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EXECUTION COPY




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ARTICLE I Definitions
    
    
    2SECTION 1.01. Certain Defined Terms
    
    
    2SECTION 1.02. Other Defined Terms
    
    
    2SECTION 1.03. Terms Generally
    
    
    6ARTICLE II Lien Priorities
    
    
    7SECTION 2.01. Relative Priorities
    
    
    7SECTION 2.02. Prohibition on Contesting Liens
    
    
    7SECTION 2.03. Intentionally Deleted.
    
    
    7SECTION 2.04. Similar Liens and Agreements
    
    
    8ARTICLE III Enforcement of Rights; Matters Relating to Collateral
    
    
    8SECTION 3.01. Exercise of Rights and Remedies
    
    
    8SECTION 3.02. No Interference
    
    
    10SECTION 3.03. Rights as Unsecured Creditors
    
    
    12SECTION 3.04. Automatic Release of Second-Priority Liens
    
    
    13SECTION 3.05. Insurance and Condemnation Awards
    
    
    13ARTICLE IV Payments
    
    
    14SECTION 4.01. Application of Proceeds
    
    
    14SECTION 4.02. Payment Over
    
    
    15SECTION 4.03. Certain Agreements with Respect to Unenforceable Collateral
    
    
    16ARTICLE V Bailment and Sub-Agency for Perfection of Certain Security Interests
    
    
    17ARTICLE VI Insolvency or Liquidation Proceedings
    
    
    18SECTION 6.01. Finance and Sale Matters
    
    
    18SECTION 6.02. Relief from the Automatic Stay
    
    
    19SECTION 6.03. Reorganization Securities
    
    
    19SECTION 6.04. Post-Petition Interest
    
    
    19SECTION 6.05. Certain Waivers by the Second Lien Secured Parties
    
    
    20SECTION 6.06. Certain Voting Matters
    
    
    20ARTICLE VII Other Agreements
    
    
    20SECTION 7.01. Matters Relating to Loan Documents
    
    
    20SECTION 7.02. Effect of Refinancing of Indebtedness under First Lien Loan Documents
    
    
    20SECTION 7.03. No Waiver by First Lien Secured Parties
    
    
    21
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SECTION 7.04. Reinstatement
    
    
    21SECTION 7.05. Further Assurances
    
    
    21ARTICLE VIII Representations and Warranties
    
    
    22SECTION 8.01. Representations and Warranties of Each Party
    
    
    22SECTION 8.02. Representations and Warranties of Each Collateral Agent
    
    
    22ARTICLE IX No Reliance; No Liability; Obligations Absolute
    
    
    22SECTION 9.01. No Reliance; Information
    
    
    22SECTION 9.02. No Warranties or Liability
    
    
    23SECTION 9.03. Obligations Absolute
    
    
    24ARTICLE X Miscellaneous
    
    
    24SECTION 10.01. Notices
    
    
    24SECTION 10.02. Conflicts
    
    
    25SECTION 10.03. Effectiveness; Survival
    
    
    25SECTION 10.04. Severability
    
    
    25SECTION 10.05. Amendments; Waivers
    
    
    25SECTION 10.06. Subrogation
    
    
    25SECTION 10.07. Applicable Law; Jurisdiction; Consent to Service of Process
    
    
    26SECTION 10.08. Waiver of Jury Trial
    
    
    26SECTION 10.09. Parties in Interest
    
    
    27SECTION 10.10. Specific Performance
    
    
    27SECTION 10.11. Headings
    
    
    27SECTION 10.12. Counterparts
    
    
    27SECTION 10.13. Provisions Solely to Define Relative Rights
    
    
    27
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Agreement Company Borrowers CIT First Lien Collateral Agent U.S. Bank Second Lien Collateral Agent
 PRELIMINARY STATEMENT
 Credit Agreement First
Lien Lenders Indenture Financing Agreements Indenture Trustee Second Lien
Lenders
 RECITALS
 First Lien Collateral
 1 4 1 4 Notes
  1




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ARTICLE I
 Definitions
 Certain Defined Terms
 Other Defined Terms
 Agreement
 Bankruptcy Code
 Bankruptcy Law
 Borrowers
 CIT
 Collateral
 Collateral Agents
 Collateral Documents
 Company
 Credit Agreement
 DIP Financing
 DIP Financing Liens
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Discharge of First Lien Obligations
 Disposition Dispose
 Excess Claims
 Financing Agreements
 First Lien Collateral
 First Lien Collateral Agent
 First Lien Collateral Documents
 First Lien Lenders
 First Lien Loan Documents
 First Lien Obligations provided Excess Claims
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First Lien Required Lenders
 First Lien Secured Parties
 First-Priority Liens
 Grantors
 Guarantors
 Indebtedness
 Indenture
 Indenture Exclusive Collateral provided
 Indenture Exclusive Collateral Liens
 Indenture Obligations
 Indenture Trustee
 Insolvency or Liquidation Proceeding 4
        Lien
 Loan Documents
 Maximum Priority Debt Amount
 New First Lien Collateral Agent
 New First Lien Loan Documents
 New First Lien Obligations
 Notes
 Pledged or Controlled Collateral
 Refinance Refinanced Refinancing
 Refinancing Notice
 Release
 Second Lien Collateral
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Second Lien Collateral Agent
 Second Lien Collateral Documents
 Second Lien Lenders
 Second Lien Loan Documents
 Second Lien Permitted Actions
 Second Lien Required Lenders
 Second Lien Secured Parties
 Second-Priority Liens
 Secured Parties
 Standstill Period
 U.S. Bank
 Uniform Commercial Code UCC
 Terms Generally 6
        ARTICLE II
 Lien Priorities
 Relative Priorities
 Prohibition on Contesting Liens provided
 Indenture Exclusive Collateral
 7




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Limit on Second Liens
 ARTICLE III
 Enforcement of Rights; Matters Relating to Collateral
 Exercise of Rights and Remedies Second Lien Permitted Actions
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provided Termination Fees
 9




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No Interference


Standstill Period provided




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Rights as Unsecured Creditors
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Automatic Release of Second-Priority Liens Release
   Insurance and Condemnation Awards
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ARTICLE IV
 Payments
 Application of Proceeds
 first
 second
 third
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fourth
 fifth
 Payment Over
  15




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Certain Agreements with Respect to Unenforceable Collateral
  16




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ARTICLE V
 Bailment and Sub-Agency for Perfection of Certain Security Interests
 Pledged or Controlled
Collateral
   17




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ARTICLE VI
 Insolvency or Liquidation Proceedings
 Finance and Sale Matters
  DIP Financing DIP Financing
Liens
   18
         Relief from the Automatic Stay
 Reorganization Securities
 Post-Petition Interest
 provided however
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Certain Waivers by the Second Lien Secured Parties
 Certain Voting Matters
 ARTICLE VII
 Other Agreements
 Matters Relating to Loan Documents provided however provided further
   Effect of Refinancing of Indebtedness under First Lien Loan Documents
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Refinancing
Notice New First Lien
Obligations New First Lien Loan Documents New First Lien Collateral
Agent
 No Waiver by First Lien Secured Parties
 Reinstatement
 Further Assurances
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ARTICLE VIII
 Representations and Warranties
 Representations and Warranties of Each Party
    Representations and Warranties of Each Collateral Agent
 ARTICLE IX
 No Reliance; No Liability; Obligations Absolute
 No Reliance; Information
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No Warranties or Liability
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Obligations Absolute
       ARTICLE X
 Miscellaneous
 Notices
 24
        Conflicts
 Effectiveness; Survival
 Severability
 Amendments; Waivers
  Subrogation 25
      Applicable Law; Jurisdiction; Consent to Service of Process
    Waiver of Jury Trial
 26
        Parties in Interest
 Specific Performance
 Headings
 Counterparts
 Provisions Solely to Define Relative Rights
  27




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THE CIT GROUP/BUSINESS
CREDIT, INC.,
as First Lien Collateral AgentBy:Name:
Title:Address for notices:Facsimile Number:U. S. BANK NATIONAL ASSOCIATION, as Second
Lien Collateral AgentBy:Name:
Title:Address for notices:
U. S. Bank National Association
10 West Market Street, Suite 1150
Indianapolis, Indiana 46202
Attention: Corporate Trust Services
Facsimile No.: 317-636-1951




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By: 
Name:Title:STERLING CHEMICALS ENERGY, INC.By:Name:Title:




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FIRST LIEN COLLATERAL
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1
    2
 
 1
    
    Only include in First Lien Collateral Document.2
    
    Only include in First Lien Collateral Document. 2




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Provision for the Indenture
 The Trustee and by its acceptance of its Note(s), each Holder (a) acknowledges that it has
received a copy of the Intercreditor Agreement, (b) consents to the subordination of Liens on the
Second Lien Collateral as defined, and provided for, in the Intercreditor Agreement, (c) agrees
that it will be bound by and will take no actions contrary to the provisions of the Intercreditor
Agreement and (d) authorizes and instructs the Collateral Agent to enter into the Intercreditor
Agreement as agent for and representative of such Secured Party. The foregoing provisions are
intended as an inducement to the lenders under the Credit Facility to extend credit to the
Borrowers and such lenders are intended third-party beneficiaries of such provisions.
 Provision for the Second Lien Collateral Documents
 Notwithstanding anything herein to the contrary, the lien and security interest granted to the
Collateral Agent, for the ratable benefit of Secured Parties, pursuant to this Agreement and the
exercise of any right or remedy by the Collateral Agent and the other Secured Parties hereunder
with respect to the Second Lien Collateral, are subject to the provisions of the Intercreditor
Agreement. In the event of any conflict or inconsistency between the provisions of the
Intercreditor Agreement and this Agreement with respect to the Second Lien Collateral, the
provisions of the Intercreditor Agreement shall control.
 1