##### 



as the Borrowers,
 as the Lenders,
 as a Lender and as the Administrative Agent




---



##### 



TABLE OF CONTENTS
 Section
    
    PageARTICLE I DEFINITIONS AND ACCOUNTING TERMS
    
    
    2SECTION 1.1. Defined Terms
    
    
    2SECTION 1.2. Use of Defined Terms
    
    
    36SECTION 1.3. Cross-References
    
    
    37SECTION 1.4. Accounting and Financial Determinations
    
    
    37ARTICLE II TERMS OF COMMITMENTS AND LOANS
    
    
    37SECTION 2.1. Commitments
    
    
    372.1.1. Loan Commitments
    
    
    372.1.2. Letter of Credit Commitment
    
    
    372.1.3. Lenders Not Permitted or Required to Make Loans.
    
    
    38SECTION 2.2. Reduction of the Commitment Amounts
    
    
    382.2.1. Optional
    
    
    382.2.2. Mandatory
    
    
    392.2.3. Termination of Agreement
    
    
    39SECTION 2.3. Borrowing Procedures and Funding Maintenance
    
    
    392.3.1. Borrowing Revolving Credit Loans.
    
    
    392.3.2. Borrowing Swing Line Loans.
    
    
    412.3.3. Joint and Several Liability; Rights of Contribution
    
    
    42SECTION 2.4. Continuation and Conversion Elections
    
    
    44SECTION 2.5. Funding
    
    
    45SECTION 2.6. Letter of Credit Issuance Procedures
    
    
    452.6.1. Other Lenders Participation
    
    
    452.6.2. Disbursements: Conversion to Loans
    
    
    462.6.3. Reimbursement
    
    
    472.6.4. Deemed Disbursements
    
    
    482.6.5. Additional Letter of Credit Provisions
    
    
    48SECTION 2.7. Register; Notes; Obligation Account; Reserves
    
    
    49ARTICLE III PAYMENTS; PREPAYMENTS; INTEREST AND FEES
    
    
    52SECTION 3.1. Payments; Application; Controlled Deposit Accounts; Power of Attorney; Charges
to Obligation Account; No Discharge
    
    
    52
 i




---



##### 



Section
    
    Page3.1.1. Repayments and Prepayments
    
    
    523.1.2. Application
    
    
    543.1.3. Matters Relating to Controlled Deposit Accounts
    
    
    543.1.4. Power of Attorney
    
    
    573.1.5. Charges to Obligation Account
    
    
    57SECTION 3.2. Interest Provisions
    
    
    573.2.1. Rates
    
    
    573.2.2. Post-Maturity Rates
    
    
    583.2.3. Payment Dates
    
    
    58SECTION 3.3. Fees
    
    
    593.3.1. Commitment Fees
    
    
    593.3.2. The Administrative Agents Fees
    
    
    593.3.3. Letter of Credit Fees
    
    
    59ARTICLE IV CERTAIN LIBO RATE AND GUARANTY PROVISIONS
    
    
    60SECTION 4.1. LIBO Rate Lending Unlawful
    
    
    60SECTION 4.2. Deposits Unavailable
    
    
    60SECTION 4.3. Increased LIBO Rate Loan Costs, etc
    
    
    60SECTION 4.4. Funding Losses
    
    
    61SECTION 4.5. Increased Capital Costs
    
    
    61SECTION 4.6. Taxes
    
    
    62SECTION 4.7. Payments; Computations, etc
    
    
    66SECTION 4.8. Sharing of Payments
    
    
    66SECTION 4.9. Setoff
    
    
    67SECTION 4.10. Guaranty Provisions
    
    
    674.10.1. Guaranty
    
    
    674.10.2. Guaranty Absolute, etc
    
    
    674.10.3. Reinstatement, etc
    
    
    684.10.4. Waiver, etc
    
    
    684.10.5. Postponement of Subrogation, etc
    
    
    68ARTICLE V CONDITIONS TO CREDIT EXTENSIONS
    
    
    69SECTION 5.1. Initial Credit Extension
    
    
    695.1.1. Resolutions, etc
    
    
    695.1.2. Intercreditor Agreement
    
    
    69
 ii




---



##### 



Section
    
    Page5.1.3. Closing Date Certificate
    
    
    695.1.4. Delivery of Notes
    
    
    705.1.5. Minimum Opening Liquidity Amount
    
    
    705.1.6. Closing; Fees; Expenses, etc
    
    
    705.1.7. Borrowing Base Certificate
    
    
    705.1.8. Opinions of Counsel
    
    
    705.1.9. U.C.C. and Other Searches
    
    
    705.1.10. Pledge Agreements
    
    
    705.1.11. Security Agreements, etc
    
    
    715.1.12. Lien Terminations and Releases
    
    
    715.1.13. Controlled Deposit Accounts
    
    
    715.1.14. Perfection Certificate
    
    
    715.1.15. Senior Secured Note Documents
    
    
    715.1.16. Existing Senior Secured Notes
    
    
    715.1.17. No Material Adverse Change
    
    
    725.1.18. Required Consents and Approvals
    
    
    725.1.19. Satisfactory Legal Form
    
    
    72SECTION 5.2. All Credit Extensions
    
    
    725.2.1. Compliance With Warranties; No Default, etc
    
    
    725.2.2. Credit Extension Request, etc
    
    
    725.2.3. Borrowing Base Certificate
    
    
    735.2.4. Payment of Fees
    
    
    735.2.5. Satisfactory Legal Form
    
    
    73ARTICLE VI REPRESENTATIONS AND WARRANTIES
    
    
    73SECTION 6.1. Organization, etc
    
    
    73SECTION 6.2. Due Authorization, Non-Contravention, etc
    
    
    73SECTION 6.3. Government Approval; Regulation, etc
    
    
    74SECTION 6.4. Validity, etc
    
    
    74SECTION 6.5. Financial Information
    
    
    74SECTION 6.6. No Material Adverse Change
    
    
    74SECTION 6.7. Litigation; Labor Controversies, etc
    
    
    75SECTION 6.8. Subsidiaries
    
    
    75SECTION 6.9. Ownership of Properties
    
    
    75
 iii




---



##### 



Section
    
    PageSECTION 6.10. Taxes
    
    
    75SECTION 6.11. Pension Plans
    
    
    75SECTION 6.12. Environmental Warranties
    
    
    75SECTION 6.13. Accuracy of Information.
    
    
    77SECTION 6.14. Regulations U and X
    
    
    78SECTION 6.15. Solvency
    
    
    78SECTION 6.16. Intellectual Property Collateral
    
    
    78SECTION 6.17. Ownership of Stock
    
    
    78SECTION 6.18. Material Contracts
    
    
    79ARTICLE VII COVENANTS
    
    
    79SECTION 7.1. Affirmative Covenants
    
    
    797.1.1. Financial Information; Reports; Notices, etc
    
    
    797.1.2. Maintenance of Existence; Compliance With Laws, etc
    
    
    827.1.3. Maintenance of Properties
    
    
    827.1.4. Insurance
    
    
    827.1.5. Books and Records
    
    
    837.1.6. Post-Closing Requirements
    
    
    837.1.7. Use of Proceeds
    
    
    837.1.8. Borrowers; Security; etc
    
    
    837.1.9. Controlled Deposit Accounts
    
    
    847.1.10. Environmental Covenant
    
    
    847.1.11. As to Intellectual Property Collateral
    
    
    847.1.12. Designation of Restricted and Unrestricted Subsidiaries.
    
    
    85SECTION 7.2. Negative Covenants
    
    
    867.2.1. Business Activities
    
    
    867.2.2. Indebtedness
    
    
    877.2.3. Liens
    
    
    897.2.4. Investments
    
    
    917.2.5. Restricted Payments, etc
    
    
    927.2.6. Fixed Charge Coverage Ratio
    
    
    927.2.7. No Prepayment of Senior Secured Notes
    
    
    927.2.8. Capital Securities
    
    
    937.2.9. Consolidation, Merger, etc
    
    
    93
 iv




---



##### 



Section
    
    Page7.2.10. Permitted Dispositions
    
    
    947.2.11. Modification of Certain Agreements
    
    
    947.2.12. Transactions With Affiliates
    
    
    947.2.13. Restrictive Agreements, etc
    
    
    947.2.14. Sale and Leaseback
    
    
    957.2.15. Disposition of the Texas City Facility
    
    
    957.2.16. Sale or Discount of Receivables
    
    
    957.2.17. Unconditional Purchase Obligations
    
    
    957.2.18. Controlled Deposit Accounts
    
    
    957.2.19. Existing Senior Secured Notes
    
    
    96ARTICLE VIII EVENTS OF DEFAULT
    
    
    96SECTION 8.1. Listing of Events of Default
    
    
    968.1.1. Non-Payment of Obligations
    
    
    968.1.2. Breach of Warranty
    
    
    968.1.3. Non-Performance of Certain Covenants and Obligations
    
    
    968.1.4. Non-Performance of Other Covenants and Obligations
    
    
    978.1.5. Default on Other Indebtedness
    
    
    978.1.6. Judgments
    
    
    978.1.7. Pension Plans
    
    
    978.1.8. Change in Control
    
    
    988.1.9. Bankruptcy, Insolvency, etc
    
    
    988.1.10. Impairment of Security, etc
    
    
    99SECTION 8.2. Action if Event of Default
    
    
    99ARTICLE IX THE ADMINISTRATIVE AGENT
    
    
    99SECTION 9.1. Actions
    
    
    99SECTION 9.2. Funding Reliance, etc
    
    
    100SECTION 9.3. Exculpation
    
    
    100SECTION 9.4. Successor
    
    
    101SECTION 9.5. Credit Extensions by Administrative Agent and Issuer
    
    
    102SECTION 9.6. Credit Decisions
    
    
    102SECTION 9.7. Copies, etc
    
    
    102SECTION 9.8. Reliance by Administrative Agent
    
    
    102SECTION 9.9. Defaults
    
    
    103
 v




---



##### 



Section
    
    PageARTICLE X MISCELLANEOUS PROVISIONS
    
    
    103SECTION 10.1. Waivers; Amendments, etc
    
    
    103SECTION 10.2. Notices; Time
    
    
    105SECTION 10.3. Payment of Costs and Expenses
    
    
    105SECTION 10.4. Indemnification
    
    
    106SECTION 10.5. Survival
    
    
    107SECTION 10.6. Severability
    
    
    108SECTION 10.7. Headings
    
    
    108SECTION 10.8. Execution in Counterparts; Effectiveness, etc
    
    
    108SECTION 10.9. Governing Law; Entire Agreement
    
    
    108SECTION 10.10. Successors and Assigns
    
    
    108SECTION 10.11. Sale and Transfer of Loans; Participations in Loans and Notes
    
    
    10910.11.1. Assignments
    
    
    10910.11.2. Participations
    
    
    110SECTION 10.12. Confidentiality
    
    
    111SECTION 10.13. Other Transactions
    
    
    112SECTION 10.14. Forum Selection and Consent to Jurisdiction
    
    
    112SECTION 10.15. Waiver of Jury Trial
    
    
    113SECTION 10.16. Certain Collateral Matters
    
    
    113SECTION 10.17. Interest
    
    
    114SECTION 10.18. Assignment of Existing Loans
    
    
    114SECTION 10.19. Restatement of Existing Credit Agreement
    
    
    115SECTION 10.20. Limited Consent
    
    
    115SECTION 10.21. Release of Collateral and Obligations
    
    
    116SECTION 10.22 Accounting Changes
    
    
    116SECTION 10.21. Documentation Agent
    
    
    117
 
 vi




---



##### 



EXHIBIT A-1
    
    -
    
    Form of Revolving Credit NoteEXHIBIT A-2
    
    -
    
    Form of Swing Line NoteEXHIBIT B-1
    
    -
    
    Form of Borrowing RequestEXHIBIT B-2
    
    -
    
    Form of Issuance RequestEXHIBIT C
    
    -
    
    Form of Continuation/Conversion NoticeEXHIBIT D
    
    -
    
    Form of Closing Date CertificateEXHIBIT E
    
    -
    
    Form of Borrowing Base CertificateEXHIBIT F
    
    -
    
    Form of Pledge AgreementEXHIBIT G
    
    -
    
    Form of Security AgreementEXHIBIT H
    
    -
    
    Form of Joinder AgreementEXHIBIT I
    
    -
    
    Form of Intercreditor AgreementEXHIBIT J
    
    -
    
    Form of Lender Assignment AgreementEXHIBIT K
    
    -
    
    Form of Perfection CertificateEXHIBIT L
    
    -
    
    Form of Exemption Certificate
 vii




---



##### 



AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT
 Company Energy Section 7.1.8 Borrowers Lenders CIT Administrative Agent Documentation
Agent
 R E C I T A L S
   provided
 1




---



##### 



Defined Terms
 Acceptable Account
 Account
 Account Debtor
 Account Debtor Schedule Schedule III Acceptable Account
 2




---



##### 



Adjustment Date Section 7.1.1(c)
 Administrative Agent Section 9.4
 Affiliate
    Agreement
 Alternate Base Rate
 Applicable Margin
 3




---



##### 



Pricing
    
    
    
    LIBO
    
    Base RateLevel
    
    Excess Availability
    
    Spread
    
    Spread1
    
    Greater than $40,000,000
    
    
    1.50
    %
    
    
    0.00
    %2
    
    Greater than $30,000,000, but less than
or equal to $40,000,000
    
    
    1.75
    %
    
    
    0.00
    %3
    
    Greater than $20,000,000, but less than
or equal to $30,000,000
    
    
    2.00
    %
    
    
    0.25
    %4
    
    Less than or equal to $20,000,000
    
    
    2.25
    %
    
    
    0.50
    %
 Section 7.1.1(c) Section
7.1.1(c) Section 7.1.1(c)
 Application
 Approved Depository Bank provided
 Asset Sale Offer
 4




---



##### 



Assignee Lender Section 10.11.1
 Assignor Lender Section 10.11.1
 Authorized Officer Section 5.1.1
 Availability Reserve provided plus plus
 Backed By Credit Support
 Banking Services
 Banking Services Obligations
 Base Rate
 5




---



##### 



Base Rate Loan
 Borrower Borrowers
 Borrowing Section 2.4
 Borrowing Base Amount provided plus plus
 Borrowing Base Certificate Exhibit F
 Borrowing Request Exhibit B-1
 BP
 BP Accounts
 BP Production Agreement
 Business Day
   6




---



##### 



Capital Expenditures
 Capital Securities
 Capitalized Lease Liabilities
 Cash Collateralize
 Cash Equivalent Investment
       7




---



##### 



clause
(c)(i)
 clause (a)
  clauses (a) (d)
  CERCLA
 CERCLIS
 Change in Control
  Item 1.1 Designated Shareholders Unrelated Person
 8




---



##### 



Related Person
  CIT
 Closing Date
 Closing Date Certificate
 Code
 Collateral
 Commitment
 Commitment Amount
 Commitment Fee
 Commitment Termination Date Section 2.2
 9




---



##### 



Commitment Termination Event
 Commodity Hedging Agreements
 Company Introductory Statement
 Concentration Account clause (a) Section 3.1.3
 Condemnation Proceeds
 Contingent Liability provided however Contingent
Liability
 Continuation/Conversion Notice Exhibit C
 Control Agreements Section 3.1.3 Section 7.2.18
 Controlled Deposit Account Section 3.1.3
 10




---



##### 



Controlled Group
 Credit Extension clause (c) Section 2.3.1 clause (c) Section 2.3.1
 Default
 Dilution
 Dilution Percentage
 Disbursement Section 2.6.2
 Disbursement Date Section 2.6.2
 Disclosure Schedule Schedule
I
 Disposition Dispose
 Documentation Agent
 Dollar
 EBITDA
 11




---



##### 



plus
 Eligible Account
  provided however
  provided however
 12




---



##### 



Section 7.2.3
      provided however provided however
  13




---



##### 



provided clause (b) clause (ii)
 Eligible Assignee Section 10.11.1
 Eligible Inventory provided clause (d)
   14




---



##### 



provided
  Section 7.2.3
    Energy
 Environmental Laws
 15




---



##### 



equipment
 ERISA
 ESOP
 Event of Default Section 8.1
 Event of Loss Offer
 Excess Availability
 Exchange Act
 Exchange Inventory
 Exchange Inventory Payable
 Exchange Inventory Receivable
 Exemption Certificate clause (e) Section 4.6
 Existing Credit Agreement Recital A
 Existing Indenture
 Existing Loan Documents Recital C
 Existing Letters of Credit clause (c) Section
2.3.1
 Existing Senior Secured Notes
 16




---



##### 



Facilities
 Federal Funds Rate
 Fee Letter
 Fiscal Quarter
 Fixed Charge Coverage Ratio
 Fixed Charges plus plus plus plus
 Foreign Account
 Foreign Obligor
 Foreign Subsidiary
 F.R.S. Board
 GAAP
 17




---



##### 



Governmental Authority
 Hazardous Material
 Hedging Agreement
 Hedging Obligations
 herein hereof hereto hereunder
 Highest Lawful Rate
 Impermissible Qualification
  18




---



##### 



including include
 Indebtedness
    Section 8.1.5
      19




---



##### 



Indemnified Liabilities Section 10.4
 Indemnified Parties Section 10.4
 Indenture
 Indenture Collateral
 Indenture Deed of Trust
 Indenture Security Agreement
 Insurance Proceeds
 Intellectual Property Collateral
 Intercreditor Agreement
 Interest Expense
 20




---



##### 



Interest Period Sections 2.3 2.4 Sections 2.3 2.4 provided however
    Investment
     inventory
 Investment Grade Rating
 ISP98 Rules Section 10.9
 Issuance Request Exhibit B-2
 21




---



##### 



Issuer
 Joinder Agreement Exhibit H Section 7.1.8
 Lender Assignment Agreement
 Lenders Section 10.11.1
 Lenders Environmental Liability
     Letter of Credit Section 2.1.2
 Letter of Credit Commitment Section 2.1.2 Section 2.6.1
 22




---



##### 



Letter of Credit Commitment Amount Section 2.2
 Letter of Credit Outstandings plus
 LIBO Rate provided however LIBO Rate
 LIBO Rate Loan
 LIBO Rate (Reserve Adjusted)
 LIBO Rate
(Reserve Adjusted)
    
    LIBO Rate
1.00  LIBOR Reserve Percentage
  LIBOR Reserve Percentage
 23




---



##### 



Lien
 Loan Documents Section 7.1.8
 Loans
 Material Adverse Effect
 Material Contracts
 Maturity Date
 Maximum Loan Amount minus clause (e) Section 2.7
 Measurement Date plus
 24




---



##### 



Merge Section 7.2.9
 Monthly Payment Date
 Moodys
 Net Debt Proceeds Section 7.2.2 minus
 Net Disposition Proceeds clauses (a) (b) (c) (d) (e) (i) (j) excess minus provided clause (b)(ii) clause (c) Section 3.1.1 provided Section 7.2.7 provided further
 25




---



##### 



Section 3.1.1(c) Section 3.1.2(b)
 Net Loss Proceeds
 Net Proceeds
 No Less Favorable Terms and Conditions
 Non-Excluded Taxes
 Non-Facility Assets
 26




---



##### 



Non-U.S. Lender
 Non-Recourse Debt
   Note
 Obligation Account clause (c) Section 2.7
 Obligations
 Organic Document
 Other Taxes
 27




---



##### 



Participant Section 10.11.2
 PBGC
 Pension Plan
 Percentage Schedule II Section 10.11.1
 Perfection Certificate Exhibit K
 Permitted Disposition Section 7.2.15
   provided
 provided
 28




---



##### 



provided Section 7.2.1 provided
  provided
     Permitted Liens Section 7.2.3
 Permitted Real Estate Liens
  29




---



##### 



provided
 provided
   provided
 30




---



##### 



Person
 Pledge Agreement Exhibit F
 Pledged Subsidiary
 Projections Section 7.1.1(m)
 Properties
 Receipts provided however
 Refunded Swing Line Loans clause (b) Section 2.3.2
 Register clause (b) Section 2.7
 31




---



##### 



Reimbursement Obligation Section 2.6.3
 Release
 Required Lenders provided Majority Lender Required Lenders
 Resource Conservation and Recovery Act et seq
 Restricted Payment
 Restricted Subsidiary
 Revolving Credit Commitment clause (a) Section 2.1.1
 Revolving Credit Commitment Amount Section
2.2
 Revolving Credit Note Exhibit A-1
 32




---



##### 



Revolving Credit Loans clause (a) Section 2.1.1
 S&P
 SEC
 SEC Documents
 Secured Parties
 Security Agreement Exhibit G
 Security Document
 Senior Secured Note Documents
 Senior Secured Notes 1 4
 Solvent
 33




---



##### 



State
 Stated Amount
 Stated Expiry Date Section 2.6
 Stated Maturity
 Subordinated Debt
 Subsidiary
 Swing Line Lender
 Swing Line Loans clause (b) Section 2.1.1
 34




---



##### 



Swing Line Loan Commitment clause (b) Section
2.1.1
 Swing Line Loan Commitment Amount Section 2.2
 Swing Line Note Exhibit A-2
 Synthetic Lease
 Taxes
 Telerate Screen LIBO Page
 Termination Date
 Texas City Facility
 Trustee
 Type
 U.C.C. provided
 35




---



##### 



United States U.S.
 Unrestricted Subsidiary
  Section 7.2.12
   Voting Stock
 Wholly-Owned Subsidiary
 Use of Defined Terms
 36




---



##### 



Cross-References
 Accounting and Financial Determinations
   Commitments Article V Section 2.1
 Loan Commitments
 Revolving Credit Loans Section 2.1.3
 Swing Line
Loans Section 2.1.3 Section 2.1 Swing Line Loan
Commitment
  Letter of Credit Commitment Letter of
Credit plus
 37




---



##### 



plus
 Lenders Not Permitted or Required to Make Loans
 plus plus plus plus
 plus plus
 Reduction of the Commitment Amounts Section 2.2
 Optional provided
 38




---



##### 



Mandatory
  Section 3.1.1 Section 3.1.2
 Termination of Agreement Section 2.2 Section 3.1 Section
8.2
 Borrowing Procedures and Funding Maintenance Section 2.3.1 Section 2.3.2
 Borrowing Revolving Credit Loans
 provided
 39




---



##### 



Section 2.3.1 Section 3.1.5 Section 2.6.2 clause (b) Section 2.3.2
 Section 2.3.1(a) clause (b) Section 2.1.3
 clauses
(a) (b) (c) Section 10.3 Section 3.3 Article V Schedule V Existing Letters of Credit clause
 40




---



##### 



(c)
 Borrowing Swing Line Loans
  Refunded Swing Line Loans clause (b)
 41




---



##### 



clause (b)
 clause (b) Section 2.3.2
  clause (b) (c) Section 2.3.2
 Joint and Several Liability; Rights of Contribution
 42




---



##### 



subject Borrower
 Section 2.3.3 Dated Liabilities Dated Assets Section 2.3.3 Section 2.3.3 Section 2.3.3
  43




---



##### 



Continuation and Conversion Elections
 44




---



##### 



provided however
 Funding provided however
 Letter of Credit Issuance Procedures provided however Stated Expiry Date
 Other Lenders Participation
 45




---



##### 



Section 2.6.2 Section 2.6.3 Section 3.3.3 Section 3.2 Section 2.6.1 Section 2.6.2
 Section 2.6.1 Section
2.6.2 Section 2.6.3
 Disbursements: Conversion to Loans Disbursement Date Disbursement provided Section 2.1.3 provided Article V Section 2.1.3
 46




---



##### 



Section 2.1.3 Article V Section 2.1.3 Section 2.6.2 Section 2.6.2 Section 2.6.2 Section
2.6.2
 Reimbursement Reimbursement
Obligation Section 2.6.2 Section 2.6.2 Section 2.6.1 Section 2.6.2 clause (b) Section 2.6.5 provided however
 47




---



##### 



Deemed Disbursements Section 2.6.4
 Additional Letter of Credit Provisions
 Article V
 EACH BORROWER AND, TO THE EXTENT SET FORTH IN SECTION 2.6.1 , SECTION
2.6.2 AND SECTION 2.6.3 , EACH LENDER, SHALL ASSUME ALL RISKS OF THE ACTS AND
OMISSIONS OF OR MISUSE OF THE LETTERS OF CREDIT ISSUED BY SUCH ISSUER BY THE RESPECTIVE
BENEFICIARIES OF SUCH LETTER OF CREDIT. IN FURTHERANCE AND NOT IN LIMITATION OF THE
FOREGOING, SUCH ISSUER SHALL NOT BE RESPONSIBLE: (1) FOR THE FORM VALIDITY, SUFFICIENCY,
ACCURACY, GENUINENESS OR LEGAL EFFECT OF ANY DOCUMENT SUBMITTED BY ANY PERSON IN CONNECTION
WITH THE APPLICATION FOR OR ISSUANCE OF SUCH LETTERS OF CREDIT, EVEN IF IT SHOULD IN FACT
PROVE TO BE IN ANY OR ALL RESPECTS INVALID, INSUFFICIENT, INACCURATE, FRAUDULENT OR FORGED;
(2) FOR THE VALIDITY OR SUFFICIENCY OF ANY INSTRUMENT TRANSFERRING OR ASSIGNING OR
PURPORTING TO TRANSFER OR ASSIGN ANY SUCH LETTER OF CREDIT OR THE RIGHTS OR BENEFITS
THEREUNDER OR PROCEEDS THEREOF, IN WHOLE OR IN PART, WHICH MAY PROVE TO BE INVALID OR
INEFFECTIVE FOR ANY REASON; (3) FOR ERRORS, OMISSIONS, INTERRUPTIONS OR DELAYS IN
TRANSMISSION OR DELIVERY OF ANY MESSAGES, BY MAIL, CABLE, TELEGRAPH, TELEX OR OTHERWISE,
WHETHER OR NOT THEY ARE IN CIPHER; (4) FOR ERRORS IN
 48




---



##### 



INTERPRETATION OF TECHNICAL TERMS; (5) FOR ANY LOSS OR DELAY IN THE TRANSMISSION OR
OTHERWISE OF ANY DOCUMENT REQUIRED IN ORDER TO MAKE A DRAWING UNDER ANY SUCH LETTER OF
CREDIT OR OF THE PROCEEDS THEREOF; (6) FOR THE MISAPPLICATION BY THE BENEFICIARY OF ANY SUCH
LETTER OF CREDIT OF THE PROCEEDS OF ANY DRAWING UNDER SUCH LETTER OF CREDIT; AND (7) FOR ANY
CONSEQUENCES ARISING FROM CAUSES BEYOND THE CONTROL OF SUCH ISSUER, INCLUDING THE ACTIONS OF
ANY GOVERNMENTAL AUTHORITY. NONE OF THE ABOVE SHALL AFFECT, IMPAIR, OR PREVENT THE VESTING
OF ANY OF SUCH ISSUERS RIGHTS OR POWERS HEREUNDER. ANY ACTION TAKEN OR OMITTED TO BE TAKEN
BY ANY ISSUER IN GOOD FAITH (AND NOT CONSTITUTING GROSS NEGLIGENCE OR WILLFUL MISCONDUCT)
SHALL BE BINDING UPON EACH BORROWER AND EACH LENDER, AND SHALL NOT PUT THE ISSUER UNDER ANY
RESULTING LIABILITY TO ANY BORROWER OR ANY LENDER AS THE CASE MAY BE. NOTWITHSTANDING
ANYTHING TO THE CONTRARY CONTAINED IN CLAUSE (7) ABOVE, NEITHER THE BORROWERS NOR ANY LENDER
SHALL HAVE ANY OBLIGATION TO INDEMNIFY ANY ISSUER IN RESPECT OF ANY LIABILITY INCURRED BY
SUCH ISSUER ARISING SOLELY OUT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH ISSUER,
AS DETERMINED BY A FINAL NON-APPEALABLE JUDGMENT OF A COURT OF COMPETENT JURISDICTION.
  Register; Notes; Obligation Account; Reserves
 clause (b)(ii) Section 2.7
 49




---



##### 



provided however
 clause (b) Register Section 10.11.1 clause
(b)(ii) Section 2.7 Section
2.7
 inter alia provided however Section 10.11.1 Section 10.11.1 Section 2.7
 50




---



##### 



clause (d) Section 2.3.3
 Obligation Account
  Section 2.3.3
  51




---



##### 



Article V Section 4.7 Section
9.2
    Payments; Application; Controlled Deposit Accounts; Power of Attorney;
Charges to Obligation Account; No Discharge Article VIII Section 3.2
 Repayments and Prepayments
 provided however Section 3.1.3
 52




---



##### 



clause (a) Section 3.1.1
  clause (b) Section 3.1.2
 clause (c) Section 3.1.2
 Section 8.2 Section 8.2
 Section 3.1.1
 53




---



##### 



Section 4.4
 Section 4.4
 Application Section 3.1.1 Section 3.1.2
 clause (b) Section 3.1.2 first second Section 4.4
 clause (c) Section
3.1.1 third provided clause (b) Section 3.1.2 fourth
 clause (d) Section
3.1.1
 Matters Relating to Controlled Deposit Accounts Section 3.1.3
 Controlled Deposit Accounts
 54




---



##### 



Concentration Account
    55




---



##### 



Section 3.1.3 Section 3.1.1 Section 3.1.2 Section 3.1.3 first second third fourth fifth sixth seventh eighth ninth tenth eleventh Section
3.1.3
 Section 3.1.1 first
 56




---



##### 



second third
 Power of Attorney Section 3.1.4
 Charges to Obligation Account Sections 2.6 3.1 3.2 3.3 4.4 4.5 4.6 10.3 Article V
 Interest Provisions Section 3.2
 Rates Section 2.3.2
 plus
 57




---



##### 



provided
 plus
 Section 3.2.2 plus Section 3.2.2 plus
 Post-Maturity Rates Section
10.17 plus plus
 Payment Dates
    58




---



##### 



clause (c) Section 3.2.3
 Section 8.2
  Fees
 Commitment Fees Article V plus multiplied by Commitment Fee Section 3.3.1
 The Administrative Agents Fees
 Letter of Credit Fees
 59




---



##### 



LIBO Rate Lending Unlawful
 Deposits Unavailable
   Section 2.3 Section 2.4 provided
 Increased LIBO Rate Loan Costs, etc.
 60




---



##### 



Sections 4.5 4.6
 Funding Losses
 Section 4.1 Section 4.2 Article III
    Increased Capital Costs
 61




---



##### 



provided
 Taxes
  clause (f) Section 4.6
 clause (a)(i) Section 4.6
   clause (f) Section 4.6
 62




---



##### 



Section 4.6 Section 4.6 provided however plus clause (c) Section
4.6 clause (a) Section 4.6
  63




---



##### 



clause (e)(i) Section 4.6 Exhibit L Exemption Certificate
 clause (e) Section 4.6
 clause (a)(i) Section 4.6 clause (d) Section 4.6 clause (e) Section 4.6 provided however clause (a)(i) Section 4.6 clause (d) Section 4.6 clause
(a)(i) Section 4.6
 64




---



##### 



clause (d) Section 4.6
 provided Section 10.11.1 Section 10.11.2 Section 4.6 provided
 Section 4.6 clause (a)(i) Section 4.6 clause (d) Section 4.6 provided Section 4.6
 Section 4.1 Section 4.2 Section 4.3 Section
4.6 clause (h) Section
4.6 provided Section 4.4 Section 10.11.1 Section 10.11.1 clause
(i) Section 4.6
 65




---



##### 



Payments; Computations, etc. pro rata
 Sharing of Payments Sections 4.3 4.4 4.5 4.6 pro rata provided however Section 4.8 Section 4.9 Section 4.8
 66




---



##### 



Section 4.8
 Setoff Section
8.2 provided however Section 4.8 provided however Section
4.9
 Guaranty Provisions
 Guaranty provided however
 Guaranty Absolute, etc.
 67




---



##### 



Reinstatement, etc.
 Waiver, etc. Article VIII
 Postponement of Subrogation, etc. Section 4.8 provided however
 68




---



##### 



Initial Credit Extension Section 5.1
 Resolutions, etc.
  Authorized Officer
   Intercreditor Agreement
 Closing Date Certificate
 69




---



##### 



Delivery of Notes
 Minimum Opening Liquidity Amount plus
 Closing; Fees; Expenses, etc. Section 3.3 Section 10.3
 Borrowing Base Certificate
 Opinions of Counsel
 U.C.C. and Other Searches
 Pledge Agreements
 70




---



##### 



Security Agreements, etc.
 Lien Terminations and Releases
 Controlled Deposit Accounts Section 3.1.3 Section 7.1.9 Section 7.2.18
 Perfection Certificate
 Senior Secured Note Documents
 Existing Senior Secured Notes Unpaid Amount
 71




---



##### 



No Material Adverse Change
 Required Consents and Approvals
 Satisfactory Legal Form
 All Credit Extensions
 Compliance With Warranties; No Default, etc. Section
8.1.5
   Section 7.2.6
  Credit Extension Request, etc. Section 2.3.1 Section 2.3.2 Section 5.2.1
 72




---



##### 



Borrowing Base Certificate Section 7.1.1(j)
 Payment of Fees
 Satisfactory Legal Form
 
  Organization, etc.
 Due Authorization, Non-Contravention, etc.
 73




---



##### 



Government Approval; Regulation, etc.
 Validity, etc.
 Financial Information Section
7.1.1 Section
7.1.1
 No Material Adverse Change
 74




---



##### 



Litigation; Labor Controversies, etc.
   Subsidiaries Item 6.8 7.2.4 Section 7.1.8 Section 7.1.12
 Ownership of Properties
 Taxes
 Pension Plans
 Environmental Warranties Item 6.12
 75




---



##### 



76




---



##### 



Accuracy of Information
 provided Section 6.13
   77




---



##### 



Regulations U and X Section
6.14
 Solvency
 Intellectual Property Collateral
      Ownership of Stock
 78




---



##### 



Material Contracts Item 6.18 Section 7.1.1(c)
 
 Affirmative Covenants
 Financial Information; Reports; Notices, etc.
   79




---



##### 



provided however
 Item 6.18 provided however provided
     80




---



##### 



clause (b) Section 7.1.1
     Projections
  clauses (a)
 81




---



##### 



(b) Section 7.1.1 provided
 Maintenance of Existence; Compliance With Laws, etc.
 Section 7.2.9
 provided however clause
(b) clause (b)
 Maintenance of Properties provided
 Insurance
   82




---



##### 



Section
7.1.4 provided
 Books and Records
 Post-Closing Requirements Schedule VI
 Use of Proceeds
 Borrowers; Security; etc.
 83




---



##### 



Section 7.1.8
 Controlled Deposit Accounts Section 7.2.18
 Environmental Covenant
   Section
7.1.10
 As to Intellectual Property Collateral
 84




---



##### 



clause (a) (b) Section
7.1.11
 Designation of Restricted and Unrestricted Subsidiaries
 clause (k) clause (n) Section 7.2.4 Section
7.2.4
 85




---



##### 



Section 7.2.4 Section 7.2.2 Section 8.1.3 provided Section 7.2.2
 Sections 7.1.12(a) (b)
 Negative Covenants
 Business Activities
 86




---



##### 



Indebtedness
  provided
  provided clause (d)
  Section 7.2.7
  provided
 87




---



##### 



provided
 provided
  provided however
 provided however
 Section 7.2.4
  provided however Section 7.2.3
 88




---



##### 



provided however clauses (c) (d) (f) (g) (h) (n)
 Liens Permitted Liens
  Item 7.2.3(b) provided
 clause (g) Section 7.2.2 Section 7.2.7 provided clause (g) Section 7.2.2 Section 7.2.7 provided
 clauses (d) (h) Section 7.2.2 provided
  89




---



##### 



Section
8.1.6
    provided
      90




---



##### 



Investments Permitted Investments
 Item 7.2.4(a)
        provided
 Section 7.2.10
 clause (k)
 91




---



##### 



provided
 provided however Section 7.2.2
   provided however clauses (e) (f) (g) (h) (i) (j) (k) (n)
 Restricted Payments, etc.
 Fixed Charge Coverage Ratio
 No Prepayment of Senior Secured Notes
 92




---



##### 



clauses (b) (c) (d) (g) (h) (i) (m) (n) Section 7.2.2 provided provided provided further plus
 Capital Securities
 Consolidation, Merger, etc. Merge
 93




---



##### 



Permitted Dispositions Section 7.2.9
 Modification of Certain Agreements
 Transactions With Affiliates Item 7.2.12 Section 7.2.4
 Restrictive Agreements, etc.
    94




---



##### 



clause (a) Section 7.2.13 clause (d) Section 7.2.2
 Sale and Leaseback
 Disposition of the Texas City Facility
 Sale or Discount of Receivables
 Unconditional Purchase Obligations
 Controlled Deposit Accounts provided provided
 95




---



##### 



Section 7.2.7 clause (ii) Section 3.1.2(b)
 Existing Senior Secured Notes
 
 Listing of Events of Default Article VIII Event of Default
 Non-Payment of Obligations
 Section 2.6.4
  Article III
 Breach of Warranty Article V
 Non-Performance of Certain Covenants and Obligations clause (d) (n) Section 7.1.1 Section 7.1.4 Section 7.1.7 Section
7.1.10 Section 7.2 Section 3.1.3 clauses (a) (b) (c) (e) (g) Section 7.1.1 Section 7.1.9
 96




---



##### 



Non-Performance of Other Covenants and Obligations Section 8.1.3
 Default on Other Indebtedness Section
8.1.1 provided however Section
8.15
 Judgments provided however
 Pension Plans
  97




---



##### 



Change in Control
 Bankruptcy, Insolvency, etc.
    clause (i) clause (i) (ii) (iii) (iv) (vi)
  98




---



##### 



Impairment of Security, etc.
 Action if Event of Default clauses (a) (e) Section 8.1.9 clauses (a) (e) Section 8.1.9
     
 Actions
 99




---



##### 



Section
9.1 provided however
 Funding Reliance, etc. Section 2.6.2
 Exculpation
 100




---



##### 



Article V
 Successor Section 10.3 Section 10.4 Section 9.4
 101




---



##### 



Credit Extensions by Administrative Agent and Issuer
 Credit Decisions
 Copies, etc.
 Reliance by Administrative Agent
 102




---



##### 



Section 9.8
 Defaults Section 10.1 provided
 
 Waivers; Amendments, etc. provided however
  Section 10.1 clause (a) Section
10.10 Required Lenders Article III Section
3.1.1 Section 3.1.2 clause (b) Section 2.2.2
  103




---



##### 



Section 8.2
   Borrowing Base Amount Eligible
Account Eligible Inventory Excess Availability Maximum
Loan Amount provided however
 Section 5.2
  Section 10.1
 104




---



##### 



Section 10.1 Section
10.1
 Notices; Time Schedule II provided
 Payment of Costs and Expenses
   105




---



##### 



provided clause (a) Section 10.3 Section 10.3
 Indemnification Indemnified Parties Indemnified
Liabilities
   106




---



##### 



Article V
      Survival Sections 4.3 4.4 4.5 4.6 10.3 10.4 Section 9.1
 107




---



##### 



Sections 10.3 10.4
 Severability
 Headings
 Execution in Counterparts; Effectiveness, etc.
 Governing Law; Entire Agreement THIS AGREEMENT AND EACH OTHER LOAN
DOCUMENT SHALL EACH BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE LAWS OF THE STATE OF
NEW YORK. EACH LETTER OF CREDIT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OR RULES DESIGNATED IN SUCH LETTER OF CREDIT, OR IF NO LAWS OR RULES ARE DESIGNATED, THE
INTERNATIONAL STANDBY PRACTICES (ISP98INTERNATIONAL CHAMBER OF COMMERCE PUBLICATION NUMBER 590
(THE  ISP98 RULES )) AND, AS TO MATTERS NOT GOVERNED BY THE ISP98 RULES, THE LAWS OF THE
STATE OF NEW YORK.
 Successors and Assigns provided however
 Section 7.2.9
 Section 10.11
 108




---



##### 



Sale and Transfer of Loans; Participations in Loans and Notes Section 10.11
 Assignments Assignor Lender provided Eligible
Assignee Assignee Lender provided however Section 4.6
 109




---



##### 



Section 10.11.1 Section
10.11.1 provided Section 10.11.1 Section 10.11.1 Section 10.11.1 provided however
 Participations Participant provided however
 Section 10.11.2
 Section 10.11.2
 110




---



##### 



Sections 4.3 4.4 4.5 4.6 10.3 10.4
 clause (a) Section
10.11.2 Sections 4.3 4.4 4.5 4.6 4.8 4.9 10.3 10.4
 Confidentiality provided however
  Section 10.12 Section 10.12 Section 10.12
  111




---



##### 



Other Transactions
 Forum Selection and Consent to Jurisdiction EACH PARTY TO THIS
AGREEMENT HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL
ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS, OR FOR
RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE NON-EXCLUSIVE GENERAL
JURISDICTION OF ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION SITTING IN NEW YORK COUNTY,
NEW YORK. ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
(WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE ADMINISTRATIVE AGENT, EACH ISSUER, THE LENDERS OR THE
BORROWERS THAT IS BROUGHT IN THE STATE OF NEW YORK SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN
THE COURTS OF THE STATE OF NEW YORK LOCATED IN NEW YORK COUNTY OF THE STATE OF NEW YORK OR IN THE
UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK; PROVIDED , HOWEVER , THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE
BROUGHT, AT THE ADMINISTRATIVE AGENTS OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH
COLLATERAL OR OTHER PROPERTY MAY BE FOUND. THE BORROWERS HEREBY EXPRESSLY AND IRREVOCABLY SUBMIT
TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND OF THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET
FORTH ABOVE. THE BORROWERS FURTHER IRREVOCABLY CONSENT TO THE SERVICE OF PROCESS BY REGISTERED
MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK AND EXPRESSLY
AND IRREVOCABLY APPOINTS CT CORPORATION SYSTEM AS ITS DOMICILE AND ADDRESS FOR SERVICE OF PROCESS
FOR PURPOSES OF ANY ACTION AS TO WHICH IT HAS SUBMITTED TO JURISDICTION AS SET FORTH IN THIS
AGREEMENT, AND AGREES THAT SERVICE UPON SUCH AUTHORIZED AGENT SHALL BE DEEMED IN EVERY RESPECT
SERVICE OF PROCESS UPON ANY BORROWER OR ITS SUCCESSORS AND ASSIGNS, AND, TO THE EXTENT PERMITTED BY
APPLICABLE LAW, SHALL BE TAKEN AND HELD TO BE VALID PERSONAL SERVICE UPON IT. EACH BORROWER HEREBY
EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT
MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION
HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. NOTHING IN THIS AGREEMENT SHALL AFFECT THE RIGHT OF ANY
AGENT, ANY LENDER OR THE ISSUER TO SERVE LEGAL
 112




---



##### 



PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AFFECT THE RIGHT OF ANY SUCH PERSON TO BRING ANY ACTION OR PROCEEDING AGAINST SUCH BORROWER OR ITS
PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION. TO THE EXTENT THAT ANY BORROWER HAS OR HEREAFTER
MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH
SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH
RESPECT TO ITSELF OR ITS PROPERTY, EACH BORROWER HEREBY, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS AGREEMENT
AND THE OTHER LOAN DOCUMENTS.
 Waiver of Jury Trial THE ADMINISTRATIVE AGENT, THE LENDERS, EACH
ISSUER AND THE BORROWERS HEREBY, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) BASED HEREON, OR ARISING OUT OF,
UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT,
COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE ADMINISTRATIVE AGENT, THE
LENDERS, EACH ISSUER OR THE BORROWERS RELATED THERETO. EACH BORROWER ACKNOWLEDGES AND AGREES THAT
IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION (AND EACH OTHER PROVISION OF
EACH OTHER LOAN DOCUMENT TO WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT
FOR THE ADMINISTRATIVE AGENT, THE LENDERS AND EACH ISSUER ENTERING INTO THIS AGREEMENT AND EACH
SUCH OTHER LOAN DOCUMENT.
 Certain Collateral Matters
 113




---



##### 



Section 10.1 Section 7.1.12(c) Section 10.16
 Interest Financing Parties Section 10.17
 Assignment of Existing Loans Existing Credit Agreement Lender Section 10.18 Aggregate Pro Rata Share plus
 114




---



##### 



plus Section 10.18 Section 4.4
 Restatement of Existing Credit Agreement Schedule II
 Limited Consent Section
7.2.2(g) Section 7.2.3(c)(ii) Section 8.1.5 Potential Cross-Default provided
 115




---



##### 



Section
10.20 Section 10.20
 Release of Collateral and Obligations provided
  Accounting Changes
 116




---



##### 



Accounting Change
 Documentation Agent
 [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK;
SIGNATURE PAGES TO FOLLOW]
 117




---



##### 



BORROWERS:
STERLING CHEMICALS, INC.,
     as a BorrowerBy:Paul G. VanderhovenSenior Vice President - Finance and
 Chief Financial
OfficerSTERLING CHEMICALS ENERGY, INC.,
     as a BorrowerBy:Paul G. VanderhovenVice President Signature Page to Amended and Restated Revolving Credit Agreement




---



##### 



LENDERS:
THE CIT GROUP/BUSINESS CREDIT, INC.,
     as the Administrative Agent and as a LenderBy:Chad RamseyVice President Signature Page to Amended and Restated Revolving Credit Agreement




---



##### 



WACHOVIA BANK, NATIONAL ASSOCIATION,
     as the Documentation Agent and as a LenderBy:Joe CurdyDirector Signature Page to Amended and Restated Revolving Credit Agreement




---



##### 



DISCLOSURE SCHEDULE
 Item 1.1  Designated Shareholders
 1.
    
    Resurgence Asset Management, L.L.C. and its and its Affiliates managed funds and accounts.2.
    
    Any Permitted Transferee with respect to any Person covered by the preceding clause (1).3.
    
    Any savings or investment plan sponsored by Sterling Chemicals, Inc.
 Item 6.8  Existing Subsidiaries
  Item 6.12  Environmental Matters
  Item 6.18  Material Contracts
 1.
    
    Second Amended and Restated Plasticizers Production Agreement dated January 1, 2006 between
BASF Corporation and Sterling Chemicals, Inc.2.
    
    License Agreement dated August 1, 1986, between Monsanto Company and Sterling Chemicals, Inc.3.
    
    Second Amended and Restated Production Agreement dated effective as of August 1, 1996,
between BP Chemicals Inc. and Sterling Chemicals, Inc., as amended.4.
    
    Amended and Restated Product Supply Agreement, dated January 1, 2006 between Praxair Hydrogen
Supply, Inc. and Sterling Chemicals, Inc., as amended by Second Amendment to Utilities
Agreement dated as of July 1, 2006.5.
    
    Acetic Acid Technology Agreement, dated December 30, 1997, among Sterling Chemicals, Inc., BP
Chemicals, Ltd., BP Chemicals Inc. and Sterling Chemicals, Inc.




---



##### 



Item 7.2.3(b)  Ongoing Liens
 1.
    
    Liens granted under each of the following documents:
 (a)
    
    Second Amended and Restated Production Agreement dated as of December 30, 1997
but effective as of August 1, 1996 between Sterling Chemicals, Inc. and BP Chemicals
Inc. (n/k/a BP Amoco Chemical Company), as amended.(b)
    
    Ground Lease Agreement dated as of May 15, 1995 between Sterling Chemicals,
Inc. and Praxair Hydrogen Supply, Inc., as amended.(c)
    
    Ground Lease Agreement dated February 8, 1991 between Sterling Chemicals, Inc.
and S&L Cogeneration Company, as amended.(d)
    
    Second Amended and Restated Plasticizers Production Agreement dated January 1,
2006 between Sterling Chemicals, Inc. and BASF Corporation, as amended.(e)
    
    UCC-1 financing statement filed with the Delaware Secretary of State on July
21, 2005 as file number 52247675, and UCC-1 financing statement filed with the Texas
Secretary of State on October 9, 2000, as file number 00-600182, listing Sterling
Chemicals, Inc. as debtor and NMGH Financial Services, Inc. as secured party.
 2.
    
    Liens identified as Permitted Encumbrances under the Indenture Deed of Trust.
 Item 7.2.4(a) Ongoing Investments




---



##### 



Item 7.2.12  Transactions with Affiliates




---



##### 



PERCENTAGES; NOTICE ADDRESS
  
 COMMITMENTLENDER:
    
    COMMITMENT AMOUNT
    
    PERCENTAGE
    
    ADDRESSThe CIT Group/Business
    
    $
    30,000,000
    
    
    
    60
    %
    
    Two Lincoln CentreCredit, Inc
    
    
    
    
    
    
    
    
    
    5420 LBJ Freeway  Suite 200Dallas, TX 75240Attn: Chad RamseyFax: (972) 455-1690chad.ramsey@cit.comWachovia Bank, National
    
    $
    20,000,000
    
    
    
    40
    %
    
    1201 Main StreetAssociation
    
    
    
    
    
    
    
    
    
    Suite 1625Dallas, TX 75202Attn: Joe CurdyFax: 214-748-9118joe.curdy@wachovia.com




---



##### 



ACCOUNT OBLIGOR SCHEDULE




---



##### 



APPROVED DEPOSITORY BANKS




---



##### 



EXISTING LETTERS OF CREDIT
 DATE
    
    DATEISSUED
    
    EXPIRES
    
    LC#
    
    BENEFICIARY
    
    US$AMOUNT1/18/2006
    
    1/31/2008
    
    TTTS227435
    
    RLI Insurance Co.
    
    $
    1,061,020.0011/03/2004
    
    11/08/2007
    
    T614201
    
    Texas Commission on Environmental Quality
    
    $
    769,682.007/17/2000
    
    7/14/2007
    
    T203320
    
    Pacific Employers Ins. Co.
    
    $
    50,000.007/01/2002
    
    7/01/2007
    
    T215001
    
    Zurich American Ins. Co.
    
    $
    525,000.007/23/1999
    
    6/30/2007
    
    T290209
    
    Reliance National Indemnity Co.
    
    $
    50,000.008/27/1999
    
    6/30/2007
    
    T290213
    
    United Pacific Ins. Co.
    
    $
    313,666.55




---



#####