EXHIBIT 10.3



Execution Copy



$20,000,000



TERM LOAN AGREEMENT



among



STYROCHEM
FINLAND OY

as Borrower,



The Several Lenders

from Time to
Time Parties Hereto,



and



GUGGENHEIM CORPORATE FUNDING, LLC,

as Administrative Agent



Dated as of June 30, 2005



---

TABLE OF CONTENTS



|                                                    |  |                                                           |  |     
|--------------------------------------------------- |  | --------------------------------------------------------- |  | ----
|                                                    |  |                                                           |  | Page
|ARTICLE I -        DEFINITIONS                      |  | 1                                                        
|                                                    |  |                                                          
|1.1                                                 |  | Defined Terms                                             |  | 1   
|                                                    |  |                                                          
|1.2                                                 |  | Other Definitional Provisions                             |  | 15  
|                                                    | 
|ARTICLE II -       AMOUNT AND TERMS OF COMMITMENTS  |  | 16                                                       
|                                                    |  |                                                          
|2.1                                                 |  | Term Loan Commitments                                     |  | 16  
|                                                    |  |                                                          
|2.2                                                 |  | Procedure for Term Loan Borrowing                         |  | 16  
|                                                    |  |                                                          
|2.3                                                 |  | Repayment of Term Loans; Evidence of Debt                 |  | 16  
|                                                    |  |                                                          
|2.4                                                 |  | Fees                                                      |  | 17  
|                                                    |  |                                                          
|2.5                                                 |  | Optional Prepayments                                      |  | 18  
|                                                    |  |                                                          
|2.6                                                 |  | Mandatory Prepayments                                     |  | 18  
|                                                    |  |                                                          
|2.7                                                 |  | Interest Rates and Payment Dates                          |  | 19  
|                                                    |  |                                                          
|2.8                                                 |  | Computation of Interest and Fees                          |  | 20  
|                                                    |  |                                                          
|2.9                                                 |  | Inability to Determine Interest Rate.                     |  | 20  
|                                                    |  |                                                          
|2.10                                                |  | Pro Rata Treatment and Payments                           |  | 21  
|                                                    |  |                                                          
|2.11                                                |  | Requirements of Law                                       |  | 21  
|                                                    |  |                                                          
|2.12                                                |  | Taxes                                                     |  | 22  
|                                                    |  |                                                          
|2.13                                                |  | Indemnity                                                 |  | 23  
|                                                    |  |                                                          
|2.14                                                |  | Illegality                                                |  | 24  
|                                                    |  |                                                          
|2.15                                                |  | Change of Lending Office                                  |  | 24  
|                                                    |  |                                                          
|2.16                                                |  | Conversion and Continuation Options                       |  | 24  
|                                                    |  |                                                          
|2.17                                                |  | Minimum Amounts and Maximum Number of Eurodollar Tranches |  | 25  
|                                                    | 
|ARTICLE III -        REPRESENTATIONS AND WARRANTIES |  | 25                                                       
|                                                    |  |                                                          
|3.1                                                 |  | Financial Condition                                       |  | 25  
|                                                    |  |                                                          
|3.2                                                 |  | No Change                                                 |  | 26  
|                                                    |  |                                                          
|3.3                                                 |  | Corporate Existence; Compliance with Law                  |  | 26  
|                                                    |  |                                                          
|3.4                                                 |  | Corporate Power; Authorization; Enforceable Obligations   |  | 26  
|                                                    |  |                                                          
|3.5                                                 |  | No Legal Bar                                              |  | 26  
|                                                    |  |                                                          
|3.6                                                 |  | No Material Litigation                                    |  | 27  
|                                                    |  |                                                          
|3.7                                                 |  | No Default                                                |  | 27  
|                                                    |  |                                                          
|3.8                                                 |  | Ownership of Property; Liens                              |  | 27  
|                                                    |  |                                                          
|3.9                                                 |  | Intellectual Property                                     |  | 27  
|                                                    |  |                                                          
|3.10                                                |  | Taxes                                                     |  | 27  



---

TABLE OF CONTENTS

(continued)



|                                          |  |                                                        |  |     
|----------------------------------------- |  | ------------------------------------------------------ |  | ----
|                                          |  |                                                        |  | Page
|3.11                                      |  | [Intentionally Deleted.]                               |  | 27  
|                                          |  |                                                       
|3.12                                      |  | Labor Matters                                          |  | 27  
|                                          |  |                                                       
|3.13                                      |  | [Intentionally Deleted.]                               |  | 28  
|                                          |  |                                                       
|3.14                                      |  | [Intentionally Deleted.]                               |  | 28  
|                                          |  |                                                       
|3.15                                      |  | Subsidiaries                                           |  | 28  
|                                          |  |                                                       
|3.16                                      |  | Use of Proceeds                                        |  | 28  
|                                          |  |                                                       
|3.17                                      |  | Environmental Matters                                  |  | 28  
|                                          |  |                                                       
|3.18                                      |  | Accuracy of Information, etc                           |  | 29  
|                                          |  |                                                       
|3.19                                      |  | Security Documents                                     |  | 29  
|                                          |  |                                                       
|3.20                                      |  | Solvency                                               |  | 30  
|                                          |  |                                                       
|3.21                                      |  | Equity Loan Agreement                                  |  | 30  
|                                          | 
|ARTICLE IV -        CONDITIONS PRECEDENT  |  | 30                                                    
|                                          |  |                                                       
|4.1                                       |  | Conditions to the Term Loan                            |  | 30  
|                                          | 
|ARTICLE V -         AFFIRMATIVE COVENANTS |  | 33                                                    
|                                          |  |                                                       
|5.1                                       |  | Financial Statements                                   |  | 33  
|                                          |  |                                                       
|5.2                                       |  | Certificates; Other Information                        |  | 33  
|                                          |  |                                                       
|5.3                                       |  | Payment of Obligations                                 |  | 35  
|                                          |  |                                                       
|5.4                                       |  | Conduct of Business and Maintenance of Existence, etc  |  | 35  
|                                          |  |                                                       
|5.5                                       |  | Maintenance of Property; Insurance                     |  | 35  
|                                          |  |                                                       
|5.6                                       |  | Inspection of Property; Books and Records; Discussions |  | 35  
|                                          |  |                                                       
|5.7                                       |  | Notices                                                |  | 35  
|                                          |  |                                                       
|5.8                                       |  | Environmental Laws, etc                                |  | 36  
|                                          |  |                                                       
|5.9                                       |  | Additional Collateral, etc                             |  | 36  
|                                          |  |                                                       
|5.10                                      |  | Further Assurances                                     |  | 37  
|                                          |  |                                                       
|5.11                                      |  | Hedging Agreements                                     |  | 37  
|                                          |  |                                                       
|5.12                                      |  | Senior Credit Agreement                                |  | 38  
|                                          | 
|ARTICLE VI -        NEGATIVE COVENANTS    |  | 38                                                    
|                                          |  |                                                       
|6.1                                       |  | Financial Condition Covenants                          |  | 38  
|                                          |  |                                                       
|6.2                                       |  | Limitation on Indebtedness                             |  | 39  
|                                          |  |                                                       
|6.3                                       |  | Limitation on Liens                                    |  | 40  
|                                          |  |                                                       
|6.4                                       |  | Limitation on Fundamental Changes                      |  | 40  



ii



---

TABLE OF CONTENTS

(continued)



|                                              |  |                                                                                      |  |     
|--------------------------------------------- |  | ------------------------------------------------------------------------------------ |  | ----
|                                              |  |                                                                                      |  | Page
|6.5                                           |  | Limitation on Disposition of Property                                                |  | 41  
|                                              |  |                                                                                     
|6.6                                           |  | Limitation on Restricted Payments                                                    |  | 41  
|                                              |  |                                                                                     
|6.7                                           |  | Limitation on Capital Expenditures                                                   |  | 41  
|                                              |  |                                                                                     
|6.8                                           |  | Limitation on Investments                                                            |  | 42  
|                                              |  |                                                                                     
|6.9                                           |  | Limitation on Payments of Debt Instruments, Modifications of Certain Agreements, etc |  | 42  
|                                              |  |                                                                                     
|6.10                                          |  | Limitation on Transactions with Affiliates                                           |  | 43  
|                                              |  |                                                                                     
|6.11                                          |  | Limitation on Sales and Leasebacks                                                   |  | 43  
|                                              |  |                                                                                     
|6.12                                          |  | Limitation on Changes in Fiscal Periods                                              |  | 43  
|                                              |  |                                                                                     
|6.13                                          |  | Limitation on Negative Pledge Clauses                                                |  | 43  
|                                              |  |                                                                                     
|6.14                                          |  | Limitation on Restrictions on Subsidiary Distributions                               |  | 44  
|                                              |  |                                                                                     
|6.15                                          |  | Limitation on Lines of Business                                                      |  | 44  
|                                              |  |                                                                                     
|6.16                                          |  | Limitation on Hedge Agreements                                                       |  | 44  
|                                              | 
|ARTICLE VII -        EVENTS OF DEFAULT        |  | 44                                                                                  
|                                              | 
|ARTICLE VIII -       THE ADMINISTRATIVE AGENT |  | 46                                                                                  
|                                              |  |                                                                                     
|8.1                                           |  | Appointment                                                                          |  | 46  
|                                              |  |                                                                                     
|8.2                                           |  | Delegation of Duties                                                                 |  | 46  
|                                              |  |                                                                                     
|8.3                                           |  | Exculpatory Provisions                                                               |  | 46  
|                                              |  |                                                                                     
|8.4                                           |  | Reliance by Administrative Agent                                                     |  | 47  
|                                              |  |                                                                                     
|8.5                                           |  | Notice of Default                                                                    |  | 47  
|                                              |  |                                                                                     
|8.6                                           |  | Non-Reliance on Administrative Agent and Other Lenders                               |  | 47  
|                                              |  |                                                                                     
|8.7                                           |  | Indemnification                                                                      |  | 48  
|                                              |  |                                                                                     
|8.8                                           |  | Administrative Agent in Its Individual Capacity                                      |  | 48  
|                                              |  |                                                                                     
|8.9                                           |  | Successor Administrative Agent                                                       |  | 49  
|                                              |  |                                                                                     
|8.10                                          |  | Authorization to Release Liens and Guarantees                                        |  | 49  
|                                              | 
|ARTICLE IX -        MISCELLANEOUS             |  | 49                                                                                  
|                                              |  |                                                                                     
|9.1                                           |  | Amendments and Waivers                                                               |  | 49  
|                                              |  |                                                                                     
|9.2                                           |  | Notices                                                                              |  | 50  
|                                              |  |                                                                                     
|9.3                                           |  | No Waiver; Cumulative Remedies                                                       |  | 51  
|                                              |  |                                                                                     
|9.4                                           |  | Survival of Representations and Warranties                                           |  | 51  
|                                              |  |                                                                                     
|9.5                                           |  | Payment of Expenses                                                                  |  | 51  



iii



---

TABLE OF CONTENTS

(continued)



|     |  |                                                        |  |     
|---- |  | ------------------------------------------------------ |  | ----
|     |  |                                                        |  | Page
|9.6  |  | Successors and Assigns; Participations and Assignments |  | 53  
|     |  |                                                       
|9.7  |  | Adjustments; Set-off                                   |  | 55  
|     |  |                                                       
|9.8  |  | Counterparts                                           |  | 56  
|     |  |                                                       
|9.9  |  | Severability                                           |  | 56  
|     |  |                                                       
|9.10 |  | Integration                                            |  | 56  
|     |  |                                                       
|9.11 |  | GOVERNING LAW                                          |  | 56  
|     |  |                                                       
|9.12 |  | Submission To Jurisdiction; Waivers                    |  | 56  
|     |  |                                                       
|9.13 |  | Acknowledgments                                        |  | 57  
|     |  |                                                       
|9.14 |  | Confidentiality                                        |  | 57  
|     |  |                                                       
|9.15 |  | Accounting Changes                                     |  | 58  
|     |  |                                                       
|9.16 |  | WAIVERS OF JURY TRIAL                                  |  | 58  



iv



---

SCHEDULES:



|       |  |                                              
|------ |  | ---------------------------------------------
|1.2    |  | Term Loan Commitments                        
|3.4    |  | Consents, Authorizations, Filings and Notices
|3.15   |  | Subsidiaries                                 
|3.17   |  | Environmental Matters                        
|6.2(e) |  | Existing Indebtedness                        
|6.3(f) |  | Existing Liens                               
|9.6(c) |  | Restricted Holders                           



EXHIBITS:



|    |  |                                            
|--- |  | -------------------------------------------
|A   |  | Form of Guarantee Agreement                
|B   |  | Form of Compliance Certificate             
|C   |  | Form of Closing Certificate                
|D   |  | [Intentionally Deleted]                    
|E   |  | Form of Assignment and Acceptance          
|F-1 |  | Form of Legal Opinion of Borrowers Counsel
|F-2 |  | Form of Legal Opinion of Holdings Counsel 
|G   |  | Form of Term Loan Note                     
|H   |  | Form of Borrowing Notice                   
|I   |  | Form of Intercreditor Agreement            
|J   |  | Form of Pledge Agreement                   
|K   |  | Form of Security Agreement                 



v



---

TERM LOAN AGREEMENT, dated as of June 30, 2005, among StyroChem Finland Oy, a limited liability company
organized under the laws of Finland with Business ID 1094747-6 (the Borrower), the other Loan Parties party hereto, the several banks and other financial institutions or entities from time to time parties to this Agreement (the
Lenders), and Guggenheim Corporate Funding, LLC, as administrative agent (in such capacity, the Administrative Agent).



W I T N E S S E T H:



WHEREAS, the Borrower is party to a Secured Overdraft Facility Agreement dated as of March 20, 2002 (as amended on June 30, 2005 and as may be further
amended, modified or supplemented from time to time to the extent permitted herein, the Senior Credit Agreement) with Nordea Bank Finland Plc (together with its successors and permitted assigns, the Senior
Lender);



WHEREAS, the Borrower has requested that
the Lenders make available a term loan facility in the aggregate principal amount of $20,000,000 for the purposes of (i) refinancing the Intercompany Loan (as defined below), (ii) repaying certain outstanding indebtedness of the Borrower under local
currency borrowings and the existing working capital facility and (iii) for other general corporate purposes;



WHEREAS, the Lenders are willing to make such term loan facility available to the Borrower upon and subject to the terms and conditions hereinafter set
forth;



NOW, THEREFORE, in consideration of the premises and
the agreements hereinafter set forth, the parties hereto hereby agree as follows:



ARTICLE I - DEFINITIONS



1.1
Defined Terms. As used in this Agreement, the terms listed in this Section 1.1 shall have the respective meanings set forth in this Section 1.1.



Adjustment Date: as defined in the Pricing Grid.



Administrative Agent: as defined in the preamble hereto.



Affiliate: as to any Person, any other Person that,
directly or indirectly, is in control of, is controlled by, or is under common control with, such Person. For purposes of this definition, control of a Person means the power, directly or indirectly, either to (a) vote 10% or more of the
securities having ordinary voting power for the election of directors (or persons performing similar functions) of such Person or (b) direct or cause the direction of the management and policies of such Person, whether by contract or otherwise.



Agreement: this Term Loan Agreement, as
amended, supplemented or otherwise modified from time to time.



Alternative Currency: any lawful currency other than Dollars that is freely transferable into Dollars.



---

Applicable Margin: initially, a rate per annum equal to (a) with respect to Eurodollar
Loans, 6.50% and (b) with respect to Base Rate Loans, 3.75%; provided that, on and after the first Adjustment Date, the Applicable Margins with respect to all Loans will be determined pursuant to the Pricing Grid.



Asset Sale: any Disposition of Property or series of
related Dispositions of property (excluding any such Disposition permitted by clause (a), (b), (c) or (d) of Section 6.5).



Assignee: as defined in Section 9.6(c).



Assignment and Acceptance: as defined in Section 9.6(c).



Assignor: as defined in Section 9.6(c).



Base Rate: for any day, a rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to
the greatest of (a) the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day plus 1/2of 1%. For purposes hereof: Prime Rate shall mean the prime rate of interest specified under the Bloomberg reference identified as PRIMBB Index on the date that is the first day of such period (or such
other comparable page as may, in the opinion of the Administrative Agent, replace such page for the purpose of displaying such rate), as in effect from time to time. Any change in the Base Rate due to a change in the Prime Rate actually available or
the Federal Funds Effective Rate shall be effective as of the opening of business on the effective day of such change in the Prime Rate or the Federal Funds Effective Rate, respectively. The Prime Rate is a reference rate and does not necessarily
represent the lowest or best rate actually available.



Base Rate Loans: Loans for which the applicable rate of interest is based upon the Base Rate.



Benefited Lender: as defined in Section 9.7.



Board: the Board of Governors of the Federal Reserve System of the United States (or any successor).



Borrowing Notice: with respect to any request for
borrowing of Loans hereunder, a notice from the Borrower, substantially in the form of, and containing the information prescribed by, Exhibit H, delivered to the Administrative Agent.



Borrower: as defined in the preamble hereto.



Business Day: a day other than a Saturday, Sunday or other
day on which commercial banks in New York City are authorized or required by law to close.



Capital Expenditures: for any period, with respect to any Person, the aggregate of all expenditures by such Person for the acquisition or leasing (pursuant to a capital lease) of fixed or capital
assets or additions to equipment (including replacements, capitalized repairs and improvements during such period) which are required to be capitalized under GAAP on a balance sheet of such Person.



2



---

Capital Lease Obligations: with respect to any Person, the obligations of such Person
to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a balance
sheet of such Person under GAAP; and, for the purposes of this Agreement, the amount of such obligations at any time shall be the capitalized amount thereof at such time determined in accordance with GAAP.



Capital Stock: any and all shares, interests,
participations or other equivalents (however designated) of capital stock of a corporation, any and all equivalent ownership interests in a Person (other than a corporation) and any and all warrants, rights or options to purchase any of the
foregoing.



Cash Equivalents: (a) marketable
direct obligations issued by, or unconditionally guaranteed by, (i) the United States government or issued by any agency thereof and backed by the full faith and credit of the United States, or (ii) any agency or instrumentality of Finland and
backed by the full faith of Finland, in each case maturing within one year from the date of acquisition; (b) certificates of deposit, time deposits, eurodollar time deposits or overnight bank deposits having maturities of six months or less from the
date of acquisition issued by any Lender or by any commercial bank (i) organized under the laws of the United States of America or any state thereof having combined capital and surplus of not less than $500,000,000 or (ii) organized under the laws
of Finland or another member state of the European Economic Area and having a rating of at least A-1 by S&P or P-1 by Moodys; (c) commercial paper of an issuer rated at least (i) A-2 by S&P or P-2 by
Moodys, or carrying an equivalent rating by a nationally recognized rating agency, if both of the two named rating agencies cease publishing ratings of commercial paper issuers generally or (ii) having a rating comparable to A-2 or P-2 from a
Finnish rating agency operating within the European Economic Area, and in each case maturing within six months from the date of acquisition; (d) repurchase obligations of any Lender or of any commercial bank satisfying the requirements of clause (b)
of this definition, having a term of not more than 30 days with respect to securities issued or fully guaranteed or insured by the United States or Finnish governments; (e) securities with maturities of one year or less from the date of acquisition
issued or fully guaranteed by the Finnish government, any state, commonwealth or territory of the United States, by any political subdivision or taxing authority of any such state, commonwealth or territory or by any foreign government, the
securities of which state, commonwealth, territory, political subdivision, taxing authority or foreign government (as the case may be) are rated (i) at least A by S&P or A by Moodys or (ii) a rating comparable to A from a Finnish or other
applicable rating agency; (f) securities with maturities of six months or less from the date of acquisition backed by standby letters of credit issued by any Lender or any commercial bank satisfying the requirements of clause (b) of this definition;
and (g) shares of money market mutual or similar funds which invest exclusively in assets satisfying the requirements of clauses (a) through (f) of this definition.



Change of Control: (a) the Permitted Investors shall cease to own beneficially and of record 51% of the
outstanding common stock of Holdings, or (b) Holdings shall cease to own beneficially and of record (directly or indirectly through one or more Subsidiaries) and control, directly or indirectly, 100% of each class of outstanding Capital Stock of the
Borrower.



3



---

Closing Date: the date on which the conditions precedent set forth in Section 4.1
shall have been satisfied.



Closing Date
Projections: as defined in Section 4.1(g).



Code: the United States Internal Revenue Code of 1986, as amended from time to time.



Collateral: all Property of the Loan Parties (other than Holdings), now owned or hereafter acquired, upon which a Lien is purported to
be created by any Security Document.



Compliance
Certificate: a certificate duly executed by a Responsible Officer, substantially in the form of Exhibit B.



Consolidated EBITDA: of any Person for any period, Consolidated Net Income of such Person and its Subsidiaries for such period
plus, without duplication and to the extent reflected as a charge in the statement of such Consolidated Net Income for such period, the sum of (a) income tax expense, (b) Consolidated Interest Expense (including accrued interest) of such
Person and its Subsidiaries, amortization or writeoff of debt discount and debt issuance costs and commissions, discounts and other fees and charges associated with Indebtedness, (c) depreciation and amortization expense, (d) amortization of
intangibles (including, but not limited to, goodwill) and organization costs, (e) any extraordinary, unusual or non-recurring expenses or losses (including, whether or not otherwise includable as a separate item in the statement of such Consolidated
Net Income for such period, losses on sales of assets outside of the ordinary course of business), (f) any other non-cash charges and (g) management fees payable by Borrower to Radnor Management pursuant to the Management Agreement, and
minus, to the extent included in the statement of such Consolidated Net Income for such period, the sum of (a) interest income (except to the extent deducted in determining Consolidated Interest Expense), (b) any extraordinary, unusual or
non-recurring income or gains (including, whether or not otherwise includable as a separate item in the statement of such Consolidated Net Income for such period, gains on the sales of assets) and (c) any other non-cash income, all as determined on
a consolidated basis; provided, that for purposes of calculating Consolidated EBITDA of the Borrower and its Subsidiaries for any period, (i) the Consolidated EBITDA of any Person acquired by the Borrower or its Subsidiaries during such
period shall be included on a pro forma basis for such period (assuming the consummation of such acquisition and the incurrence or assumption of any Indebtedness in connection therewith occurred on the first day of such period) if the consolidated
balance sheet of such acquired Person and its consolidated Subsidiaries as at the end of the period preceding the acquisition of such Person and the related consolidated statements of income and stockholders equity and of cash flows for the
period in respect of which Consolidated EBITDA is to be calculated (x) have been previously provided to the Administrative Agent and the Lenders and (y) either (1) have been reported on without a qualification arising out of the scope of the audit
by independent certified public accountants of nationally recognized standing or (2) have been found acceptable by the Administrative Agent and (ii) the Consolidated EBITDA of any Person Disposed of by the Borrower or its Subsidiaries during such
period shall be excluded for such period (assuming the consummation of such Disposition and the repayment of any Indebtedness in connection therewith occurred on the first day of such period).



4



---

Consolidated Interest Expense: of any Person for any period, total cash interest
expense (including that attributable to Capital Lease Obligations) of such Person and its Subsidiaries for such period with respect to all outstanding Indebtedness of such Person and its Subsidiaries (including, without limitation, all commissions,
discounts and other fees and charges owed by such Person with respect to letters of credit and bankers acceptance financing and net costs of such Person under Hedge Agreements in respect of interest rates to the extent such net costs are
allocable to such period in accordance with GAAP).



Consolidated Fixed Charges: for any period, the Consolidated Interest Expense of the Borrower and its Subsidiaries for such period.



Consolidated Fixed Charge Coverage Ratio: for any period, the ratio of (a) Consolidated EBITDA of the Borrower and its Subsidiaries
for such period minus the aggregate amount actually paid by the Borrower and its Subsidiaries in cash during such period on account of Capital Expenditures to (b) Consolidated Fixed Charges for such period.



Consolidated Leverage Ratio: as of any date, the ratio of
(a) Consolidated Total Debt on such date to (b) Consolidated EBITDA of the Borrower and its Subsidiaries for the last 12 fiscal month period ending on or before such date.



Consolidated Net Income: of any Person for any period, the consolidated net income (or loss) of such
Person and its Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP; provided, that in calculating Consolidated Net Income of the Borrower and its consolidated Subsidiaries for any period, there shall be
excluded (a) the income (or deficit) of any Person accrued prior to the date it becomes a Subsidiary of the Borrower or is merged into or consolidated with the Borrower or any of its Subsidiaries, (b) the income (or deficit) of any Person (other
than a Subsidiary of the Borrower) in which the Borrower or any of its Subsidiaries has an ownership interest, except to the extent that any such income is actually received by the Borrower or such Subsidiary in the form of dividends or similar
distributions and (c) the undistributed earnings of any Subsidiary of the Borrower to the extent that the declaration or payment of dividends or similar distributions by such Subsidiary is not at the time permitted by the terms of any Contractual
Obligation (other than under any Loan Document) or Requirement of Law applicable to such Subsidiary.



Consolidated Total Debt: at any date, the aggregate principal amount of all Indebtedness of the Borrower and its Subsidiaries at such
date, determined on a consolidated basis in accordance with GAAP; provided that Consolidated Total Debt shall not include revolver borrowings under the Senior Credit Agreement to the extent that the Borrower maintains cash balances in excess of the
amount drawn under the Senior Credit Agreement from time to time.



Contractual Obligation: as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its Property is
bound.



Control Investment Affiliate: as to
any Person, any other Person that (a) directly or indirectly, is in control of, is controlled by, or is under common control with, such



5



---

Person and (b) is organized by such Person primarily for the purpose of making equity or debt investments in one or more
companies. For purposes of this definition, control of a Person means the power, directly or indirectly, to direct or cause the direction of the management and policies of such Person, whether by contract or otherwise.



Default: any of the events specified in Article 7, whether
or not any requirement for the giving of notice, the lapse of time, or both, has been satisfied.



Derivative Agreement: the Master Customer Contract for Derivative Transactions Agreement, as amended, modified or supplemented from
time to time to the extent permitted herein to be entered into between the Borrower and the Senior Lender.



Derivatives Counterparty: as defined in Section 6.6.



Disposition: with respect to any Property, any sale, lease, sale and leaseback, assignment, conveyance,
transfer or other disposition thereof; and the terms Dispose and Disposed of shall have correlative meanings.



Dollar Equivalent: of any amount means, at the time of determination thereof, (a) if such amount is expressed in an Alternative
Currency, the equivalent of such amount in Dollars determined by using the rate of exchange quoted by Citibank in New York, New York at 11:00 a.m. (New York City time) on the date of determination (or, if such date is not a Business Day, the last
Business Day prior thereto) to prime banks in New York for the spot purchase in the New York foreign exchange market of such amount of Dollars with such Alternative Currency and (b) if such amount is denominated in any other currency, the equivalent
of such amount in Dollars as determined by the Administrative Agent using any method of determination it deems reasonably appropriate.



Dollars and $: lawful currency of the United States of America.



Eligible Assignee: (a) a Lender or an Affiliate, Related
Fund or Control Investment Affiliate of any Lender, (b) a commercial bank, (c) a finance company, insurance company, financial institution or fund, in each case regularly engaged in making, purchasing, holding or otherwise investing in loans and
similar extensions of credit, or (d) a savings and loan association or savings bank organized under the laws of the United States or any State thereof.



Environmental Laws: any and all laws, rules, orders, regulations, statutes, ordinances, guidelines, codes, decrees, or other legally
enforceable requirements (including, without limitation, common law) of any international authority, foreign government, the United States, or any state, local, municipal or other governmental authority, regulating, relating to or imposing liability
or standards of conduct concerning protection of the environment or of human health, or employee health and safety, as has been, is now, or may at any time hereafter be, in effect.



Equity Loan Agreement: the Loan Agreement dated as of December 28, 2001 between the Borrower and Radnor
Chemical in the aggregate principal amount of 8,000,000.



6



---

Environmental Permits: any and all permits, licenses, approvals, registrations,
notifications, exemptions and other authorizations required under any Environmental Law.



Euro and : the single currency of the European Union.



Eurocurrency Reserve Requirements: for any day, the aggregate (without duplication) of the maximum rates (expressed as a decimal
fraction) of reserve requirements in effect on such day (including, without limitation, basic, supplemental, marginal and emergency reserves) under any regulations of the Board or other Governmental Authority having jurisdiction with respect thereto
dealing with reserve requirements prescribed for eurocurrency funding (currently referred to as Eurocurrency Liabilities in Regulation D of the Board) maintained by a member bank of the Federal Reserve System.



Eurodollar Base Rate: with respect to each day during each
Interest Period, the rate per annum determined on the basis of the rate for deposits in Dollars for a period equal to such Interest Period commencing on the first day of such Interest Period appearing on Page 3750 of the Telerate screen as of 11:00
A.M., London time, two Business Days prior to the beginning of such Interest Period. In the event that such rate does not appear on Page 3750 of the Telerate screen (or otherwise on such screen), the Eurodollar Base Rate for
purposes of this definition shall be determined by reference to such other comparable publicly available service for displaying eurodollar rates as may be selected by the Administrative Agent.



Eurodollar Loans: Loans for which the applicable rate of
interest is based upon the Eurodollar Rate.



Eurodollar Rate: with respect to each day during each Interest Period, a rate per annum determined for such day in accordance with the following formula (rounded upward to the nearest 1/100th of 1%):



Eurodollar Base Rate

1.00 - Eurocurrency Reserve Requirements



Eurodollar Tranche: the collective reference to Eurodollar Loans the then current Interest Periods with respect to all of which begin
on the same date and end on the same later date (whether or not such Loans shall originally have been made on the same day).



Event of Default: any of the events specified in Article 7, provided that any requirement for the giving of notice, the lapse of
time, or both, has been satisfied.



Excess Cash
Flow: for any fiscal year of the Borrower, the difference, if any, of (a) the sum, without duplication, of (i) Consolidated Net Income for such fiscal year, (ii) the amount of all non-cash charges (including depreciation, amortization and
deferred taxes) deducted in arriving at such Consolidated Net Income, (iii) the amount of the decrease, if any, in working capital for such fiscal year and (iv) the aggregate net amount of non-cash loss on the Disposition of Property by the Borrower
and its Subsidiaries during such fiscal year (other than sales of inventory in the ordinary course of business), to the extent deducted in arriving at such Consolidated Net Income minus (b) the sum, without duplication, of (i) the amount of
all non-cash credits included in arriving at such Consolidated Net Income, including deferred tax credits,



7



---

(ii) the aggregate amount actually paid by the Borrower and its Subsidiaries in cash during such fiscal year on account
of Capital Expenditures (minus the principal amount of Indebtedness incurred in connection with such expenditures), (iii) the aggregate amount of all optional prepayments of the Term Loans during such fiscal year, (iv) the aggregate amount of
all regularly scheduled principal payments of Indebtedness permitted hereunder (including, without limitation, the Term Loans) of the Borrower and its Subsidiaries made during such fiscal year (other than in respect of any revolving credit facility
to the extent there is not an equivalent permanent reduction in commitments thereunder), (v) the aggregate net amount of non-cash gain on the Disposition of Property by the Borrower and its Subsidiaries during such fiscal year (other than sales of
inventory in the ordinary course of business), to the extent included in arriving at such Consolidated Net Income, (vii) the net decrease during such fiscal year (if any) in deferred tax accounts of the Borrower and (viii) the amount of the
increase, if any, in working capital for such fiscal year.



Excess Cash Flow Application Date: as defined in Section 2.6(c).



Existing Credit Agreements: collectively (i) the Intercompany Loan, (ii) the Senior Secured Finance Facility Agreement dated as of December 17, 2002 and amended on February 1, 2005, between the
Borrower and the Senior Lender and (iii) the Nordea Term Loan Agreement.



Extraordinary Recovery Event: (i) any settlement of or payment in respect of any property or casualty insurance claim or any condemnation proceeding relating to any asset of the Borrower or any of
its Subsidiaries and (ii) any cash received by, paid to or for the account of the Borrower in connection with the close out or termination of the Derivative Agreement.



Federal Funds Effective Rate: for any day, a rate per annum (expressed as a decimal, rounded upwards, if
necessary, to the next higher 1/100 of 1%) equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers on such day, as published by the Federal
Reserve Bank of New York on the Business Day next succeeding such day, provided that (i) if the day for which such rate is to be determined is not a Business Day, the Federal Funds Effective Rate for such day shall be such rate on such transactions
on the next preceding Business Day as so published on the next succeeding Business Day, and (ii) if such rate is not so published for any day, the Federal Funds Effective Rate for such day shall be the average of the quotations for such day on such
transactions received by the Administrative Agent from three Federal Funds brokers of recognized standing selected by it.



Fee Letter: the Fee Letter dated as of the date hereof between the Borrower and the Administrative Agent.



GAAP: (i) with respect to audited financial statements
generally accepted accounting principles in Finland as in effect from time to time and (ii) with respect to unaudited financial statements generally accepted accounting principles in the United States of America as in effect from time to time;
provided that (x) any reconciliation or conversion between Finnish GAAP and US GAAP shall be in accordance with US GAAP and (y) the Borrower shall provide



8



---

the Administrative Agent with details of such reconciliation or conversion which shall be satisfactory to the
Administrative Agent.



Governmental
Authority: any nation or government, any state or other political subdivision thereof and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.



Guarantee Agreement: the Amended and Restated Continuing
Guaranty and Agreement to be executed and delivered by Holdings, substantially in the form of Exhibit A, as the same may be amended, supplemented or otherwise modified from time to time.



Guarantee Obligation: as to any Person (the guaranteeing person), any obligation of
(a) the guaranteeing person or (b) another Person (including, without limitation, any bank under any letter of credit), if to induce the creation of such obligation of such other Person the guaranteeing person has issued a reimbursement,
counterindemnity or similar obligation, in either case guaranteeing or in effect guaranteeing any Indebtedness, leases, dividends or other obligations (the primary obligations) of any other third Person (the primary
obligor) in any manner, whether directly or indirectly, including, without limitation, any obligation of the guaranteeing person, whether or not contingent, (i) to purchase any such primary obligation or any Property constituting direct or
indirect security therefor, (ii) to advance or supply funds (1) for the purchase or payment of any such primary obligation or (2) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency
of the primary obligor, (iii) to purchase Property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation or (iv)
otherwise to assure or hold harmless the owner of any such primary obligation against loss in respect thereof; provided, however, that the term Guarantee Obligation shall not include endorsements of instruments for deposit or
collection in the ordinary course of business. The amount of any Guarantee Obligation of any guaranteeing person shall be deemed to be the lower of (a) an amount equal to the stated or determinable amount of the primary obligation in respect of
which such Guarantee Obligation is made and (b) the maximum amount for which such guaranteeing person may be liable pursuant to the terms of the instrument embodying such Guarantee Obligation, unless such primary obligation and the maximum amount
for which such guaranteeing person may be liable are not stated or determinable, in which case the amount of such Guarantee Obligation shall be such guaranteeing persons maximum reasonably anticipated liability in respect thereof as determined
by the Borrower in good faith.



Hedge
Agreements: all interest rate or currency swaps, caps or collar agreements, foreign exchange agreements, commodity contracts or similar arrangements entered into by the Borrower or its Subsidiaries providing for protection against
fluctuations in interest rates, currency exchange rates, commodity prices or the exchange of nominal interest obligations, either generally or under specific contingencies.



Holdings: as defined in the preamble hereto.



Indebtedness: of any Person at any date, without
duplication, (a) all indebtedness of such Person for borrowed money, (b) all obligations of such Person for the



9



---

deferred purchase price of Property or services (other than trade payables incurred in the ordinary course of such
Persons business), (c) all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments, (d) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to
Property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such Property), (e) all Capital Lease Obligations of such Person, (f)
all obligations of such Person, contingent or otherwise, as an account party or applicant under acceptance, letter of credit or similar facilities, (g) all obligations of such Person, contingent or otherwise, to purchase, redeem, retire or otherwise
acquire for value any Capital Stock of such Person, (h) all Guarantee Obligations of such Person in respect of obligations of the kind referred to in clauses (a) through (g) above; (i) all obligations of the kind referred to in clauses (a) through
(h) above secured by (or for which the holder of such obligation has an existing right, contingent or otherwise, to be secured by) any Lien on Property (including, without limitation, accounts and contract rights) owned by such Person, whether or
not such Person has assumed or become liable for the payment of such obligation and (j) for the purposes of Section 7.1(e) only, all obligations of such Person in respect of Hedge Agreements. The equity loan under the Equity Loan Agreement shall not
be deemed Indebtedness for purposes of this definition, to the extent such equity loan is deemed and treated as equity (and not debt) under applicable accounting rules and regulations.



Indemnified Liabilities: as defined in Section 9.5.



Indemnitee: as defined in Section 9.5.



Intellectual Property: the collective
reference to all rights, priorities and privileges relating to intellectual property, whether arising under United States, multinational or foreign laws or otherwise, including, without limitation, copyrights, copyright licenses, patents, patent
licenses, trademarks, trademark licenses, technology, know-how and processes, and all rights to sue at law or in equity for any infringement or other impairment thereof, including the right to receive all proceeds and damages therefrom.



Intercompany Loan: the Loan Agreement dated as of
October 15, 1997 and amended on March 18, 2002 between the Borrower and Radnor Chemical in the aggregate outstanding principal amount of 8,667,122.39.



Intercreditor Agreement: the Intercreditor Agreement dated as of the date hereof among the Borrower, the Administrative Agent and the
Senior Lender, substantially in the form of Exhibit I, as the same may be amended, supplemented or otherwise modified from time to time.



Interest Payment Date: (a) as to any Eurodollar Loan having an Interest Period of three months or shorter, the last day of such
Interest Period, (b) as to any Eurodollar Loan having an Interest Period longer than three months, each day that is three months, or a whole multiple thereof, each day prior to the last day of such Interest Period that occurs at intervals of three
months duration after the first day of such Interest Period, (c) as to any Base Rate Loan, the last day of each March, June, September and December to occur while such Loan is



10



---

outstanding and the final maturity date of such Loan, and (d) as to any Loan the date of any repayment or prepayment made
in respect thereof.



Interest Period: as to
any Eurodollar Loan, (a) initially, the period commencing on the borrowing or conversion date, as the case may be, with respect to such Eurodollar Loan and ending one, two, three or six months thereafter, as selected by the Borrower in its notice of
borrowing or notice of conversion, as the case may be, given with respect thereto; and (b) thereafter, each period commencing on the last day of the next preceding Interest Period applicable to such Eurodollar Loan and ending one, two, three or six
months thereafter, as selected by the Borrower by irrevocable notice to the Administrative Agent not less than two Business Days prior to the last day of the then current Interest Period with respect thereto; provided that, all of the
foregoing provisions relating to Interest Periods are subject to the following:



(1) if any Interest Period would otherwise end on a day that is not a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless the result of such extension would be to carry such
Interest Period into another calendar month in which event such Interest Period shall end on the immediately preceding Business Day;



(2) any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the
calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period.



Investments: as defined in Section 6.8.



Lenders: as defined in the preamble hereto.



Lien: any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge or other
security interest or any preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including, without limitation, any conditional sale or other title retention agreement and any capital lease
having substantially the same economic effect as any of the foregoing).



Loan: any loan made by any Lender pursuant to this Agreement.



Loan Documents: this Agreement, the Guaranty Agreement, the Security Documents, the Term Notes, the Intercreditor Agreement, the Fee Letter and each other agreement or document executed by a Loan
Party and delivered to the Administrative Agent or any Lender in connection with or pursuant to any of the foregoing.



Loan Parties: Holdings, the Borrower, StyroChem Europe and each Subsidiary of the Borrower that is a party to a Loan Document.



Management Agreement: the Management
Services Agreement dated as of February 19, 1999 among Radnor Management, Inc., StyroChem Europe, and the Borrower.



11



---

Material Adverse Effect: a material adverse effect on (a) the business, assets,
property, condition (financial or otherwise) or prospects of the Borrower and its Subsidiaries taken as a whole or (b) the validity or enforceability of this Agreement or any of the other Loan Documents or the rights or remedies of the Agents or the
Lenders hereunder or thereunder.



Material
Environmental Amount: an amount or amounts payable by the Borrower and/or any of its Subsidiaries, in the aggregate in excess of 250,000 (or its Dollar Equivalent), for: costs to comply with any Environmental Law; costs of any
investigation, and any remediation, of any Material of Environmental Concern; and compensatory damages (including, without limitation damages to natural resources), punitive damages, fines, and penalties pursuant to any Environmental Law.



Materials of Environmental Concern: any
gasoline or petroleum (including crude oil or any fraction thereof) or petroleum products, polychlorinated biphenyls, urea-formaldehyde insulation, asbestos, pollutants, contaminants, radioactive materials, and any other substances or forces of any
kind, whether or not any such substance or force is defined as hazardous or toxic under any Environmental Law, that is regulated pursuant to or could give rise to liability under any Environmental Law.



Maturity Date: July 1, 2008.



Maximum Lawful Rate: as defined in Section 2.7(d),



Moodys: Moodys Investors
Service, Inc.



Net Cash Proceeds: (a) in
connection with any Asset Sale or any Extraordinary Recovery Event, the proceeds thereof in the form of cash and Cash Equivalents (including any such proceeds received by way of deferred payment of principal pursuant to a note or installment
receivable or purchase price adjustment receivable or otherwise, but only as and when received) of such Asset Sale or Extraordinary Recovery Event, net of attorneys fees, accountants fees, investment banking fees, amounts required to be
applied to the repayment of Indebtedness secured by a Lien expressly permitted hereunder on any asset which is the subject of such Asset Sale or Extraordinary Recovery Event (other than any Lien pursuant to a Security Document) and other customary
fees and expenses actually incurred in connection therewith and net of taxes paid or reasonably estimated to be payable as a result thereof (after taking into account any available tax credits or deductions and any tax sharing arrangements), (b) in
connection with any issuance or sale of equity securities or debt securities or instruments or the incurrence of loans, the cash proceeds received from such issuance or incurrence, net of attorneys fees, investment banking fees,
accountants fees, underwriting discounts and commissions and other customary fees and expenses actually incurred in connection therewith and (c) in connection with any Purchase Price Refund, the cash amount thereof, net of any expenses
incurred in the collection thereof.



Non-Excluded
Taxes: as defined in Section 2.12(a).



Non-U.S. Lender: as defined in Section 2.12(d).



12



---

Nordea Term Loan Agreement: the Loan Agreement dated as of March 20, 2001 between the
Borrower and the Senior Lender in the aggregate outstanding amount of 504,563.73.



Obligations: the unpaid principal of and interest on (including, without limitation, interest accruing after the maturity of the Term Loans and interest accruing after the filing of any petition in
bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) the Term Loans and all other obligations
and liabilities of the Borrower to the Administrative Agent or to any Lender, whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out of, or in connection with, this
Agreement, any other Loan Document or any other document made, delivered or given in connection herewith or therewith, whether on account of principal, interest, reimbursement obligations, fees, indemnities, costs, expenses (including, without
limitation, all fees, charges and disbursements of counsel to the Administrative Agent or to any Lender that are required to be paid by the Borrower pursuant hereto) or otherwise.



Other Taxes: any and all present or future stamp or documentary taxes or any other excise or property
taxes, charges or similar levies arising from any payment made hereunder or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any other Loan Document.



Participant: as defined in Section 9.6(b).



Payment Office: as to any Lender or the Administrative
Agent, the office specified from time to time by such Lender or the Administrative Agent, as the case may be, as its payment office by notice to the Borrower and, in the case of a Lenders Payment Office, the Administrative Agent.



Permitted Investors: (i) Michael T. Kennedy, R.
Radcliffe Hastings and Michael V. Valenza; (ii) the spouse and children or grandchildren (including children or grandchildren by adoption) of Michael T. Kennedy, R. Radcliffe Hastings or Michael V. Valenza; (iii) any controlled Affiliate (without
giving effect to clause (a) of the definition of Affiliate) of any of the foregoing; (iv) in the event of the incompetence or death of any of the Persons described in clause (i) or (ii) above, such persons estate, executor,
administrator, committee or other personal representative; or (v) any trusts created for the benefit of the Persons described in clause (i), (ii), or (iv) or any trust for the benefit of any such trust.



Person: an individual, partnership, corporation, limited
liability company, business trust, joint stock company, trust, unincorporated association, joint venture, Governmental Authority or other entity of whatever nature.



Pledge Agreement: the Agreement on Pledge of Shares dated as of the date hereof between StyroChem Europe
and the Administrative Agent, substantially in the form of Exhibit J, as the same may be amended, supplemented or otherwise modified from time to time.



Pledged Stock: the term Pledged Shares as defined in the Pledge Agreement.



13



---

Pricing Grid: the pricing grid attached hereto as Annex A.



Prime Rate: as defined in the definition of Base Rate.



Pro Forma Balance Sheet: as defined in
Section 3.1(a).



Projections: as defined in
Section 5.2(c).



Property: any right or
interest in or to property of any kind whatsoever, whether real, personal or mixed and whether tangible or intangible, including, without limitation, Capital Stock.



Radnor Chemical: Radnor Chemical Corporation, a Delaware corporation.



Radnor Management: Radnor Management Inc., a Delaware
corporation.



Register: as defined in
Section 9.6(d).



Related Fund: with respect
to any Lender, any fund that (x) invests in commercial loans and (y) is managed or advised by the same investment advisor as such Lender, by such Lender or an Affiliate of such Lender.



Required Lenders: at any time, the holders of more than 50% of the aggregate principal amount of Term
Loans then outstanding.



Requirement of Law:
as to any Person, the Certificate of Incorporation and By-Laws or other organizational or governing documents of such Person, and any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in
each case applicable to or binding upon such Person or any of its Property or to which such Person or any of its Property is subject.



Responsible Officer: the managing director, or chief financial officer of the Borrower, but in any event, with respect to financial
matters, the managing director of the Borrower or the executive vice president or chief financial officer of Holdings.



Restricted Payments: as defined in Section 6.6.



SEC: the Securities and Exchange Commission (or successors thereto or an analogous Governmental
Authority).



Secured Parties: as defined in
the Security Agreement.



Security Agreement:
the Agreement on the Pledge of Floating Charge Promissory Notes dated as of the date hereof among the Borrower, the Administrative Agent and the Senior Lender, substantially in the form of Exhibit K, as the same may be amended, supplemented or
otherwise modified from time to time.



Security
Documents: the collective reference to the Guarantee Agreement, the Security Agreement, the Pledge Agreement, the Intercreditor Agreement and all other security



14



---

documents hereafter delivered to the Administrative Agent granting a Lien on any Property of any Person to secure the
obligations and liabilities of any Loan Party under any Loan Document.



Senior Credit Agreement: as defined in the recital hereto.



Senior Lender: as defined in the recital hereto.



Senior Liens: first priority Liens granted in favor of the Senior Lender under the Senior Credit Agreement.



S&P: Standard & Poors Rating Services.



StyroChem Europe: StyroChem Europe (The
Netherlands) B.V., a company organized and existing under the laws of The Netherlands.



Subsidiary: as to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock or other ownership interests having ordinary voting power (other than
stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership or other entity are at the time owned, or
the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise qualified, all references to a Subsidiary or to Subsidiaries in this
Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower.



Subsidiary Guarantor: each Subsidiary of the Borrower.



Term Loan: as defined in Section 2.1.



Term Loan Commitment: as to any Lender, the obligation of such Lender to make Term Loans in an aggregate principal amount not to exceed the amount set forth under the heading Term Loan
Commitment opposite such Lenders name on Schedule 1.2 hereto, or, as the case may be, in the Assignment and Acceptance pursuant to which such Lender became a party hereto, as the same may be changed from time to time pursuant to the
terms hereof. The aggregate amount of the Term Loan Commitments is $20,000,000.



Term Loan Note: as defined in Section 2.3(f).



Term Loan Percentage: as to any Lender at any time, the percentage which the aggregate principal amount of such Lenders Term
Loans then outstanding constitutes with respect to the aggregate principal amount of all Term Loans then outstanding.



Transferee: as defined in Section 9.14.



1.2 Other Definitional Provisions. (a) Unless otherwise specified therein, all terms defined in this Agreement shall have the defined meanings when
used in the other Loan Documents or any certificate or other document made or delivered pursuant hereto or thereto.



15



---

(b) As used herein and in the other Loan Documents, and any certificate or other document made or
delivered pursuant hereto or thereto, accounting terms relating to the Borrower and its Subsidiaries not defined in Section 1.1 and accounting terms partly defined in Section 1.1, to the extent not defined, shall have the respective meanings given
to them under GAAP.



(c) The words hereof,
herein and hereunder and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section, Schedule and Exhibit references are to
this Agreement unless otherwise specified.



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



(e) All calculations of financial ratios set forth in Section 6.1 shall be calculated to the same number of decimal places as the relevant ratios are
expressed in and shall be rounded upward if the number in the decimal place immediately following the last calculated decimal place is five or greater. For example, if the relevant ratio is to be calculated to the hundredth decimal place and the
calculation of the ratio is 3.246, the ratio will be rounded up to 3.25.



ARTICLE II - AMOUNT AND TERMS OF COMMITMENTS



2.1
Term Loan Commitments. Subject to the terms and conditions hereof, each Lender severally agrees to make to the Borrower term loans (Term Loans) on the Closing Date in an aggregate principal amount not to exceed such
Lenders Term Loan Percentage of the Term Loan Commitment.



2.2 Procedure for Term Loan Borrowing. The Borrower shall deliver to the Administrative Agent a Borrowing Notice (which Borrowing Notice must be received by the Administrative Agent prior to 10:00 A.M., New York City time, two
Business Days prior to the anticipated Closing Date) requesting that the Lenders make Term Loans in an amount not to exceed the aggregate amount of the Term Loan Commitments on the Closing Date. Upon receipt of such Borrowing Notice from the
Borrower, the Administrative Agent shall promptly notify each Lender thereof. Each Lender will make its Term Loan Percentage of the amount of the Term Loans available to the Borrower at an account designated by the Borrower in such Borrowing Notice
prior to 12:00 Noon, New York City time, on the Closing Date in immediately available funds.



2.3 Repayment of Term Loans; Evidence of Debt.



(a) The Term Loans shall amortize in twelve consecutive installments, commencing on September 30, 2005, each of which shall be in an amount equal to such Lenders Term Loan Percentage multiplied by the amount set
forth below opposite such installment:



16



---

|                   |  |                 |           
|------------------ |  | --------------- | ----------
|Installment        |  | PrincipalAmount
|September 30, 2005 |  | $               | 500,000   
|December 31, 2005  |  | $               | 500,000   
|March 31, 2006     |  | $               | 500,000   
|June 30, 2006      |  | $               | 500,000   
|September 30, 2006 |  | $               | 575,000   
|December 31, 2006  |  | $               | 575,000   
|March 31, 2007     |  | $               | 575,000   
|June 30, 2007      |  | $               | 575,000   
|September 30, 2007 |  | $               | 650,000   
|December 31, 2007  |  | $               | 650,000   
|March 31, 2008     |  | $               | 650,000   
|Maturity Date      |  | $               | 13,750,000



(b) The Borrower
hereby further agrees to pay interest on the unpaid principal amount of the Term Loans from time to time outstanding from the date hereof until payment in full thereof at the rates per annum, and on the dates, set forth in Section 2.7.



(c) Each Lender shall maintain in accordance with its usual practice an
account or accounts evidencing indebtedness of the Borrower to such Lender resulting from each Term Loan of such Lender from time to time, including the amounts of principal and interest payable and paid to such Lender from time to time under this
Agreement.



(d) The Administrative Agent, on behalf of the
Borrower, shall maintain the Register pursuant to Section 9.6(d), and a subaccount therein for each Lender, in which shall be recorded (i) the amount of each Term Loan made hereunder and any Term Loan Note evidencing such Term Loan, (ii) the amount
of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by each Lender hereunder from the Borrower.



(e) The entries made in the Register and the accounts of each Lender
maintained pursuant to Section 2.3(c) shall, to the extent permitted by applicable law, be prima facie evidence of the existence and amounts of the obligations of the Borrower therein recorded; provided, however, that the
failure of any Lender or the Administrative Agent to maintain the Register or any such account, or any error therein, shall not in any manner affect the obligation of the Borrower to repay (with applicable interest) the Term Loans made to the
Borrower by such Lender in accordance with the terms of this Agreement.



(f) The Borrower agrees that, upon the request to the Administrative Agent by any Lender, the Borrower will promptly execute and deliver to such Lender a promissory note of the Borrower evidencing any Term Loans of such Lender,
substantially in the form of Exhibit G (a Term Loan Note), with appropriate insertions as to date and principal amount.



2.4 Fees. The Borrower agrees to pay to the Administrative Agent the fees in the amounts and on the dates set forth in the Fee Letter.



17



---

2.5 Optional Prepayments. (a) The Borrower may at any time and from time to time prepay the Term
Loans, in whole or in part, upon irrevocable notice delivered to the Administrative Agent at least one Business Day prior thereto, which notice shall specify the date and amount of such prepayment, as set forth in Section 2.5(c). Upon receipt of any
such notice the Administrative Agent shall promptly notify each relevant Lender thereof. If any such notice is given, the amount specified in such notice shall be due and payable on the date specified therein, together with accrued interest to such
date on the amount prepaid. Partial prepayments of Term Loans shall be in an aggregate principal amount of $1,000,000 or a whole multiple thereof.



(b) Amounts to be applied in connection with any prepayments made pursuant to this Section shall be applied to the Term Loans, pro rata
among the Lenders according to the amounts of the Term Loans then held by the Lenders.



(c) Each optional prepayment in respect of the Term Loans shall be accompanied by a prepayment premium equal to (i) if such prepayment is made prior to the first anniversary of the Closing Date, 2% of the principal
amount of such prepayment and (ii) if such prepayment is made on or after the first anniversary of the Closing Date and prior to the second anniversary of the Closing Date, 0.5% of the principal amount of such prepayment; provided that
optional prepayments up to $2,000,000 per fiscal year throughout the term of this Agreement shall not be subject to a prepayment premium. Any prepayment of the Term Loans upon the refinancing thereof (whether with proceeds of equity or Indebtedness)
or upon the occurrence of a Change of Control shall be deemed to be an optional prepayment.



2.6 Mandatory Prepayments. (a) If any Capital Stock shall be issued, or Indebtedness incurred, by the Borrower or any of its Subsidiaries (excluding any Indebtedness incurred in accordance with Section 6.2 of
this Agreement), then on the date of such issuance or incurrence, the Term Loans shall be prepaid by an amount equal to the amount of the Net Cash Proceeds of such issuance or incurrence, as set forth in Section 2.6(d). The provisions of this
Section do not constitute a consent to the issuance of any equity securities by any entity whose equity securities are pledged pursuant to the Security Documents, or a consent to the incurrence of any Indebtedness by the Borrower or any of its
Subsidiaries.



(b) If on any date the Borrower or any of its
Subsidiaries shall receive Net Cash Proceeds from any Asset Sale or Extraordinary Recovery Event, then, on the date of receipt by the Borrower of such Net Cash Proceeds, the Term Loans shall be prepaid by an amount equal to the amount of such Net
Cash Proceeds (less any amount applied by the Borrower within 180 days of receipt to repair or replace any damaged or condemned property for which insurance proceeds or condemnation proceeds have been received), as set forth in Section 2.6(d);
provided that the Borrower shall only be required to prepay under this Section 2.6(b) from Net Cash Proceeds in excess of $500,000 in the aggregate for all Asset Sale or Extraordinary Recovery Events over the term of this Agreement. The
provisions of this Section do not constitute a consent to the consummation of any Disposition not permitted by Section 6.5.



(c) If, for any fiscal year of the Borrower commencing with the fiscal year ending December 31, 2005, the Consolidated Leverage Ratio is greater than 3.0
to 1 and there shall be Excess Cash Flow, then, on the relevant Excess Cash Flow Application Date, the Term



18



---

Loans shall be prepaid by an amount equal to 50% of such Excess Cash Flow, as set forth in Section 2.6(d). Each such
prepayment shall be made on a date (an Excess Cash Flow Application Date) no later than five days after the earlier of (i) the date on which the financial statements of the Borrower referred to in Section 5.1(b), for the fiscal
year with respect to which such prepayment is made, are required to be delivered to the Lenders and (ii) the date such financial statements are actually delivered.



(d) Amounts to be applied in connection with any prepayments made pursuant to this Section shall be applied to the
prepayment of the Term Loans, pro rata among the Lenders according to the amounts of the Term Loans then held by the Lenders.



(e) Each mandatory prepayment in respect of the Term Loans shall be made without prepayment premium or penalty.



2.7 Interest Rates and Payment Dates. (a) Each Eurodollar Loan shall
bear interest for each day during each Interest Period with respect thereto at a rate per annum equal to the Eurodollar Rate determined for such day plus the Applicable Margin in effect for such day. Each Base Rate Loan shall bear interest for each
day on which it is outstanding at a rate per annum equal to the Base Rate in effect for such day plus the Applicable Margin in effect for such day.



(b) Notwithstanding the rates of interest specified in clause (a) above or elsewhere herein, effective immediately upon the occurrence of an Event of
Default and for as long thereafter as such Event of Default shall be continuing, the principal balance of all Term Loans and the amount of all other Obligations then due and payable shall bear interest at a rate per annum that is equal to (i) in the
case of principal, the rate that would otherwise be applicable thereto pursuant to the foregoing provisions of this Section plus 2% and (ii) in the case of all other Obligations, the rate then applicable to Base Rate Loans plus 2%, in each case from
the date of such nonpayment to (but excluding) the date on which such amount is paid in full (after as well as before judgment).



(c) Interest shall be payable in arrears on each Interest Payment Date, provided that interest accruing pursuant to paragraph (b) of this Section
shall be payable from time to time on demand.



(d)
Notwithstanding anything to the contrary set forth in this Section 2.7, if a court of competent jurisdiction determines in a final order that the rate of interest payable hereunder exceeds the highest rate of interest permissible under law (the
Maximum Lawful Rate), then so long as the Maximum Lawful Rate would be so exceeded, the rate of interest payable hereunder shall be equal to the Maximum Lawful Rate; provided, however, that if at any time thereafter
the rate of interest payable hereunder is less than the Maximum Lawful Rate, Borrower shall continue to pay interest hereunder at the Maximum Lawful Rate until such time as the total interest received by the Lenders is equal to the total interest
which would have been received had the interest rate payable hereunder been (but for the operation of this paragraph) the interest rate payable since the Closing Date as otherwise provided in this Agreement. Thereafter, interest hereunder shall be
paid at the rate of interest and in the manner provided in this Section, unless and until the rate of interest again exceeds the Maximum Lawful Rate, and at that time



19



---

this paragraph shall again apply. In no event shall the total interest received by the Lenders pursuant to the terms
hereof exceed the amount which the Lenders could lawfully have received had the interest due hereunder been calculated for the full term hereof at the Maximum Lawful Rate. If, notwithstanding the provisions of this Section 2.7(d), a court of
competent jurisdiction shall finally determine that the Lenders have received interest hereunder in excess of the Maximum Lawful Rate, the Lenders shall refund any excess to Borrower or as a court of competent jurisdiction may otherwise order.



2.8 Computation of Interest and Fees. (a) Interest,
fees and commissions payable pursuant hereto shall be calculated on the basis of a 360-day year for the actual days elapsed. The Administrative Agent shall as soon as practicable notify the Borrower and the relevant Lenders in each determination of
a Eurodollar Rate. Any change in the interest rate on a Term Loan resulting from a change in the Eurocurrency Reserve Requirements shall become effective as of the opening of business on the day on which such change becomes effective. The
Administrative Agent shall as soon as practicable notify the Borrower and the relevant Lenders of the effective date and the amount of each such change in interest rate.



(b) Each determination of an interest rate by the Administrative Agent pursuant to any provision of this Agreement shall be
conclusive and binding on the Borrower and the Lenders in the absence of manifest error. The Administrative Agent shall, at the request of the Borrower, deliver to the Borrower a statement showing the quotations used by the Administrative Agent in
determining any interest rate pursuant to Section 2.8(a).



2.9
Inability to Determine Interest Rate. If prior to the first day of any Interest Period:



(a) the Administrative Agent shall have determined (which determination shall be conclusive and binding upon the Borrower) that, by reason of
circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining the Eurodollar Rate for such Interest Period, or



(b) the Administrative Agent shall have received notice from the Required Lenders that the Eurodollar Rate determined or to be determined for such
Interest Period will not adequately and fairly reflect the cost to such Lenders (as conclusively certified by such Lenders) of making or maintaining their affected Loans during such Interest Period,



the Administrative Agent shall give telecopy or telephonic notice thereof to the Borrower and
the Lenders as soon as practicable thereafter. If such notice is given (x) any Eurodollar Loans requested to be made on the first day of such Interest Period shall be made as Base Rate Loans, (y) any Loans that were to have been converted on the
first day of such Interest Period to Eurodollar Loans shall be continued as Base Rate Loans and (z) any outstanding Eurodollar Loans shall be converted, on the last day of the then current Interest Period with respect thereto, to Base Rate Loans.
Until such notice has been withdrawn by the Administrative Agent, no further Eurodollar Loans shall be made or continued as such, nor shall the Borrower have the right to convert Base Rate Loans to Eurodollar Loans.



20



---

2.10 Pro Rata Treatment and Payments. (a) Each borrowing by the Borrower from the Lenders
hereunder shall be made pro rata according to the respective Term Loan Percentages of the relevant Lenders.



(b) Each payment (including each prepayment) by the Borrower on account of principal of and interest on the Term Loans shall be made pro
rata according to the respective outstanding principal amounts of the Term Loans then held by the Lenders.



(c) Each payment of the Term Loans shall be accompanied by accrued interest to the date of such payment on the amount paid.



(d) All payments (including prepayments) to be made by the Borrower
hereunder, whether on account of principal, interest, fees or otherwise, shall be made without setoff or counterclaim and shall be made prior to 12:00 Noon, New York City time, on the due date thereof to the applicable Lender or the Administrative
Agent, as the case may be, at the Payment Office for such Lender or the Administrative Agent, in Dollars and in immediately available funds. Any payment made by the Borrower after 12:00 Noon, New York City time, on any Business Day shall be deemed
to have been on the next following Business Day. If any payment hereunder becomes due and payable on a day other than a Business Day, such payment shall be extended to the next succeeding Business Day. In the case of any extension of any payment of
principal pursuant to the preceding sentence, interest thereon shall be payable at the then applicable rate during such extension.



2.11 Requirements of Law. (a) If any Lender shall have determined that the adoption of or any change in any Requirement of Law regarding capital
adequacy or in the interpretation or application thereof or compliance by such Lender or any corporation controlling such Lender with any request or directive regarding capital adequacy (whether or not having the force of law) from any Governmental
Authority made subsequent to the date hereof shall have the effect of reducing the rate of return on such Lenders or such corporations capital as a consequence of its obligations hereunder to a level below that which such Lender or such
corporation could have achieved but for such adoption, change or compliance (taking into consideration such Lenders or such corporations policies with respect to capital adequacy) by an amount deemed by such Lender to be material, then
from time to time, after submission by such Lender to the Borrower (with a copy to the Administrative Agent) of a written request therefor, the Borrower shall pay to such Lender such additional amount or amounts as will compensate such Lender or
such corporation for such reduction.



(b) A certificate as to
any additional amounts payable pursuant to this Section submitted by any Lender to the Borrower (with a copy to the Administrative Agent) shall be conclusive in the absence of manifest error. The obligations of the Borrower pursuant to this Section
shall survive the termination of this Agreement and the payment of the Term Loans and all other amounts payable hereunder.



(c) Notwithstanding anything in this Agreement to the contrary, the Lenders shall not be entitled to compensation under Section 2.11 or Section 2.12 for
any amounts incurred or accruing more than 90 days prior to the giving of notice by the applicable Lender to the Borrower of additional costs of the type described in such Sections.



21



---

(d) Any Lender claiming any additional amounts payable pursuant to Section 2.11 or Section 2.12 shall, at
the request of the Borrower, use its reasonable efforts (consistent with its internal policies and Requirements of Law) to change the jurisdiction of its lending office if the making of such a change would avoid the need for, or reduce the amount
of, any such additional amounts that would be payable or may thereafter accrue and would not, in the sole determination of such Lender, be otherwise disadvantageous to such Lender.



2.12 Taxes. (a) All payments made by the Borrower under this Agreement shall be made free and clear of, and without
deduction or withholding for or on account of, any present or future income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any
Governmental Authority, excluding net income taxes and franchise taxes (imposed in lieu of net income taxes) imposed on the Administrative Agent or any Lender as a result of a present or former connection between the Administrative Agent or such
Lender and the jurisdiction of the Governmental Authority imposing such tax or any political subdivision or taxing authority thereof or therein (other than any such connection arising solely from the Administrative Agents or such Lenders
having executed, delivered or performed its obligations or received a payment under, or enforced, this Agreement or any other Loan Document). If any such non-excluded taxes, levies, imposts, duties, charges, fees, deductions or withholdings
(Non-Excluded Taxes) or any Other Taxes are required to be withheld from any amounts payable to the Administrative Agent or any Lender hereunder, the amounts so payable to the Administrative Agent or such Lender shall be increased
to the extent necessary to yield to the Administrative Agent or such Lender (after payment of all Non-Excluded Taxes and Other Taxes) interest or any such other amounts payable hereunder at the rates or in the amounts specified in this Agreement;
provided, however, that the Borrower shall not be required to increase any such amounts payable to any Lender with respect to any Non-Excluded Taxes (i) that are attributable to such Lenders failure to comply with the
requirements of paragraph (d) or (e) of this Section or (ii) that are United States withholding taxes imposed on amounts payable to such Lender at the time such Lender becomes a party to this Agreement, except to the extent that such Lenders
assignor (if any) was entitled, at the time of assignment, to receive additional amounts from the Borrower with respect to such Non-Excluded Taxes pursuant to this paragraph (a).



(b) In addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable
law.



(c) Whenever any Non-Excluded Taxes or Other Taxes are
payable by the Borrower, as promptly as possible thereafter the Borrower shall send to the Administrative Agent for the account of the Administrative Agent or Lender, as the case may be, a certified copy of an original official receipt received by
the Borrower showing payment thereof. If the Borrower fails to pay any Non-Excluded Taxes or Other Taxes when due to the appropriate taxing authority or fails to remit to the Administrative Agent the required receipts or other required documentary
evidence, the Borrower shall indemnify the Administrative Agent and the Lenders for any incremental taxes, interest or penalties that may become payable by the Administrative Agent or any Lender as a result of any such failure. The agreements in
this Section shall survive the termination of this Agreement and the payment of the Term Loans and all other amounts payable hereunder.



22



---

(d) Each Lender (or Transferee) that is not a citizen or resident of the United States of America, a
corporation, partnership or other entity created or organized in or under the laws of the United States of America (or any jurisdiction thereof), or any estate or trust that is subject to federal income taxation regardless of the source of its
income (a Non-U.S. Lender) shall deliver to the Borrower and the Administrative Agent (or, in the case of a Participant, to the Lender from which the related participation shall have been purchased) two copies of either U.S.
Internal Revenue Service Form W-8BEN or Form W-8ECI, or, in the case of a Non-U.S. Lender claiming exemption from U.S. federal withholding tax under Section 871(h) or 881(c) of the Code with respect to payments of portfolio interest a
statement in a form satisfactory to the Administrative Agent and a Form W-8BEN, or any subsequent versions thereof or successors thereto properly completed and duly executed by such Non-U.S. Lender claiming complete exemption from, or a reduced rate
of, U.S. federal withholding tax on all payments by the Borrower under this Agreement and the other Loan Documents. Such forms shall be delivered by each Non-U.S. Lender on or before the date it becomes a party to this Agreement (or, in the case of
any Participant, on or before the date such Participant purchases the related participation). In addition, each Non-U.S. Lender shall deliver such forms promptly upon the obsolescence or invalidity of any form previously delivered by such Non-U.S.
Lender. Each Non-U.S. Lender shall promptly notify the Borrower at any time it determines that it is no longer in a position to provide any previously delivered certificate to the Borrower (or any other form of certification adopted by the U.S.
taxing authorities for such purpose). Notwithstanding any other provision of this paragraph, a Non-U.S. Lender shall not be required to deliver any form pursuant to this paragraph that such Non-U.S. Lender is not legally able to deliver.



(e) A Lender that is entitled to an exemption from or reduction of
non-U.S. withholding tax under the law of the jurisdiction in which the Borrower is located, or any treaty to which such jurisdiction is a party, with respect to payments under this Agreement shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law or reasonably requested by the Borrower, such properly completed and executed documentation prescribed by applicable law as will permit such payments to be made without
withholding or at a reduced rate, provided that such Lender is legally entitled to complete, execute and deliver such documentation and in such Lenders reasonable judgment such completion, execution or submission would not materially
prejudice the legal position of such Lender.



2.13
Indemnity. The Borrower agrees to indemnify each Lender for, and to hold each Lender harmless from, any loss or expense that such Lender may sustain or incur as a consequence of (a) default by the Borrower in making a borrowing of, conversion
into or continuation of Eurodollar Loans after the Borrower has given a notice requesting the same in accordance with the provisions of this Agreement, (b) default by the Borrower in making any prepayment after the Borrower has given a notice
thereof in accordance with the provisions of this Agreement or (c) the making of a prepayment or conversion of Eurodollar Loans on a day that is not the last day of an Interest Period with respect thereto. Such indemnification may include an amount
equal to the excess, if any, of (i) the amount of interest that would have accrued on the amount so prepaid, or not so borrowed, converted or continued, for the period from the date of such prepayment or of such failure to borrow, convert or
continue to the last day of such Interest Period (or, in the case of a failure to borrow, convert or continue, the Interest Period that would have commenced on the date of such failure) in each case at the applicable rate



23



---

of interest for such Loans provided for herein (excluding, however, the Applicable Margin included therein, if any)
over (ii) the amount of interest (as reasonably determined by such Lender) that would have accrued to such Lender on such amount by placing such amount on deposit for a comparable period with leading banks in the interbank Eurodollar market.
A certificate as to any amounts payable pursuant to this Section submitted to the Borrower by any Lender shall be conclusive in the absence of manifest error. This covenant shall survive the termination of this Agreement and the payment of the Loans
and all other amounts payable hereunder.



2.14
Illegality. Notwithstanding any other provision herein, if the adoption of or any change in any Requirement of Law or in the interpretation or application thereof shall make it unlawful for any Lender to make or maintain Eurodollar Loans as
contemplated by this Agreement, (a) the commitment of such Lender hereunder to make Eurodollar Loans, continue Eurodollar Loans as such and convert Base Rate Loans to Eurodollar Loans shall forthwith be canceled and (b) such Lenders Loans then
outstanding as Eurodollar Loans, if any, shall be converted automatically to Base Rate Loans on the respective last days of the then current Interest Periods with respect to such Loans or within such earlier period as required by law. If any such
conversion of a Eurodollar Loan occurs on a day which is not the last day of the then current Interest Period with respect thereto, the Borrower shall pay to such Lender such amounts, if any, as may be required pursuant to Section 2.13.



2.15 Change of Lending Office. Each Lender agrees that,
upon the occurrence of any event giving rise to the operation of Section 2.11, 2.12(a) or 2.14 with respect to such Lender, it will, if requested by the Borrower, use reasonable efforts (subject to overall policy considerations of such Lender) to
designate another lending office for any Loans affected by such event with the object of avoiding the consequences of such event; provided, that such designation is made on terms that, in the sole judgment of such Lender, cause such Lender
and its lending office(s) to suffer no economic, legal or regulatory disadvantage, and provided, further, that nothing in this Section shall affect or postpone any of the obligations of any Borrower or the rights of any Lender pursuant
to Section 2.11, 2.12(a) or 2.14.



2.16 Conversion and
Continuation Options. (a) The Borrower may elect from time to time to convert Eurodollar Loans to Base Rate Loans by giving the Administrative Agent at least two Business Days prior irrevocable notice of such election; provided,
that any such conversion of Eurodollar Loans may be made only on the last day of an Interest Period with respect thereto. The Borrower may elect from time to time to convert Base Rate Loans to Eurodollar Loans by giving the Administrative Agent at
least two Business Days prior irrevocable notice of such election (which notice shall specify the length of the initial Interest Period therefor; provided, that no Base Rate Loan may be converted into a Eurodollar Loan (i) when any
Event of Default has occurred and is continuing and the Administrative Agent has, or the Majority Lenders have, determined in its or their sole discretion not to permit such conversions or (ii) after the date that is one month prior to the Maturity
Date. Upon receipt of any such notice the Administrative Agent shall promptly notify each relevant Lender thereof.



(b) The Borrower may elect to continue any Eurodollar Loan as such upon the expiration of the then current Interest Period with respect thereto by giving
irrevocable notice to the Administrative Agent in accordance with the applicable provisions of the term Interest



24



---

Period set forth in Section 1.1, of the length of the next Interest Period to be applicable to such Loans;
provided, that no Eurodollar Loan may be continued as such (i) when any Event of Default has occurred and is continuing and the Administrative Agent has, or the Majority Lenders have determined in its or their sole discretion not to permit
such continuations or (ii) after the date that is one month prior to the Maturity Date; provided, further, that if the Borrower shall fail to give any required notice as described above in this paragraph or if such continuation is not
permitted pursuant to this Agreement, such Loans shall be converted automatically to Base Rate Loans on the last day of such then expiring Interest Period. Upon receipt of any such notice the Administrative Agent as applicable, shall promptly notify
each relevant Lender thereof.



2.17 Minimum Amounts and
Maximum Number of Eurodollar Tranches. Notwithstanding anything to the contrary in this Agreement, all borrowings, conversions, continuations and optional prepayments of Eurodollar Loans and all selections of Interest Periods shall be in such
amounts and be made pursuant to such elections so that, (a) after giving effect thereto, the aggregate principal amount of the Eurodollar Loans comprising each Eurodollar Tranche shall be equal to $500,000 or a whole multiple of $50,000 in excess
thereof and (b) no more than eight Eurodollar Tranches shall be outstanding at any one time.



ARTICLE III - REPRESENTATIONS AND WARRANTIES



To induce the Administrative Agent and the Lenders to enter into this Agreement and to make the Term Loans, the Borrower hereby represents and warrants to the Administrative Agent and each Lender that:



3.1 Financial Condition. (a) The unaudited pro forma
consolidated balance sheet of the Borrower and its consolidated Subsidiaries as at May 31, 2005 (including the notes thereto) (the Pro Forma Balance Sheet), copies of which have heretofore been furnished to each Lender, has been
prepared giving effect (as if such events had occurred on such date) to (i) the Term Loans to be made on the Closing Date and the use of proceeds thereof and (ii) the payment of fees and expenses in connection with the foregoing. The Pro Forma
Balance Sheet has been prepared based on the best information available to the Borrower as of the date of delivery thereof, and presents fairly on a pro forma basis the estimated financial position of Borrower and its consolidated
Subsidiaries as at May 31, 2005 assuming that the events specified in the preceding sentence had actually occurred at such date.



(b) The audited consolidated balance sheets of the Borrower and its consolidated Subsidiaries as at December 31, 2004, December 31, 2003 and December 31,
2002 and the related consolidated statements of income and of cash flows for the fiscal years ended on such dates, reported on by and accompanied by an unqualified report from KPMG LLP present fairly the consolidated financial condition of the
Borrower and its consolidated Subsidiaries as at such date, and the consolidated results of its operations and its consolidated cash flows for the fiscal year then ended. The unaudited consolidated balance sheet of the Borrower and its consolidated
Subsidiaries as at May 31, 2005 and the related unaudited consolidated statements of income and cash flows for the 5-month period ended on such date, present fairly the consolidated financial condition of the Borrower and its consolidated
Subsidiaries as at such date, and the consolidated results of its operations and its consolidated cash flows for the 5-month period then ended (subject to normal year-end audit adjustments). All such financial



25



---

statements, including the related schedules and notes thereto, have been prepared in accordance with GAAP applied
consistently throughout the periods involved (except as approved by the aforementioned firm of accountants and disclosed therein). The Borrower and its Subsidiaries do not have any material Guarantee Obligations, contingent liabilities and
liabilities for taxes, or any long-term leases or unusual forward or long-term commitments, including, without limitation, any interest rate or foreign currency swap or exchange transaction or other obligation in respect of derivatives, that are not
reflected in the most recent financial statements referred to in this paragraph. During the period from December 31, 2004 to and including the date hereof there has been no Disposition by the Borrower and its Subsidiaries of any material part of its
business or Property, except as previously disclosed to the Administrative Agent.



3.2 No Change. Since December 31, 2004 there has been no development or event that has had or could reasonably be expected to have a Material Adverse Effect.



3.3 Corporate Existence; Compliance with Law. Each of the Borrower and
its Subsidiaries (a) is duly organized and validly existing under the laws of the jurisdiction of its organization, (b) has the corporate power and authority, and the legal right, to own and operate its Property, to lease the Property it operates as
lessee and to conduct the business in which it is currently engaged, and (c) is in compliance with all Requirements of Law except to the extent that the failure to comply therewith could not, in the aggregate, reasonably be expected to have a
Material Adverse Effect.



3.4 Corporate Power;
Authorization; Enforceable Obligations. Each Loan Party has the corporate power and authority, and the legal right, to make, deliver and perform the Loan Documents to which it is a party and, in the case of the Borrower, to borrow hereunder.
Each Loan Party has taken all necessary corporate action to authorize the execution, delivery and performance of the Loan Documents to which it is a party and, in the case of the Borrower, to authorize the borrowings on the terms and conditions of
this Agreement. No consent or authorization of, filing with, notice to or other act by or in respect of, any Governmental Authority or any other Person is required in connection with the borrowings hereunder or the execution, delivery, performance,
validity or enforceability of this Agreement or any of the other Loan Documents, except (i) consents, authorizations, filings and notices described in Schedule 3.4, which consents, authorizations, filings and notices have been obtained or made and
are in full force and effect (unless otherwise indicated on Schedule 3.4) and (ii) the filings referred to in Section 3.19. Each Loan Document has been duly executed and delivered on behalf of each Loan Party that is a party thereto. This Agreement
constitutes, and each other Loan Document upon execution will constitute, a legal, valid and binding obligation of each Loan Party that is a party thereto, enforceable against each such Loan Party in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors rights generally and by general equitable principles (whether enforcement is sought by
proceedings in equity or at law).



3.5 No Legal Bar. The
execution, delivery and performance of this Agreement and the other Loan Documents, the borrowings hereunder and the use of the proceeds thereof will not violate any Requirement of Law or any Contractual Obligation of Holdings or any of its
Subsidiaries and will not result in, or require, the creation or imposition of any Lien on any of their respective properties or revenues pursuant to any Requirement of Law or any such



26



---

Contractual Obligation (other than the Liens created by the Security Documents). No Requirement of Law or Contractual
Obligation applicable to the Borrower or any of its Subsidiaries could reasonably be expected to have a Material Adverse Effect.



3.6 No Material Litigation. No litigation, investigation or proceeding of or before any arbitrator or Governmental Authority is pending or, to the
knowledge of the Borrower, threatened by or against the Borrower or any of its Subsidiaries or against any of their respective properties or revenues (a) with respect to any of the Loan Documents, any of the transactions contemplated hereby or
thereby, or the ranking and seniority of their respective obligations thereunder, or (b) that could reasonably be expected to have a Material Adverse Effect.



3.7 No Default. Neither Holdings, the Borrower nor any of its Subsidiaries is in default under or with respect to any of its Contractual
Obligations in any respect that could reasonably be expected to have a Material Adverse Effect. No Default or Event of Default has occurred and is continuing.



3.8 Ownership of Property; Liens. Each of the Borrower and its Subsidiaries has valid legal title to all its real property, and valid legal
title to, or a valid leasehold interest in, all its other Property, and none of such Property is subject to any Lien, except Senior Liens and Liens permitted by Section 6.3.



3.9 Intellectual Property. The Borrower and each of its Subsidiaries owns, or is licensed to use, all Intellectual
Property necessary for the conduct of its business as currently conducted. No material claim has been asserted and is pending by any Person challenging or questioning the use of any Intellectual Property or the validity or effectiveness of any
Intellectual Property, nor does the Borrower know of any valid basis for any such claim. The use of Intellectual Property by the Borrower and its Subsidiaries does not infringe on the rights of any Person in any material respect.



3.10 Taxes. Each of the Borrower and each of its Subsidiaries has
filed or caused to be filed all material tax returns that are required to be filed and has paid all taxes shown to be due and payable on said returns or on any assessments made against it or any of its Property and all other taxes, fees or other
charges imposed on it or any of its Property by any Governmental Authority (other than any the amount or validity of which are currently being contested in good faith by appropriate proceedings and with respect to which reserves in conformity with
GAAP have been provided on the books of the Borrower or its Subsidiaries, as the case may be); and no tax Lien has been filed, and, to the knowledge of the Borrower, no claim is being asserted, with respect to any such tax, fee or other charge.



3.11 [Intentionally Deleted.]



3.12 Labor Matters. There are no strikes or other labor disputes
against the Borrower or any of its Subsidiaries pending or, to the knowledge of the Borrower, threatened that (individually or in the aggregate) could reasonably be expected to have a Material Adverse Effect. Hours worked by and payment made to
employees of the Borrower and its Subsidiaries have not been in violation of applicable labor laws or any other applicable Requirement of Law dealing with such matters that (individually or in the aggregate) could reasonably be expected to



27



---

have a Material Adverse Effect. All payments due from the Borrower or any of its Subsidiaries on account of employee
health and welfare insurance that (individually or in the aggregate) could reasonably be expected to have a Material Adverse Effect if not paid have been paid or accrued as a liability on the books of the Borrower or the relevant Subsidiary.



3.13 [Intentionally Deleted.]



3.14 [Intentionally Deleted.]



3.15 Subsidiaries. (a) The Subsidiaries listed on Schedule 3.15
constitute all the Subsidiaries of StyroChem Europe and the Borrower at the date hereof. Schedule 3.15 sets forth as of the Closing Date the name and jurisdiction of incorporation of each Subsidiary and, as to each Subsidiary, the percentage of each
class of Capital Stock owned by each Loan Party.



(b) Except as
listed on Schedule 3.15, there are no outstanding subscriptions, options, warrants, calls, rights or other agreements or commitments (other than stock options granted to employees or directors and directors qualifying shares) of any nature
relating to any Capital Stock of the Borrower or any Subsidiary.



3.16 Use of Proceeds. The proceeds of the Term Loans shall be used (i) to repay in full the Intercompany Loan, (ii) to reduce the outstanding amount under the Senior Credit Agreement to an amount not to exceed 2,500,000, (iii)
to repay outstanding indebtedness of the Borrower under local currency uncommited credit lines with the Senior Lender in an aggregate amount of 5,300,000, (iv) to repay outstanding indebtedness of the Borrower under the Nordea Term Loan
Agreement in an aggregate amount of 504,563.73, (v) for other general purposes and (vi) to pay related fees and expenses.



3.17 Environmental Matters. Other than exceptions to any of the following that could not, individually or in the aggregate, reasonably be expected
to result in the payment of a Material Environmental Amount and except as set forth on Schedule 3.17:



(a) The Borrower and its Subsidiaries: (i) are, and within the period of all applicable statutes of limitation have been, in compliance with all
applicable Environmental Laws; (ii) hold all Environmental Permits (each of which is in full force and effect) required for any of their current or intended operations or for any property owned, leased, or otherwise operated by any of them; (iii)
are, and within the period of all applicable statutes of limitation have been, in compliance with all of their Environmental Permits; and (iv) reasonably believe that: each of their Environmental Permits will be timely renewed and complied with,
without material expense; any additional Environmental Permits that may be required of any of them will be timely obtained and complied with, without material expense; and compliance with any Environmental Law that is or is expected to become
applicable to any of them will be timely attained and maintained, without material expense.



(b) Materials of Environmental Concern are not present at, on, under, in, or about any real property now or formerly owned, leased or operated by the Borrower or any of its Subsidiaries, or at any other location
(including, without limitation, any location to which Materials of Environmental Concern have been sent for re-use or recycling or for treatment, storage, or disposal) which could reasonably be expected to (i) give rise to liability of the



28



---

Borrower or any of its Subsidiaries in excess of 250,000 in the aggregate under any applicable Environmental Law or
otherwise result in costs in excess of 250,000 in the aggregate to the Borrower or any of its Subsidiaries, or (ii) interfere with the Borrowers or any of its Subsidiaries continued operations, or (iii) impair the fair saleable
value of any real property owned or leased by the Borrower or any of its Subsidiaries.



(c) There is no judicial, administrative, or arbitral proceeding (including any notice of violation or alleged violation) under or relating to any Environmental Law to which the Borrower or any of its Subsidiaries is,
or to the knowledge of the Borrower or any of its Subsidiaries will be, named as a party that is pending or, to the knowledge of the Borrower or any of its Subsidiaries, threatened.



(d) Neither the Borrower nor any of its Subsidiaries has received any written request for information, or been notified that
it is a potentially responsible party under or relating to any Environmental Law, or with respect to any Materials of Environmental Concern.



(e) Neither the Borrower nor any of its Subsidiaries has entered into or agreed to any consent decree, order, or settlement or other agreement, or is
subject to any judgment, decree, or order or other agreement, in any judicial, administrative, arbitral, or other forum for dispute resolution, relating to compliance with or liability under any Environmental Law.



(f) Neither the Borrower nor any of its Subsidiaries has assumed or retained,
by contract or operation of law, any liabilities of any kind, fixed or contingent, known or unknown, under any Environmental Law or with respect to any Material of Environmental Concern.



3.18 Accuracy of Information, etc. No statement or information contained in this Agreement, any other Loan Document
or any other document, certificate or statement furnished to the Administrative Agent or the Lenders or any of them, by or on behalf of any Loan Party for use in connection with the transactions contemplated by this Agreement or the other Loan
Documents, contained as of the date such statement, information, document or certificate was so furnished, any untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements contained herein or
therein not misleading. The projections and pro forma financial information contained in the materials referenced above are based upon good faith estimates and assumptions believed by management of the Borrower to be reasonable at the time
made, it being recognized by the Lenders that such financial information as it relates to future events is not to be viewed as fact and that actual results during the period or periods covered by such financial information may differ from the
projected results set forth therein by a material amount. There is no fact known to any Loan Party that could reasonably be expected to have a Material Adverse Effect that has not been expressly disclosed herein, in the other Loan Documents or in
any other documents, certificates and statements furnished to the Agents and the Lenders for use in connection with the transactions contemplated hereby and by the other Loan Documents.



3.19 Security Documents. The Security Documents are effective to create in favor of the Administrative Agent, for the
benefit of the Secured Parties, a legal, valid and enforceable security interest in the Collateral described therein and proceeds thereof. In the case of the



29



---

Pledged Stock described in the Pledge Agreement, when any stock certificates representing such Pledged Stock are
delivered to the Administrative Agent and the Borrower is notified of the pledge of such Pledged Stock, such pledge of the Pledged Stock shall constitute a fully perfected Lien on, and security interest in, all right, title and interest of StyroChem
Europe in such Collateral and the proceeds thereof in accordance with the Pledge Agreement, as security for the Obligations, in each case prior and superior in right to any other Person. In the case of the floating charges described in the Security
Agreement, when, in accordance with the Security Agreement, (x) the floating charge promissory notes numbered 1-7 have been delivered to the Senior Lender, (y) the floating charge promissory notes numbered 10-13 have been issued and such notes have
been registered in the Finnish Business Mortgage Register, and (z) the floating charge promissory notes numbered 8-13 have been delivered to the Administrative Agent, then the floating charges established in favor of the Administrative Agent
pursuant to the Security Agreement shall be perfected, as security for the Obligations prior and superior in right to any other Person (except, in the case of Collateral other than Pledged Stock, Senior Liens and Liens permitted by Section 6.3) and
in an insolvency of the Borrower shall convey to the Administrative Agent the priority ranking afforded by Finnish law, subject to the Intercreditor Agreement.



3.20 Solvency. Each Loan Party is, and after giving effect to the incurrence of all Indebtedness and obligations being incurred in connection
herewith and therewith will be and will continue to be, solvent.



3.21 Equity Loan Agreement. The equity loan under the Equity Loan Agreement is deemed and treated as equity (and not debt) in the Borrowers financial statements and under applicable accounting rules and regulations.



ARTICLE IV - CONDITIONS PRECEDENT



4.1 Conditions to the Term Loan. The agreement of each Lender to make
the Term Loans requested to be made by it hereunder is subject to the satisfaction, prior to or concurrently with the making of such Term Loans on the Closing Date, of the following conditions precedent:



(a) Loan Documents. The Administrative Agent shall have received (i)
this Agreement, executed and delivered by a duly authorized officer of the Borrower, (ii) the Guarantee Agreement, executed and delivered by a duly authorized officer of Holdings, (iii) a Term Loan Note issued to each Lender, executed and delivered
by a duly authorized officer of the Borrower, (iv) the Intercreditor Agreement, executed and delivered by a duly authorized officer of each party thereto, (v) the Security Agreement, executed and delivered by a duly authorized officer of the
Borrower, and (vi) the Pledge Agreement, executed and delivered by a duly authorized officer of the StyroChem Europe, in each case in form and substance satisfactory to the Administrative Agent.



(b) Pro Forma Balance Sheet; Financial Statements. The Administrative
Agent shall have received (i) the Pro Forma Balance Sheet, (ii) audited consolidated financial statements of the Borrower and its Subsidiaries for the fiscal year ended December 31, 2004, and (iii) unaudited interim consolidated financial statements
of the Borrower and its Subsidiaries for each fiscal month and quarterly period ended subsequent to December 31, 2004.



30



---

(c) Approvals. All governmental and third party approvals necessary in connection with the
continuing operations of the Borrower and its Subsidiaries and the transactions contemplated hereby shall have been obtained and be in full force and effect, and all applicable waiting periods shall have expired without any action being taken or
threatened by any competent authority which would restrain, prevent or otherwise impose adverse conditions on the financing contemplated hereby.



(d) Due Diligence. The Administrative Agent shall have completed its business, financial, accounting, insurance, environmental and legal due
diligence, with results satisfactory to the Administrative Agent.



(e) Termination of Existing Credit Agreement. The Administrative Agent shall have received evidence satisfactory to the Administrative Agent that the Existing Credit Agreement shall be simultaneously terminated, all amounts
thereunder shall be simultaneously paid in full and arrangements satisfactory to the Administrative Agent shall have been made for the termination of Liens and security interests granted in connection therewith.



(f) Fees. The Administrative Agent shall have received all fees
required to be paid under the Fee Letter, and all expenses for which invoices have been presented (including reasonable fees, disbursements and other charges of counsel to the Administrative Agent), on or before the Closing Date pursuant to the Loan
Documents. All such amounts will be paid with proceeds of Term Loans made on the Closing Date and will be reflected in the funds flow and direction letter given by the Borrower to the Administrative Agent on or before the Closing Date.



(g) Closing Date Projections. The Administrative Agent shall have
received satisfactory financial projections (the Closing Date Projections) for the period from the Closing Date through the Maturity Date, which shall contain the Borrowers anticipated balance sheets, income statements and
cash flow statements, on a consolidated basis for the Borrower and its Subsidiaries, (i) on a monthly basis for the period commencing on the Closing Date through the fiscal year ending December 31, 2006, and on an annual basis thereafter through the
third anniversary of the Closing Date.



(h) Security
Interest. The Administrative Agent shall have received security interests in the Collateral subject to no liens on any of the Collateral except for Senior Liens and Liens permitted by Section 6.3.



(i) Closing Certificate. The Administrative Agent shall have received
a certificate of each Loan Party, dated the Closing Date, substantially in the form of Exhibit C, with appropriate insertions and attachments.



(j) Legal Opinions. The Administrative Agent shall have received the following executed legal opinions:



(i) the legal opinion of Luostarinen, Mettala & Raikkonen, Finnish
counsel to the Loan Parties, substantially in the form of Exhibit F-1; and



(ii) the legal opinion of Duane Morris, counsel to Holdings, substantially in the form of Exhibit F-2.



31



---

Each such legal opinion shall cover such other matters incident to the transactions contemplated by this Agreement as the
Administrative Agent may reasonably require.



(k) Pledged
Stock; Stock Powers; Pledged Notes. The Administrative Agent shall have received (i) the certificates representing the shares of Capital Stock pledged pursuant to the Pledge Agreement, endorsed in blank by a duly authorized officer of the
pledgor thereof and (ii) floating charge promissory notes numbered 8-13 pledged pursuant to the Security Agreement endorsed (without recourse) in blank (or accompanied by an executed transfer form in blank satisfactory to the Administrative Agent)
by the pledgor thereof.



(l) [Intentionally Deleted].



(m) Filings, Registrations and Recordings. Each
document required by the Security Documents or under law or reasonably requested by the Administrative Agent to be filed, registered or recorded in order to create in favor of the Administrative Agent, for the benefit of the Secured Parties, a
perfected Lien on the Collateral described therein, prior and superior in right to any other Person (other than with respect to Senior Liens and Liens expressly permitted by Section 6.3), shall have been filed, registered or recorded or shall have
been delivered to the Administrative Agent be in proper form for filing, registration or recordation.



(n) Charter and Good Standing. The Administrative Agent shall have received in respect of each Loan Party, such Loan Partys (i) charter
documents, including all amendments thereto and (ii) good standing or equivalent certificates for such Loan Partys jurisdiction of incorporation and in each other jurisdiction where its ownership or lease of property or conduct of business
requires such Loan Party to be qualified to do business.



(o)
Insurance. The Administrative Agent shall have received satisfactory evidence that the insurance policies required by the Loan Documents are in full force and effect.



(p) No Material Adverse Effect. The Administrative Agent shall be satisfied that, prior to the Closing Date, there
has not occurred (i) any Material Adverse Change since December 31, 2004 or (ii) a material disruption of or material adverse change in the financial, banking or capital markets.



(q) [Intentionally Deleted].



(r) Representations and Warranties. Each of the representations and warranties made by any Loan Party in or pursuant to the Loan Documents shall
be true and correct on and as of such date as if made on and as of such date, unless such representation and warranty expressly relates to an earlier date, in which case such representation and warranty shall be true and correct as of such earlier
date.



(s) No Default. No Default or Event of Default
shall have occurred and be continuing on such date or after giving effect to the extensions of credit requested to be made on such date.



(t) Senior Credit Agreement. At the time of making such Term Loan, and immediately after giving effect thereto, (i) the commitments under the
Senior Credit Agreement



32



---

shall be for an amount not greater than 5,000,000 and (ii) there shall be 5,000,000 of availability under the
Senior Credit Agreement.



ARTICLE V - AFFIRMATIVE COVENANTS



The Borrower hereby agrees that, so long as the Term Loan
Commitments remain in effect or any Term Loan or other amount is owing to any Lender or the Administrative Agent hereunder, the Borrower shall and shall cause each of its Subsidiaries to:



5.1 Financial Statements. Furnish to the Administrative Agent and
each Lender:



(a) as soon as available, but in any event
within 90 days after the end of each fiscal year of the Borrower, a copy of the audited consolidated balance sheet of the Borrower and its consolidated Subsidiaries as at the end of such year and the related audited consolidated statements of income
and of cash flows for such year, setting forth in each case in comparative form the figures as of the end of and for the previous year, reported on without a going concern or like qualification or exception, or qualification arising out
of the scope of the audit, by KPMG Oy Ab or other independent certified public accountants of nationally recognized standing;



(b) as soon as available, but in any event not later than 45 days after the end of each of the first three quarterly periods of each fiscal year of the
Borrower, the unaudited consolidated balance sheet of the Borrower and its consolidated Subsidiaries as at the end of such quarter and the related unaudited consolidated statements of income and of cash flows for such quarter and the portion of the
fiscal year through the end of such quarter, setting forth in each case in comparative form the figures as of the end of and for the corresponding period in the previous year, certified by a Responsible Officer as being fairly stated in all material
respects (subject to normal year-end audit adjustments); and



(c) as soon as available, but in any event not later than 30 days after the end of each month occurring during each fiscal year of the Borrower, the unaudited consolidated balance sheets of the Borrower and its Subsidiaries as at the end of
such month and the related unaudited consolidated statements of income and of cash flows for such month and the portion of the fiscal year through the end of such month, setting forth in each case in comparative form the figures as of the end of and
for the corresponding period in the previous year, certified by a Responsible Officer as being fairly stated in all material respects (subject to normal year-end audit adjustments);



all such financial statements to be complete and correct in all material respects and to be prepared in reasonable detail and in accordance
with GAAP applied consistently throughout the periods reflected therein and with prior periods (except as approved by such accountants or officer, as the case may be, and disclosed therein).



5.2 Certificates; Other Information. Furnish to the Administrative
Agent and each Lender:



(a) concurrently with the delivery of
the financial statements referred to in Section 5.1(a), a certificate of the independent certified public accountants reporting on such



33



---

financial statements stating that in making the examination necessary therefor no knowledge was obtained of any Default
or Event of Default, except as specified in such certificate (it being understood that such certificate shall be limited to the items that independent certified public accountants are permitted to cover in such certificates pursuant to their
professional standards and customs of the profession);



(b)
concurrently with the delivery of any financial statements pursuant to Section 5.1(a) and (b), (i) a Compliance Certificate (x) stating that, to the best of such Responsible Officers knowledge, each Loan Party during such period has observed
or performed all of its covenants and other agreements, and satisfied every condition, contained in this Agreement and the other Loan Documents to which it is a party to be observed, performed or satisfied by it, and that such Responsible Officer
has obtained no knowledge of any Default or Event of Default except as specified in such certificate and (y) containing all information and calculations necessary for determining compliance by the Borrower and its Subsidiaries with the provisions of
this Agreement referred to therein as of the last day of the fiscal quarter or fiscal year of the Borrower, as the case may be, and (ii) in the case of quarterly or annual financial statements, (x) to the extent not previously disclosed to the
Administrative Agent, a listing of where the Borrower keeps inventory or equipment and (y) any filings specified in such Compliance Certificate as being required to be delivered therewith;



(c) as soon as available, and in any event no later than 15 days prior to the
end of each fiscal year of the Borrower, a detailed consolidated monthly budget for the following fiscal year (including a projected consolidated balance sheet of the Borrower and its Subsidiaries as of the end of the following fiscal year, and the
related consolidated statements of projected cash flow and projected income), and copies of all budgets and financial projections provided to the Board of Directors of the Borrower, and, as soon as available, significant revisions, if any, of such
budget and projections with respect to such fiscal year (collectively, the Projections), which Projections shall in each case be accompanied by a certificate of a Responsible Officer stating that such Projections are based on
reasonable estimates, information and assumptions and that such Responsible Officer has no reason to believe that such Projections are incorrect or misleading in any material respect;



(d) (i) within 30 days after the end of each fiscal month of the Borrower, a narrative discussion and analysis of the
financial condition and results of operations of the Borrower and its Subsidiaries for such fiscal month and for the period from the beginning of the then current fiscal year to the end of such fiscal month, as compared to the portion of the
Projections covering such periods and to the comparable periods of the previous year; (ii) within 45 days after the end of each fiscal quarter of the Borrower, a narrative discussion and analysis of the financial condition and results of operations
of the Borrower and its Subsidiaries for such fiscal quarter and for the period from the beginning of the then current fiscal year to the end of such fiscal quarter, as compared to the portion of the Projections covering such periods and to the
comparable periods of the previous year; (iii) within 90 days after the end of each fiscal year of the Borrower, a narrative discussion and analysis of the financial condition and results of operations of the Borrower and its Subsidiaries for such
fiscal year, as compared to the portion of the Projections covering such period and to the comparable periods of the previous year.



34



---

(e) within 5 days after the same are sent, copies of all financial statements and reports that the
Borrower sends to the holders of any class of its debt securities;



(f) as soon as possible and in any event within 3 Business Days of obtaining knowledge thereof: (i) any development, event, or condition that, individually or in the aggregate with other developments, events or conditions, could reasonably
be expected to result in the payment by the Borrower and its Subsidiaries, in the aggregate, of a Material Environmental Amount; and (ii) any notice that any governmental authority may deny any application for an Environmental Permit sought by, or
revoke or refuse to renew any Environmental Permit held by, the Borrower; and



(g) promptly, such additional financial and other information as any Lender may from time to time reasonably request.



5.3 Payment of Obligations. Pay, discharge or otherwise satisfy at or before maturity or before they become delinquent, as the case may be, all its
material obligations of whatever nature, except where the amount or validity thereof is currently being contested in good faith by appropriate proceedings and reserves in conformity with GAAP with respect thereto have been provided on the books of
the Borrower or its Subsidiaries, as the case may be.



5.4
Conduct of Business and Maintenance of Existence, etc. (a) Preserve, renew and keep in full force and effect its corporate existence and take all reasonable action to maintain all rights, privileges and franchises necessary or desirable in
the normal conduct of its business, except, in each case, as otherwise permitted by Section 6.4; and (b) comply with all Contractual Obligations and Requirements of Law, except to the extent that failure to comply therewith could not, in the
aggregate, reasonably be expected to have a Material Adverse Effect.



5.5 Maintenance of Property; Insurance. (a) Keep all Property and systems useful and necessary in its business in good working order and condition, ordinary wear and tear excepted and (b) maintain with financially sound and reputable
insurance companies insurance on all its Property in at least such amounts and against at least such risks (but including in any event public liability, product liability and business interruption) as are usually insured against in the same general
area by companies engaged in the same or a similar business.



5.6 Inspection of Property; Books and Records; Discussions. (a) Keep proper books of records and account in which full, true and correct entries in conformity with GAAP and all Requirements of Law shall be made of all dealings and
transactions in relation to its business and activities and (b) permit representatives of any Lender to visit and inspect any of its properties and examine and make abstracts from any of its books and records at any reasonable time and to discuss
the business, operations, properties and financial and other condition of the Borrower and its Subsidiaries with officers and employees of the Borrower and its Subsidiaries and with its independent certified public accountants; provided that,
unless a Default or an Event of Default has occurred, the Lenders shall have access under clause (b) four times per year.



5.7 Notices. Promptly give notice to the Administrative Agent and each Lender of:



(a) the occurrence of any Default or Event of Default;



35



---

(b) any (i) default or event of default under any material Contractual Obligation of the Borrower or any
of its Subsidiaries or (ii) litigation, investigation or proceeding which may exist at any time between the Borrower or any of its Subsidiaries and any Governmental Authority, that in either case, if not cured or if adversely determined, as the case
may be, could reasonably be expected to have a Material Adverse Effect;



(c) any litigation or proceeding affecting the Borrower or any of its Subsidiaries in which the amount involved is 250,000 or more and not covered by insurance or in which injunctive or similar relief is sought; and



(d) any development or event that has had or could reasonably be expected to
have a Material Adverse Effect.



Each notice pursuant to this Section shall be
accompanied by a statement of a Responsible Officer setting forth details of the occurrence referred to therein and stating what action the Borrower or the relevant Subsidiary proposes to take with respect thereto.



5.8 Environmental Laws, etc. (a) Comply in all material respects with,
and ensure compliance in all material respects by all tenants and subtenants, if any, with, all applicable Environmental Laws, and obtain and comply in all material respects with and maintain, and ensure that all tenants and subtenants obtain and
comply in all material respects with and maintain, any and all licenses, approvals, notifications, registrations or permits required by applicable Environmental Laws.



(b) Conduct and complete all investigations, studies, sampling and testing, and all remedial, removal and other actions
required under Environmental Laws and promptly comply in all material respects with all lawful orders and directives of all Governmental Authorities regarding Environmental Laws.



5.9 Additional Collateral, etc. (a) With respect to any Property acquired after the Closing Date by the Borrower or
any of its Subsidiaries (other than (x) any Property described in paragraph (b) or paragraph (c) of this Section, and (y) any Property subject to a Lien expressly permitted by Section 6.3(g)) as to which the Administrative Agent, for the benefit of
the Secured Parties, does not have a perfected Lien, promptly (i) execute and deliver to the Administrative Agent such amendments to the Security Documents or such other documents as the Administrative Agent deems necessary or advisable to grant to
the Administrative Agent, for the benefit of the Secured Parties, a security interest in such Property and (ii) take all actions necessary or advisable to grant to the Administrative Agent, for the benefit of the Secured Parties, a perfected first
priority security interest in such Property, including without limitation, filings or recordings in such jurisdictions as may be required by the Security Documents or by law or as may be requested by the Administrative Agent.



(b) With respect to any fee interest in any real property acquired after the
Closing Date by the Borrower or any of its Subsidiaries (other than any such real property subject to a Lien expressly permitted by Section 6.3(g)), promptly (i) if requested by the Administrative Agent, execute and deliver a first priority mortgage
in favor of the Administrative Agent, for the benefit of the Secured Parties, covering such real property, in form and substance



36



---

reasonably satisfactory to the Administrative Agent, (ii) if requested by the Administrative Agent, provide the Lenders
with such other documents with respect to such real property and (iii) if requested by the Administrative Agent, deliver to the Administrative Agent legal opinions relating to the matters described above, which opinions shall be in form and
substance, and from counsel, reasonably satisfactory to the Administrative Agent.



(c) With respect to any new Subsidiary created or acquired after the Closing Date by the Borrower or any of its Subsidiaries, promptly (i) execute and deliver to the Administrative Agent such amendments to the
Security Documents as the Administrative Agent deems necessary or advisable to grant to the Administrative Agent, for the benefit of the Secured Parties, a perfected first priority security interest in the Capital Stock of such new Subsidiary that
is owned by the Borrower or any of its Subsidiaries, (ii) deliver to the Administrative Agent the certificates representing such Capital Stock, together with undated stock powers, in blank, executed and delivered by a duly authorized officer of the
Borrower or such Subsidiary, as the case may be, (iii) cause such new Subsidiary (A) to become a party to the Security Agreement and (B) to take such actions necessary or advisable to grant to the Administrative Agent for the benefit of the Secured
Parties a valid and perfected security interest in the Collateral described in the Security Agreement with respect to such new Subsidiary, including, without limitation, the filings and recordings in such jurisdictions as may be required by the
Security Documents or by law or as may be requested by the Administrative Agent, and (iv) if requested by the Administrative Agent, deliver to the Administrative Agent legal opinions relating to the matters described above, which opinions shall be
in form and substance, and from counsel, reasonably satisfactory to the Administrative Agent.



5.10 Further Assurances. From time to time execute and deliver, or cause to be executed and delivered, such additional instruments, certificates or documents, and take such actions, as the Administrative Agent
may reasonably request for the purposes of implementing or effectuating the provisions of this Agreement and the other Loan Documents, or of more fully perfecting or renewing the rights of the Administrative Agent and the Lenders with respect to the
Collateral (or with respect to any additions thereto or replacements or proceeds thereof or with respect to any other property or assets hereafter acquired by the Borrower or any Subsidiary which may be deemed to be part of the Collateral) pursuant
hereto or thereto. Upon the exercise by the Administrative Agent or any Lender of any power, right, privilege or remedy pursuant to this Agreement or the other Loan Documents which requires any consent, approval, recording, qualification or
authorization of any Governmental Authority, the Borrower will execute and deliver, or will cause the execution and delivery of, all applications, certifications, instruments and other documents and papers that the Administrative Agent or such
Lender may be required to obtain from the Borrower or any of its Subsidiaries for such governmental consent, approval, recording, qualification or authorization.



5.11 Hedging Agreements. Within 60 days of the Closing Date, the Borrower shall enter into Hedging Agreements, on
terms and with Derivative Counterparties acceptable to the Administrative Agent, to provide protection against (i) interest rates risks under this Agreement with respect to a notional amount of at least $13,000,000 and (ii) currency risks under this
Agreement with respect to a notional amount of at least $13,000,000.



37



---

5.12 Senior Credit Agreement. The Borrower shall prepay the revolving loans under the Senior
Credit Agreement so that on the last day of the fiscal year of each year and for the 29 consecutive day period immediately thereafter, there shall not be any revolving loans outstanding under the Senior Credit Agreement.



ARTICLE VI - NEGATIVE COVENANTS



The Borrower hereby agrees that, so long as the Term Loan Commitments remain
in effect or any Term Loan or other amount is owing to any Lender or the Administrative Agent hereunder, the Borrower shall not, and shall not permit any of its Subsidiaries to, directly or indirectly:



6.1 Financial Condition Covenants.



(a) Minimum Consolidated EBITDA. Permit Consolidated EBITDA of the
Borrower and its Subsidiaries as at the last day of any period of four consecutive fiscal quarters of the Borrower (or, if less, the number of full fiscal quarters subsequent to the Closing Date) ending with any fiscal quarter set forth below to be
less than the amount set forth below opposite such fiscal quarter:



|                   |  |                             |          
|------------------ |  | --------------------------- | ---------
|Fiscal Quarter     |  | Minimum Consolidated EBITDA
|June 30, 2005      |  | $                           | 826,000  
|September 30, 2005 |  | $                           | 2,015,200



(b) Maximum
Consolidated Leverage Ratio. Permit the Consolidated Leverage Ratio on each day of each fiscal quarter set forth below to exceed the ratio set forth below opposite such fiscal quarter:



|                   |  |                                    
|------------------ |  | -----------------------------------
|Fiscal Quarter     |  | Maximum Consolidated Leverage Ratio
|December 31, 2005  |  | 3.75 to 1                          
|March 31, 2006     |  | 3.75 to 1                          
|June 30, 2006      |  | 3.75 to 1                          
|September 30, 2006 |  | 3.75 to 1                          
|December 31, 2006  |  | 3.75 to 1                          
|March 31, 2007     |  | 3.75 to 1                          
|June 30, 2007      |  | 3.75 to 1                          
|September 30, 2007 |  | 3.75 to 1                          
|December 31, 2007  |  | 3.75 to 1                          
|March 31, 2008     |  | 3.75 to 1                          
|June 30, 2008      |  | 3.75 to 1                          



(c) Minimum
Consolidated Fixed Charge Coverage Ratio. Permit the Consolidated Fixed Charge Coverage Ratio for any period of four consecutive fiscal quarters of



38



---

the Borrower (or, if less, the number of full fiscal quarters subsequent to the Closing Date) ending with any fiscal
quarter set forth below to be less than the ratio set forth below opposite such fiscal quarter:



|                   |  |                                          
|------------------ |  | -----------------------------------------
|Fiscal Quarter     |  | Minimum Consolidated Fixed Coverage Ratio
|December 31, 2005  |  | 2.0 to 1                                 
|March 31, 2006     |  | 2.0 to 1                                 
|June 30, 2006      |  | 2.0 to 1                                 
|September 30, 2006 |  | 2.0 to 1                                 
|December 31, 2006  |  | 2.0 to 1                                 
|March 31, 2007     |  | 2.0 to 1                                 
|June 30, 2007      |  | 2.0 to 1                                 
|September 30, 2007 |  | 2.0 to 1                                 
|December 31, 2007  |  | 2.0 to 1                                 
|March 31, 2008     |  | 2.0 to 1                                 
|June 30, 2008      |  | 2.0 to 1                                 



6.2 Limitation on
Indebtedness. Create, incur, assume or suffer to exist any Indebtedness, except:



(a) Indebtedness of any Loan Party pursuant to any Loan Document;



(b) Indebtedness (including, without limitation, Capital Lease Obligations) secured by Liens permitted by Section 6.3(g) in an aggregate principal amount
not to exceed 500,000 in the aggregate during the term of this Agreement;



(c) Indebtedness under the Senior Credit Agreement and Derivative Agreement and any other derivative agreement entered into to hedge exposure under Section 5.11;



(d) Indebtedness outstanding on the date hereof and listed on Schedule
6.2(e);



(e) Guarantee Obligations made in the ordinary course
of business by the Borrower or any of its Subsidiaries of obligations of the Borrower or any Subsidiary Guarantor;



(f) Indebtedness consisting of intercompany loans made by Radnor Chemical to the Borrower in an aggregate amount not to exceed $5,000,000 during the term
of this Agreement; provided that (x) the obligations under such intercompany loans shall be subordinated to the Obligations of the Borrower hereunder in a manner reasonably satisfactory to the Administrative Agent; provided that regularly
scheduled principal and interest payments may be made on such debt in the absence of a Default or an Event of Default and (y) no Default or Event of Default has occurred (or would result therefrom at the time such loan is made); and



(g) Indebtedness under the Equity Loan Agreement.



39



---

6.3 Limitation on Liens. Create, incur, assume or suffer to exist any Lien upon any of its
Property, whether now owned or hereafter acquired, except for:



(a) Liens for taxes not yet due or which are being contested in good faith by appropriate proceedings, provided that adequate reserves with respect thereto are maintained on the books of the Borrower or its Subsidiaries, as the case
may be, in conformity with GAAP;



(b) carriers,
warehousemens, mechanics, materialmens, repairmens or other like Liens arising in the ordinary course of business which are not overdue for a period of more than 30 days or that are being contested in good faith by
appropriate proceedings;



(c) pledges or deposits in connection
with workers compensation, unemployment insurance and other social security legislation;



(d) deposits to secure the performance of bids, trade contracts (other than for borrowed money), leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature
incurred in the ordinary course of business;



(e) easements,
rights-of-way, restrictions and other similar encumbrances incurred in the ordinary course of business that, in the aggregate, are not substantial in amount and which do not in any case materially detract from the value of the Property subject
thereto or materially interfere with the ordinary conduct of the business of the Borrower or any of its Subsidiaries;



(f) Liens in existence on the date hereof listed on Schedule 6.3(f);



(g) Liens securing Indebtedness of the Borrower or any other Subsidiary incurred pursuant to Section 6.2(b) to finance the
acquisition of fixed or capital assets, provided that (i) such Liens shall be created not more than 90 days after the acquisition of such fixed or capital assets, (ii) such Liens do not at any time encumber any Property other than the
Property financed by such Indebtedness (and replacements thereof), and (iii) the amount of Indebtedness secured thereby is not increased;



(h) Liens created pursuant to the Security Documents;



(i) any interest or title of a lessor under any lease entered into by the Borrower or any other Subsidiary in the ordinary course of its business and
covering only the assets so leased; and



(j) the Senior Liens.



6.4 Limitation on Fundamental Changes. Enter into any
merger, consolidation or amalgamation, or liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution), or Dispose of all or substantially all of its Property or business, except that:



(a) any Subsidiary of the Borrower may be merged or consolidated with or
into the Borrower (providedthat the Borrower shall be the continuing or surviving corporation) or with or into any Subsidiary Guarantor (provided that (i) the Subsidiary Guarantor shall be the



40



---

continuing or surviving corporation or (ii) simultaneously with such transaction, the continuing or surviving corporation
shall become a Subsidiary Guarantor and the Borrower shall comply with Section 5.9 in connection therewith); and



(b) any Subsidiary of the Borrower may Dispose of any or all of its assets (upon voluntary liquidation or otherwise) to the Borrower or any Subsidiary
Guarantor.



6.5 Limitation on Disposition of Property.
Dispose of any of its Property (including, without limitation, receivables and leasehold interests), whether now owned or hereafter acquired, or, in the case of any Subsidiary, issue or sell any shares of such Subsidiarys Capital Stock to any
Person, except:



(a) the Disposition of obsolete or worn out
property or other property no longer used or useful in the business of the Borrower in the ordinary course of business; provided, that with respect to Dispositions in excess of 250,000 in the aggregate during the term of this Agreement,
the requirements of Section 2.6(b) are complied with in connection therewith.



(b) the sale of inventory in the ordinary course of business;



(c) Dispositions permitted by Section 6.4(b);



(d) the sale or issuance of any Subsidiarys Capital Stock to the Borrower or any Subsidiary Guarantor; and



(e) any Extraordinary Recovery Event referred to in clause (i) of the definition of Extraordinary Recovery Event, provided, that the requirements
of Section 2.6(b) are complied with in connection therewith.



6.6 Limitation on Restricted Payments. Declare or pay any dividend on, or make any payment on account of, or set apart assets for a sinking or other analogous fund for, the purchase, redemption, defeasance, retirement or other
acquisition of, any Capital Stock of the Borrower or any Subsidiary, whether now or hereafter outstanding, or make any other distribution in respect thereof, either directly or indirectly, whether in cash or property or in obligations of the
Borrower or any Subsidiary, or enter into any derivatives or other transaction with any financial institution, commodities or stock exchange or clearinghouse (a Derivatives Counterparty) obligating the Borrower or any Subsidiary
to make payments to such Derivatives Counterparty as a result of any change in market value of any such Capital Stock (collectively, Restricted Payments), except that any Subsidiary may make Restricted Payments to the Borrower or
any Subsidiary Guarantor.



6.7 Limitation on Capital
Expenditures. Make or commit to make any Capital Expenditure, except Capital Expenditures of the Borrower and its Subsidiaries in the ordinary course of business during each of the fiscal years set forth below not exceeding the amount set forth
below opposite such fiscal year:



41



---

|                  |  |                              |          
|----------------- |  | ---------------------------- | ---------
|Fiscal Year Ended |  | Maximum Capital Expenditures
|December 31, 2005 |  |                             | 1,000,000
|December 31, 2006 |  |                             | 1,000,000
|December 31, 2007 |  |                             | 1,000,000



6.8 Limitation on
Investments. Make any advance, loan, extension of credit (by way of guaranty or otherwise) or capital contribution to, or purchase any Capital Stock, bonds, notes, debentures or other debt securities of, or any assets constituting an ongoing
business from, or make any other investment in, any other Person (all of the foregoing, Investments), except:



(a) extensions of trade credit in the ordinary course of business;



(b) investments in Cash Equivalents;



(c) Investments arising in connection with the incurrence of Indebtedness permitted by Section 6.2(b) and (e);



(d) Investments (other than those relating to the incurrence of
Indebtedness permitted by Section 6.8(c)) by the Borrower or any of its Subsidiaries in the Borrower or any Person that, prior to such Investment, is a Subsidiary Guarantor;



(e) any purchase of all or a significant part of the assets of a business conducted by any other Person, or all or
substantially all of the assets constituting the business of a division, branch or other unit of operation of any other Person, consented to by the Required Lenders in their sole discretion;



(f) other Investments not exceeding 250,000 in the aggregate during the
term of this Agreement; and



(g) Investments arising in
connection with intercompany loans made by the Borrower to Holdings in an aggregate amount not to exceed $500,000 during the term of this Agreement; provided that (x) such intercompany loan shall be evidenced by a demand note and shall be pledged
and delivered to the Administrative Agent as additional collateral security for the Obligations.



6.9 Limitation on Payments of Debt Instruments, Modifications of Certain Agreements, etc.



(a) cancel any claim or Indebtedness owed to any of them except in the
ordinary course of business consistent with past practice;



(b) prepay, redeem, purchase, defease or otherwise satisfy prior to the scheduled maturity thereof in any manner, or make any payment in violation of any subordination terms of, any Indebtedness; provided, however, that the Borrower
and its Subsidiaries may (i) prepay the Obligations in accordance with the terms of this Agreement, (ii) make regularly scheduled or otherwise required repayments under the Senior Credit



42



---

Agreement and (iii) prepay Indebtedness under the Existing Credit Agreements with the proceeds of the Term Loan
hereunder;



(c) amend its certificate of incorporation (or
equivalent charter documents) in any manner determined by the Administrative Agent to be adverse to the Lenders;



(d) (i) amend, supplement or otherwise modify (pursuant to a waiver or otherwise) the terms and conditions of the Management Agreement in any manner that
would increase the amounts payable by the Borrower thereunder or (ii) otherwise amend, supplement or otherwise modify the terms and conditions of the Management Agreement in any manner determined by the Administrative Agent to be adverse to the
Lenders.



6.10 Limitation on Transactions with
Affiliates. Enter into any transaction, including, without limitation, any purchase, sale, lease or exchange of Property, the rendering of any service or the payment of any management, advisory or similar fees, with any Affiliate (other than
Holdings, the Borrower or any Subsidiary Guarantor) unless such transaction is (a) otherwise permitted under this Agreement, (b) in the ordinary course of business of the Borrower or such Subsidiary, as the case may be, and (c) upon fair and
reasonable terms no less favorable to the Borrower or such Subsidiary, as the case may be, than it would obtain in a comparable arms length transaction with a Person that is not an Affiliate. Notwithstanding the foregoing the Borrower and its
Subsidiaries may pay to Holdings fees and expenses pursuant to the Management Agreement in an aggregate amount not to exceed one-percent (1%) of the Borrowers revenue in any fiscal year, provided that, (i) no Default or Event of Default
has occurred and is continuing (or would result therefrom), (ii) the Borrower is in compliance with the financial covenants set forth in Section 6.1 hereto and (iii) the Borrower is in compliance with the covenants set forth in Section 6.9 hereto.



6.11 Limitation on Sales and Leasebacks. Enter into any
arrangement with any Person providing for the leasing by the Borrower or any Subsidiary of real or personal property which has been or is to be sold or transferred by the Borrower or such Subsidiary to such Person or to any other Person to whom
funds have been or are to be advanced by such Person on the security of such property or rental obligations of the Borrower or such Subsidiary.



6.12 Limitation on Changes in Fiscal Periods. Permit the fiscal year of the Borrower to end on a day other than December 31st or change the
Borrowers method of determining fiscal quarters.



6.13
Limitation on Negative Pledge Clauses. Enter into or suffer to exist or become effective any agreement that prohibits or limits the ability of the Borrower or any of its Subsidiaries to create, incur, assume or suffer to exist any Lien upon
any of its Property or revenues, whether now owned or hereafter acquired, to secure the Obligations, other than (a) this Agreement and the other Loan Documents, (b) any agreements with respect to the Senior Credit Agreement and (c) any agreements
governing any purchase money Liens or Capital Lease Obligations otherwise permitted hereby (in which case, any prohibition or limitation shall only be effective against the assets financed thereby).



43



---

6.14 Limitation on Restrictions on Subsidiary Distributions. Enter into or suffer to exist or
become effective any consensual encumbrance or restriction on the ability of any Subsidiary to (a) make Restricted Payments in respect of any Capital Stock of such Subsidiary held by, or pay any Indebtedness owed to, the Borrower or any other
Subsidiary, (b) make Investments in the Borrower or any other Subsidiary or (c) transfer any of its assets to the Borrower or any other Subsidiary, except for such encumbrances or restrictions existing under or by reason of (i) any restrictions
existing under the Loan Documents and (ii) any restrictions with respect to a Subsidiary imposed pursuant to an agreement that has been entered into in connection with the Disposition of all or substantially all of the Capital Stock or assets of
such Subsidiary.



6.15 Limitation on Lines of Business.
Enter into any business, either directly or through any Subsidiary, except for those businesses in which the Borrower and its Subsidiaries are engaged on the date of this Agreement or that are reasonably related thereto.



6.16 Limitation on Hedge Agreements. Enter into any Hedge Agreement
other than Hedge Agreements entered into in the ordinary course of business, and not for speculative purposes, to protect against changes in interest rates or foreign exchange rates.



ARTICLE VII - EVENTS OF DEFAULT



7.1 Events of Default.If any of the following events shall occur and be continuing:



(a) (i) The Borrower shall fail to pay any principal of any Term Loan when due in accordance with the terms hereof, or (ii)
the Borrower shall fail to pay any interest on any Term Loan or any other amount payable hereunder or under any other Loan Document within 5 days following the due date in accordance with the terms hereof or thereof; or



(b) Any representation or warranty made or deemed made by any Loan Party
herein or in any other Loan Document or that is contained in any certificate, document or financial or other statement furnished by it at any time under or in connection with this Agreement or any such other Loan Document shall prove to have been
inaccurate in any material respect on or as of the date made or deemed made or furnished; or



(c) Any Loan Party shall default in the observance or performance of any agreement contained in Section 5.4(a) (with respect to the Borrower only), Section 5.7(a) or Section 6; or



(d) Any Loan Party shall default in the observance or performance of any
other agreement contained in this Agreement or any other Loan Document (other than as provided in paragraphs (a) through (c) of this Section and other than the Guarantee Agreement), and such default shall continue unremedied for a period of 15 days;
or



(e) The Borrower or any of its Subsidiaries shall (i)
default in making any payment of any principal of any Indebtedness (including, without limitation, any Guarantee Obligation, but excluding the Term Loans) beyond the period of grace, if any, on the scheduled or original due date with respect
thereto; or (ii) default in making any payment of any interest on any such Indebtedness beyond the period of grace, if any, provided in the instrument or



44



---

agreement under which such Indebtedness was created; or (iii) default in the observance or performance of any other
agreement or condition relating to any such Indebtedness or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event shall occur or condition exist, the effect of which default or other event or condition
is to cause, or to permit the holder or beneficiary of such Indebtedness (or a trustee or agent on behalf of such holder or beneficiary) to cause, with the giving of notice if required, such Indebtedness to become due prior to its stated maturity or
to become subject to or mandatory offer to purchase by the obligor thereunder or (in the case of any such Indebtedness constituting a Guarantee Obligation) to become payable; provided, that a default, event or condition described in clause
(i), (ii) or (iii) of this paragraph (e) shall not at any time constitute an Event of Default unless, at such time, one or more defaults, events or conditions of the type described in clauses (i), (ii) and (iii) of this paragraph (e) shall have
occurred and be continuing with respect to Indebtedness the outstanding principal amount of which exceeds in the aggregate $250,000; or



(f) (i) Holdings, the Borrower or any of its Subsidiaries shall commence any case, proceeding or other action (A) under any existing or future law of any
jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking
reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts, or (B) seeking appointment of a receiver, trustee, custodian, conservator or other similar official for it or
for all or any substantial part of its assets, or Holdings, the Borrower or any of its Subsidiaries shall make a general assignment for the benefit of its creditors; or (ii) there shall be commenced against Holdings, the Borrower or any of its
Subsidiaries any case, proceeding or other action of a nature referred to in clause (i) above that (A) results in the entry of an order for relief or any such adjudication or appointment or (B) remains undismissed, undischarged or unbonded for a
period of 60 days; or (iii) there shall be commenced against Holdings, the Borrower or any of its Subsidiaries any case, proceeding or other action seeking issuance of a warrant of attachment, execution, distraint or similar process against all or
any substantial part of its assets that results in the entry of an order for any such relief that shall not have been vacated, discharged, or stayed or bonded pending appeal within 20 days from the entry thereof; or (iv) Holdings, the Borrower or
any of its Subsidiaries shall take any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clause (i), (ii), or (iii) above; or (v) Holdings, the Borrower or any of its Subsidiaries
shall generally not, or shall be unable to, or shall admit in writing its inability to, pay its debts as they become due; or



(g) One or more judgments or decrees shall be entered against the Borrower or any of its Subsidiaries involving for the Borrower and its Subsidiaries
taken as a whole a liability (not paid or fully covered by insurance as to which the relevant insurance company has acknowledged coverage) of 250,000 or more, and all such judgments or decrees shall not have been vacated, discharged, stayed or
bonded pending appeal within 15 days from the entry thereof; or



(h) Any of the Security Documents shall cease, for any reason (other than by reason of the express release thereof), to be in full force and effect, or any Loan Party or any Affiliate of any Loan Party shall so assert, or any Lien created
by any of the Security Documents



45



---

shall cease to be enforceable and of the same effect and priority purported to be created thereby; or



(i) The Guarantee Agreement shall cease, for any reason (other than by reason
of the express release thereof), to be in full force and effect or any Loan Party or any Affiliate of any Loan Party shall so assert; or



(j) Any Change of Control shall occur;



then, and in any such event, (A) if such event is an Event of Default specified in clause (i) or (ii) of paragraph (f) above, automatically the Term Loans hereunder (with
accrued interest thereon) and all other amounts owing under this Agreement and the other Loan Documents shall immediately become due and payable, and (B) if such event is any other Event of Default with the consent of the Required Lenders, the
Administrative Agent may, or upon the request of the Required Lenders, the Administrative Agent shall, by notice to the Borrower, declare the Term Loans hereunder (with accrued interest thereon) and all other amounts owing under this Agreement and
the other Loan Documents to be due and payable forthwith, whereupon the same shall immediately become due and payable.



ARTICLE VIII - THE ADMINISTRATIVE AGENT



8.1 Appointment. Each Lender hereby irrevocably designates and appoints the Administrative Agent as the agent of such Lender under this Agreement
and the other Loan Documents, and each Lender irrevocably authorizes the Administrative Agent, in such capacity, to take such action on its behalf under the provisions of this Agreement and the other Loan Documents and to exercise such powers and
perform such duties as are expressly delegated to the Administrative Agent by the terms of this Agreement and the other Loan Documents, together with such other powers as are reasonably incidental thereto. Notwithstanding any provision to the
contrary elsewhere in this Agreement, the Administrative Agent shall not have any duties or responsibilities, except those expressly set forth herein, or any fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against the Administrative Agent.



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



8.3
Exculpatory Provisions. Neither the Administrative Agent nor any of its officers, directors, employees, agents, attorneys-in-fact or affiliates shall be (i) liable for any action lawfully taken or omitted to be taken by it or such Person
under or in connection with this Agreement or any other Loan Document (except to the extent that any of the foregoing are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from its or such
Persons own gross negligence or willful misconduct) or (ii) responsible in any manner to any of the Lenders for any recitals, statements, representations or warranties made by



46



---

any Loan Party or any officer thereof contained in this Agreement or any other Loan Document or in any certificate,
report, statement or other document referred to or provided for in, or received by the Administrative Agent under or in connection with, this Agreement or any other Loan Document or for the value, validity, effectiveness, genuineness, enforceability
or sufficiency of this Agreement or any other Loan Document or for any failure of any Loan Party to perform its obligations hereunder or thereunder. The Administrative Agent shall not be under any obligation to any Lender to ascertain or to inquire
as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or records of any Loan Party.



8.4 Reliance by Administrative Agent. The Administrative Agent shall
be entitled to rely, and shall be fully protected in relying, upon any instrument, writing, resolution, notice, consent, certificate, affidavit, letter, telecopy, telex or teletype message, statement, order or other document or conversation believed
by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons and upon advice and statements of legal counsel (including, without limitation, counsel to the Loan Parties), independent accountants and other
experts selected by the Administrative Agent. The Administrative Agent may deem and treat the payee of any Term Loan Note as the owner thereof for all purposes unless such Term Loan Note shall have been transferred in accordance with Section 9.6 and
all actions required by such Section in connection with such transfer shall have been taken. The Administrative Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Loan Document unless it shall
first receive such advice or concurrence of the Required Lenders (or, if so specified by this Agreement, all Lenders or any other instructing group of Lenders specified by this Agreement) as it deems appropriate or it shall first be indemnified to
its satisfaction by the Lenders against any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action. The Administrative Agent shall in all cases be fully protected in acting, or in
refraining from acting, under this Agreement and the other Loan Documents in accordance with a request of the Required Lenders (or, if so specified by this Agreement, all Lenders or any other instructing group of Lenders specified by this
Agreement), and such request and any action taken or failure to act pursuant thereto shall be binding upon all the Lenders and all future holders of the Term Loans.



8.5 Notice of Default. The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of
any Default or Event of Default hereunder unless the Administrative Agent shall have received notice from a Lender or the Borrower referring to this Agreement, describing such Default or Event of Default and stating that such notice is a
notice of default. In the event that the Administrative Agent shall receive such a notice, the Administrative Agent shall give notice thereof to the Lenders. The Administrative Agent shall take such action with respect to such Default or
Event of Default as shall be reasonably directed by the Required Lenders (or, if so specified by this Agreement, all Lenders or any other instructing group of Lenders specified by this Agreement); provided that unless and until the
Administrative Agent shall have received such directions, the Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable
in the best interests of the Lenders.



8.6 Non-Reliance on
Administrative Agent and Other Lenders. Each Lender expressly acknowledges that neither the Administrative Agent nor any of its officers, directors,



47



---

employees, agents, attorneys-in-fact or affiliates have made any representations or warranties to it and that no act by
the Administrative Agent hereafter taken, including any review of the affairs of a Loan Party or any affiliate of a Loan Party, shall be deemed to constitute any representation or warranty by the Administrative Agent to any Lender. Each Lender
represents to the Administrative Agent that it has, independently and without reliance upon the Administrative Agent or any other Lender, and based on such documents and information as it has deemed appropriate, made its own appraisal of and
investigation into the business, operations, property, financial and other condition and creditworthiness of the Loan Parties and their affiliates and made its own decision to make its Term Loans hereunder and enter into this Agreement. Each Lender
also represents that it will, independently and without reliance upon the Administrative Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis,
appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigation as it deems necessary to inform itself as to the business, operations, property, financial and other condition
and creditworthiness of the Loan Parties and their affiliates. Except for notices, reports and other documents expressly required to be furnished to the Lenders by the Administrative Agent hereunder, the Administrative Agent shall not have any duty
or responsibility to provide any Lender with any credit or other information concerning the business, operations, property, condition (financial or otherwise), prospects or creditworthiness of any Loan Party or any affiliate of a Loan Party that may
come into the possession of the Administrative Agent or any of its officers, directors, employees, agents, attorneys-in-fact or affiliates.



8.7 Indemnification. The Lenders agree to indemnify the Administrative Agent in its capacity as such (to the extent not reimbursed by the Borrower
and without limiting the obligation of the Borrower to do so), ratably according to their respective Term Loan Percentages in effect on the date on which indemnification is sought under this Section (or, if indemnification is sought after the date
upon which the Term Loans shall have been paid in full, ratably in accordance with such Term Loan Percentages immediately prior to such date), for, and to save the Administrative Agent harmless from and against, any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever that may at any time (including, without limitation, at any time following the payment of the Term Loans) be imposed on, incurred by or
asserted against the Administrative Agent in any way relating to or arising out of, the Term Loans, this Agreement, any of the other Loan Documents or any documents contemplated by or referred to herein or therein or the transactions contemplated
hereby or thereby or any action taken or omitted by the Administrative Agent under or in connection with any of the foregoing; provided that no Lender shall be liable for the payment of any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements that are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from the Administrative Agents gross negligence or
willful misconduct. The agreements in this Section shall survive the payment of the Term Loans and all other amounts payable hereunder.



8.8 Administrative Agent in Its Individual Capacity. The Administrative Agent and its affiliates may make loans to, accept deposits from and
generally engage in any kind of business with any Loan Party as though the Administrative Agent were not the Administrative Agent. With respect to its Term Loans made or renewed by it, the Administrative Agent shall



48



---

have the same rights and powers under this Agreement and the other Loan Documents as any Lender and may exercise the same
as though it were not the Administrative Agent, and the terms Lender and Lenders shall include the Administrative Agent in its individual capacity.



8.9 Successor Administrative Agent. The Administrative Agent may resign as Administrative Agent upon 10 days
notice to the Lenders and the Borrower. If the Administrative Agent shall resign as Administrative Agent under this Agreement and the other Loan Documents, then the Required Lenders shall appoint a successor agent for the Lenders, which successor
agent shall (unless an Event of Default under Section 7.1(a) or Section 7.1(f) with respect to the Borrower shall have occurred and be continuing) be subject to approval by the Borrower (which approval shall not be unreasonably withheld or delayed),
whereupon such successor agent shall succeed to the rights, powers and duties of the Administrative Agent, and the term Administrative Agent shall mean such successor agent effective upon such appointment and approval, and the former
Administrative Agents rights, powers and duties as Administrative Agent shall be terminated, without any other or further act or deed on the part of such former Administrative Agent or any of the parties to this Agreement or any holders of the
Term Loans. If no successor agent has accepted appointment as Administrative Agent by the date that is 10 days following a retiring Administrative Agents notice of resignation, the retiring Administrative Agents resignation shall
nevertheless thereupon become effective, and the Lenders shall assume and perform all of the duties of the Administrative Agent hereunder until such time, if any, as the Required Lenders appoint a successor agent as provided for above. After any
retiring Administrative Agents resignation as Administrative Agent, the provisions of this Section 8 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was the Administrative Agent under this Agreement and
the other Loan Documents.



8.10 Authorization to Release
Liens and Guarantees. The Administrative Agent is hereby irrevocably authorized by each of the Lenders to effect any release of Liens or guarantee obligations contemplated by Loan Documents.



ARTICLE IX - MISCELLANEOUS



9.1 Amendments and Waivers. Neither this Agreement or any other Loan
Document, nor any terms hereof or thereof may be amended, supplemented or modified except in accordance with the provisions of this Section 9.1. The Required Lenders and each Loan Party party to the relevant Loan Document may, or (with the written
consent of the Required Lenders) the Administrative Agent and each Loan Party party to the relevant Loan Document may, from time to time, (a) enter into written amendments, supplements or modifications hereto and to the other Loan Documents
(including amendments and restatements hereof or thereof) for the purpose of adding any provisions to this Agreement or the other Loan Documents or changing in any manner the rights of the Lenders or of the Loan Parties hereunder or thereunder or
(b) waive, on such terms and conditions as may be specified in the instrument of waiver, any of the requirements of this Agreement or the other Loan Documents or any Default or Event of Default and its consequences; provided, however,
that no such waiver and no such amendment, supplement or modification shall:



| | (i) | forgive the principal amount or extend the final scheduled date of maturity of any Term Loan, reduce the stated rate of any interest or
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------



49



---

fee payable hereunder or extend the scheduled date of any payment thereof, or increase the amount or
extend the expiration date of any Term Loan Commitment of any Lender; require additional consents to be obtained with respect to the sale or any assignment or participations of any interests of the Lenders hereunder, in each case without the consent
of each Lender directly affected thereby;



| | (ii) | amend, modify or waive any provision of this Section, or reduce any percentage specified in or otherwise amend or modify the definition of Required Lenders, consent to the
assignment or transfer by the Borrower of any of its rights and obligations under this Agreement and the other Loan Documents, release all or substantially all of the Collateral or release all or substantially all of Holdings or the Subsidiary
Guarantors from their guarantee obligations, in each case without the consent of all Lenders;
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iii) | amend, modify or waive any provision of Section 8, or any other provision of this Agreement affecting the rights and obligations of the Administrative Agent, without the consent of
the Administrative Agent; or
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (iv) | amend, modify or waive any provision of Section 2.10 without the consent of each Lender directly affected thereby.
| | ---- | ------------------------------------------------------------------------------------------------------------------



Any such waiver and any such amendment, supplement or modification shall apply equally to
each of the Lenders and shall be binding upon the Loan Parties, the Lenders, the Administrative Agent and all future holders of the Term Loans. In the case of any waiver, the Loan Parties, the Lenders and the Administrative Agent shall be restored
to their former position and rights hereunder and under the other Loan Documents, and any Default or Event of Default waived shall be deemed to be cured and not continuing; but no such waiver shall extend to any subsequent or other Default or Event
of Default, or impair any right consequent thereon. Any such waiver, amendment, supplement or modification shall be effected by a written instrument signed by the parties required to sign pursuant to the foregoing provisions of this Section;
provided, that delivery of an executed signature page of any such instrument by facsimile transmission shall be effective as delivery of a manually executed counterpart thereof.



9.2 Notices. All notices, requests and demands to or upon the respective parties hereto to be effective shall be in
writing (including by telecopy), and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered, or three Business Days after being deposited in the mail, postage prepaid, or, in the case of telecopy
notice, when received, addressed (a) in the case of the Borrower, the Administrative Agent, as follows, (b) in the case of a Lender which becomes a party to this Agreement pursuant to an Assignment and Acceptance, in such Assignment and Acceptance
or (c) in the case of any party, to such other address as such party may hereafter notify to the other parties hereto:



50



---

|                          |  |                                                           
|------------------------- |  | ----------------------------------------------------------
|The Borrower:             |  | StyroChem Finland Oy                                      
|                          |  | P.O. Box 360                                              
|                          |  | FIN-06101 Porvoo, Finland                                 
|                          |  | Attention: Henrik Akermark                                
|                          |  | Telecopy: (358) 19-541-8232                               
|                          |  | Telephone: (358) 19-541-8230                              
|                          | 
|with a copy to:           |  | Radnor Holdings Corporation                               
|                          |  | Radnor Financial Center                                   
|                          |  | 150 Radnor Chester Road                                   
|                          |  | Suite A 300                                               
|                          |  | Radnor, PA 19087-5292                                     
|                          |  | Attention: R. Radcliffe Hastings, Executive Vice President
|                          |  | Telecopy: (610) 995-2697                                  
|                          |  | Telephone: (610) 995-2568                                 
|                          | 
|The Administrative Agent: |  | Guggenheim Corporate Funding, LLC                         
|                          |  | 135 East 57th Street                                      
|                          |  | New York, New York 10022                                  
|                          |  | Attention: Adrian Duffy/Kaitlin Trinh                     
|                          |  | Telecopy: (212) 644-8107                                  
|                          |  | Telephone: (212) 739-9282                                 



provided that any notice,
request or demand to or upon the Administrative Agent or any other Lender shall not be effective until received.



9.3 No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of the Administrative Agent or any Lender, any
right, remedy, power or privilege hereunder or under the other Loan Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.



9.4 Survival of Representations and Warranties. All representations
and warranties made herein, in the other Loan Documents and in any document, certificate or statement delivered pursuant hereto or in connection herewith shall survive the execution and delivery of this Agreement and the making of the Term Loans and
other extensions of credit hereunder.



9.5 Payment of
Expenses. The Borrower agrees (a) to pay or reimburse the Lenders and the Administrative Agent for all their reasonable out-of-pocket costs and expenses incurred in connection with the syndication of the Term Loans and the development,
preparation and execution of, and any amendment, supplement or modification to, this Agreement and the other Loan Documents and any other documents prepared in connection herewith or therewith, and the



51



---

consummation and administration of the transactions contemplated hereby and thereby, including, without limitation, the
reasonable fees and disbursements and other charges of counsel to the Lenders and the Administrative Agent, (b) to pay or reimburse each Lender and the Administrative Agent for all their costs and expenses incurred in connection with the enforcement
or preservation of any rights under this Agreement, the other Loan Documents and any other documents prepared in connection herewith or therewith, including, without limitation, the fees and disbursements of counsel to each Lender and of counsel to
the Administrative Agent, (c) to pay, indemnify, or reimburse each Lender and the Administrative Agent for, and hold each Lender and the Administrative Agent harmless from, any and all recording and filing fees and any and all liabilities with
respect to, or resulting from any delay in paying, stamp, excise and other taxes, if any, which may be payable or determined to be payable in connection with the execution and delivery of, or consummation or administration (with respect to
administration, subject to the Fee Letter) of any of the transactions contemplated by, or any amendment, supplement or modification of, or any waiver or consent under or in respect of, this Agreement, the other Loan Documents and any such other
documents and (d) to pay, indemnify or reimburse each Lender, the Administrative Agent, their respective affiliates, and their respective officers, directors, trustees, employees, advisors, agents and controlling persons (each, an
Indemnitee) for, and hold each Indemnitee harmless from and against any and all other liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever with respect to the execution, delivery, enforcement, performance and administration of this Agreement, the other Loan Documents and any such other documents, including, without limitation, any of the foregoing relating to the use of
proceeds of the Loans or the violation of, noncompliance with or liability under, any Environmental Law applicable to the operations of the Borrower or any of its Subsidiaries or any of their Properties and the fees and disbursements and other
charges of legal counsel in connection with claims, actions or proceedings by any Indemnitee against the Borrower hereunder (all the foregoing in this clause (d), collectively, the Indemnified Liabilities), provided, that
(i) subject to subclause (ii) below, the Borrower shall have no obligation hereunder to any Indemnitee with respect to Indemnified Liabilities to the extent such Indemnified Liabilities are found by a final and nonappealable decision of a court of
competent jurisdiction to have resulted solely from the gross negligence or willful misconduct of such Indemnitee and (ii) with respect to Indemnified Liabilities relating to the violation of, noncompliance with or liability under, any Environmental
Law applicable to the operations of the Borrower or any of its Subsidiaries or any of their Properties (collectively, the Environmental Indemnified Liabilities), (A) prior to the Indemnitees removal from possession of any of
the Properties as a result of foreclosure, appointment of a receiver, deed in lieu of foreclosure or otherwise (collectively, the Removal Event), the Borrower shall have no obligation hereunder to any Indemnitee with respect to
Environmental Indemnified Liabilities to the extent such Environmental Indemnified Liabilities are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted solely from the gross negligence or willful
misconduct of such Indemnitee and (B) subsequent to the Removal Event, the Borrower shall have no obligation hereunder to any Indemnitee with respect to Environmental Indemnified Liabilities to the extent such Environmental Indemnified Liabilities
are found by a final and nonappealable decision of a court of competent jurisdiction to have resulted solely from the negligence or willful misconduct of such Indemnitee. Without limiting the foregoing, and to the extent permitted by applicable law,
the Borrower agrees not to assert and to cause its



52



---

Subsidiaries not to assert, and hereby waives and agrees to cause its Subsidiaries so to waive, all rights for
contribution or any other rights of recovery with respect to all claims, demands, penalties, fines, liabilities, settlements, damages, costs and expenses of whatever kind or nature, under or related to Environmental Laws, that any of them might have
by statute or otherwise against any Indemnitee for any Indemnified Liabilities. All amounts due under this Section shall be payable not later than 30 days after written demand therefor. Statements payable by the Borrower pursuant to this Section
shall be submitted to the Borrower at the address of the Borrower set forth in Section 9.2, or to such other Person or address as may be hereafter designated by the Borrower in a notice to the Administrative Agent. The agreements in this Section
shall survive repayment of the Term Loans and all other amounts payable hereunder.



9.6 Successors and Assigns; Participations and Assignments. (a) This Agreement shall be binding upon and inure to the benefit of the Borrower, the Lenders, the Administrative Agent, all future holders of the
Term Loans and their respective successors and assigns, except that the Borrower may not assign or transfer any of its rights or obligations under this Agreement without the prior written consent of the Administrative Agent and each Lender.



(b) Any Lender may, without the consent of the Borrower, in
accordance with applicable law, at any time sell to one or more banks, financial institutions or other entities (each, a Participant) participating interests in any Term Loan owing to such Lender or any other interest of such
Lender hereunder and under the other Loan Documents. In the event of any such sale by a Lender of a participating interest to a Participant, such Lenders obligations under this Agreement to the other parties to this Agreement shall remain
unchanged, such Lender shall remain solely responsible for the performance thereof, such Lender shall remain the holder of any such Term Loan for all purposes under this Agreement and the other Loan Documents, and the Borrower and the Administrative
Agent shall continue to deal solely and directly with such Lender in connection with such Lenders rights and obligations under this Agreement and the other Loan Documents. In no event shall any Participant under any such participation have any
right to approve any amendment or waiver of any provision of any Loan Document, or any consent to any departure by any Loan Party therefrom, except to the extent that such amendment, waiver or consent would require the consent of all Lenders
pursuant to Section 9.1. The Borrower agrees that if amounts outstanding under this Agreement and the Term Loans are due or unpaid, or shall have been declared or shall have become due and payable upon the occurrence of an Event of Default, each
Participant shall, to the maximum extent permitted by applicable law, be deemed to have the right of setoff in respect of its participating interest in amounts owing under this Agreement to the same extent as if the amount of its participating
interest were owing directly to it as a Lender under this Agreement, provided that, in purchasing such participating interest, such Participant shall be deemed to have agreed to share with the Lenders the proceeds thereof as provided in
Section 9.7(a) as fully as if such Participant were a Lender hereunder. The Borrower also agrees that each Participant shall be entitled to the benefits of Sections 2.11 and 2.12 with respect to its participation in the Term Loans outstanding from
time to time as if such Participant were a Lender; provided that, in the case of Section 2.12, such Participant shall have complied with the requirements of said Section, and provided, further, that no Participant shall be
entitled to receive any greater amount pursuant to any such Section than the transferor Lender would have been entitled to receive in respect of the amount of the participation transferred by such transferor Lender to such Participant had no such
transfer occurred.



53



---

(c) Any Lender (an Assignor) may, in accordance with applicable law and upon written
notice to the Administrative Agent, at any time and from time to time assign to any Eligible Assignee or, with the consent of the Administrative Agent and the Borrower (which, in each case, shall not be unreasonably withheld or delayed), to an
additional bank, financial institution or other entity (each, an Assignee) all or any part of its rights and obligations under this Agreement pursuant to an Assignment and Acceptance, substantially in the form of Exhibit E (an
Assignment and Acceptance), executed by such Assignee and such Assignor (and, where the consent of the Administrative Agent and the Borrower is required pursuant to the foregoing provisions, by the Administrative Agent and the
Borrower) and delivered to the Administrative Agent for its acceptance and recording in the Register; provided that (i) no such assignment to an Assignee (other than any Lender or any Affiliate, Related Fund or Control Investment Affiliate
thereof) shall be in an aggregate principal amount of less than $1,000,000 (other than in the case of an assignment of all of a Lenders interests under this Agreement), unless otherwise agreed by the Administrative Agent, (ii) no such
assignment shall be made to any bank, financial institution or other entity listed on Schedule 9.6(c) without the consent of the Borrower and (iii) with respect to any amounts payable under Section 2.11 or Section 2.12 that existed on the date of
the assignment, the Assignee shall not be entitled to receive any greater amount pursuant to such Sections than the Assignees Assignor would have been entitled to receive with respect to the interests, rights and obligations transferred by
such Assignor to the Assignee had such assignment not occurred. Upon such execution, delivery, acceptance and recording, from and after the effective date determined pursuant to such Assignment and Acceptance, (x) the Assignee thereunder shall be a
party hereto and, to the extent provided in such Assignment and Acceptance, have the rights and obligations of a Lender hereunder with the Term Loans as set forth therein, and (y) the Assignor thereunder shall, to the extent provided in such
Assignment and Acceptance, be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all of an Assignors rights and obligations under this Agreement, such Assignor shall cease to be a
party hereto, except as to Section 2.11, 2.12 and 9.5 in respect of the period prior to such effective date). For purposes of the minimum assignment amounts set forth in this paragraph, multiple assignments by two or more Related Funds shall be
aggregated. Notwithstanding any provision of this Section, the consent of the Borrower shall not be required for any assignment that occurs at any time when any Event of Default shall have occurred and be continuing.



(d) The Administrative Agent shall, on behalf of the Borrower, maintain at
its address referred to in Section 9.2 a copy of each Assignment and Acceptance delivered to it and a register (the Register) for the recordation of the names and addresses of the Lenders and the Commitment of, and principal
amount of the Term Loans owing to, each Lender from time to time. The entries in the Register shall be conclusive, in the absence of manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is
recorded in the Register as the owner of the Term Loans and any Term Loan Notes evidencing such Term Loans recorded therein for all purposes of this Agreement. Any assignment of any Term Loan, whether or not evidenced by a Term Loan Note, shall be
effective only upon appropriate entries with respect thereto being made in the Register (and each Term Loan Note shall expressly so provide). Any assignment or transfer of all or part of a Term Loan evidenced by Term Loan Note shall be registered on
the Register only upon surrender for registration of assignment or transfer of the Term Loan Note evidencing such Term Loan, accompanied by a duly executed Assignment and Acceptance; thereupon one or more new Term Loan Notes in the



54



---

same aggregate principal amount shall be issued to the designated Assignee, and the old Term Loan Notes shall be returned
by the Administrative Agent to the Borrower marked canceled. The Register shall be available for inspection by the Borrower or any Lender (with respect to any entry relating to such Lenders Term Loans) at any reasonable time and
from time to time upon reasonable prior notice.



(e) Upon its
receipt of an Assignment and Acceptance executed by an Assignor and an Assignee (and, in any case where the consent of any other Person is required by Section 9.6(c), by each such other Person) together with payment to the Administrative Agent of a
registration and processing fee of $3,500 (treating multiple, simultaneous assignments by or to two or more Related Funds as a single assignment) (except that no such registration and processing fee shall be payable in the case of an Assignee which
is already a Lender or is an affiliate or Related Fund of a Lender or a Person under common management with a Lender), the Administrative Agent shall (i) promptly accept such Assignment and Acceptance and (ii) on the effective date determined
pursuant thereto record the information contained therein in the Register and give notice of such acceptance and recordation to the Borrower. On or prior to such effective date, the Borrower, at its own expense, upon request, shall execute and
deliver to the Administrative Agent (in exchange for the Term Loan Note of the assigning Lender) a new Term Loan Note to the order of such Assignee in an amount equal to the Term Loan assumed or acquired by it pursuant to such Assignment and
Acceptance and, if the Assignor has retained a Term Loan, upon request, a new Term Loan Note to the order of the Assignor in an amount equal to the Term Loan retained by it hereunder. Such new Term Loan Note or Term Loan Notes shall be dated the
Closing Date and shall otherwise be in the form of the Term Loan Note or Term Loan Notes replaced thereby.



(f) For avoidance of doubt, the parties to this Agreement acknowledge that the provisions of this Section concerning assignments of Term Loans and Term
Loan Notes relate only to absolute assignments and that such provisions do not prohibit assignments creating security interests in Term Loans and Term Loan Notes, including, without limitation, any pledge or assignment by a Lender of any Term Loan
or Term Loan Note to any Federal Reserve Bank in accordance with applicable law.



9.7 Adjustments; Set-off. (a) If any Lender (a Benefited Lender) shall at any time receive any payment of all or part of the Obligations owing to it, or receive any collateral in respect
thereof (whether voluntarily or involuntarily, by set-off, pursuant to events or proceedings of the nature referred to in Section 7.1(f), or otherwise), in a greater proportion than any such payment to or collateral received by any other Lender, if
any, in respect of such other Lenders Obligations, such Benefited Lender shall purchase for cash from the other Lenders a participating interest in such portion of each such other Lenders Obligations, or shall provide such other Lenders
with the benefits of any such collateral, as shall be necessary to cause such Benefited Lender to share the excess payment or benefits of such collateral ratably with each of the Lenders; provided, however, that if all or any portion
of such excess payment or benefits is thereafter recovered from such Benefited Lender, such purchase shall be rescinded, and the purchase price and benefits returned, to the extent of such recovery, but without interest.



(b) In addition to any rights and remedies of the Lenders provided by law,
each Lender shall have the right, without prior notice to the Borrower, any such notice being



55



---

expressly waived by the Borrower to the extent permitted by applicable law, upon any amount not being paid when due by
the Borrower hereunder (whether at the stated maturity, by acceleration or otherwise), to set off and appropriate and apply against such amount any and all deposits (general or special, time or demand, provisional or final), in any currency, and any
other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by such Lender or any branch or agency thereof to or for the credit or the
account of the Borrower. Each Lender agrees promptly to notify the Borrower and the Administrative Agent after any such setoff and application made by such Lender, provided that the failure to give such notice shall not affect the validity of
such setoff and application.



9.8 Counterparts. This
Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed
signature page of this Agreement by facsimile transmission shall be effective as delivery of a manually executed counterpart hereof. A set of the copies of this Agreement signed by all the parties shall be lodged with the Borrower and the
Administrative Agent.



9.9 Severability. Any provision
of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.



9.10 Integration. This Agreement and the other Loan Documents represent the entire agreement of the Borrower, the Administrative Agent and the
Lenders with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Administrative Agent or any Lender relative to subject matter hereof not expressly set forth or referred to
herein or in the other Loan Documents.



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



9.12 Submission To Jurisdiction; Waivers.



(a) The Borrower hereby irrevocably and unconditionally submits for itself
and its Property in any legal action or proceeding relating to this Agreement and the other Loan Documents to which it is a party, to the exclusive jurisdiction of the courts of England to settle any dispute arising out of or in connection with this
Agreement or any other Loan Document;



(b) The Borrower hereby
irrevocably and unconditionally agrees that the courts of England are the most appropriate and convenient courts to settle disputes and accordingly the Borrower will not argue to the contrary;



(c) The Borrower hereby irrevocably and unconditionally consents that any
such action or proceeding may be brought in such courts and waives any objection that it may



56



---

now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding
was brought in an inconvenient court and agrees not to plead or claim the same;



(d) agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to the
Borrower at its address set forth in Section 9.2 or at such other address of which the Administrative Agent shall have been notified pursuant thereto;



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



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



(g) This Section 9.12 is for the benefit of the Administrative Agent and the Lenders only. As a result, neither the
Administrative Agent nor any Lender shall be prevented from taking proceedings relating to a dispute in any other courts with jurisdiction. To the extent allowed by law, the Administrative Agent and the Lenders may take concurrent proceedings in any
number of jurisdictions.



9.13 Acknowledgments. The
Borrower hereby acknowledges that:



(a) it has been advised by
counsel in the negotiation, execution and delivery of this Agreement and the other Loan Documents;



(b) neither the Administrative Agent nor any Lender has any fiduciary relationship with or duty to the Borrower arising out of or in connection with this
Agreement or any of the other Loan Documents, and the relationship between the Administrative Agent and the Lenders, on one hand, and the Borrower, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and



(c) no joint venture is created hereby or by the other Loan
Documents or otherwise exists by virtue of the transactions contemplated hereby among the Administrative Agent and the Lenders or among the Borrower and the Lenders.



9.14 Confidentiality. Each of the Administrative Agent and the Lenders agrees to keep confidential all non-public
information provided to it by any Loan Party pursuant to this Agreement that is designated by such Loan Party as confidential; provided that nothing herein shall prevent the Administrative Agent or any Lender from disclosing any such
information (a) to the Administrative Agent, any other Lender or any affiliate of any thereof, (b) to any Participant or Assignee (each, a Transferee) or prospective Transferee that agrees to comply with the provisions of this
Section or substantially equivalent provisions, (c) to any of its employees, directors, agents, attorneys, accountants and other professional advisors, (d) upon the request or demand of any Governmental Authority having jurisdiction over it, (e) in
response to any order of any court or other Governmental Authority or as may otherwise be required pursuant to any Requirement of Law (in which case the Administrative Agent or Lender, as



57



---

applicable, shall inform the Borrower promptly thereof), (f) in connection with any litigation or similar proceeding (in
which case the Administrative Agent or Lender, as applicable, shall inform the Borrower promptly thereof), (g) that has been publicly disclosed other than in breach of this Section, (h) to the National Association of Insurance Commissioners or any
similar organization or any nationally recognized rating agency that requires access to information about a Lenders investment portfolio in connection with ratings issued with respect to such Lender or (i) in connection with the exercise of
any remedy hereunder or under any other Loan Document. Notwithstanding anything herein to the contrary, any party subject to confidentiality obligations hereunder or under any other related document (and any employee, representative or other agent
of such party) may disclose to any and all persons, without limitation of any kind, such partys U.S. federal income tax treatment and tax structure of the transactions contemplated by this Agreement relating to such party and all materials of
any kind (including opinions or other tax analyses) that are provided to it relating to such tax treatment and tax structure. However, no such party shall disclose any information relating to such tax treatment or tax structure to the extent
nondisclosure is reasonably necessary in order to comply with applicable securities laws. The agreements in this Section shall survive repayment of the Term Loans and all other amounts payable hereunder.



9.15 Accounting Changes. In the event that any Accounting
Change (as defined below) shall occur and such change results in a change in the method of calculation of financial covenants, standards or terms in this Agreement, then the Borrower and the Administrative Agent agree to enter into
negotiations in order to amend such provisions of this Agreement so as to equitably reflect such Accounting Change with the desired result that the criteria for evaluating the Borrowers financial condition shall be the same after such
Accounting Change as if such Accounting Change had not been made. Until such time as such an amendment shall have been executed and delivered by the Borrower, the Administrative Agent and the Required Lenders, all financial covenants, standards and
terms in this Agreement shall continue to be calculated or construed as if such Accounting Change had not occurred. Accounting Change refers to any change in accounting principles required by the promulgation of any rule, regulation,
pronouncement or opinion by the Financial Accounting Standards Board of the American Institute of Certified Public Accountants or, if applicable, the SEC.



9.16 WAIVERS OF JURY TRIAL. THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN
ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.



58



---

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



STYROCHEM FINLAND OY.By:

/s/ R. Radcliffe HastingsName:

R. Radcliffe HastingsTitle:

Authorized SignatorySTYROCHEM EUROPE (THE NETHERLANDS) B.V.By:

/s/ Michael T. KennedyName:

Michael T. KennedyTitle:

Managing DirectorGUGGENHEIM CORPORATE FUNDING, LLC, as Administrative AgentBy:

/s/ William HagnerName:

William HagnerTitle:

Attorney in FactMIDLAND NATIONAL LIFE INSURANCE COMPANY, by Midland Advisors Company as its AgentBy:

/s/ Adrian DuffyName:

Adrian DuffyTitle:

Managing DirectorNORTH AMERICAN COMPANY FOR LIFE AND HEALTH INSURANCE, by Midland Advisors Company as its AgentBy:

/s/ Adrian DuffyName:

Adrian DuffyTitle:

Managing Director




[SIGNATURE PAGE TO TERM LOAN AGREEMENT]



---

PRICING GRID FOR TERM LOANS



|                                                           |  |                                       |   |  |                                      |  
|---------------------------------------------------------- |  | ------------------------------------- | - |  | ------------------------------------ | -
|Consolidated Leverage Ratio                                |  | Applicable Marginfor Eurodollar Loans |   |  | Applicable Marginfor Base Rate Loans |  
|Greater than or equal to 3.25 to 1                         |  | 6.50                                  | % |  | 3.75                                 | %
|Less than 3.25 to 1 and equal to or greater than 2.75 to 1 |  | 5.75                                  | % |  | 3.00                                 | %
|Less than 2.75 to 1 and equal to or greater than 2.25 to 1 |  | 5.00                                  | % |  | 2.25                                 | %
|Less than 2.25 to 1 and equal to or greater than 1.75 to 1 |  | 3.50                                  | % |  | 0.75                                 | %
|Less than 1.75 to 1                                        |  | 3.00                                  | % |  | 0.25                                 | %



Changes in the Applicable Margin with
respect to Term Loans resulting from changes in the Consolidated Leverage Ratio shall become effective 5 Business Days after the date (the Adjustment Date) on which financial statements with respect to the fiscal quarter ended
December 31, 2005 are delivered to the Lenders pursuant to Section 5.1(b) and shall remain in effect until the next change to be effected pursuant to this paragraph. If any financial statements referred to above are not delivered within the time
periods specified above, then, until such financial statements are delivered, the Consolidated Leverage Ratio as at the end of the fiscal period that would have been covered thereby shall for the purposes of this definition be deemed to be greater
than 3.25 to 1. In addition, at all times while an Event of Default shall have occurred and be continuing, the Consolidated Leverage Ratio shall for the purposes of this Pricing Grid be deemed to be greater than 3.25 to 1. Each determination of the
Consolidated Leverage Ratio pursuant to this Pricing Grid shall be made for the periods and in the manner contemplated by Section 6.1(a).



---

[Schedules and Exhibits Omitted.]