CABOT CORP — Director's Dealing 2007

Jan 3, 2007

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: CABOT CORP (CBT)
CIK: 0000016040
Period of Report: 2006-12-29

Reporting Person: MCCANCE HENRY F (Director)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2006-12-29	Phantom Stock Units	$	A	258.2052	Acquired	1988-08-08	Common Stock (258.2052)	Direct

Footnotes

F1: 1 for 1

F2: Immediately exercisable

F3: The shares of phantom stock become payable in sixty monthly installments upon the reporting person's termination of service as a director.

F4: On November 10, 2006, Cabot's Board of Directors declared a dividend of $.18 per share on Cabot common stock, payable on December 8, 2006 to all holders of record of common stock on November 24, 2006. Mr. McCance received a dividend on his phantom stock units totalling $164.17, which was immediately reinvested in phantom stock units at a price of $42.22 per share. As a result, 3.8884 phantom stock units were allocated to Mr. McCance on December 8, 2006.