemplated hereby and thereby, do not and will not: (i) violate any Law applicable to or binding on the Purchaser or any of its assets; (ii) constitute a breach or default of, or permit cancellation of, or result in the creation of any Lien upon any of the assets of the Purchaser under, or result in or constitute a circumstance which, with or without notice or lapse of time or both, would constitute any of the foregoing under, any Contract to which the Purchaser or any of its Affiliates is a party or by which the Purchaser or any of its Affiliates or any of their respective assets is bound; (iii) permit the acceleration of the maturity of any indebtedness of the Purchaser or any of its Affiliates or indebtedness secured by any of their respective assets; or (iv) violate or conflict with any provision of the limited liability company operating agreement or other organizational documents of the Purchaser.

5.4 Proceedings. There are no Proceedings pending, or, to the Purchaser’s Knowledge, threatened, by or against the Purchaser or any of its Affiliates with respect to this Agreement or the Related Agreements, or in connection with the transactions contemplated hereby or thereby.

5.5 Financing.

(a) The Purchaser has obtained (i) a term sheet from a responsible financial institution (the “Term Sheet”) setting forth certain terms and conditions of first-lien debt financing to include the making of loans to and issuance of letters of credit for the benefit of the Purchaser and (ii) a letter (the “Financeability Letter”) referring to second-lien debt financing to be arranged through the private debt markets (collectively, the “Debt Financing”), in amounts that if such Debt Financing is successfully obtained will be in the aggregate, together with the amount of the Equity Financing and available cash resources of the Purchaser, sufficient to pay the amounts to be paid by the Purchaser at the Closing under this Agreement and the fees and expenses incurred by the Purchaser in connection with the transactions contemplated hereby. The Purchaser has made available to Chemtura true and complete copies of the Term Sheet and Financeability Letter

(b) The Purchaser will, as of the Closing, have obtained up to $35 million in equity (the “Equity Financing”) from certain equity investors to fund in part the amounts to be paid at the Closing under this Agreement.

ARTICLE 6.

COVENANTS

6.1 Access to Information. From and after the date of this Agreement until the Closing Date, each Seller shall (and shall request its accountants and environmental consultants to), and Chemtura shall cause the Chinese Joint Venture (and shall request its accountants and environmental consultants) to, afford to the Purchaser and its accountants, counsel and other Representatives reasonable access, upon reasonable notice during normal business hours, to all the personnel, properties, books, contracts, commitments, Tax Returns and records of the Business that relate to the Assets (but not including Tax Returns in respect of income generated by such Assets) and during such period shall furnish to the Purchaser any information of the Business relating to (and then only to the extent relating to) the Assets which is reasonably available to the Sellers or the Chinese Joint Venture as the Purchaser may reasonably request; provided that nothing herein will obligate any Seller or the Chinese Joint Venture to (a) take any actions that would unreasonably interrupt the normal course of business of the Business (including conducting, or permitting the Purchaser to conduct, any environmental sampling or testing) or (b) violate any Law or the terms of any Contract to which any Seller or the Chinese Joint Venture or any Affiliate of any Seller is a party or to which any assets of any Seller or the Chinese Joint Venture or any Affiliate of any Seller are subject, and provided, further, that if any particular document or other item containing information to which the Purchaser has the right of access pursuant to this Section 6.1 contains both (y) information related to the Business and (z) other information, then the applicable Seller or the Chinese Joint Venture may, at its option, either (i) provide a copy of such document or item to the Purchaser subject to the Purchaser’s obligations contained herein to keep such other information confidential or (ii) redact (with reasonable promptness) such document or item and provide the Purchaser with access to such redacted form of document or item (which redacted form of document or item shall incorporate all information that the Purchaser has the right to access pursuant to this Section 6.1). Notwithstanding anything to the contrary contained in this Section 6.1, nothing in this Section 6.1 shall require any party to provide any other party with books and records or information that constitute Privileged Documents.

6.2 Preservation of Business. From the date of this Agreement until the Closing Date, except as set forth on Schedule 6.2 or as contemplated by this Agreement (including any Employee Exhibit), each Seller and the Chinese Joint Venture shall operate the Business in the manner contemplated by the 2007 Budget. Without limiting the generality of the foregoing, except as set forth on Schedule 6.2 or as contemplated by this Agreement, prior to the Closing neither the Sellers collectively in connection with the Business as it is conducted at the Geismar Facility and the Monochem Facility nor the Chinese Joint Venture shall, without the prior written consent of the Purchaser, which shall not be unreasonably withheld or delayed:

(a) sell, transfer, lease, license, convey or otherwise dispose of any Assets having a net book value, individually or in the aggregate, in excess of $25,000, except in the ordinary course of business and consistent with past practice or in connection with the matters described in Schedule 4.9(e);

(b) acquire or lease any material assets having a net book value, individually or in the aggregate, in excess of $10,000, except in the ordinary course of business and consistent with past practice;

(c) make any material changes in the accounting principles or practices of the Business, except as required by GAAP or applicable Law;

(d) other than supply arrangements in the ordinary course of business and consistent with past practice, enter into any material transaction with any Affiliate of any Seller (including another Seller);

(e) enter into, adopt, amend or terminate any material bonus, profit sharing, compensation, termination, stock option, stock appreciation right, restricted stock, performance unit, pension, retirement, deferred compensation, employment, severance or other employee benefit agreement, trust, plan or fund for the benefit or welfare of any Business Employee, or materially increase the compensation or benefits of any Business Employee, or enter into any Contract to do any of the foregoing, in each case except (i) in the ordinary course of business or to the extent undertaken in connection with the implementation of a program that impacts all similarly situated employees of Chemtura and its Affiliates, (ii) as required by Law or (iii) as required by the terms of any collective bargaining agreement;

(f) enter into any Contract that (i) obligates the Sellers or the Chinese Joint Venture to make aggregate payments in excess of $25,000 and that would be binding upon the Business or the Assets after the Closing or (ii) that has a term of, or requires the performance of any obligation by the Sellers or the Chinese Joint Venture over a period in excess of, one year and that would be binding upon the Business or the Assets after the Closing, in each case except in the ordinary course of business and consistent with past practice; provided that in no event shall any Seller or the Chinese Joint Venture enter into any hedging arrangement or other derivative transaction that would be binding upon the Business or the Assets after the Closing;

(g) (i) waive or abandon any material rights under any of the Material Contracts, (ii) repudiate any of its obligations under any Material Contract or disaffirm or challenge the validity or enforceability thereof, (iii) amend any Material Contract in a manner that would (A) adversely affect the use or enjoyment thereof by the Purchaser or the Chinese Joint Venture, (B) materially decrease the value thereof or (C) materially increase the Purchaser’s or the Chinese Joint Venture’s obligations or liabilities thereunder, (iv) terminate any Material Contract (except with respect to purchase orders in the ordinary course of business consistent with past practice) or (v) materially default in the performance of any obligation under a Material Contract;

(h) waive or abandon or otherwise dispose of any rights in or to any Registered Intellectual Property or any other material Transferred Intellectual Property;

(i) make or revoke any material election with respect to Taxes of the Chinese Joint Venture; or

(j) enter into any closing agreement or settlement agreement to settle any claim or assessment for Taxes of the Chinese Joint Venture, or surrender any right to claim a refund of Taxes or otherwise offset any Tax Liability of the Chinese Joint Venture.

6.3 Consents and Approvals.

(a) On the terms and subject to the conditions of this Agreement, each party shall use its commercially reasonable efforts to cause the Closing to occur, including taking all reasonable actions necessary to comply promptly with all legal requirements that may be imposed on it or any of its Affiliates with respect to the Closing. Each of the Sellers, on the one hand, and the Purchaser, on the other hand, shall not (and shall cause its respective Affiliates not to) take any actions that would, or that could reasonably be expected to, result in any of the conditions set forth in Article 7 or Article 8, respectively, not being satisfied. Notwithstanding anything to the contrary contained in this Agreement, nothing contained herein shall require any party to waive its rights to terminate the Agreement hereunder or any condition to its obligation to consummate the transactions contemplated hereby. For the avoidance of doubt, the Seller shall be responsible for all requirements under sections 22a-134 through 22a-134e of the Connecticut General Statutes commonly known as “the property transfer law” that may be applicable to acts, events or circumstances occurring prior to the Closing as a result of the transactions contemplated by this Agreement.

		Page
6.10	Taxes	62
6.11	Certain Restrictions	64
6.12	Purchaser’s Option	65
6.13	Naugatuck Equipment	65
6.14	Chemtura’s Option	66
6.15	Decommissioning of Wastewater Tank	66
6.16	Financial Assurance	66
6.17	Financial Statements	67
6.18	Customer Accounts Receivable	67
6.19	Customer Returns and Warranty Support Services	68
6.20	Certain Matters Regarding Financing	68
6.21	Intellectual Property Rights Actions	68
6.22	Attorney-Client Privilege	68
6.23	Filing of Assignments	68
6.24	Key Employees	69
6.25	Certain Related Agreements	69
6.26	Receivables Securitization Agreements	69
6.27	Chinese Joint Venture	69
6.28	Foreign Accounts Receivable	69
6.29	Adjustments to Pre-Signing Financial Statements	69
ARTICLE 7.	CONDITIONS PRECEDENT TO OBLIGATIONS OF THE PURCHASER	70
7.1	Representations and Warranties True	70
7.2	Compliance with Agreements and Covenants	71
7.3	Certificate of Compliance	71
7.4	HSR Act; Premerger Notification Provisions; Brazil	71
7.5	Governmental Required Consents	71
7.6	No Injunctions or Other Legal Restraints	71
7.7	Related Agreements	72
7.8	Contractual Consents	72

		Page
7.9	Debt Financing	72
7.10	The Designated Agreements	72
7.11	Termination of Contracts	72
7.12	Business Material Adverse Effect	72
7.13	Certificate of Non-Foreign Status	72
7.14	Resolution of Matters Related to the UBOB Operations	72
7.15	Asbestos Abatement	72
7.16	Title Commitments	72
7.17	Surveys	73
7.18	Estimated Working Capital Amount	73
7.19	Effect on EBITDA of the Business	73
7.20	Permits	73
7.21	Chinese Joint Venture	73
7.22	Intellectual Property Rights Actions	73
7.23	Replacement Capital Analysis	73
ARTICLE 8.	CONDITIONS PRECEDENT TO OBLIGATIONS OF THE SELLERS	73
8.1	Representations and Warranties True	74
8.2	Compliance with Agreements and Covenants	74
8.3	Certificate of Compliance	74
8.4	HSR Act; Premerger Notification Provisions; Brazil	74
8.5	No Injunctions or Other Legal Restraints	74
8.6	Related Agreements	74
8.7	Consents	74
ARTICLE 9.	CLOSING	74
9.1	Closing	74
9.2	Deliveries by the Sellers	75
9.3	Deliveries by the Purchaser	76
ARTICLE 10.	TERMINATION	77
10.1	Termination	77

		Page
10.2	Effect of Termination	78
ARTICLE 11.	EMPLOYEES AND EMPLOYEE BENEFITS	78
11.1	Offers of Employment	78
11.2	Vesting and Service Credit	79
11.3	Non-U.S. Employees	79
11.4	Severance Costs	79
11.5	Retention Payments	80
11.6	No Third Party Beneficiaries	80
11.7	UK Employees and Other Non-U.S. Employee Matters	81
ARTICLE 12.	INDEMNIFICATION	82
12.1	Survival	82
12.2	Indemnification by the Sellers	82
12.3	Indemnification by the Purchaser	83
12.4	Limitations on Liability	84
12.5	Claims	85
12.6	Notice of Third Party Claims; Assumption of Defense	85
12.7	Settlement or Compromise	86
12.8	Mitigation; Net Losses; Subrogation	86
12.9	Environmental Indemnification	87
12.10	Purchase Price Adjustments	89
ARTICLE 13.	MISCELLANEOUS	89
13.1	Expenses	89
13.2	Amendment	89
13.3	Notices	89
13.4	Payments in Dollars	90
13.5	Waivers	90
13.6	Binding Effect; Assignment	90
13.7	No Third Party Beneficiaries	92
13.8	Publicity	92
13.9	Further Assurances	92

		Page
13.10	Severability	92
13.11	Entire Understanding	92
13.12	Language	93
13.13	Applicable Law	93
13.14	Remittances	93
13.15	Bulk Sales	93
13.16	Jurisdiction of Disputes; Waiver of Jury Trial	93
13.17	Schedules; Communication	94
13.18	Disclaimer of Warranties	94
13.19	Counterparts	95


	LION COPOLYMER, LLC

	By:
	Its:

	By:
		Name:
		Title:


	CHEMTURA CORPORATION

	By:
		Name:
		Title:


	CHEMTURA CANADA CO./CIE

	By:
		Name:
		Title:


	CHEMTURA INDUSTRIA QUIMICA DO BRASIL LIMITADA

	By:
		Name:
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	By:
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4.13	Intellectual Property	40
4.14	Contracts	42
4.15	Permits	44
4.16	Inventory	44
4.17	Benefit Plans	45
4.18	Employment and Labor Matters	46
4.19	Taxes	47
4.20	No Defaults or Violations	48
4.21	Environmental Matters	49
4.22	Conduct of the Business	50
4.23	Foreign Corrupt Practices	50
4.24	EBITDA for the EPDM Business	50
4.25	Sale of Products	51
4.26	Chinese Joint Venture	51
ARTICLE 5.	REPRESENTATIONS AND WARRANTIES OF THE PURCHASER	51
5.1	Due Incorporation	51
5.2	Due Authorization	51
5.3	Consents and Approvals; Authority Relative to this Agreement	51
5.4	Proceedings	52
5.5	Financing	52
ARTICLE 6.	COVENANTS	52
6.1	Access to Information	52
6.2	Preservation of Business	53
6.3	Consents and Approvals	54
6.4	Chemtura Names	56
6.5	Brokers	58
6.6	Preservation of Books and Records; Access and Assistance	58
6.7	Insurance	59
6.8	Confidentiality	59
6.9	Guarantees; Credit Support	61


	CHEMTURA ITALY S.R.L

	By:
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	CHEMTURA CORPORATION, S.A. DE C.V.

	By:
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	By:
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	CHEMTURA NETHERLANDS B.V.

	By:
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	By:
		Name:
		Title:


	MONOCHEM, INC.

	By:
		Name:
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