Document:

<PAGE>
                                                                    EXHIBIT 10.1

                                                                CONFORMED COPY

                                CREDIT AGREEMENT

                            DATED AS OF JULY 31, 2003

                                      among

                   THE FINANCIAL INSTITUTIONS NAMED HEREIN

                                 as the Lenders

                                       and

                              BANK OF AMERICA, N.A.

                                  as the Agent

                       BANC OF AMERICA SECURITIES LLC,

                  as the Sole Lead Arranger and Book Manager

                                       and

                          WESTLAKE CHEMICAL CORPORATION

              and each other Person listed on SCHEDULE 1 hereto,

                                as the Borrowers

                                  $200,000,000
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                                TABLE OF CONTENTS
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Section                                                                                Page
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<S>     <C>                                                                            <C>
ARTICLE 1 LOANS AND LETTERS OF CREDIT.......................................            1

      1.1   Total Facility..................................................            1
      1.2   Revolving Loans.................................................            1
      1.3   Letters of Credit...............................................            4
      1.4   Bank Products...................................................            7

ARTICLE 2 INTEREST AND FEES.................................................            7

      2.1   Interest........................................................            7
      2.2   Continuation and Conversion Elections...........................            8
      2.3   Maximum Interest Rate...........................................            9
      2.4   Closing Fee.....................................................            9
      2.5   Unused Line Fee.................................................            9
      2.6   Letter of Credit Fee............................................           10

ARTICLE 3 PAYMENTS AND PREPAYMENTS..........................................           10

      3.1   Revolving Loans.................................................           10
      3.2   Full or Partial Termination of Facility.........................           10
      3.3   Prepayments of the  Loans.......................................           11
      3.4   LIBOR Rate Loan Prepayments.....................................           12
      3.5   Payments by the Borrowers.......................................           12
      3.6   Payments as Revolving Loans.....................................           12
      3.7   Apportionment, Application and Reversal of Payments.............           12
      3.8   Indemnity for Returned Payments.................................           13
      3.9   Agent's and Lenders' Books and Records; Monthly Statements......           13

ARTICLE 4 TAXES, YIELD PROTECTION AND ILLEGALITY............................           14

      4.1   Taxes...........................................................           14
      4.2   Illegality......................................................           14
      4.3   Increased Costs and Reduction of Return.........................           15
      4.4   Funding Losses..................................................           15
      4.5   Inability to Determine Rates....................................           16
      4.6   Certificates of the Agent.......................................           16
      4.7   Survival........................................................           16

ARTICLE 5 BOOKS AND RECORDS; FINANCIAL INFORMATION; NOTICES.................           16

      5.1   Books and Records...............................................           16
      5.2   Financial Information...........................................           16
      5.3   Notices to the Lenders..........................................           19

ARTICLE 6 GENERAL WARRANTIES AND REPRESENTATIONS............................           21

      6.1   Authorization, Validity, and Enforceability of this
            Agreement and the Loan Documents................................           21
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      6.2   Validity and Priority of Security Interest......................           21
      6.3   Organization and Qualification..................................           22
      6.4   Corporate Name; Prior Transactions..............................           22
      6.5   Subsidiaries and Affiliates.....................................           22
      6.6   Financial Statements and Projections............................           22
      6.7   Capitalization..................................................           22
      6.8   Solvency........................................................           23
      6.9   Debt............................................................           23
      6.10  Distributions...................................................           23
      6.11  Real Estate; Leases.............................................           23
      6.12  Proprietary Rights..............................................           23
      6.13  Trade Names.....................................................           23
      6.14  Litigation......................................................           23
      6.15  Labor Disputes..................................................           23
      6.16  Environmental Laws..............................................           24
      6.17  No Violation of Law.............................................           25
      6.18  No Default......................................................           25
      6.19  ERISA Compliance................................................           25
      6.20  Taxes...........................................................           26
      6.21  Regulated Entities..............................................           26
      6.22  Use of Proceeds; Margin Regulations.............................           26
      6.23  Copyrights, Patents, Trademarks and Licenses, etc...............           26
      6.24  No Material Adverse Change......................................           26
      6.25  Full Disclosure.................................................           26
      6.26  Material Agreements.............................................           27
      6.27  Bank Accounts...................................................           27
      6.28  Governmental Authorization......................................           27
      6.29  No Restrictions.................................................           27

ARTICLE 7 AFFIRMATIVE AND NEGATIVE COVENANTS................................           27

      7.1   Taxes and Other Obligations.....................................           27
      7.2   Legal Existence and Good Standing...............................           27
      7.3   Compliance with Law and Agreements; Maintenance of
            Licenses; Amendments to Bond Debt and Fixed Asset Loan..........           28
      7.4   Maintenance of Property; Inspection of Property.................           28
      7.5   Insurance.......................................................           28
      7.6   Insurance and Condemnation Proceeds.............................           29
      7.7   Environmental Laws..............................................           29
      7.8   Compliance with ERISA...........................................           30
      7.9   Mergers, Consolidations, or Sales...............................           30
      7.10  Distributions; Capital Change; Restricted Investments...........           30
      7.11  Transactions Affecting Collateral or Obligations................           31
      7.12  Guaranties......................................................           31
      7.13  Debt............................................................           31
      7.14  Prepayment/Prepayment of Debt...................................           32
      7.15  Transactions with Affiliates....................................           32
      7.16  Business Conducted..............................................           33
      7.17  Liens...........................................................           33
      7.18  Sale and Leaseback Transactions.................................           33
      7.19  New Subsidiaries................................................           33
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      7.20  Fiscal Year.....................................................           33
      7.21  Fixed Charge Coverage Ratio.....................................           33
      7.22  Use of Proceeds.................................................           33
      7.23  Collateral......................................................           33
      7.24  Tax Shelter Regulations.........................................           34
      7.25  Permitted Debt under Bond Debt and Fixed Asset Loan.............           34
      7.26  Permitted Acquisitions..........................................           34
      7.27  Excluded Deposit Accounts.......................................           35
      7.28  Fixed Asset Loan Collateral Account.............................           35
      7.29  Further Assurances..............................................           35

ARTICLE 8 CONDITIONS OF LENDING.............................................           35

      8.1   Conditions Precedent to Making of Loans on the Closing Date.....           35
      8.2   Conditions Precedent to Each Loan...............................           38

ARTICLE 9 DEFAULT; REMEDIES.................................................           38

      9.1   Events of Default...............................................           38
      9.2   Remedies........................................................           41

ARTICLE 10 TERM AND TERMINATION.............................................           42

      10.1  Term and Termination............................................           42

ARTICLE 11 AMENDMENTS; WAIVERS; PARTICIPATIONS; ASSIGNMENTS; SUCCESSORS.....           42

      11.1  Amendments and Waivers..........................................           42
      11.2  Assignments; Participations.....................................           44

ARTICLE 12 THE AGENT........................................................           45

      12.1  Appointment and Authorization...................................           45
      12.2  Delegation of Duties............................................           46
      12.3  Liability of Agent..............................................           46
      12.4  Reliance by Agent...............................................           46
      12.5  Notice of Default...............................................           47
      12.6  Credit Decision.................................................           47
      12.7  Indemnification.................................................           47
      12.8  Agent in Individual Capacity....................................           47
      12.9  Successor Agent.................................................           48
      12.10 Withholding Tax.................................................           48
      12.11 Collateral Matters..............................................           49
      12.12 Restrictions on Actions by Lenders; Sharing of Payments.........           50
      12.13 Agency for Perfection...........................................           51
      12.14 Payments by Agent to Lenders....................................           51
      12.15 Settlement......................................................           51
      12.16 Letters of Credit; Intra-Lender Issues..........................           54
      12.17 Concerning the Collateral and the Related Loan Documents........           55
      12.18 Field Audit and Examination Reports; Disclaimer by Lenders......           56
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<S>                                                                                    <C>
      12.19 Relation Among Lenders..........................................           56
      12.20 Co-Agents.......................................................           56

ARTICLE 13 MISCELLANEOUS....................................................           56

      13.1  No Waivers; Cumulative Remedies.................................           56
      13.2  Severability....................................................           57
      13.3  Governing Law; Choice of Forum; Service of Process..............           57
      13.4  WAIVER OF JURY TRIAL............................................           58
      13.5  Survival of Representations and Warranties......................           58
      13.6  Other Security and Guaranties...................................           58
      13.7  Fees and Expenses...............................................           59
      13.8  Notices.........................................................           59
      13.9  Waiver of Notices...............................................           60
      13.10 Binding Effect..................................................           60
      13.11 Indemnity of the Agent, the Arranger, and the Lenders by
            the Borrower....................................................           60
      13.12 Limitation of Liability.........................................           61
      13.13 Final Agreement.................................................           61
      13.14 Counterparts....................................................           61
      13.15 Captions........................................................           62
      13.16 Right of Setoff.................................................           62
      13.17 Confidentiality.................................................           62
      13.18 Conflicts with Other Loan Documents.............................           63
      13.19 Westlake as Agent...............................................           63
</TABLE>

                                       iv
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                         ANNEXES, EXHIBITS AND SCHEDULES

ANNEX A - DEFINED TERMS

EXHIBIT A - FORM OF NOTE

EXHIBIT B - FORM OF BORROWING BASE CERTIFICATE

EXHIBIT C - FORM OF OBLIGATION GUARANTY

EXHIBIT D - FORM OF NOTICE OF BORROWING

EXHIBIT E - FORM OF NOTICE OF CONTINUATION/CONVERSION

EXHIBIT F - FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT

EXHIBIT G - FORM OF COMPLIANCE CERTIFICATE

SCHEDULE 1 - BORROWERS

SCHEDULE 1.2 - LENDERS' COMMITMENTS

SCHEDULE 6.3 - ORGANIZATION AND QUALIFICATIONS

SCHEDULE 6.4 - PRIOR CORPORATE NAMES

SCHEDULE 6.5 - SUBSIDIARIES AND AFFILIATES

SCHEDULE 6.9 - DEBT AND LIENS

SCHEDULE 6.11 - REAL ESTATE; LEASES

SCHEDULE 6.12 - PROPRIETARY RIGHTS

SCHEDULE 6.13 - TRADE NAMES

SCHEDULE 6.14 - LITIGATION

SCHEDULE 6.15 - LABOR DISPUTES

SCHEDULE 6.16 - ENVIRONMENTAL LAW

SCHEDULE 6.19 - ERISA COMPLIANCE

SCHEDULE 6.26 - MATERIAL AGREEMENTS

SCHEDULE 6.27 - BANK ACCOUNTS

SCHEDULE 7.10 - EXISTING INVESTMENTS

SCHEDULE 7.17 - EXISTING LIENS

                                       v
<PAGE>
                                CREDIT AGREEMENT

         This Credit Agreement, dated as of July 31, 2003, (this "Agreement")
among the financial institutions from time to time parties hereto (such
financial institutions, together with their respective successors and assigns,
are referred to hereinafter each individually as a "LENDER" and collectively as
the "LENDERS"), BANK OF AMERICA, N.A. with an office at 55 S. Lake Avenue, Suite
900, Pasadena, CA 91101, as agent for the Lenders (in its capacity as agent, the
"AGENT"), and WESTLAKE CHEMICAL CORPORATION, a Delaware corporation ("WESTLAKE")
and certain of its domestic subsidiaries listed on SCHEDULE 1 hereto, each with
offices at 2801 Post Oak Boulevard, Houston, Texas 77056 (each a "BORROWER" and
collectively, all Borrowers, including Westlake, the "BORROWERS").

                             W I T N E S S E T H:

         WHEREAS, the Borrowers have requested the Lenders to make available to
the Borrowers a revolving line of credit for loans and letters of credit in an
amount not to exceed $200,000,000, and which extensions of credit the Borrowers
will use for the purposes permitted hereunder;

         WHEREAS, capitalized terms used in this Agreement and not otherwise
defined herein shall have the meanings ascribed thereto in ANNEX A which is
attached hereto and incorporated herein; the rules of construction contained
therein shall govern the interpretation of this Agreement, and all Annexes,
Exhibits, and Schedules attached hereto are incorporated herein by reference;

         WHEREAS, the Lenders have agreed to make available to the Borrowers a
revolving credit facility upon the terms and conditions set forth in this
Agreement.

         NOW, THEREFORE, in consideration of the mutual conditions and
agreements set forth in this Agreement, and for good and valuable consideration,
the receipt of which is hereby acknowledged, the Lenders, the Agent, and the
Borrowers hereby agree as follows.

                                   ARTICLE 1
                           LOANS AND LETTERS OF CREDIT

         1.1 Total Facility. Subject to all of the terms and conditions of this
Agreement, the Lenders agree to make available a total credit facility of up to
$200,000,000 (the "TOTAL FACILITY") to the Borrowers from time to time during
the term of this Agreement. The Total Facility shall be composed of a revolving
line of credit consisting of Revolving Loans and Letters of Credit described
herein.

         1.2 Revolving Loans.

            (a) (i) Amounts. Subject to the satisfaction of the conditions
precedent set forth in ARTICLE 8, each Lender severally, but not jointly,
agrees, upon any Borrower's request from time to time on any Business Day during
the period from the Closing Date to the Termination Date, to make revolving
loans (the "REVOLVING LOANS") to the Borrowers in amounts not to exceed such
Lender's Pro Rata Share of Availability, except for Non-Ratable Loans and Agent
Advances. The Lenders, however, in their unanimous discretion, may elect to make
Revolving Loans or issue or arrange to have issued Letters of Credit in excess
of the Borrowing Base but not in excess of the Maximum Revolver Amount on one or
more occasions, but if they do so, neither the Agent nor the Lenders shall be
deemed thereby to have changed the limits of the Borrowing Base or to be
obligated to exceed such limits on any other occasion. If any Borrowing would
exceed Availability, the Lenders may refuse to make or may otherwise restrict
the making of Revolving Loans as the Lenders determine until such excess has
been eliminated, subject to
<PAGE>
the Agent's authority, in its sole discretion, to make Agent Advances pursuant
to the terms of SECTION 1.2(I).

            (ii) The Borrowers shall execute and deliver to each Lender
requesting a note, a note to evidence the Revolving Loan of that Lender. Each
note shall be in the principal amount of the requesting Lender's Pro Rata Share
of the Maximum Revolver Amount, dated the date hereof and substantially in the
form of EXHIBIT A (each a "NOTE" and, collectively, the "NOTES"). Each Note
shall represent the obligation of the Borrowers to pay the amount of the
requesting Lender's Pro Rata Share of the Maximum Revolver Amount, or, if less,
such Lender's Pro Rata Share of the aggregate unpaid principal amount of all
Revolving Loans to the Borrowers together with interest thereon as prescribed in
SECTION 2.1. The entire unpaid balance of the Revolving Loan and all other
non-contingent Obligations shall be immediately due and payable in full in
immediately available funds on the Termination Date.

         (b) Procedure for Borrowing.

            (i) Each Borrowing shall be made upon any Borrower's irrevocable
written notice delivered to the Agent in the form of a notice of borrowing in
substantially the form of EXHIBIT E ("NOTICE OF BORROWING") and signed by
Westlake, on its behalf and as agent for the other Borrowers, which Notice of
Borrowing shall be received by the Agent prior to (i) 12:00 noon (Houston, Texas
time) three (3) Business Days prior to the requested Funding Date, in the case
of LIBOR Rate Loans and (ii) 11:00 a.m. (Houston, Texas time) on the requested
Funding Date, in the case of Base Rate Loans, specifying:

            (A) the amount of the Borrowing, which in the case of a LIBOR Rate
Loan must equal or exceed $5,000,000 (and integral increments of $1,000,000 in
excess of such amount);

            (B) the requested Funding Date, which must be a Business Day;

            (C) whether the Revolving Loans requested are to be Base Rate Loans
or LIBOR Rate Loans (and if not specified, it shall be deemed a request for a
Base Rate Loan);

            (D) the duration of the Interest Period for LIBOR Rate Loans (and if
not specified, it shall be deemed a request for an Interest Period of one
month); and

            (E) the Borrower or Borrowers which are to receive all or any
portion of such Borrowing and the amount of such Borrowing to be advanced to
such Borrower or Borrowers.

            provided, however, that with respect to the Borrowing to be made on
the Closing Date, such Borrowings will consist of Base Rate Loans only.

            (ii) In lieu of delivering a Notice of Borrowing, the Borrowers may
give the Agent telephonic notice of such request for advances to the Designated
Account on or before the deadline set forth above. The Agent at all times shall
be entitled to rely on such telephonic notice in making such Revolving Loans,
regardless of whether any written confirmation is received.

            (iii) The Borrowers shall have no right to request a LIBOR Rate Loan
while a Default or Event of Default has occurred and is continuing.

                                      -2-
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            (c) Reliance upon Authority. Prior to the Closing Date, the
Borrowers shall deliver to the Agent, a notice setting forth the account of the
Borrowers ("DESIGNATED ACCOUNT") to which the Agent is authorized to transfer
the proceeds of the Revolving Loans requested hereunder. The Borrowers may
designate a replacement account from time to time by written notice. All such
Designated Accounts must be reasonably satisfactory to the Agent. The Agent is
entitled to rely conclusively on any person's request for Revolving Loans on
behalf of the Borrowers, so long as the proceeds thereof are to be transferred
to the Designated Account. The Agent has no duty to verify the identity of any
individual representing himself or herself as a person authorized by the
Borrowers to make such requests on its behalf.

            (d) No Liability. The Agent shall not incur any liability to the
Borrowers as a result of acting upon any notice referred to in SECTIONS 1.2(B)
and (C), which the Agent believes in good faith to have been given by an officer
or other person duly authorized by any Borrowers to request Revolving Loans on
its behalf. The crediting of Revolving Loans to the Designated Account
conclusively establishes the obligation of the Borrowers to repay such Revolving
Loans as provided herein.

            (e) Notice Irrevocable. Any Notice of Borrowing (or telephonic
notice in lieu thereof) made pursuant to SECTION 1.2(B) shall be irrevocable.
The Borrowers shall be bound to borrow the funds requested therein in accordance
therewith.

            (f) Agent's Election. Promptly after receipt of a Notice of
Borrowing (or telephonic notice in lieu thereof), the Agent shall elect to have
the terms of SECTION 1.2(G) or the terms of SECTION 1.2(H) apply to such
requested Borrowing. If the Bank declines in its sole discretion to make a
Non-Ratable Loan pursuant to SECTION 1.2(H), the terms of SECTION 1.2(G) shall
apply to the requested Borrowing.

            (g) Making of Revolving Loans. If Agent elects to have the terms of
this SECTION 1.2(G) apply to a requested Borrowing, then promptly after receipt
of a Notice of Borrowing or telephonic notice in lieu thereof, the Agent shall
notify the Lenders by telecopy, telephone or e-mail of the requested Borrowing.
Each Lender shall transfer its Pro Rata Share of the requested Borrowing
available to the Agent in immediately available funds, to the account from time
to time designated by Agent, not later than 12:00 noon (Houston, Texas time) on
the applicable Funding Date. After the Agent's receipt of all proceeds of such
Revolving Loans, the Agent shall make the proceeds of such Revolving Loans
available to the Borrowers on the applicable Funding Date by transferring same
day funds to the Designated Account; provided, however, that the amount of
Revolving Loans so made on any date shall not exceed the Availability on such
date.

            (h) Making of Non-Ratable Loans.

               (i) If any Borrower requests a Base Rate Loan and Agent elects,
with the consent of the Bank, to have the terms of this SECTION 1.2(H) apply to
a requested Borrowing, the Bank shall make a Revolving Loan in the amount of
that Borrowing available to the Borrowers on the applicable Funding Date by
transferring same day funds to the Designated Account. Each Revolving Loan made
solely by the Bank pursuant to this SECTION 1.2(H) is herein referred to as a
"NON-RATABLE LOAN", and such Revolving Loans are collectively referred to as the
"NON-RATABLE LOANS." Each Non-Ratable Loan shall be subject to all the terms and
conditions applicable to other Revolving Loans except that all payments thereon
shall be payable to the Bank solely for its own account. The aggregate amount of
Non-Ratable Loans outstanding at any time shall not exceed $20,000,000. The
Agent shall not request the Bank to make any Non-Ratable Loan if (1) the Agent
has received written notice from any Lender that one or more of the applicable
conditions precedent set forth in ARTICLE 8 will not be satisfied on the

                                      -3-
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requested Funding Date for the applicable Borrowing, or (2) the requested
Borrowing would exceed Availability on that Funding Date.

               (ii) The Non-Ratable Loans shall be secured by the Agent's Liens
in and to the Collateral and shall constitute Base Rate Loans and Obligations
hereunder.

            (i) Agent Advances.

               (i) Subject to the limitations set forth below, the Agent is
authorized by the Borrowers and the Lenders, from time to time in the Agent's
sole discretion, (A) after the occurrence of a Default or an Event of Default,
or (B) at any time that any of the other conditions precedent set forth in
ARTICLE 8 have not been satisfied, to make Base Rate Loans to the Borrowers on
behalf of the Lenders in an aggregate amount outstanding at any time not to
exceed 5% of the Borrowing Base but not in excess of the Maximum Revolver Amount
which the Agent, in its reasonable business judgment, deems necessary or
desirable (1) to preserve or protect the Collateral, or any portion thereof, (2)
to enhance the likelihood of, or maximize the amount of, repayment of the Loans
and other Obligations, or (3) to pay any other amount chargeable to the
Borrowers pursuant to the terms of this Agreement, including costs, fees, and
expenses as described in SECTION 13.7 (any of such advances are herein referred
to as "AGENT ADVANCES"); provided, that the Majority Lenders may at any time
revoke the Agent's authorization to make Agent Advances. Any such revocation
must be in writing and shall become effective prospectively upon the Agent's
receipt thereof.

               (ii) The Agent Advances shall be secured by the Agent's Liens in
and to the Collateral and shall constitute Base Rate Loans and Obligations
hereunder.

         1.3 Letters of Credit.

            (a) Agreement to Issue or Cause To Issue. Subject to the terms and
conditions of this Agreement, the Agent agrees (i) to cause the Letter of Credit
Issuer to issue, and to amend or renew Letters of Credit previously issued by it
in accordance with this SECTION 1.3, for the account of any Borrower one or more
commercial/documentary and standby letters of credit (each a "LETTER OF CREDIT"
and collectively, the "LETTERS OF CREDIT") and/or (ii) to provide credit support
or other enhancement to a Letter of Credit Issuer acceptable to the Agent, which
issues a Letter of Credit for the account of any Borrower (any such credit
support or enhancement being herein referred to as a "CREDIT SUPPORT") from time
to time during the term of this Agreement.

            (b) Amounts; Outside Expiration Date. The Agent shall not have any
obligation to issue or cause to be issued any Letter of Credit or to provide
Credit Support for any Letter of Credit at any time if: (i) the maximum face
amount of the requested Letter of Credit is greater than the Unused Letter of
Credit Subfacility at such time; (ii) the maximum undrawn amount of the
requested Letter of Credit and all commissions, fees, and charges due from the
Borrowers in connection with the opening thereof would exceed Availability at
such time; or (iii) such Letter of Credit has an expiration date less than 30
days prior to the Stated Termination Date or more than twelve (12) months from
the date of issuance for standby letters of credit and 180 days from the date of
issuance for documentary letters of credit; provided that any Letter of Credit
issued in connection with the IRB may have an expiration date of not later than
the Termination Date. With respect to any Letter of Credit which contains any
"evergreen" or automatic renewal provision, each Lender shall be deemed to have
consented to any such extension or renewal unless any such Lender shall have
provided to the Agent, written notice that it declines to consent to any such
extension or renewal at least thirty (30) days prior to the date on which the
Letter of Credit Issuer is entitled to decline to extend or renew the Letter of
Credit. If all of the

                                      -4-
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requirements of this SECTION 1.3 are met and no Default or Event of Default has
occurred and is continuing, no Lender shall decline to consent to any such
extension or renewal.

            (c) Other Conditions. In addition to conditions precedent contained
in ARTICLE 8, the obligation of the Agent to issue or to cause to be issued any
Letter of Credit or to provide Credit Support for any Letter of Credit is
subject to the following conditions precedent having been satisfied in a manner
reasonably satisfactory to the Agent:

               (i) The Borrowers shall have delivered to the Letter of Credit
Issuer, at such times and in such manner as such Letter of Credit Issuer may
prescribe, an application in form and substance satisfactory to such Letter of
Credit Issuer and reasonably satisfactory to the Agent for the issuance of the
Letter of Credit and such other documents as may be required pursuant to the
terms thereof, and the form, terms and purpose of the proposed Letter of Credit
shall be reasonably satisfactory to the Agent and the Letter of Credit Issuer;
and

               (ii) As of the date of issuance, no order of any court,
arbitrator or Governmental Authority shall purport by its terms to enjoin or
restrain money center banks generally from issuing letters of credit of the type
and in the amount of the proposed Letter of Credit, and no law, rule or
regulation applicable to money center banks generally and no request or
directive (whether or not having the force of law) from any Governmental
Authority with jurisdiction over money center banks generally shall prohibit, or
request that the proposed Letter of Credit Issuer refrain from, the issuance of
letters of credit generally or the issuance of such Letters of Credit.

            (d) Issuance of Letters of Credit.

               (i) Request for Issuance. The Borrowers must notify the Agent of
a requested Letter of Credit at least three (3) Business Days prior to the
proposed issuance date. Such notice shall be irrevocable and must specify the
original face amount of the Letter of Credit requested, the Business Day of
issuance of such requested Letter of Credit, whether such Letter of Credit is
standby, commercial, or documentary, whether such Letter of Credit may be drawn
in a single or in partial draws, the Business Day on which the requested Letter
of Credit is to expire, the purpose for which such Letter of Credit is to be
issued, and the beneficiary of the requested Letter of Credit. The Borrowers
shall attach to such notice the proposed form of the Letter of Credit.

               (ii) Responsibilities of the Agent; Issuance. As of the Business
Day immediately preceding the requested issuance date of the Letter of Credit,
the Agent shall determine the amount of the applicable Unused Letter of Credit
Subfacility and Availability. If (A) the face amount of the requested Letter of
Credit is less than the Unused Letter of Credit Subfacility and (B) the amount
of such requested Letter of Credit and all commissions, fees, and charges due
from the Borrowers in connection with the opening thereof would not exceed
Availability, the Agent shall cause the Letter of Credit Issuer to issue the
requested Letter of Credit on the requested issuance date so long as the other
conditions hereof are met.

               (iii)No Extensions or Amendment. The Agent shall not be obligated
to cause the Letter of Credit Issuer to extend or amend any Letter of Credit
issued pursuant hereto unless the requirements of this SECTION 1.3 are met as
though a new Letter of Credit were being requested and issued.

            (e) Payments Pursuant to Letters of Credit. The Borrowers joint and
severally agree to reimburse immediately the Letter of Credit Issuer for any
draw under any Letter of Credit and the Agent for the account of the Lenders
upon any payment pursuant to any Credit Support, and to pay the

                                      -5-
<PAGE>
Letter of Credit Issuer the amount of all other charges and fees payable to the
Letter of Credit Issuer in connection with any Letter of Credit immediately when
due, irrespective of any claim, setoff, defense or other right which any
Borrower may have at any time against the Letter of Credit Issuer or any other
Person. Each drawing under any Letter of Credit shall constitute a request by
the Borrowers to the Agent for a Borrowing of a Base Rate Loan in the amount of
such drawing. The Funding Date with respect to such Borrowing shall be the date
of such drawing.

            (f) Indemnification; Exoneration; Power of Attorney.

               (i) Indemnification. In addition to amounts payable as elsewhere
provided in this SECTION 1.3, the Borrowers joint and severally agree to
protect, indemnify, pay, and save the Lenders and the Agent harmless from and
against any and all claims, demands, liabilities, damages, losses, costs,
charges and expenses (including reasonable attorneys' fees) which any Lender or
the Agent (other than a Lender in its capacity as a Letter of Credit Issuer) may
incur or be subject to as a consequence, direct or indirect, of the issuance of
any Letter of Credit or the provision of any Credit Support or enhancement in
connection therewith. The Borrowers' obligations under this Section shall
survive payment of all other Obligations.

               (ii) Assumption of Risk by the Borrower. As among the Borrowers,
the Lenders, and the Agent, the Borrowers joint and severally assume all risks
of the acts and omissions of, or misuse of any of the Letters of Credit by, the
respective beneficiaries of such Letters of Credit. In furtherance and not in
limitation of the foregoing, the Lenders and the Agent shall not be responsible
for and the Borrowers shall not be relieved of any of their obligations
hereunder on account of: (A) the form, validity, sufficiency, accuracy,
genuineness or legal effect of any document submitted by any Person in
connection with the application for and issuance of and presentation of drafts
with respect to any of the Letters of Credit, even if it should prove to be in
any or all respects invalid, insufficient, inaccurate, fraudulent or forged; (B)
the validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign any 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; (C) the failure of the beneficiary of any
Letter of Credit to comply duly with conditions required in order to draw upon
such Letter of Credit; (D) errors, omissions, interruptions, or delays in
transmission or delivery of any messages, by mail, cable, telegraph, telex or
otherwise, whether or not they be in cipher; (E) errors in interpretation of
technical terms; (F) any loss or delay in the transmission or otherwise of any
document required in order to make a drawing under any Letter of Credit or of
the proceeds thereof; (G) the misapplication by the beneficiary of any Letter of
Credit of the proceeds of any drawing under such Letter of Credit; (H) any
consequences arising from causes beyond the control of the Lenders or the Agent,
including any act or omission, whether rightful or wrongful, of any present or
future de jure or de facto Governmental Authority or (I) the Letter of Credit
Issuer's honor of a draw for which the draw or any certificate fails to comply
in any respect with the terms of the Letter of Credit. None of the foregoing
shall affect, impair or prevent the vesting of any rights or powers of the Agent
or any Lender under this SECTION 1.3(F). Nothing set forth herein shall prevent
Borrowers, following reimbursement in respect of any Letter of Credit, from
asserting claims against the Letter of Credit Issuer for any honor of any Letter
of Credit constituting gross negligence or willful misconduct.

               (iii)Exoneration. Without limiting the foregoing, no action or
omission whatsoever by the Agent or any Lender (excluding any Lender in its
capacity as a Letter of Credit Issuer) shall result in any liability of the
Agent or any Lender to any Borrower, or relieve any Borrower of any of its
obligations hereunder to any such Person.

               (iv) Rights Against Letter of Credit Issuer. Nothing contained in
this Agreement is intended to limit the Borrowers' rights, if any, with respect
to the Letter of Credit Issuer,

                                      -6-
<PAGE>
which arise as a result of the letter of credit application and related
documents executed by and between the Borrowers and the Letter of Credit Issuer.

               (v) Account Party. The Borrowers hereby authorize and direct any
Letter of Credit Issuer to name any Borrower as the "ACCOUNT PARTY" therein and
to deliver to the Agent all instruments, documents, and other writings and
property received by the Letter of Credit Issuer pursuant to the Letter of
Credit, and to accept and rely upon the Agent's instructions and agreements with
respect to all matters arising in connection with the Letter of Credit or the
application therefor.

            (g) Supporting Letter of Credit; Cash Collateral. If,
notwithstanding the provisions of SECTION 1.3(B) and SECTION 10.1, any Letter of
Credit or Credit Support is outstanding upon the termination of this Agreement,
then upon such termination the Borrowers shall deposit with the Agent, for the
ratable benefit of the Agent and the Lenders, with respect to each Letter of
Credit or Credit Support then outstanding, a standby letter of credit (a
"SUPPORTING LETTER OF CREDIT") in form and substance satisfactory to the Agent,
issued by an issuer satisfactory to the Agent in an amount equal to the greatest
amount for which such Letter of Credit or such Credit Support may be drawn plus
any fees and expenses associated with such Letter of Credit or such Credit
Support, under which Supporting Letter of Credit the Agent is entitled to draw
amounts necessary to reimburse the Agent and the Lenders for payments to be made
by the Agent and the Lenders under such Letter of Credit or Credit Support and
any fees and expenses associated with such Letter of Credit or Credit Support.
Such Supporting Letter of Credit shall be held by the Agent, for the ratable
benefit of the Agent and the Lenders, as security for, and to provide for the
payment of, the aggregate undrawn amount of such Letters of Credit or such
Credit Support remaining outstanding.

         1.4 Bank Products. The Borrowers may request and the Agent may, in its
sole and absolute discretion, arrange for the Borrowers to obtain from the Bank
or the Bank's Affiliates, Bank Products, although the Borrowers are not required
to do so. If Bank Products are provided by an Affiliate of the Bank, the
Borrowers agree to indemnify and hold the Agent, the Bank, and the Lenders
harmless from any and all costs and obligations now or hereafter incurred by the
Agent, the Bank, or any of the Lenders which arise from any indemnity given by
the Agent to its Affiliates related to such Bank Products; provided, however,
nothing contained herein is intended to limit any Borrower's rights, with
respect to the Bank or its Affiliates, if any, which arise as a result of the
execution of documents by and between any Borrower and the Bank or its
Affiliates, as the case may be, which relate to Bank Products or the provision
of the Bank Products pursuant thereto. The agreement contained in this Section
shall survive termination of this Agreement. Each Borrower acknowledges and
agrees that the obtaining of Bank Products from the Bank or the Bank's
Affiliates (a) is in the sole and absolute discretion of the Bank or the Bank's
Affiliates, and (b) is subject to all rules and regulations of the Bank or the
Bank's Affiliates.

                                   ARTICLE 2
                                INTEREST AND FEES

         2.1 Interest.

            (a) Interest Rates. All outstanding Obligations shall bear interest
on the unpaid principal amount thereof (including, to the extent permitted by
law, on interest thereon not paid when due) from the date made until paid in
full in cash at a rate determined by reference to the Base Rate or the LIBOR
Rate plus the Applicable Margin as set forth below, but not to exceed the
Maximum Rate. If at any time Loans are outstanding with respect to which the
Borrowers have not delivered to the Agent a notice specifying the basis for
determining the interest rate applicable thereto in accordance herewith, those
Loans shall bear interest at a rate determined by reference to the Base Rate
(unless the Default Rate

                                      -7-
<PAGE>
has been effected by the Agent and the Required Lenders pursuant to SECTION
2.1(B)) until notice to the contrary has been given to the Agent in accordance
with this Agreement and such notice has become effective. Except as otherwise
provided herein, the outstanding Obligations shall bear interest as follows:

               (i) For all Base Rate Loans and other Obligations (other than
LIBOR Rate Loans) at a fluctuating per annum rate equal to the Base Rate plus
the Applicable Margin; and

               (ii) For all LIBOR Rate Loans at a per annum rate equal to the
LIBOR Rate plus the Applicable Margin.

Each change in the Base Rate shall be reflected in the interest rate applicable
to Base Rate Loans as of the effective date of such change. All interest charges
shall be computed on the basis of a year of 360 days and actual days elapsed
(which results in more interest being paid than if computed on the basis of a
365-day year). The Borrowers shall pay to the Agent, for the ratable benefit of
Lenders, interest accrued on all Base Rate Loans in arrears on the first day of
each month hereafter and on the Termination Date. The Borrowers shall pay to the
Agent, for the ratable benefit of Lenders, interest on all LIBOR Rate Loans in
arrears on each LIBOR Interest Payment Date.

            (b) Default Rate. If any Event of Default occurs and is continuing
and the Agent or the Required Lenders in their discretion so elect, then, while
any such Event of Default is continuing, all of the Obligations shall bear
interest at the Default Rate applicable thereto.

         2.2 Continuation and Conversion Elections.

            (a) The Borrowers may:

               (i) elect, as of any Business Day, in the case of Base Rate
Loans, to convert any Base Rate Loans (or any part thereof in an amount not less
than $5,000,000, or that is in an integral multiple of $1,000,000 in excess
thereof) into LIBOR Rate Loans; or

               (ii) elect, as of the last day of the applicable Interest Period,
to continue any LIBOR Rate Loans having Interest Periods expiring on such day
(or any part thereof in an amount not less than $1,000,000, or that is in an
integral multiple of $1,000,000 in excess thereof);

provided, that if at any time the aggregate amount of LIBOR Rate Loans in
respect of any Borrowing is reduced, by payment, prepayment, or conversion of
part thereof to be less than $1,000,000, such LIBOR Rate Loans shall
automatically convert into Base Rate Loans; provided further that if the notice
shall fail to specify the duration of the Interest Period, such Interest Period
shall be one month.

            (b) Westlake, on its behalf and as agent for the other Borrowers,
shall deliver a notice of continuation/conversion ("NOTICE OF
CONTINUATION/CONVERSION") to the Agent not later than 12:00 noon (Houston, Texas
time) at least three (3) Business Days in advance of the Continuation/Conversion
Date, if the Loans are to be converted into or continued as LIBOR Rate Loans and
specifying:

               (i) the proposed Continuation/Conversion Date;

               (ii) the aggregate amount of Loans to be converted or renewed;

                                      -8-
<PAGE>
               (iii) the type of Loans resulting from the proposed conversion or
continuation; and

               (iv) the duration of the requested Interest Period, provided,
however, the Borrowers may not select an Interest Period that ends after the
Stated Termination Date.

            (c) If upon the expiration of any Interest Period applicable to
LIBOR Rate Loans, the Borrowers has failed to select timely a new Interest
Period to be applicable to LIBOR Rate Loans or if any Default or Event of
Default then exists, the Borrowers shall be deemed to have elected to convert
such LIBOR Rate Loans into Base Rate Loans effective as of the expiration date
of such Interest Period.

            (d) The Agent will promptly notify each Lender of its receipt of a
Notice of Continuation/Conversion. All conversions and continuations shall be
made ratably according to the respective outstanding principal amounts of the
Loans with respect to which the notice was given held by each Lender.

            (e) There may not be more than twelve (12) different LIBOR Rate
Loans in effect hereunder at any time.

         2.3 Maximum Interest Rate. In no event shall any interest rate provided
for hereunder (including any fees or other fees or other compensation which are
deemed or determined to be interest) exceed the maximum rate legally chargeable
by any Lender under applicable law for such Lender with respect to loans of the
type provided for hereunder (the "MAXIMUM RATE"). If, for any period, any
interest, absent such limitation, would have exceeded the Maximum Rate, then the
interest rate for that period shall be the Maximum Rate, and, if in future
periods, that interest rate would otherwise be less than the Maximum Rate, then
that interest rate shall remain at the Maximum Rate until such time as the
amount of interest paid hereunder equals the amount of interest which would have
been paid if the same had not been limited by the Maximum Rate. In the event
that, upon payment in full of the Obligations, the total amount of interest paid
or accrued under the terms of this Agreement is less than the total amount of
interest which would, but for this SECTION 2.3, have been paid or accrued if the
interest rate otherwise set forth in this Agreement had at all times been in
effect, then the Borrowers shall, to the extent permitted by applicable law, pay
the Agent, for the account of the Lenders, an amount equal to the excess of (a)
the lesser of (i) the amount of interest which would have been charged if the
Maximum Rate had, at all times, been in effect or (ii) the amount of interest
which would have accrued had the interest rate otherwise set forth in this
Agreement, at all times, been in effect over (b) the amount of interest actually
paid or accrued under this Agreement. If a court of competent jurisdiction
determines that the Agent and/or any Lender has received interest and other
charges hereunder in excess of the Maximum Rate, such excess shall be deemed
received on account of, and shall automatically be applied to reduce, the
Obligations other than interest, in the inverse order of maturity, and if there
are no Obligations outstanding, the Agent and/or such Lender shall refund to the
Borrowers such excess.

         2.4 Closing Fee. Borrowers shall pay the Agent for its account the fees
described in the Fee Letter (the "CLOSING FEE").

         2.5 Unused Line Fee. On the first day of each month hereafter and on
the Termination Date, the Borrowers agree to pay to the Agent, for the account
of the Lenders, in accordance with their respective Pro Rata Shares, an unused
line fee (the "UNUSED LINE FEE") equal to the Applicable Margin for the Unused
Line Fee times the amount by which the Maximum Revolver Amount exceeded the sum
of the average daily outstanding principal amount of Revolving Loans and the
average daily undrawn face amount of outstanding Letters of Credit, during the
immediately preceding month or shorter period if

                                      -9-
<PAGE>
calculated for the first month hereafter or on the Termination Date. The Unused
Line Fee shall be computed on the basis of a 360-day year for the actual number
of days elapsed. All principal payments received by the Agent shall be deemed to
be credited to the Borrowers' Loan Account immediately upon receipt for purposes
of calculating the Unused Line Fee pursuant to this SECTION 2.5.

         2.6 Letter of Credit Fee. The Borrowers agree to pay (a) to the Agent,
for the account of the Lenders, in accordance with their respective Pro Rata
Shares, for each Letter of Credit, a per annum fee (the "LETTER OF CREDIT Fee")
equal to the Applicable Margin for LIBOR Rate Loans multiplied by the stated
amount of each Letter of Credit, (b) on the date of issuance of any Letter of
Credit, to the Agent for the benefit of the Letter of Credit Issuer, a fronting
fee of one-quarter of one percent (0.25%) per annum of the undrawn face amount
of each Letter of Credit, and (c) on the date of issuance of any Letter of
Credit, to the Letter of Credit Issuer, all out-of-pocket costs, fees and
expenses incurred by the Letter of Credit Issuer in connection with the
application for, processing of, issuance of, or amendment to any Letter of
Credit. The Letter of Credit Fee shall be payable monthly in arrears on the
first day of each month following any month in which a Letter of Credit is
outstanding and on the Termination Date. The Letter of Credit Fee shall be
computed on the basis of a 360-day year for the actual number of days elapsed.

                                   ARTICLE 3
                            PAYMENTS AND PREPAYMENTS

         3.1 Revolving Loans. The Borrowers shall repay the outstanding
principal balance of the Revolving Loans, plus all accrued but unpaid interest
thereon, on the Termination Date. The Borrowers may prepay Revolving Loans at
any time, and reborrow subject to the terms of this Agreement. In addition, and
without limiting the generality of the foregoing, upon demand, the Borrowers
shall pay to the Agent, for account of the Lenders, the amount, without
duplication, by which the Aggregate Revolver Outstandings exceeds the lesser of
the Borrowing Base or the Maximum Revolver Amount.

         3.2 Full or Partial Termination of Facility.

                  (a) Termination of Facility. The Borrowers may terminate this
         Agreement upon at least thirty (30) days' notice to the Agent and the
         Lenders, upon (a) the payment in full of all outstanding Revolving
         Loans, together with accrued interest thereon, and all fees payable
         under SECTION 2.5, and the cancellation and return of all outstanding
         Letters of Credit (or, in the alternative, with respect to Letters of
         Credit, providing (i) cash collateral for all remaining Letters of
         Credit in an amount equal to 110% of the aggregate face amounts of such
         Letters of Credit or (ii) a back-up letter of credit for each such
         Letter of Credit in form and substance and from an issuer acceptable to
         the Agent in its sole discretion), (b) the payment of the early
         termination fee set forth below, (c) the payment in full in cash of all
         reimbursable expenses and other Obligations, and (d) with respect to
         any LIBOR Rate Loans prepaid, payment of the amounts due under SECTION
         4.4, if any.

                  (b) Partial Reduction of Facility. On and after August 1,
         2004, the Borrowers may permanently reduce the Maximum Revolver Amount
         in increments of $25,000,000 but in no event shall the Maximum Revolver
         Amount be less than $100,000,000 (the amount of such reduction, the
         "PARTIAL TERMINATION AMOUNT") upon at least thirty (30) days' notice to
         the Agent and the Lenders, upon (a) the payment in full of any
         Revolving Loans, together with accrued interest thereon, to the extent
         such Revolving Loans exceed the Maximum Revolver Amount (after giving
         effect to such reduction) and (b) the payment of the early termination
         fee set forth below in respect of the Partial Termination Amount,
         regardless of whether the Partial Termination Amount is outstanding on
         the date of the partial reduction. Once

                                      -10-
<PAGE>
         reduced in accordance with this SECTION 3.2(B), the Maximum Revolver
         Amount may not be increased.

                  (c) Early Termination Fee. If this Agreement is terminated or
         the Maximum Revolver Amount is permanently reduced at any time prior to
         the Stated Termination Date, whether pursuant to this Section or
         pursuant to SECTION 9.2, the Borrowers shall pay to the Agent, in
         addition to other amounts payable hereunder, for the account of the
         Lenders, an early termination fee determined in accordance with the
         following table:

<TABLE>
<CAPTION>
            PERIOD DURING WHICH
             EARLY TERMINATION                       EARLY TERMINATION
                  OCCURS                                  FEE
      ------------------------              ---------------------------------
<S>                                         <C>
      On or prior to the first              1.0% of the Maximum Revolver
      Anniversary Date                      Amount or the Partial Termination
                                            Amount, as applicable

      After the first Anniversary           0.5% of the Maximum Revolver
      Date but on or prior to the           Amount or the Partial Termination
      second Anniversary Date               Amount, as applicable

      After the second Anniversary          0% of the Maximum Revolver Amount Date
                                            or the Partial Termination Amount,
                                            as applicable
</TABLE>

Notwithstanding the foregoing, payment of the early termination fee shall not be
required in the event the Borrowers refinance the Total Facility with a credit
facility arranged by the Bank.

         3.3 Prepayments of the Loans.

            (a) Immediately upon receipt by any Loan Party of proceeds of any
Equity Issuance, the Borrowers shall prepay the Loans (without a reduction of
the Maximum Revolver Amount) in an amount equal to 100% of all such proceeds to
the extent any such proceeds are not paid to redeem the Bond Debt or prepay the
Fixed Asset Loan, net of (i) commissions and other reasonable and customary
transaction costs, fees, and expenses properly attributable to such transaction
and payable by such Loan Party in connection therewith (in each case, paid to
non-Affiliates), (ii) transfer taxes, and (iii) an appropriate reserve for taxes
in accordance with GAAP in connection therewith.

            (b) To the extent set forth in this SECTION 3.3(B), immediately upon
receipt by any Loan Party of proceeds from the sale of any Collateral (other
than sales of Inventory in the ordinary course of business and any Term Priority
Collateral to the extent such proceeds are applied to repay the Fixed Asset Loan
or are used to acquire replacement assets as permitted by the Fixed Asset Loan)
the Borrowers shall prepay the Loans in an amount equal to 100% of all such
proceeds, net of (i) commissions and other reasonable and customary transaction
costs, fees, and expenses properly attributable to such transaction and payable
by such Loan Party in connection therewith (in each case, paid to
non-Affiliates), (ii) transfer taxes, and (iii) appropriate amounts required to
be reserved (in accordance with GAAP) for post-closing adjustments by any Loan
Party in connection with such transaction, against any liabilities retained by
any Loan Party after such transaction, which liabilities are associated with the
asset or assets sold ("NET SALE PROCEEDS"). No payment from the Net Sale
Proceeds shall be required hereunder to the extent Availability exceeds the
amount of Revolving Loans outstanding on such date of determination. In
addition, 100% of the Net Sale Proceeds shall be deducted from the

                                      -11-
<PAGE>
calculation of the Borrowing Base, but such reduction shall not be deemed to be
a permanent reduction of the Maximum Revolver Amount.

            (c) Prepayments from the proceeds of all Equity Issuances and
dispositions of Collateral in accordance with SECTIONS 3.3(A) and 3.3(B),
respectively, shall be applied as follows: first, to accrued interest with
respect to the Revolving Loans, second, to pay the principal of the Revolving
Loans, and third to cash collateralize outstanding Letters of Credit.

         3.4 LIBOR Rate Loan Prepayments. In connection with any prepayment, if
any LIBOR Rate Loans are prepaid prior to the expiration date of the Interest
Period applicable thereto, the Borrowers shall pay to the Lenders the amounts
described in SECTION 4.4.

         3.5 Payments by the Borrowers.

            (a) All payments to be made by the Borrowers shall be made without
set-off, recoupment or counterclaim. Except as otherwise expressly provided
herein, all payments by the Borrowers shall be made to the Agent for the account
of the Lenders, at the account designated by the Agent and shall be made in
Dollars and in immediately available funds, no later than 12:00 noon (Houston,
Texas time) on the date specified herein. Any payment received by the Agent
after such time shall be deemed (for purposes of calculating interest only) to
have been received on the following Business Day and any applicable interest
shall continue to accrue.

            (b) Subject to the provisions set forth in the definition of
"Interest Period", whenever any payment is due on a day other than a Business
Day, such payment shall be due on the following Business Day, and such extension
of time shall in such case be included in the computation of interest or fees,
as the case may be.

         3.6 Payments as Revolving Loans. At the election of Agent, all payments
of principal, interest, reimbursement obligations in connection with Letters of
Credit and Credit Support for Letters of Credit, fees, premiums, reimbursable
expenses and other sums payable hereunder, may be paid from the proceeds of
Revolving Loans made hereunder. The Borrowers hereby irrevocably authorize the
Agent to charge the Loan Account for the purpose of paying all amounts from time
to time due hereunder (without regard to any grace periods hereunder, including,
without limitation, Loans that constitute Agent Advances) and agrees that all
such amounts charged shall constitute Revolving Loans (including Non-Ratable
Loans and Agent Advances).

         3.7 Apportionment, Application and Reversal of Payments. Principal and
interest payments shall be apportioned ratably among the Lenders (according to
the unpaid principal balance of the Loans to which such payments relate held by
each Lender) and payments of the fees shall, as applicable, be apportioned
ratably among the Lenders, except for fees payable solely to Agent and the
Letter of Credit Issuer and except as provided in SECTION 11.1(B). All payments
shall be remitted to the Agent and all such payments not relating to principal
or interest of specific Loans, or not constituting payment of specific fees, and
all proceeds of Accounts or other Collateral received by the Agent, shall be
applied, ratably, subject to the provisions of this Agreement, first, to pay any
fees, indemnities, or expense reimbursements then due to the Agent from the
Borrower; second, to pay any fees or expense reimbursements then due to the
Lenders from the Borrower; third, to pay interest due in respect of all Loans,
including Non-Ratable Loans and Agent Advances; fourth, to pay or prepay
principal of the Non-Ratable Loans and Agent Advances; fifth, to pay or prepay
principal of the Revolving Loans (other than Non-Ratable Loans and Agent
Advances) and unpaid reimbursement obligations in respect of Letters of Credit;
sixth, to pay an amount to Agent equal to all outstanding Letter of Credit
Obligations to be held as cash collateral for such Obligations; and seventh, to
the payment of any other Obligations including any

                                      -12-
<PAGE>
amounts relating to Bank Products due to the Agent or any Lender by the
Borrower. Notwithstanding anything to the contrary contained in this Agreement,
unless so directed by the Borrowers, or unless an Event of Default has occurred
and is continuing, neither the Agent nor any Lender shall apply any payments
which it receives to any LIBOR Rate Loan, except (a) on the expiration date of
the Interest Period applicable to any such LIBOR Rate Loan, or (b) in the event,
and only to the extent, that there are no outstanding Base Rate Loans and, in
any event, the Borrowers shall pay LIBOR breakage losses in accordance with
SECTION 4.4. To the extent not inconsistent with the express terms of this
Agreement, the Agent and the Lenders shall have the continuing and exclusive
right to apply and reverse and reapply any and all such proceeds and payments to
any portion of the Obligations.

         3.8 Indemnity for Returned Payments. If after receipt of any payment
which is applied to the payment of all or any part of the Obligations, the
Agent, any Lender, the Bank or any Affiliate of the Bank is for any reason
compelled to surrender such payment or proceeds to any Person because such
payment or application of proceeds is invalidated, declared fraudulent, set
aside, determined to be void or voidable as a preference, impermissible setoff,
or a diversion of trust funds, or for any other reason, then the Obligations or
part thereof intended to be satisfied shall be revived and continued and this
Agreement shall continue in full force as if such payment or proceeds had not
been received by the Agent or such Lender and the Borrowers shall be liable to
pay to the Agent and the Lenders, and hereby does indemnify the Agent and the
Lenders and hold the Agent and the Lenders harmless for the amount of such
payment or proceeds surrendered. The provisions of this SECTION 3.8 shall be and
remain effective notwithstanding any contrary action which may have been taken
by the Agent or any Lender in reliance upon such payment or application of
proceeds, and any such contrary action so taken shall be without prejudice to
the Agent's and the Lenders' rights under this Agreement and shall be deemed to
have been conditioned upon such payment or application of proceeds having become
final and irrevocable. The provisions of this SECTION 3.8 shall survive the
termination of this Agreement.

         3.9 Agent's and Lenders' Books and Records; Monthly Statements. The
Agent shall record the principal amount of the Loans owing to each Lender, the
undrawn face amount of all outstanding Letters of Credit and the aggregate
amount of unpaid reimbursement obligations outstanding with respect to the
Letters of Credit from time to time on its books. In addition, each Lender may
note the date and amount of each payment or prepayment of principal of such
Lender's Loans in its books and records. Failure by the Agent or any Lender to
make such notation shall not affect the obligations of the Borrowers with
respect to the Loans or the Letters of Credit. Each Borrower agrees that the
Agent's and each Lender's books and records showing the Obligations and the
transactions pursuant to this Agreement and the other Loan Documents shall be
admissible in any action or proceeding arising therefrom, and shall constitute
rebuttably presumptive proof thereof, absent manifest error, irrespective of
whether any Obligation is also evidenced by a promissory note or other
instrument. The Agent will provide to the Borrowers a monthly statement of
Loans, payments, and other transactions pursuant to this Agreement. Such
statement shall be deemed correct, accurate, and binding on the Borrowers and an
account stated (except for reversals and reapplications of payments made as
provided in SECTION 3.7 and corrections of errors discovered by the Agent),
unless the Borrowers notify the Agent in writing to the contrary within thirty
(30) days after such statement is received. In the event a timely written notice
of objections is given by the Borrowers, only the items to which exception is
expressly made will be considered to be disputed by the Borrowers.

                                      -13-
<PAGE>
                                   ARTICLE 4
                    TAXES, YIELD PROTECTION AND ILLEGALITY

         4.1 Taxes.

            (a) Any and all payments by any Borrower to each Lender or the Agent
under this Agreement and any other Loan Document shall be made free and clear
of, and without deduction or withholding, for any Taxes. In addition, the
Borrowers shall pay all Other Taxes.

            (b) Subject to SECTION 12.10, each Borrower agrees to indemnify and
hold harmless each Lender and the Agent for the full amount of Taxes or Other
Taxes (including any Taxes or Other Taxes imposed by any jurisdiction on amounts
payable under this SECTION 4.1) paid by any Lender or the Agent and any
liability (including penalties, interest, additions to tax, and expenses)
arising therefrom or with respect thereto, whether or not such Taxes or Other
Taxes were correctly or legally asserted. Payment under this indemnification
shall be made within 30 days after the date such Lender or the Agent makes
written demand therefor.

            (c) If any Borrower shall be required by law to deduct or withhold
any Taxes or Other Taxes from or in respect of any sum payable hereunder to any
Lender or the Agent, then:

               (i) the sum payable shall be increased as necessary so that after
making all required deductions and withholdings (including deductions and
withholdings applicable to additional sums payable under this Section) such
Lender or the Agent, as the case may be, receives an amount equal to the sum it
would have received had no such deductions or withholdings been made;

               (ii) such Borrower shall make such deductions and withholdings;

               (iii) such Borrower shall pay the full amount deducted or
withheld to the relevant taxing authority or other authority in accordance with
applicable law; and

               (iv) such Borrower shall also pay to each Lender or the Agent for
the account of such Lender, at the time interest is paid, all additional amounts
which the respective Lender specifies as necessary to preserve the after-tax
yield such Lender would have received if such Taxes or Other Taxes had not been
imposed.

            (d) At the Agent's request, within 30 days after the date of any
payment by any Borrower of Taxes or Other Taxes, such Borrower shall furnish the
Agent the original or a certified copy of a receipt evidencing payment thereof,
or other evidence of payment satisfactory to the Agent.

            (e) If any Borrower is required to pay additional amounts to any
Lender or the Agent pursuant to SUBSECTION (C) of this SECTION 4.1, then such
Lender shall use reasonable efforts (consistent with legal and regulatory
restrictions) to change the jurisdiction of its lending office so as to
eliminate any such additional payment by such Borrower which may thereafter
accrue, if such change in the judgment of such Lender is not otherwise
disadvantageous to such Lender.

         4.2 Illegality.

            (a) If any Lender determines that the introduction of any
Requirement of Law, or any change in any Requirement of Law, or in the
interpretation or administration of any Requirement of Law, has made it
unlawful, or that any central bank or other Governmental Authority has asserted
that it is unlawful, for any Lender or its applicable lending office to make
LIBOR Rate Loans, then, on notice thereof by that Lender to the Borrowers
through the Agent together with an explanation of the

                                      -14-
<PAGE>
circumstances, any obligation of that Lender to make LIBOR Rate Loans shall be
suspended until that Lender notifies the Agent and the Borrowers that the
circumstances giving rise to such determination no longer exist.

            (b) If a Lender determines that it is unlawful to maintain any LIBOR
Rate Loan, the Borrowers shall, upon its receipt of notice of such fact and
demand from such Lender (with a copy to the Agent), prepay in full such LIBOR
Rate Loans of that Lender then outstanding, together with interest accrued
thereon and amounts required under SECTION 4.4, either on the last day of the
Interest Period thereof, if that Lender may lawfully continue to maintain such
LIBOR Rate Loans to such day, or immediately, if that Lender may not lawfully
continue to maintain such LIBOR Rate Loans and if applicable convert to Base
Rate Loans. If the Borrowers are required to so prepay any LIBOR Rate Loans,
then concurrently with such prepayment, the Borrowers shall borrow from the
affected Lender, in the amount of such prepayment, a Base Rate Loan.

         4.3 Increased Costs and Reduction of Return.

            (a) If any Lender determines that due to either (i) the introduction
of or any change in the interpretation of any law or regulation after the date
hereof or (ii) the compliance by that Lender with any guideline or request from
any central bank or other Governmental Authority after the date hereof (whether
or not having the force of law), there shall be any increase in the cost to such
Lender as a consequence of such Lender's obligations hereunder of agreeing to
make or making, funding, or maintaining any LIBOR Rate Loans, then the Borrowers
shall be liable for, and shall from time to time, upon demand (with a copy of
such demand to be sent to the Agent), pay to the Agent for the account of such
Lender, additional amounts as are sufficient to compensate such Lender for such
increased costs.

            (b) If any Lender shall have determined that the introduction after
the date hereof of (i) any Capital Adequacy Regulation, (ii) any change in any
Capital Adequacy Regulation, (iii) any change in the interpretation or
administration of any Capital Adequacy Regulation by any central bank or other
Governmental Authority charged with the interpretation or administration
thereof, or (iv) compliance by such Lender or any corporation or other entity
controlling such Lender with any Capital Adequacy Regulation, affects or would
affect the amount of capital required or expected to be maintained by such
Lender or any corporation or other entity controlling such Lender and (taking
into consideration such Lender's or such corporation's or other entity's
policies with respect to capital adequacy and such Lender's desired return on
capital) determines that the amount of such capital is increased as a
consequence of its Commitment, loans, credits, or obligations under this
Agreement, then, upon demand of such Lender to the Borrowers through the Agent,
the Borrowers shall pay to such Lender, from time to time as specified by such
Lender, additional amounts sufficient to compensate such Lender for such
increase.

         4.4 Funding Losses. The Borrowers shall reimburse each Lender and hold
each Lender harmless from any loss or expense which such Lender may sustain or
incur as a consequence of:

            (a) the failure of the Borrowers to make on a timely basis any
payment of principal of any LIBOR Rate Loan;

            (b) the failure of the Borrowers to borrow, continue, or convert a
Loan after the Borrowers have given (or is deemed to have given) a Notice of
Borrowing or a Notice of Continuation/Conversion; or

            (c) the prepayment or other payment (including after acceleration
thereof) of any LIBOR Rate Loans on a day that is not the last day of the
relevant Interest Period;

                                      -15-
<PAGE>
(excluding any such loss of anticipated profit) including any loss or expense
arising from the liquidation or reemployment of funds obtained by it to maintain
its LIBOR Rate Loans or from fees payable to terminate the deposits from which
such funds were obtained. The Borrowers shall also pay any customary
administrative fees charged by any Lender in connection with the foregoing. For
purposes of calculating amounts payable by the Borrower to the Lenders under
this SECTION 4.4, each Lender shall be deemed to have funded each LIBOR Rate
Loan made by it at the LIBOR Rate for such Loan by a matching deposit or other
borrowing in the applicable London interbank Eurodollar market for a comparable
amount and for a comparable period, whether or not such LIBOR Rate Loan was in
fact so funded.

         4.5 Inability to Determine Rates. If the Agent determines that for any
reason adequate and reasonable means do not exist for determining the LIBOR Rate
for any requested Interest Period with respect to a proposed LIBOR Rate Loan on
the basis provided for in the definition of LIBOR Rate, or that the LIBOR Rate
for any requested Interest Period with respect to a proposed LIBOR Rate Loan
does not adequately and fairly reflect the cost to the Lenders of funding such
Loan, the Agent will promptly so notify the Borrowers and each Lender.
Thereafter, the obligation of the Lenders to make or maintain LIBOR Rate Loans
hereunder shall be suspended until the Agent revokes such notice in writing.
Upon receipt of such notice, the Borrowers may revoke any Notice of Borrowing or
Notice of Continuation/Conversion then submitted by them. If the Borrowers do
not revoke such Notice, the Lenders shall make, convert or continue the Loans,
as proposed by the Borrowers, in the amount specified in the applicable notice
submitted by the Borrowers, but such Loans shall be made, converted, or
continued as Base Rate Loans instead of LIBOR Rate Loans.

         4.6 Certificates of the Agent. If any Lender claims reimbursement or
compensation under this ARTICLE 4, Agent shall determine the amount thereof and
shall deliver to the Borrowers (with a copy to the affected Lender) a
certificate setting forth in reasonable detail the amount payable to the
affected Lender, and such certificate shall be conclusive and binding on the
Borrowers in the absence of manifest error.

         4.7 Survival. The agreements and obligations of the Borrowers in this
ARTICLE 4 shall survive the payment of all other Obligations.

                                   ARTICLE 5
              BOOKS AND RECORDS; FINANCIAL INFORMATION; NOTICES

         5.1 Books and Records. The Borrowers shall maintain, at all times,
correct and complete books, records and accounts in which complete, correct and
timely entries are made of their respective transactions in accordance with GAAP
applied consistently with the audited Financial Statements required to be
delivered pursuant to SECTION 5.2(A). The Borrowers shall, by means of
appropriate entries, reflect in such accounts and in all Financial Statements
proper liabilities and reserves for all taxes and proper provision for
depreciation and amortization of property and bad debts, all in accordance with
GAAP. The Borrowers shall maintain at all times books and records pertaining to
the Collateral in such detail, form and scope as the Agent or any Lender shall
reasonably require, including, but not limited to, records of (a) all payments
received and all credits and extensions granted with respect to the Accounts;
(b) the return, rejection, repossession, stoppage in transit, loss, damage, or
destruction of any Inventory; and (c) all other dealings affecting the
Collateral.

         5.2 Financial Information. The Borrowers shall promptly furnish to the
Agent, all such financial information regarding the Loan Parties as the Agent
shall reasonably request. Without limiting the foregoing, the Borrowers will
furnish to the Agent, in such detail as the Agent or the Lenders shall request
in their reasonable discretion, the following:

                                      -16-
<PAGE>
            (a) As soon as available, but in any event not later than the
earlier of (i) the filing thereof with the Securities and Exchange Commission
("SEC"), and (ii) ninety (90) days after the close of each Fiscal Year,
consolidated audited and consolidating unaudited balance sheets, and income
statements, cash flow statements and changes in stockholders' equity for
Westlake and its Subsidiaries for such Fiscal Year, and the accompanying notes
thereto, setting forth in each case in comparative form figures for the previous
Fiscal Year, all in reasonable detail, fairly presenting the financial position
and the results of operations of Westlake and its Subsidiaries as at the date
thereof and for the Fiscal Year then ended, and prepared in accordance with
GAAP. Such statements shall be examined in accordance with generally accepted
auditing standards by and, in the case of such statements performed on a
consolidated basis, accompanied by a report of independent certified public
accountants selected by the Borrowers and reasonably satisfactory to the Agent,
which is not qualified with respect to scope limitations imposed by any Loan
Party, with respect to accounting principles followed by any Loan Party not in
accordance with GAAP, or with respect to a "going concern" or similar nature.
Westlake, simultaneously with retaining such independent public accountants to
conduct such annual audit, shall send a letter to such accountants, with a copy
to the Agent and the Lenders, notifying such accountants that one of the primary
purposes for retaining such accountants' services and having audited financial
statements prepared by them is for use by the Agent and the Lenders. The
Borrowers hereby authorize the Agent to communicate directly with its certified
public accountants and, by this provision, authorizes those accountants to
disclose to the Agent any and all financial statements and other supporting
financial documents and schedules relating to the Borrowers and to discuss
directly with the Agent the finances and affairs of the Loan Parties.

            (b) As soon as available, but in any event not later than the
earlier of: (i) the filing thereof with the SEC, and (ii) forty-five (45) days
after the last day of the first three fiscal quarters of each Fiscal Year,
consolidated and consolidating unaudited balance sheets and income statements,
and consolidated cash flow statements and changes in stockholders' equity, for
Westlake and its Subsidiaries for such fiscal quarter and for the period from
the beginning of the then-current fiscal year to, such last day. The Borrowers
shall certify by a certificate signed by a Responsible Officer of Westlake that
all such statements have been prepared in accordance with GAAP and present
fairly the financial position for the Loan Parties as at the dates thereof and
its results of operations for the periods then ended, subject to normal year-end
adjustments and the absence of applicable footnotes.

            (c) As soon as available, but in any event not later than thirty
(30) days after the end of each month other than March, June, September, or
December (and, as soon as available, but in any event not later than forty-five
(45) days after the end of each March, June, September, and December, and
without duplication of the Financial Statements required by SECTION 5.2(B)),
consolidated unaudited balance sheets of Westlake and its Subsidiaries as at the
end of such month, and consolidated unaudited income statements and cash flow
statements for Westlake and its Subsidiaries for such month and for the period
from the beginning of the Fiscal Year to the end of such month, all in
reasonable detail, fairly presenting the financial position and results of
operations of Westlake and its Subsidiaries as at the date thereof and for such
periods, and prepared in accordance with GAAP (except for the inclusion of
necessary footnotes) applied consistently with the audited Financial Statements
required to be delivered pursuant to SECTION 5.2(A), together with a schedule
setting forth in reasonable detail the calculation of the Fixed Charge Coverage
Ratio for the immediately preceding twelve (12) month period. The Borrowers
shall certify by a certificate signed by a Responsible Officer of Westlake that
all such statements have been prepared in accordance with GAAP and present
fairly the financial position for the Loan Parties as at the dates thereof and
its results of operations for the periods then ended, subject to normal year-end
adjustments and the absence of applicable footnotes.

            (d) With each of the audited Financial Statements delivered pursuant
to SECTION 5.2(A), a certificate of the independent certified public accountants
that examined such statement

                                      -17-
<PAGE>
to the effect that they have reviewed and are familiar with this Agreement and
that, in examining such Financial Statements, they did not become aware of any
fact or condition which then constituted a Default or Event of Default with
respect to a financial covenant, except for those, if any, described in
reasonable detail in such certificate.

            (e) Within thirty (30) days after the end of each month, other than
March, June, September, or December, in each case on the date the reports
described in SECTION 5.2(C) above, a Compliance Certificate in the form of
EXHIBIT G from a Responsible Officer on behalf of the Loan Parties stating that,
among other things, except as explained in reasonable detail in such
certificate, (i) all of the representations and warranties of the Loan Parties
contained in this Agreement and the other Loan Documents are correct and
complete in all material respects as at the date of such certificate as if made
at such time, except for those that speak as of a particular date, (ii) the Loan
Parties are, at the date of such certificate, in compliance in all material
respects with all of its respective covenants and agreements in this Agreement
and the other Loan Documents, and (iii) no Default or Event of Default then
exists or existed during the period covered by the Financial Statements and at
the end of such period and if the Loan Parties are required to comply with the
covenant in SECTION 7.21 during such period, including calculations (in
reasonable detail) required to establish that the Loan Parties were in
compliance with such covenant during such period. If such certificate discloses
that a representation or warranty is not correct or complete, or that a covenant
has not been complied with, or that a Default or Event of Default existed or
exists, such certificate shall set forth what action the Borrowers have taken or
propose to take with respect thereto.

            (f) Within thirty (30) days after the beginning of each Fiscal Year,
annual forecasts (to include forecasted consolidated, as well as consolidating
by business segment in accordance with Westlake's customary practices, balance
sheets, income statements and cash flow statements) for Westlake and its
Subsidiaries as at the end of and for each fiscal month of such Fiscal Year.

            (g) Intentionally omitted.

            (h) Promptly upon the filing thereof, copies of all reports, if any,
to or other documents filed by any Loan Party with the Securities and Exchange
Commission under the Exchange Act, and all reports, notices, or statements sent
or received by any Loan Party to or from the holders of any of the Bond Debt or
other Debt of any Loan Party registered under the Securities Act of 1933 or to
or from the trustee under any indenture under which the same is issued, other
than non-material disclosures.

            (i) As soon as available, but in any event not later than fifteen
(15) days after any Borrower's receipt thereof, a copy of any management letters
prepared for any Borrower by any independent certified public accountants of the
Borrowers in connection with the audited Financial Statements of the Borrowers
for any Fiscal Year.

            (j) Promptly after their preparation, copies of any and all proxy
statements, financial statements, and reports which any Borrower makes available
to its public shareholders, if any.

            (k) If requested by the Agent, promptly after filing with the IRS, a
copy of each tax return filed by any Loan Party.

            (l) As soon as available, but in any event by the second Business
Day of each week for the prior week ending on the last Business Day of such
prior week; provided that not more than four (4) times in any fiscal year, the
following may be delivered by the third Business Day of such week, in form and
substance reasonably satisfactory to the Agent: (i) a schedule of each Loan
Party's Accounts created, credit memoranda, and collections for the applicable
week, together with a reconciliation of each

                                      -18-
<PAGE>
Loan Party's Accounts created, credit memos, collections and other adjustments
to Accounts since the last such weekly reconciliation and a Borrowing Base
Certificate; (ii) a summary of each credit memorandum in excess of $250,000;
(iii) after the occurrence of the Account Triggering Date, an Inventory report;
and (iv) with the delivery of each of the foregoing, a certificate executed by a
Responsible Officer on behalf of all of the Loan Parties certifying as to the
accuracy and completeness of the foregoing.

            (m) As soon as available, but in any event within fifteen (15) days
after the end of each month or more frequently if requested by the Agent to
determine Availability or otherwise, each in form and substance reasonably
satisfactory to the Agent: (i) a reconciliation of each Loan Party's Accounts
created, credit memoranda, collections and other adjustments to Accounts since
the last such monthly reconciliation and a Borrowing Base Certificate; (ii) an
aging of each Loan Party's Accounts together with a reconciliation to the
previous calendar month end's accounts receivable balance of such Loan Party's
Accounts and to its general ledger; (iii) an aging of each Loan Party's accounts
payable; (iv) a detailed calculation of Eligible Accounts and Eligible
Inventory; (v) upon the Agent's reasonable request, copies of invoices in
connection with each Loan Party's Accounts, customer statements, credit memos,
remittance advices and reports, deposit slips, and shipping and delivery
documents in connection with each Loan Party's Accounts and for Inventory
acquired by each Loan Party; (vi) an Inventory report; (vii) such other reports
as to the Collateral as the Agent shall reasonably request from time to time;
and (viii) with the delivery of each of the foregoing, a certificate executed by
a Responsible Officer on behalf of all of the Loan Parties certifying as to the
accuracy and completeness of the foregoing. If any of the Loan Parties' records
or reports of the Collateral are prepared by an accounting service or other
agent, each Loan Party hereby authorizes, and shall cause each Loan Party to
authorize, such service or agent to deliver such records, reports, and related
documents to the Agent for distribution to the Lenders.

            (n) Such additional information as the Agent and/or any Lender may
from time to time reasonably request regarding the financial and business
affairs of Westlake or any of its Subsidiaries.

         5.3 Notices to the Lenders. The Borrowers shall notify the Agent and
the Lenders in writing of the following matters at the following times:

            (a) Immediately after any Responsible Officer of any Loan Party
becoming aware of any Default or Event of Default;

            (b) Immediately after any Responsible Officer of any Loan Party
becoming aware of the assertion by the holder of any capital stock of any Loan
Party or the holder of any Debt of any Loan Party in a face amount in excess of
$5,000,000 that a default exists with respect thereto or that such Loan Party is
not in compliance with the terms thereof, or the threat or commencement by such
holder of any enforcement action because of such asserted default or
non-compliance;

            (c) Immediately after any Responsible Officer of any Loan Party
becoming aware of any event or circumstance which could reasonably be expected
to have a Material Adverse Effect;

            (d) Immediately after any Responsible Officer of any Loan Party
becoming aware of any pending or threatened action, suit, or proceeding, by any
Person, or any pending or threatened investigation by a Governmental Authority,
which could reasonably be expected to have a Material Adverse Effect;

            (e) Immediately after any Responsible Officer of any Loan Party
becoming aware of any pending or threatened strike, work stoppage, unfair labor
practice claim, or other labor

                                      -19-
<PAGE>
dispute affecting the any Loan Party in a manner which could reasonably be
expected to have a Material Adverse Effect;

            (f) Immediately after any Responsible Officer of any Loan Party
becoming aware of any violation of any law, statute, regulation, or ordinance of
a Governmental Authority affecting any Loan Party which could reasonably be
expected to have a Material Adverse Effect;

            (g) Immediately after receipt by a Responsible Officer of any Loan
Party of any notice of any violation by any Loan Party of any Environmental Law
which could reasonably be expected to have a Material Adverse Effect or that any
Governmental Authority has asserted in writing that any Loan Party is not in
compliance with any Environmental Law or is investigating any Loan Party's
compliance therewith;

            (h) Immediately after receipt by any Responsible Officer of any Loan
Party of any written notice that the any Loan Party is or may be liable to any
Person as a result of the Release or threatened Release of any Contaminant or
that any Loan Party is subject to investigation by any Governmental Authority
evaluating whether any remedial action is needed to respond to the Release or
threatened Release of any Contaminant which, in either case, is reasonably
likely to give rise to liability in excess of $7,500,000;

            (i) Immediately after receipt by a Responsible Officer of any Loan
Party of any written notice of the imposition of any Environmental Lien against
any property of any Loan Party securing an amount which could reasonably be
expected to exceed $5,000,000;

            (j) Any change in any Loan Party's name as it appears in the state
of its incorporation or other organization, state of incorporation or
organization, type of entity, organizational identification number, locations of
Collateral, or form of organization, trade names under which any Loan Party will
sell Inventory or create Accounts, or to which instruments in payment of
Accounts may be made payable, in each case at least thirty (30) days prior
thereto;

            (k) Within ten (10) Business Days after any Loan Party or any ERISA
Affiliate knows or has reason to know, that an ERISA Event, or a prohibited
transaction (as defined in Sections 406 of ERISA and 4975 of the Code), which
could reasonably be expected to result in liability to any Loan Party in excess
of $5,000,000, has occurred, and, when known, any action taken or threatened by
the IRS, the DOL, or the PBGC with respect thereto;

            (l) Upon request, or, in the event that such filing reflects a
potentially adverse significant financial change with respect to the matters
covered thereby, within ten (10) Business Days after the filing thereof with the
PBGC, the DOL, or the IRS, as applicable, copies of the following: (i) each
annual report (form 5500 series), including Schedule B thereto, filed with the
PBGC, the DOL, or the IRS with respect to each Plan, (ii) a copy of each funding
waiver request filed with the PBGC, the DOL, or the IRS with respect to any Plan
and all communications received by any Loan Party or any ERISA Affiliate from
the PBGC, the DOL, or the IRS with respect to such request, and (iii) a copy of
each other filing or notice filed with the PBGC, the DOL, or the IRS, with
respect to each Plan by either any Loan Party or any ERISA Affiliate;

            (m) Upon request, copies of each actuarial report for any Plan or
Multi-employer Plan and annual report for any Multi-employer Plan; and within
ten (10) Business Days after receipt thereof by any Loan Party or any ERISA
Affiliate, copies of the following: (i) any notices of the PBGC's intention to
terminate a Plan or to have a trustee appointed to administer such Plan; (ii)
any unfavorable determination letter from the IRS regarding the qualification of
a Plan under Section 401(a) of the Code;

                                      -20-
<PAGE>
or (iii) any notice from a Multi-employer Plan regarding the imposition of
withdrawal liability to any Loan Party in excess of $5,000,000;

            (n) Within ten (10) Business Days after the occurrence of any
failure by any Loan Party or any ERISA Affiliate to make a required installment
or any other required payment under Section 412 of the Code on or before the due
date for such installment or payment;

            (o) Within ten (10) Business Days after any Responsible Officer of
any Loan Party or any ERISA Affiliate knows or has reason to know that any of
the following events has or will occur which could reasonably be expected to
result in liability to any Loan Party in excess of $5,000,000: (i) a
Multi-employer Plan has been or will be terminated; (ii) the administrator or
plan sponsor of a Multi-employer Plan intends to terminate a Multi-employer
Plan; or (iii) the PBGC has instituted or will institute proceedings under
Section 4042 of ERISA to terminate a Multi-employer Plan; or

            (p) Promptly after the Borrowers have notified the Agent of any
intention by the Borrowers to treat the Loans and/or Letters of Credit and
related transactions as being a "reportable transaction" (within the meaning of
Treasury Regulation Section 1.6011-4), a duly completed copy of IRS Form 8886 or
any successor form.

         Each notice given under this SECTION 5.3 shall describe the subject
matter thereof in reasonable detail, and shall set forth the action that the
Loan Party, its Subsidiary, or any ERISA Affiliate, as applicable, has taken or
proposes to take with respect thereto.

                                   ARTICLE 6
                    GENERAL WARRANTIES AND REPRESENTATIONS

         Each Borrower (and each other Loan Party by executing an Obligation
Guaranty, with respect to such Loan Party) warrants and represents to the Agent
and the Lenders that except as hereafter disclosed to and accepted by the Agent
and the Required Lenders in writing:

         6.1 Authorization, Validity, and Enforceability of this Agreement and
the Loan Documents. Each Loan Party has the power and authority to execute,
deliver, and perform this Agreement and the other Loan Documents to which it is
a party, to incur the Obligations, and to grant to the Agent's Liens upon and
security interests in the Collateral. Each Loan Party has taken all necessary
action (including obtaining approval of its stockholders if necessary) to
authorize its execution, delivery, and performance of this Agreement and the
other Loan Documents to which it is a party. This Agreement and the other Loan
Documents to which it is a party have been duly executed and delivered by each
Loan Party, and constitute the legal, valid, and binding obligations of each
Loan Party, enforceable against each such Loan Party in accordance with their
respective terms except as enforceability may be limited by the Federal
Bankruptcy Code or by any other state or federal bankruptcy or insolvency act or
law and general principles of equity. Each Loan Party's execution, delivery, and
performance of this Agreement and the other Loan Documents to which it is a
party do not and will not conflict with, or constitute a violation or breach of,
or result in the imposition of any Lien (other than in favor of the Agent) upon
the property of such Loan Party or any of its Subsidiaries, by reason of the
terms of (a) any contract, mortgage, lease, material agreement, indenture, or
instrument to which such Loan Party is a party or which is binding upon it, (b)
any Requirement of Law applicable to such Loan Party or any of its Subsidiaries,
or (c) the certificate or articles of incorporation or by-laws or the limited
liability company or limited partnership agreement of such Loan Party or any of
its Subsidiaries.

         6.2 Validity and Priority of Security Interest. The provisions of this
Agreement, the Collateral Documents, and the other Loan Documents create legal
and valid Liens on all the Collateral in

                                      -21-
<PAGE>
favor of the Agent, for the ratable benefit of the Agent and the Lenders, and,
upon the filing of all applicable financing statements against the Borrowers,
such Liens shall constitute perfected and continuing Liens on all the
Collateral, having priority over all other Liens on the Collateral, except for
those Liens identified in CLAUSES (C), (D), and (E) of the definition of
Permitted Liens securing all the Obligations, and enforceable against each Loan
Party and all third parties and except as provided under the Intercreditor
Agreement.

         6.3 Organization and Qualification. Each Loan Party (a) is duly
organized or incorporated and validly existing in good standing under the laws
of the state of its organization or incorporation, (b) is qualified to do
business and is in good standing in the jurisdictions set forth on SCHEDULE 6.3
which are the only jurisdictions in which qualification is necessary in order
for it to own or lease its property and conduct its business and (c) has all
requisite power and authority to conduct its business and to own its property.

         6.4 Corporate Name; Prior Transactions. Except as set forth on SCHEDULE
6.4, no Loan Party has, during the past five (5) years, been known by or used
any other corporate or fictitious name, or been a party to any merger or
consolidation, or acquired all or substantially all of the assets of any Person,
or acquired any of its property outside of the ordinary course of business.

         6.5 Subsidiaries and Affiliates. SCHEDULE 6.5 is a correct and complete
list of the name and relationship to each Loan Party of each and all its
Subsidiaries and other Affiliates owned, directly or indirectly, by Parent. No
Loan Party has any ownership interest in any Subsidiary of any Unrestricted
Subsidiary of Westlake.

         6.6 Financial Statements and Projections.

            (a) The Borrowers have delivered to the Agent and the Lenders the
audited balance sheet and related statements of income, retained earnings, cash
flows, and changes in stockholders equity for the Loan Parties as of December
31, 2002, and for the Fiscal Year then ended, accompanied by the report thereon
of the Borrowers' independent certified public accountants,
PricewaterhouseCoopers LLP. The Borrowers have also delivered to the Agent and
the Lenders the unaudited balance sheet and related statements of income and
cash flows for the Loan Parties as of May 31, 2003. All such Financial
Statements have been prepared in accordance with GAAP and fairly present in all
material respects the financial position of the Loan Parties as at the dates
thereof and their results of operations for the periods then ended, subject to
normal year-end adjustments as to the May 31, 2003 statements, and the absence
of applicable footnotes.

            (b) The Latest Projections when submitted to the Lenders as required
herein represent the Borrowers' good faith estimate of the future financial
performance of the Loan Parties for the periods set forth therein. The Latest
Projections have been prepared on the basis of the assumptions set forth
therein, which the Borrowers believes are fair and reasonable in light of
current and reasonably foreseeable business conditions at the time submitted to
the Lenders.

            (c) The pro forma balance sheet of the Loan Parties as at June 30,
2003, delivered to the Agent and the Lenders, fairly presents the Loan Parties'
financial condition as at such date after giving effect to all of the
transactions contemplated to occur on the Closing Date, and has been prepared in
accordance with GAAP.

         6.7 Capitalization. Westlake's authorized capital stock consists of
_________ shares of common stock, par value $_____ per share, of which _______
shares are validly issued and outstanding, fully paid and non-assessable and are
owned beneficially and of record by Parent.

                                      -22-
<PAGE>
         6.8 Solvency. On the Closing Date, at the time of each Borrowing
hereunder, and on the dates of the issuance of any Letters of Credit to be
issued hereunder, each Loan Party is (and after giving effect to the
transactions contemplated by the Loan Documents, and any incurrence of
additional Debt will be) Solvent.

         6.9 Debt. After giving effect to (a) the making of the Revolving Loans
to be made on the Closing Date and (b) the issuance of any Letters of Credit to
be issued on the Closing Date, the Loan Parties have no Debt, except (i) the
Obligations, (ii) Debt described on SCHEDULE 6.9, and (iii) other Debt permitted
by SECTION 7.13.

         6.10 Distributions. Since December 31, 2002, no Distribution has been
declared, paid, or made upon or in respect of any capital stock or other
securities of Westlake or any of its Subsidiaries except as permitted by SECTION
7.10.

         6.11 Real Estate; Leases. SCHEDULE 6.11 sets forth, as of the Closing
Date, a correct and complete list of all Real Estate owned by any Loan Party and
all Real Estate owned by any of their Subsidiaries that is a Loan Party, all
leases and subleases of real or personal property held by any Loan Party as
lessee or sublessee (other than leases of personal property as to which any Loan
Party is lessee or sublessee for which the value of such personal property in
the aggregate is less than $1,000,000), and all leases and subleases of real or
personal property held by any Loan Party as lessor, or sublessor. Each of such
leases and subleases is valid and enforceable in accordance with its terms
against the Loan Party or Subsidiary thereof which is a party thereto and is in
full force and effect, and to the best of each Loan Party's knowledge, no
default by any party to any such lease or sublease exists. Each Loan Party has
good and indefeasible title in fee simple to the Real Estate identified on
SCHEDULE 6.11 as owned by such Loan Party, or valid leasehold interests in all
Real Estate designated therein as "leased" by such Loan Party and each Loan
Party has good and indefeasible title to all of its other property reflected on
the May 31, 2003 Financial Statements delivered to the Agent and the Lenders,
except as disposed of in the ordinary course of business since the date thereof,
free of all Liens except Permitted Liens.

         6.12 Proprietary Rights. SCHEDULE 6.12 sets forth a correct and
complete list of all of the Proprietary Rights of each Loan Party. None of the
Proprietary Rights is subject to any licensing agreement or similar arrangement
except as set forth on SCHEDULE 6.12. To the best of each Loan Party's
knowledge, none of the Proprietary Rights of such Loan Party infringes on or
conflicts in any material respect with any other Person's property, and no other
Person's property infringes on or conflicts with the Proprietary Rights of such
Loan Party. The Proprietary Rights described on SCHEDULE 6.12 constitute all of
the property of such type necessary to the current conduct of the business of
each such Loan Party. No Proprietary Rights are necessary for the Agent to be
able to enforce the Agent's Liens granted in any Collateral Document in any
Inventory or Accounts.

         6.13 Trade Names. All trade names or styles under which any Loan Party
or any of their Subsidiaries will sell Inventory or create Accounts, or to which
instruments in payment of Accounts may be made payable, are listed on SCHEDULE
6.13.

         6.14 Litigation. Except as set forth on SCHEDULE 6.14, there is no
pending, or to the best of any Loan Party's knowledge threatened, action, suit,
proceeding, or counterclaim by any Person against any Loan Party, or to the best
of any Loan Party's knowledge, investigation by any Governmental Authority, or
any basis for any of the foregoing, which could reasonably be expected to have a
Material Adverse Effect.

         6.15 Labor Disputes. Except as set forth on SCHEDULE 6.15, as of the
Closing Date (a) there is no collective bargaining agreement or other labor
contract covering employees of any Loan

                                      -23-
<PAGE>
Party or any of their Subsidiaries, (b) no such collective bargaining agreement
or other labor contract is scheduled to expire during the term of this
Agreement, (c) to the best of each Loan Party's knowledge, no union or other
labor organization is seeking to organize, or to be recognized as, a collective
bargaining unit of employees of any Loan Party or any of their Subsidiaries or
for any similar purpose, and (d) there is no pending or (to the best of any Loan
Party's knowledge) threatened, strike, work stoppage, material unfair labor
practice claim, or other material labor dispute against or affecting any Loan
Party or their Subsidiaries or their employees.

         6.16 Environmental Laws. Except as otherwise disclosed on SCHEDULE 6.16
or except as would not have a Material Adverse Effect:

            (a) The Loan Parties and their Subsidiaries are and have been in
compliance with all Environmental Laws.

            (b) Each of the Loan Parties and their Subsidiaries have obtained,
and have timely filed any renewal applications for, all permits necessary for
its current operations under Environmental Laws, and each Loan Party and its
Subsidiaries are in compliance with all terms and conditions of such permits,
or, when applicable, such applications.

            (c) There has been no Release, nor to the best of any Loan Party's
knowledge, any threatened Release, that has resulted in or that could result in:
(i) a violation of or obligation under any Environmental Law, including without
limitation, notification, deed recordation, or remediation, or (ii) a diminution
in value of the Real Estate. The Real Estate has not contained and currently
does not contain any underground storage tanks, any polychlorinated biphenyls
(PCBs), or any asbestos.

            (d) The Loan Parties and their Subsidiaries have not given, nor were
they required to give, and have not received, any notice that: (i) the Loan
Parties and their Subsidiaries have violated, or are about to violate, any
Environmental Law; (ii) there has been a Release, or there is a threat of
Release, from the Real Estate; (iii) the Loan Parties and their Subsidiaries may
be or are liable, in whole or in part, for the costs of cleaning up,
remediating, removing or responding to a Release; or (iv) the Real Estate is
subject to a lien in favor of any governmental entity for any liability, costs
or damages, under any Environmental Laws arising from, or costs incurred by,
such governmental entity in response to a Release. No conditions have existed,
currently exist, or are reasonably foreseeable, that would give rise to such a
notice.

            (e) Neither Loan Parties nor any Subsidiary nor any Real Estate or
presently conducted operations, nor any previously owned real property or prior
operations, is subject to any enforcement order from or liability agreement with
any Governmental Authority or private Person respecting (i) compliance with any
Environmental Law or (ii) any potential liabilities and costs or remedial action
arising from the Release or threatened Release.

            (f) To the best of any Loan Party's knowledge, none of the present
or past operations of the Loan Parties or their Subsidiaries is the subject of
any investigation by any Governmental Authority evaluating whether any
compliance action is warranted or any remedial action is needed to respond to a
Release or threatened Release.

            (g) Neither the Loan Parties nor any of their Subsidiaries has
entered into any negotiations or settlement agreements with any Person
(including the prior owner of its property) imposing material obligations or
liabilities on the Borrower or any of its Subsidiaries with respect to any
remedial action in response to the Release of a Contaminant or environmentally
related claim.

                                      -24-
<PAGE>
            (h) Neither the Loan Parties nor any of their Subsidiaries have ever
disposed of, sent or arranged for the transportation of Hazardous Materials on
or from Real Estate or formerly owned real property which, pursuant to CERCLA or
any similar or analogous state law, has been placed or is proposed to be paced
(by the United States Environmental Protection Agency ("EPA") or similar state
authority) on the "National Priorities List" or similar state list.

            (i) Neither the Loan Parties nor any of their Subsidiaries have been
identified by EPA, any similar state authority, or any third party, as a
potentially responsible party under CERCLA, or any similar or analogous state
law, with respect to the Real Estate or any other site currently or formerly
owned, operated or used by Loan Parties or their Subsidiaries.

            (j) None of the products manufactured, distributed or sold by the
Loan Parties or any of their Subsidiaries contain asbestos containing material.

            (k) No Environmental Lien has attached to the Real Estate.

         6.17 No Violation of Law. Neither any Loan Party nor any of their
Subsidiaries is in violation of any Requirement of Law applicable to it which
violation could reasonably be expected to have a Material Adverse Effect.

         6.18 No Default. Neither any Loan Party nor any of their Subsidiaries
is in default with respect to any note, indenture, loan agreement, mortgage,
lease, deed, or other agreement to which such Person is a party or by which it
is bound, which default could reasonably be expected to have a Material Adverse
Effect.

         6.19 ERISA Compliance. Except as specifically disclosed in SCHEDULE
6.19:

            (a) Each Plan is in compliance in all material respects with the
applicable provisions of ERISA, the Code, and other federal or state law. Each
Plan which is intended to qualify under Section 401(a) of the Code has received
a favorable determination letter from the IRS or an application for such a
letter is currently being processed by the IRS with respect thereto and to the
best knowledge of any Loan Party, nothing has occurred which would prevent or
cause the loss, of such qualification. Each Borrower and each ERISA Affiliate
has made all required contributions to any Plan subject to Section 412 of the
Code, and no application for a funding waiver or an extension of any
amortization period pursuant to Section 412 of the Code has been made with
respect to any Plan.

            (b) There are no pending or, to the best knowledge of any Borrower,
threatened claims, actions or lawsuits, or action by any Governmental Authority,
with respect to any Plan which has resulted or could reasonably be expected to
result in a Material Adverse Effect. There has been no prohibited transaction or
violation of the fiduciary responsibility rules with respect to any Plan which
has resulted or could reasonably be expected to result in a Material Adverse
Effect.

            (c) (i) No ERISA Event has occurred within the past five (5) years
or is reasonably expected to occur which has or could reasonably be expected to
result in liability to any Loan Party in excess of $7,500,000; (ii) the Unfunded
Pension Liability, in the aggregate, for all Pension Plans does not exceed
$7,500,000; (iii) neither any Borrower nor any ERISA Affiliate has incurred, or
reasonably expects to incur, any liability under Title IV of ERISA to the PBGC
with respect to any Pension Plan (other than premiums due and not delinquent
under Section 4007 of ERISA); and (iv) neither any Borrower nor any ERISA
Affiliate has engaged in a transaction that could be subject to Section 4069 or
4212(c) of ERISA.

                                      -25-
<PAGE>
         6.20 Taxes. The Loan Parties and their Subsidiaries have filed all
federal and other tax returns and reports required to be filed (or appropriate
extensions have been timely filed), and have paid all federal and other taxes,
assessments, fees and other governmental charges levied or imposed upon them or
their properties, income or assets otherwise due and payable unless such unpaid
taxes and assessments would constitute a Permitted Lien.

         6.21 Regulated Entities. None of any Loan Party, any Person controlling
any Loan Party, or any Subsidiary of any Loan Party, is an "Investment Company"
within the meaning of the Investment Company Act of 1940. No Loan Party is a
regulated entity under the Public Utility Holding Company Act of 1935, the
Federal Power Act, the Interstate Commerce Act, any state public utilities code
or law, or any other federal or state statute or regulation limiting its ability
to incur Debt.

         6.22 Use of Proceeds; Margin Regulations. The proceeds of the Loans are
to be used solely (a) to refinance existing Debt, (b) to pay the costs and
expenses related to this Agreement, (c) for working capital purposes of the Loan
Parties, and (d) for general corporate purposes. None of such proceeds will be
used for the purpose of purchasing or carrying any "margin stock" as defined in
Regulations T, U, or X of the Board of Governors of the Federal Reserve System
or for any other purpose which might constitute this transaction a "purpose
credit" within the meaning of such Regulations. No part of the proceeds of the
Loan will be used for any purpose which violates, or is inconsistent with, the
provisions of Regulation X. No Loan Party nor any Subsidiary of any Loan Party
is engaged in the business of purchasing or selling Margin Stock or extending
credit for the purpose of purchasing or carrying Margin Stock. Following the
application of the proceeds of each Loan or drawing under each Letter of Credit,
not more than 25% of the value of the assets (either of any individual Borrower
or of the Loan Parties on a consolidated basis) subject to the provisions of
SECTION 7.9 or SECTION 7.18 or subject to any restriction contained in any
agreement or instrument between the Borrower and any Lender or any Affiliate of
any Lender relating to Debt and within the scope of SECTION 9.1(D) will be
Margin Stock.

         6.23 Copyrights, Patents, Trademarks and Licenses, etc. Each Loan Party
owns or is licensed or otherwise has the right to use all of the Proprietary
Rights, contractual franchises, licenses, permits, rights of way,
authorizations, and other rights that are reasonably necessary for the operation
of its businesses, without conflict with the rights of any other Person. To the
best knowledge of any Borrower, no slogan or other advertising device, product,
process, method, substance, part, or other material now employed, or now
contemplated to be employed, by any Loan Party or any Subsidiary of any Loan
Party infringes upon any rights held by any other Person. No claim or litigation
regarding any of the foregoing is pending, or, to the best knowledge of any Loan
Party, threatened, and no patent, invention, device, application, principle or
any statute, law, rule, regulation, standard or code is pending or, to the
knowledge of any Borrower, proposed, which, in either case, could reasonably be
expected to have a Material Adverse Effect.

         6.24 No Material Adverse Change. No Material Adverse Effect has
occurred since the latest date of the Financial Statements delivered to the
Lenders.

         6.25 Full Disclosure. None of the representations or warranties (other
than as to estimates, projections, and pro forma Financial Statements) made by
any Loan Party in the Loan Documents as of the date such representations and
warranties are made or deemed made, and none of the statements contained in any
exhibit, report, statement or certificate furnished by or on behalf of any Loan
Party in connection with the Loan Documents (including the offering and
disclosure materials delivered by or on behalf of the Loan Parties to the
Lenders prior to the Closing Date), contains any untrue statement of a material
fact or omits any material fact required to be stated therein or necessary to
make the statements made therein, in light of the circumstances under which they
are made, not misleading as of the time when made or delivered. Any estimates,
projections, and pro forma Financial Statements

                                      -26-
<PAGE>
delivered to the Agent or the Lenders were prepared in good faith based on
assumptions believed to be reasonable at the time.

         6.26 Material Agreements. SCHEDULE 6.26 hereto sets forth as of the
Closing Date all Material Agreements to which any Borrower is a party or is
bound as of the date hereof.

         6.27 Bank Accounts. SCHEDULE 6.27 contains as of the Closing Date a
complete and accurate list of all bank accounts maintained by the Loan Parties
with any bank or other financial institution.

         6.28 Governmental Authorization. No approval, consent, exemption,
authorization, or other action by, or notice to, or filing with, any
Governmental Authority or other Person is necessary or required in connection
with the execution, delivery or performance by, or enforcement against, any Loan
Party of this Agreement or any other Loan Document other than (a) those already
obtained, (b) the filing of UCC financing statements and mortgages, and (c) the
filing of the Copyright Security Agreements and the Patent and Trademark
Agreements.

         6.29 No Restrictions. There exists no document, contract, or agreement
to which any Loan Party or any direct or indirect parent of any Loan Party is a
party that could reasonably be expected to materially and adversely affect this
Agreement, any other Loan Document, or the transactions contemplated hereby or
thereby or that otherwise restricts or prohibits the transactions contemplated
hereby or thereby.

                                   ARTICLE 7
                       AFFIRMATIVE AND NEGATIVE COVENANTS

         Each Borrower (and each other Loan Party by execution of an Obligation
Guaranty, with respect to covenants applicable to such Loan Party) covenants to
the Agent and each Lender that so long as any of the Obligations remain
outstanding or this Agreement is in effect:

         7.1 Taxes and Other Obligations. Each Loan Party shall, and shall cause
each of its Subsidiaries to, (a) file prior to delinquency all tax returns and
other reports which it is required to file; (b) pay, or provide for the payment,
when due, of all taxes, fees, assessments and other governmental charges against
it or upon its property, income and franchises, make all required withholding
and other tax deposits, and establish adequate reserves or other provision
required by GAAP for the payment of all such items, and provide to the Agent and
the Lenders, upon request, satisfactory evidence of its timely compliance with
the foregoing; and (c) pay when due all Debt owed by it and all claims of
materialmen, mechanics, carriers, warehousemen, landlords, processors and other
like Persons, and all other indebtedness owed by it and perform and discharge in
a timely manner all other obligations undertaken by it; provided, however, so
long as Westlake has notified the Agent in writing, no Loan Party or any of
their Subsidiaries need to pay any tax, fee, assessment, or governmental charge
(i) which such Loan Party is contesting in good faith by appropriate proceedings
diligently pursued, (ii) for which such Loan Party or its Subsidiary, as the
case may be, has established proper reserves as required under GAAP, and (iii)
the nonpayment of which does not result in the imposition of a Lien (other than
a Permitted Lien).

         7.2 Legal Existence and Good Standing. Except as permitted by SECTION
7.9, each Loan Party shall maintain its legal existence and its qualification
and good standing in all jurisdictions in which the failure to maintain such
existence and qualification or good standing could reasonably be expected to
have a Material Adverse Effect.

                                      -27-
<PAGE>
         7.3 Compliance with Law and Agreements; Maintenance of Licenses;
Amendments to Bond Debt and Fixed Asset Loan. Each Loan Party shall comply, and
shall cause each of its Subsidiaries to comply, in all material respects, with
all Requirements of Law of any Governmental Authority having jurisdiction over
it or its business (including the Federal Fair Labor Standards Act and all
Environmental Laws), except to the extent that the failure to do so could not
reasonably be expected to have a Material Adverse Effect. No Loan Party shall
violate the provisions of any Material Agreement, except to the extent that the
failure to do so could not reasonably be expected to have a Material Adverse
Effect. Each Loan Party shall, and shall cause each of its Subsidiaries to,
obtain and maintain all licenses, permits, franchises, and governmental
authorizations necessary to own its property and to conduct its business as
conducted on the Closing Date, except to the extent that the failure to do so
could not reasonably be expected to have a Material Adverse Effect. No Loan
Party shall modify, amend, or alter its certificate or articles of
incorporation, or its limited liability company operating agreement or limited
partnership agreement, as applicable, other than in a manner which does not
adversely affect the rights of the Lenders or the Agent. No Loan Party shall
amend or modify any provision of, or waive any condition under, any document or
instrument evidencing or relating to the Bond Debt or the Fixed Asset Loan,
without first (a) providing to the Agent a copy of such proposed amendment,
modification, or waiver and (b) obtaining Required Lenders' prior written
consent thereto, if the Agent determines, in its reasonable discretion, that any
such change or changes could reasonably be expected to adversely affect the
rights of Lenders.

         7.4 Maintenance of Property; Inspection of Property.

            (a) Each Loan Party shall, and shall cause each of its Subsidiaries
to, maintain all of its property necessary and useful in the conduct of its
business, in good operating condition and repair, ordinary wear and tear
excepted.

            (b) Each Loan Party shall permit representatives and independent
contractors of the Agent (at the expense of the Borrowers not to exceed four (4)
times per year unless a Default or an Event of Default has occurred and is
continuing) to visit and inspect any of its properties, to examine its
corporate, financial and operating records, and make copies thereof or abstracts
therefrom and to discuss its affairs, finances and accounts with its directors,
officers and independent public accountants, at such reasonable times during
normal business hours and as soon as may be reasonably desired, upon reasonable
advance notice to the Borrower; provided, however, when a Default or an Event of
Default exists, the Agent or any Lender may do any of the foregoing at the
expense of the Borrowers at any time during normal business hours without
advance notice.

            (c) Each Loan Party shall own or have valid licenses for all
Proprietary Rights necessary for the anticipated future conduct of the business
of each such Loan Party.

         7.5 Insurance.

            (a) Each Loan Party shall maintain, and shall cause each of its
Subsidiaries with financially sound and reputable insurers having a rating of at
least A- or better by Best Rating Guide, or by other companies acceptable to the
Agent in its sole discretion (it being understood that the companies acceptable
to the Agent on the Closing Date shall be acceptable thereafter absent a change
in rating or other circumstances), insurance against loss or damage by fire with
extended coverage; theft, burglary, pilferage and loss in transit; public
liability and third party property damage; larceny, embezzlement, or other
criminal liability; business interruption (other than with respect to North
American Pipe Corporation for which no business interruption insurance is
required absent a change in circumstances); public liability and third party
property damage; and such other hazards or of such other types as is customary
for Persons engaged in the same or similar business, as the Agent, in its
discretion, or acting at the direction of the Required Lenders, shall specify,
in amounts, and under policies and coverages acceptable to the

                                      -28-
<PAGE>
Agent and the Required Lenders (it being understood that policies acceptable in
form and substance to the Agent in connection with the initial closing shall be
generally acceptable thereafter absent a change in law, facts, or
circumstances).

            (b) Each Loan Party shall cause the Agent, for the ratable benefit
of the Agent and the Lenders, to be named as loss payee or additional insured,
as its interest may appear, with respect to the Inventory, in a manner
acceptable to the Agent. Each policy of insurance (other than policies issued by
Oil Insurance Limited) shall contain a clause or endorsement requiring the
insurer to give not less than thirty (30) days' prior written notice to the
Agent in the event of cancellation of the policy for any reason whatsoever
(other than cancellation of the policy for non-payment of premiums, which shall
require not less than ten (10) days' prior written notice to the Agent) and a
clause or endorsement stating that the status of the Agent as loss payee or
additional insured shall not be impaired or invalidated by any act or neglect of
any Loan Party or any of their Subsidiaries or the owner of any Real Estate not
covered by the applicable policy. All premiums for such insurance shall be paid
by or on behalf of the Loan Parties when due, and certificates of insurance and,
if requested by the Agent or any Lender, photocopies of the policies, shall be
delivered to the Agent. If any Loan Party fails to procure such insurance or to
pay the premiums therefor when due, the Agent may, and at the direction of the
Required Lenders shall, do so from the proceeds of Revolving Loans.

         7.6 Insurance and Condemnation Proceeds. The Borrowers shall promptly
notify the Agent and the Lenders of any loss, damage, or destruction to the
Collateral, whether or not covered by insurance, other than any loss, damage, or
destruction involving an amount or fair market value of less than $250,000 in
the aggregate for each occurrence or series of occurrences ("MINOR INSURANCE
EVENTS"). Other than with respect to Minor Insurance Events, and subject to the
Intercreditor Agreement, the Agent is hereby authorized to collect all insurance
and condemnation proceeds in respect of Collateral directly and, after deducting
from such proceeds the reasonable expenses, if any, incurred by the Agent in the
collection or handling thereof, the Agent shall apply such proceeds, ratably, to
the reduction of the Obligations (but not a reduction of the Maximum Revolver
Amount) in the order provided for in SECTION 3.7. In the case of any loss,
damage, or destruction to any assets of the Loan Parties that includes
Collateral and other assets of the Loan Parties, the Loan Parties shall deliver
to the Agent satisfactory evidence of the amount of the insurance and
condemnation proceeds that are attributable to the Collateral; if the Agent is
not satisfied with such evidence, the Agent may, at the expense of the Loan
Parties, retain an independent third party to perform such valuation.

         7.7 Environmental Laws.

            (a) Each Loan Party shall, and shall cause each of their
Subsidiaries to, conduct its business in compliance in all material respects
with all Environmental Laws applicable to it, including those relating to the
generation, handling, use, storage, and disposal of any Hazardous Material. Each
Loan Party shall, and shall cause each of its Subsidiaries to, take prompt and
appropriate action to respond to any material non-compliance with Environmental
Laws and shall report to the Agent any such material non-compliance and any such
response.

            (b) Without limiting the generality of the foregoing, the Borrowers
shall submit to the Agent and the Lenders annually, commencing on the first
Anniversary Date, and on each Anniversary Date thereafter, an update of the
status of each environmental compliance or material liability issue of a Loan
Party with respect to its property. The Agent or any Lender may request copies
of technical reports prepared by any Loan Party and their communications with
any Governmental Authority to determine whether any Loan Party or any of their
Subsidiaries is proceeding reasonably to correct, cure, or contest in good faith
any alleged non-compliance or environmental liability. The Borrowers shall, at
the Agent's or the Required Lenders' request and at the Borrowers' expense, (i)
retain

                                      -29-
<PAGE>
an independent environmental engineer acceptable to the Agent to evaluate the
site, including tests if appropriate, where the non-compliance or alleged
non-compliance with Environmental Laws has occurred and prepare and deliver to
the Agent a report setting forth the results of such evaluation, a proposed plan
for responding to any environmental problems described therein, and an estimate
of the costs thereof, and (ii) provide to the Agent and the Lenders a
supplemental report of such engineer whenever the scope of the environmental
problems, or the response thereto or the estimated costs thereof, shall increase
in any material respect.

         7.8 Compliance with ERISA. Each Loan Party shall, and shall cause each
of its ERISA Affiliates to: (a) maintain each Plan in compliance in all material
respects with the applicable provisions of ERISA, the Code, and other federal or
state law; (b) cause each Plan which is qualified under Section 401(a) of the
Code to maintain such qualification; (c) make all required contributions to any
Plan subject to Section 412 of the Code; (d) not engage in a prohibited
transaction or violation of the fiduciary responsibility rules with respect to
any Plan which could reasonably be expected to result in liability to any Loan
Party in excess of $7,500,000; and (e) not engage in a transaction that could be
subject to Section 4069 or 4212(c) of ERISA.

         7.9 Mergers, Consolidations, or Sales. No Loan Party nor any of their
Subsidiaries shall enter into any transaction of merger, reorganization, or
consolidation, or agree to do any of the foregoing other than (a) as permitted
by SECTION 7.26, or (b) mergers among Loan Parties; provided that, in any merger
involving a Borrower, a Borrower must be the surviving entity. No Loan Party nor
any of their Subsidiaries shall transfer, sell, assign, lease, or otherwise
dispose of all or any part of its property (including, without limitation, the
stock or equity of any Subsidiary of such Loan Party except as expressly
permitted by the immediately preceding sentence), or wind up, liquidate, or
dissolve, or agree to do any of the foregoing, except (a) for sales of Inventory
in the ordinary course of its business, (b) for sales or other dispositions of
Equipment in the ordinary course of business that are obsolete or no longer
useable by any Loan Party in its respective business with a book value or
contemplated sales proceeds not to exceed $2,000,000 in the aggregate in any
Fiscal Year, (c) for sales, leases, or other transfers or dispositions among
Loan Parties, (d) for the sale, discount, or transfer of delinquent Accounts in
the ordinary course of business for purposes of collection, and (e) so long as
no Default or Event of Default then exists or arises as a result thereof, sales
of assets, other than those in CLAUSES (A) through (D), for fair value for cash,
so long as any mandatory prepayments required by SECTION 3.3(B), if any are
required, are made. All assets purchased with such proceeds shall be free and
clear of all Liens, except the Agent's Liens or other Permitted Liens.

         7.10 Distributions; Capital Change; Restricted Investments. No Loan
Party nor any of their Subsidiaries shall (a) directly or indirectly declare or
make, or incur any liability to make, any Distribution, except (i) Distributions
to any Loan Party from its direct Subsidiaries, and (ii) other Distributions by
Loan Parties, if, after giving effect to such Distribution, (x) Availability
equals or exceeds $100,000,000, and (y) the Fixed Charge Coverage Ratio is at
least 1.00 to 1.0, (b) make any change in its capital structure which could have
a Material Adverse Effect, or (c) make any Restricted Investment, provided that
if any payment, prepayment, redemption, purchase, or deposit in respect of any
Debt of the Loan Parties is permitted to be made under SECTION 7.14(C), and such
payment, prepayment, redemption, purchase, or deposit otherwise constitutes a
Restricted Investment, such payment, prepayment, redemption, purchase, or
deposit shall not be prohibited by the terms of this SECTION 7.10(C).
Notwithstanding the foregoing, Distributions are permitted hereunder only to the
extent that any such Distribution is made in accordance with applicable
Requirement of Law and constitutes a valid, non-voidable transaction.

                                      -30-
<PAGE>
         7.11 Transactions Affecting Collateral or Obligations. No Loan Party
nor any of their Subsidiaries shall enter into any transaction which would be
reasonably expected to have a Material Adverse Effect.

         7.12 Guaranties. No Loan Party nor any of their Subsidiaries shall
make, issue, or become liable on any Guaranty, except (a) Obligation Guaranties
in favor of the Agent, (b) Guaranties of Debt permitted by SECTION 7.13, and (c)
a Guaranty by Westlake Olefins Corporation for the account of Suzhou Huasu
Plastics Co. Ltd. in an aggregate amount not to exceed $8,500,000.

         7.13 Debt. No Loan Party shall incur or maintain any Debt, other than:

            (a) the Obligations;

            (b) Debt existing on the Closing Date and described on SCHEDULE 6.9;

            (c) Capital Leases of Equipment and purchase money secured Debt
incurred to purchase Equipment; provided that (i) Liens securing the same attach
only to the Equipment acquired by the incurrence of such Debt, and (ii) the
aggregate amount of such Debt (including Capital Leases) outstanding does not
exceed $10,000,000 at any time;

            (d) the Existing Letters of Credit, so long as Borrowers use their
best efforts to cause such Existing Letters of Credit to be replaced with
Letters of Credit hereunder within ninety (90) days of the Closing Date;

            (e) the Bond Debt;

            (f) Debt arising under the Fixed Asset Loan in a principal amount
not to exceed $170,000,000 at any time outstanding;

            (g) other unsecured Debt not to exceed $100,000,000 so long as the
Fixed Charge Coverage Ratio on the date of incurrence of such Debt and after
giving effect to the incurrence of such Debt is at least 1.00 to 1.0;

            (h) Debt evidencing a refunding, renewal, extension, or replacement
of the Debt existing on the Closing Date and described on SCHEDULE 6.9 and other
Debt permitted hereunder; provided that (i) the principal amount thereof is not
increased, (ii) the Liens, if any, securing such refunded, renewed, extended, or
replaced Debt do not attach to any assets in addition to those assets, if any,
securing the Debt to be refunded, renewed, extended, or replaced, (iii) no
Person that is not an obligor or guarantor of such Debt as of such date shall
become an obligor or guarantor thereof, and (iv) the terms of such refunding,
renewal, or extension are no less favorable to the Borrowers, the Agent, or the
Lenders than the original Debt, including, without limitation, the maturity date
thereof and any principal amortization thereof;

            (i) Debt of any Loan Party owed to any of its Restricted
Subsidiaries, or Debt of any Restricted Subsidiary owed to the owner of its
equity interests which is a Loan Party;

            (j) Debt to finance insurance premiums in an amount not to exceed
$10,000,000 at any time outstanding;

            (k) Debt owed by Westlake and/or North American Pipe Corporation to
North American Profiles Limited in an amount not to exceed $5,000,000 in the
aggregate; provided that any payments or

                                      -31-
<PAGE>
prepayments of such Debt shall permanently reduce the amount of Debt permitted
pursuant to this CLAUSE (K);

            (l) Debt arising under Hedge Agreements;

            (m) Debt among Loan Parties on terms of the kind customarily
employed to allocate charges among members of a consolidated group of entities,
in each such case, that are fair and reasonable to the Loan Parties and
consistent with past practices of the Loan Parties.

         7.14 Prepayment/Prepayment of Debt. The Borrowers shall pay the
Obligations in accordance with the terms and provisions of the Loan Documents.
Each Loan Party

            (a) shall promptly pay (or renew and extend) all of its material
obligations as the same become due (unless such obligations -- other than the
Obligations -- are being contested in good faith by appropriate proceedings);

            (b) shall not, except as expressly permitted by CLAUSE (C) hereof,
voluntarily prepay any principal of, or interest on, any other Debt, including
the Bond Debt or the Fixed Asset Loan (except (i) the Obligations in accordance
with the terms of this Agreement, (ii) the Debt in connection with the IRBs,
(iii) prepayments and payments of the Debt permitted by SECTION 7.13(K), (iv)
refinancings of Debt to be refinanced on the Closing Date as a result of the
transactions occurring in such date, or (v) refinancings of the Fixed Asset Loan
or other Debt to the extent such refinancing is permitted by SECTION 7.13(H)),
whether subordinate to the Obligations or not; and

            (c) shall not, directly or indirectly, pay, prepay, redeem, or
purchase, or deposit funds or property for the payment (including, without
limitation, a payment in respect of any sinking fund or defeasance of any Bond
Debt or the Fixed Asset Loan), prepayment, redemption, or purchase of, any Bond
Debt or the Fixed Asset Loan other than

               (i) regularly scheduled interest and principal payments on the
Bond Debt and Fixed Asset Loan made in compliance with the provisions thereof;

               (ii) redemptions or prepayments (whether voluntary or mandatory)
of the Bond Debt or the Fixed Asset Loan (other than Excess Cash Flow
Prepayments and Equity Proceeds Prepayments), if, after giving effect to such
redemption or prepayment, (x) the Availability is at least $80,000,000, and (y)
the Fixed Charge Coverage Ratio is at least 1.00 to 1.0;

               (iii) Excess Cash Flow Prepayments and Equity Proceeds
Prepayments, if, after giving effect to such prepayments, (x) the Availability
is at least $50,000,000, and (y) the Fixed Charge Coverage Ratio is at least
1.00 to 1.0; and

               (iv) mandatory prepayments of the Fixed Asset Loan with the
proceeds from sales of or condemnation or casualty events involving collateral
securing the Term Priority Collateral.

         7.15 Transactions with Affiliates. Except as permitted by SECTION
7.9(A) or 7.12, or as set forth below, no Loan Party shall sell, transfer,
distribute, or pay any money or property, including, but not limited to, any
fees or expenses of any nature (including, but not limited to, any fees or
expenses for management services), to any Affiliate, or lend or advance money or
property to any Affiliate, or invest in (by capital contribution or otherwise)
or purchase or repurchase any stock or indebtedness (other than the Obligation
Guaranties), or any property, of any Affiliate, or become liable on any Guaranty
of the indebtedness, dividends, or other obligations of any Affiliate other than
(a) transactions between the

                                      -32-
<PAGE>
Loan Parties on terms of the kind customarily employed to allocate charges among
members of a consolidated group of entities, in each such case, that are fair
and reasonable to the Loan Parties and consistent with past practices of the
Loan Parties, and (b) transactions with respect to tax sharing agreements so
long as the Loan Parties do not pay more taxes in the aggregate pursuant to such
tax sharing agreement than the Loan Parties in the aggregate would be required
to pay if each Loan Party filed a separate tax return. Notwithstanding the
foregoing, while no Event of Default has occurred and is continuing and so long
as done in compliance with SECTION 7.10, the Loan Parties and their Subsidiaries
may engage in transactions with Affiliates in the ordinary course of business
consistent with past practices, in amounts and on terms no less favorable to the
Loan Parties and their Subsidiaries than would be obtained in a comparable
arm's-length transaction with a third party who is not an Affiliate.

         7.16 Business Conducted. No Loan Party will, directly or indirectly,
permit or suffer to exist any material change in the type of businesses in which
it is engaged from the businesses of the Loan Parties as conducted on the
Closing Date and in similar or related businesses that are reasonable extensions
or additions to the Loan Parties' business on the Closing Date.

         7.17 Liens. No Loan Party shall create, incur, assume, or permit to
exist any Lien on any property now owned or hereafter acquired by any of them,
except Permitted Liens, and Liens securing Capital Leases and purchase money
Debt permitted in SECTION 7.13.

         7.18 Sale and Leaseback Transactions. No Loan Party nor any of their
Subsidiaries shall, directly or indirectly, enter into any arrangement with any
Person providing for such Loan Party or such Subsidiary to lease or rent
property that such Loan Party or such Subsidiary has sold or will sell or
otherwise transfer to such Person.

         7.19 New Subsidiaries. No Loan Party shall, directly or indirectly,
organize, create, acquire, or permit to exist any Subsidiary without giving the
Agent at least ten (10) days prior written notice of such organization,
creation, or acquisition. Borrowers shall cause each Person that becomes a
Restricted Subsidiary of any Loan Party after the Closing Date (whether as a
result of acquisition, merger, creation, or otherwise), (a) to execute an
Obligation Guaranty on the date such entity becomes a Restricted Subsidiary of a
Loan Party and promptly deliver (but in no event later than five (5) days
following consummation of such creation, acquisition, or merger) such Obligation
Guaranty to the Agent and (b) to execute and deliver to the Agent all required
Collateral Documents (in form and substance acceptable to the Agent) creating
Agent's Liens in favor of the Agent in the Collateral owned by such Restricted
Subsidiary.

         7.20 Fiscal Year. No Loan Party shall change its Fiscal Year.

         7.21 Fixed Charge Coverage Ratio. Following the Triggering Date and
based on the most recently delivered Financial Statements received pursuant to
SECTION 5.2, the Borrowers will maintain a Fixed Charge Coverage Ratio for each
period of immediately preceding twelve (12) months of not less than 1.00 to 1.0.

         7.22 Use of Proceeds. No Loan Party shall nor shall a Loan Party suffer
or permit any Subsidiary to, use any portion of the Loan proceeds, directly or
indirectly, (i) to purchase or carry Margin Stock, (ii) to repay or otherwise
refinance indebtedness of the Borrowers or others incurred to purchase or carry
Margin Stock, (iii) to extend credit for the purpose of purchasing or carrying
any Margin Stock, or (iv) to acquire any security in any transaction that is
subject to Section 13 or 14 of the Exchange Act.

         7.23 Collateral. To secure the full and complete payment and
performance of the Obligations, Borrowers shall (and shall cause each Restricted
Subsidiary to) enter into Collateral

                                      -33-
<PAGE>
Documents (in form and substance acceptable to the Agent) pursuant to which,
among other things, each such entity shall, to the extent permitted by
applicable law, grant, pledge, assign, and create first priority Agent's Liens
(except to the extent Permitted Liens affect such priority or except as provided
under the Intercreditor Agreement) in and to all Collateral owned by such
entity.

         7.24 Tax Shelter Regulations. (a) The Borrowers do not intend to treat
the Loans and/or Letters of Credit and related transactions as being a
"reportable transaction" (within the meaning of Treasury Regulation Section
1.6011-4). In the event the Borrowers determine to take any action inconsistent
with such intention, it will promptly notify the Agent thereof. If the Borrowers
so notify the Agent, the Borrowers acknowledge that one or more of the Lenders
may treat its Loans and/or its interest in Non-Ratable Loans and/or Agent
Advances and/or Letters of Credit as part of a transaction that is subject to
Treasury Regulation Section 301.6112-1, and such Lender or Lenders, as
applicable, will maintain the lists and other records required by such Treasury
Regulation.

            (b) Neither the Agent nor any Lender intends to treat the Loans
and/or Letters of Credit and related transactions as being a "reportable
transaction" (within the meaning of Treasury Regulation Section 1.6011-4). In
the event the Agent or any Lender determines to take any action inconsistent
with this intention, such person will so notify Westlake. If the Agent or any
Lender so notifies Westlake, the Agent and such Lender acknowledge that one or
more of the Borrowers may treat any Loans and/or Letter of Credit as part of a
transaction that is subject to Treasury Regulation Section 301.6112-1, and such
Borrower or Borrowers, as applicable, will maintain the lists and other records
required by such Treasury Regulation.

         7.25 Permitted Debt under Bond Debt and Fixed Asset Loan. The Borrowers
shall at all times reserve the full amount of the Maximum Revolver Amount under
(a) Section 4.09(b)(1) (the basket permitting the credit facilities) of the
indenture for the Bond Debt and (b) Section 8.03(c)(i) of the Fixed Asset Loan.

         7.26 Permitted Acquisitions. The Loan Parties may consummate
Acquisitions, so long as:

            (a) the Acquisition by a Loan Party is of a Person or assets which
are in substantially the same lines of business as the business conducted by
such Loan Party on the date hereof, or any other business reasonably related
thereto;

            (b) as of the closing thereof, each Acquisition has been approved
and recommended by the board of directors (or equivalent body) of the Person to
be acquired or from which such business or asset is to be acquired;

            (c) prior to the closing of such Acquisition (other than an
Acquisition of assets), the Person to be acquired is Solvent;

            (d) as of the closing of the Acquisition, after giving effect
thereto, the Loan Party that is the acquiring party must be Solvent and the Loan
Parties, on a consolidated basis, must be Solvent;

            (e) as of the closing of any such Acquisition, (i) such Acquisition
is structured as a merger, a Borrower must be the surviving entity after giving
effect to such merger; and (ii) if such Acquisition is structured as a
stock/equity acquisition, the acquiring Loan Party shall own not less than a
100% interest in the entity being acquired and such acquired entity will be a
domestic company that is or becomes a Loan Party hereunder;

                                      -34-
<PAGE>
            (f) as of the closing of any Acquisition, no Default or Potential
Default shall exist or occur as a result thereof, and after giving effect
thereto;

            (g) if the Acquisition target is to be a Restricted Subsidiary, then
Borrowers shall have complied with the terms and conditions of SECTION 7.19;

            (h) the absence of action, suit, investigation, or proceeding
pending or threatened in a any court or before any arbitrator or Governmental
Authority that affects the target or the proposed Acquisition, which could
reasonably be expected to have a Material Adverse Effect on the target or the
Loan Parties;

            (i) no Acquisition results in the formation or Acquisition of a
Foreign Subsidiary of any Loan Party; the Purchase Price for such Acquisition
(A) must be less than or equal to $20,000,000, and (B) when aggregated with the
Purchase Price of all other Acquisitions consummated during such Fiscal Year,
does not exceed $50,000,000 in the aggregate; and (ii) immediately prior to such
Acquisition and after giving effect to any Revolving Loans to be made in
connection therewith, (A) there is at least $100,000,000 of Availability, and
(B) the Pro Forma Fixed Charge Coverage Ratio shall be at least 1.00 to 1.0; and

            (j) for the purposes of calculating Availability under this SECTION
7.26, no assets of the Person to be acquired or the assets to be acquired shall
be included in the Borrowing Base unless such assets are acceptable to the
Agent.

         7.27 Excluded Deposit Accounts. In the event the amount of funds on
deposit in the Local Accounts ever exceeds $300,000 at any time in the aggregate
on any date of determination, the Borrowers shall immediately deliver to the
Agent Blocked Account Agreements with respect to each such Local Account.

         7.28 Fixed Asset Loan Collateral Account. The Loan Parties shall not
deposit any funds into the Fixed Asset Loan Collateral Account other than net
proceeds from the sale of Term Priority Collateral and insurance or condemnation
proceeds received by any Loan Party in respect of any Term Priority Collateral.

         7.29 Further Assurances. The Loan Parties shall execute and deliver, or
cause to be executed and delivered, to the Agent and/or the Lenders such
documents and agreements, and shall take or cause to be taken such actions, as
the Agent or any Lender may, from time to time, request to carry out the terms
and conditions of this Agreement and the other Loan Documents.

                                   ARTICLE 8
                              CONDITIONS OF LENDING

         8.1 Conditions Precedent to Making of Loans on the Closing Date. The
obligation of the Lenders to make the initial Revolving Loans on the Closing
Date, and the obligation of the Agent to cause the Letter of Credit Issuer to
issue any Letter of Credit on the Closing Date, are subject to the following
conditions precedent having been satisfied in a manner satisfactory to the Agent
and each Lender:

            (a) This Agreement and the other Loan Documents shall have been
executed by each party thereto and each Loan Party, as applicable, shall have
performed and complied with all covenants, agreements, and conditions contained
herein and the other Loan Documents which are required to be performed or
complied with by the Loan Parties before or on such Closing Date.

                                      -35-
<PAGE>
            (b) Upon making the Revolving Loans on the Closing Date (including
such Revolving Loans made to finance the Closing Fee or otherwise as
reimbursement for fees, costs, and expenses then payable under this Agreement),
and with all its obligations current, the Borrowers shall have Availability of
at least $100,000,000.

            (c) All representations and warranties made hereunder and in the
other Loan Documents shall be true and correct as if made on such date.

            (d) No Default or Event of Default shall have occurred and be
continuing after giving effect to the Loans to be made and the Letters of Credit
to be issued on the Closing Date.

            (e) The Agent and the Lenders shall have received such opinions of
counsel for the Loan Parties (other than Westlake Overseas Corporation) as the
Agent or any Lender shall request, each such opinion to be in a form, scope, and
substance satisfactory to the Agent, the Lenders, and their respective counsel.

            (f) The Agent shall have received:

               (i) financing statements in proper form for filing, under the UCC
in all jurisdictions that the Agent may deem necessary or desirable in order to
perfect the Agent's Liens; and

               (ii) duly authorized UCC-3 Termination Statements and such other
instruments, in form and substance satisfactory to the Agent, as shall be
necessary to terminate and satisfy all Liens on the Property of the Loan Parties
except Permitted Liens.

            (g) The Borrowers shall have paid all fees, including the amounts
owing as of the Closing Date under the Fee Letter, and expenses of the Agent and
the Attorney Costs incurred in connection with any of the Loan Documents and the
transactions contemplated thereby to the extent invoiced.

            (h) The Agent shall have received evidence, in form, scope, and
substance, reasonably satisfactory to the Agent, of all insurance coverage as
required by this Agreement.

            (i) The Agent and the Lenders shall have had an opportunity, if they
so choose, to examine the books of account and other records and files of the
Loan Parties and to make copies thereof, and to conduct a pre-closing audit
which shall include, without limitation, verification of Inventory, Accounts,
and the Borrowing Base, and the results of such examination and audit shall have
been satisfactory to the Agent and the Lenders in all respects.

            (j) All proceedings taken in connection with the execution of this
Agreement, the Notes, all other Loan Documents, and all documents and papers
relating thereto shall be satisfactory in form, scope, and substance to the
Agent and the Lenders.

            (k) Each Loan Party shall have established all of its Deposit
Accounts at the Bank or shall have entered into Blocked Account Agreements (on
terms acceptable to the Agent) with respect to all Deposit Accounts not
established at the Bank other than (i) the account number 910-2-710192 at
JPMorgan Chase Bank and (ii) immaterial local accounts of the Loan Partners (the
"LOCAL ACCOUNTS") so long as the amount of funds on deposit in such accounts
does not exceed $300,000 in the aggregate at any time.

                                      -36-
<PAGE>
            (l) No event has occurred and is continuing, or would result from
such extension of credit, which has had or would (after giving effect thereto)
reasonably be expected to have a Material Adverse Effect.

            (m) After giving effect to the incurrence of the Bond Debt and the
incurrence of Debt under the Agreement and the Fixed Asset Loan, the Agent shall
be reasonably satisfied with the corporate and capital structure and management
of Westlake and its Subsidiaries.

            (n) Evidence satisfactory to Agent that there shall exist no action,
suit, investigation, litigation, or proceeding pending or threatened in any
court or before any arbitrator or Governmental Authority that in Agent's
judgment (a) could reasonably be expected to have a Material Adverse Effect, or
(b) could reasonably be expected to materially and adversely affect this
Agreement, any other Loan Document, or the transactions contemplated hereby or
thereby.

            (o) Agent shall have received, each in form and substance
satisfactory to Agent, (a) a pro forma balance sheet of the Loan Parties as at
June 30, 2003, which balance sheet shall reflect no material changes from the
most recent pro forma balance sheet of the Loan Parties previously delivered to
Agent, (b) financial projections in form satisfactory to Agent of the Loan
Parties scheduling the amount of Availability and evidencing the Loan Parties'
ability to comply with the financial covenants set forth in SECTION 7.21, if
applicable, and (c) interim financial statements for the Loan Parties as of May
31, 2003.

            (p) Receipt by Agent and satisfactory review by Agent of all
material contracts of the Loan Parties with material customers.

            (q) Evidence satisfactory to Agent of closing of each of the Bond
Debt and the Fixed Asset Loan, each on terms and conditions satisfactory to
Agent.

            (r) Execution and delivery of the Intercreditor Agreement by all
parties thereto.

            (s) Without limiting the generality of the items described above,
each Loan Party shall have delivered or caused to be delivered to the Agent (in
form and substance reasonably satisfactory to the Agent), the financial
statements, instruments, resolutions, documents, agreements, certificates,
opinions, and other items set forth on the "Closing Checklist" delivered by the
Agent to Westlake prior to the Closing Date.

         The acceptance by the Borrowers of any Loans made or Letters of Credit
issued on the Closing Date shall be deemed to be a representation and warranty
made by the Borrowers to the effect that all of the conditions precedent to the
making of such Loans or the issuance of such Letters of Credit have been
satisfied or waived, with the same effect as delivery to the Agent and the
Lenders of a certificate signed by a Responsible Officer on behalf of the
Borrowers, dated the Closing Date, to such effect.

         Execution and delivery to the Agent by a Lender of a counterpart of
this Agreement shall be deemed confirmation by such Lender that (i) all
conditions precedent in this SECTION 8.1 have been fulfilled to the satisfaction
of such Lender, (ii) the decision of such Lender to execute and deliver to the
Agent an executed counterpart of this Agreement was made by such Lender
independently and without reliance on the Agent or any other Lender as to the
satisfaction of any condition precedent set forth in this SECTION 8.1, and (iii)
all documents sent to such Lender for approval consent, or satisfaction were
acceptable to such Lender.

                                      -37-
<PAGE>
         8.2 Conditions Precedent to Each Loan. The obligation of the Lenders to
make each Loan, including the initial Revolving Loans on the Closing Date, and
the obligation of the Agent to cause the Letter of Credit Issuer to issue any
Letter of Credit shall be subject to the further conditions precedent that on
and as of the date of any such extension of credit:

            (a) The following statements shall be true, and the acceptance by
the Borrowers of any extension of credit shall be deemed to be a statement to
the effect set forth in CLAUSES (I), (II), and (III) with the same effect as the
delivery to the Agent and the Lenders of a certificate signed by a Responsible
Officer on behalf of the Loan Parties, dated the date of such extension of
credit, stating that:

               (i) The representations and warranties contained in this
Agreement and the other Loan Documents are correct in all material respects on
and as of the date of such extension of credit as though made on and as of such
date, other than any such representation or warranty which relates to a
specified prior date and except to the extent the Agent and the Lenders have
been notified in writing by the Borrowers that any representation or warranty is
not correct and the Required Lenders have explicitly waived in writing
compliance with such representation or warranty; and

               (ii) No event has occurred and is continuing, or would result
from such extension of credit, which constitutes a Default or an Event of
Default; and

               (iii) No event has occurred and is continuing, or would result
from such extension of credit, which has had or would have a Material Adverse
Effect.

            (b) No such Borrowing shall exceed Availability, provided, however,
that the foregoing conditions precedent set forth in this SECTION 8.2 are not
conditions to each Lender participating in or reimbursing the Bank or the Agent
for such Lenders' Pro Rata Share of any Non-Ratable Loan or Agent Advance made
in accordance with the provisions of SECTIONS 1.2(H) and (I).

                                   ARTICLE 9
                                DEFAULT; REMEDIES

         9.1 Events of Default. It shall constitute an event of default ("EVENT
OF DEFAULT") if any one or more of the following shall occur for any reason:

            (a) any failure or refusal by any Loan Party to pay (i) any
principal of the Obligations when the same becomes due (whether by its terms, by
acceleration, or as otherwise provided in the Loan Documents); or (ii) interest,
fees, premium, or any other part of the Obligations within one day after the
same becomes due and payable in accordance with the Loan Documents, whether upon
demand or otherwise;

            (b) any representation or warranty made or deemed made by any Loan
Party in this Agreement or in any of the other Loan Documents, any Financial
Statement, or any certificate furnished by any Loan Party at any time to the
Agent or any Lender shall prove to be untrue in any material respect as of the
date on which made, deemed made, or furnished;

            (c) (i) any default shall occur in the observance or performance of
any of the covenants and agreements contained in SECTIONS 5.2(L), 5.2(M), 7.2,
7.5, 7.9 through 7.29, or SECTION 11 of the Security Agreement, provided that
Agent, in its sole discretion may grant the Loan Parties one additional day to
deliver the reports described in SECTIONS 5.2(L) and 5.2(M), (ii) any default
shall occur in the observance or performance of any of the covenants and
agreements contained in SECTIONS 5.2 (other than SECTIONS 5.2(L) or 5.2(m)) or
5.3 and such default shall continue for three (3) days or more; or

                                      -38-
<PAGE>
(iii) any default shall occur in the observance or performance of any of the
other covenants or agreements contained in any other Section of this Agreement
or any other Loan Document, any other Loan Documents, or any other agreement
entered into at any time to which any Loan Party and the Agent or any Lender are
party (including in respect of any Bank Products with respect to which the
aggregate liability to the Loan Parties exceeds $250,000) and such default shall
continue for thirty (30) days or more;

            (d) any "default" or "event of default" shall occur with respect to
any Debt (other than the Obligations) of any Loan Party in an outstanding
principal amount which exceeds $5,000,000 (in the aggregate), or under any
agreement or instrument under or pursuant to which any such Debt may have been
issued, created, assumed, or guaranteed by any Loan Party, and such default
shall continue for more than the period of grace, if any, therein specified, if
the effect thereof (with or without the giving of notice or further lapse of
time or both) is to accelerate, or to permit the holders of any such Debt to
accelerate, the maturity of any such Debt; or any such Debt shall be declared
due and payable or be required to be prepaid prior to the stated maturity or
redemption date thereof;

            (e) Westlake or any of its Subsidiaries shall (i) file a voluntary
petition in bankruptcy or file a voluntary petition or an answer or otherwise
commence any action or proceeding seeking reorganization, arrangement, or
readjustment of its debts or for any other relief under the federal Bankruptcy
Code, as amended, or under any other bankruptcy or insolvency act or law, state
or federal, now or hereafter existing, or consent to, approve of, or acquiesce
in, any such petition, action, or proceeding; (ii) apply for or acquiesce in the
appointment of a receiver, assignee, liquidator, sequestrator, custodian,
monitor, trustee or similar officer for it or for all or any part of its
property; (iii) make an assignment for the benefit of creditors; (iv) be unable
generally to pay its debts as they become due; or (v) not be Solvent;

            (f) an involuntary petition shall be filed or an action or
proceeding otherwise commenced seeking reorganization, arrangement,
consolidation or readjustment of the debts of Westlake or any of its
Subsidiaries or for any other relief under the federal Bankruptcy Code, as
amended, or under any other bankruptcy or insolvency act or law, state or
federal, now or hereafter existing and such petition or proceeding shall not be
dismissed within sixty (60) days after the filing or commencement thereof or an
order of relief shall be entered with respect thereto;

            (g) a receiver, assignee, liquidator, sequestrator, custodian,
monitor, trustee or similar officer for Westlake or any of its Subsidiaries or
for all or any part of their respective property shall be appointed or a warrant
of attachment, execution, or similar process shall be issued against any part of
the property of Westlake or any of its Subsidiaries;

            (h) any Loan Party shall file a certificate of dissolution under
applicable state law or shall be liquidated, dissolved or wound-up or shall
commence or have commenced against it any action or proceeding for dissolution,
winding-up or liquidation, or shall take any corporate action in furtherance
thereof except as permitted under SECTIONS 7.2 or 7.9;

            (i) all or any material part of the property of any Loan Party shall
be nationalized, expropriated, or condemned, seized, or otherwise appropriated,
or custody or control of such property or of such Loan Party shall be assumed by
any Governmental Authority or any court of competent jurisdiction at the
instance of any Governmental Authority, except where contested in good faith by
proper proceedings diligently pursued where a stay of enforcement is in effect;

            (j) any Loan Document shall be terminated, revoked, or declared
void, invalid, or unenforceable or challenged by any Loan Party or any other
obligor;

                                      -39-
<PAGE>
            (k) one or more judgments, orders, decrees, or arbitration awards is
entered against the Loan Parties involving in the aggregate liability (to the
extent not covered by independent third-party insurance as to which the insurer
does not dispute coverage) as to any single or related or unrelated series of
transactions, incidents or conditions, of $10,000,000 or more, and either (i)
enforcement proceedings are commenced upon such judgment, order, decree, or
award, or (ii) there is a period of 30 consecutive days during which a stay of
enforcement of such judgment, order, decree, or award, by reason of pending
appeal or otherwise, is not in effect;

            (l) any loss, theft, damage, or destruction of any item or items of
Collateral or other property of any Loan Party occurs which could reasonably be
expected to cause a Material Adverse Effect and is not adequately covered by
insurance;

            (m) there is filed against any Loan Party any action, suit, or
proceeding under any federal or state racketeering statute (including the
Racketeer Influenced and Corrupt Organization Act of 1970), which action, suit,
or proceeding (i) is not dismissed within one hundred twenty (120) days, and
(ii) could reasonably be expected to result in the confiscation or forfeiture of
any material portion of the Collateral;

            (n) for any reason other than the failure of the Agent to take any
action available to it to maintain perfection of the Agent's Liens, pursuant to
the Loan Documents, any Loan Document ceases to be in full force and effect or
any Lien with respect to any material portion of the Collateral intended to be
secured thereby ceases to be, or is not, valid, perfected, and prior to all
other Liens (other than Permitted Liens or as required under the Intercreditor
Agreement) or is terminated, revoked, or declared void;

            (o) (i) an ERISA Event shall occur with respect to a Pension Plan or
Multi-employer Plan which has resulted or could reasonably be expected to result
in liability of any Loan Party under Title IV of ERISA to the Pension Plan,
Multi-employer Plan, or the PBGC in an aggregate amount in excess of $7,500,000;
(ii) the aggregate amount of Unfunded Pension Liability among all Pension Plans
at any time exceeds $7,500,000; or (iii) any Loan Party or any ERISA Affiliate
shall fail to pay when due, after the expiration of any applicable grace period,
any installment payment with respect to its withdrawal liability under Section
4201 of ERISA under a Multi-employer Plan in an aggregate amount in excess of
$7,500,000;

            (p) there occurs a Change of Control;

            (q) there occurs an event having a Material Adverse Effect;

            (r) other than those existing on the Closing Date and disclosed on
SCHEDULE 6.16, any Environmental Liabilities in excess of $10,000,000 (to the
extent not covered by independent third-party insurance as to which the insurer
does not dispute coverage), but excluding: (i) Environmental Liabilities in an
aggregate amount at any time up to $20,000,000 for which a Reserve is
established for 100% of such aggregate amount; and (ii) amounts in excess of
$20,000,000 secured by a perfected first lien on cash collateral equal to 100%
of that portion of such amount in excess of the Reserves described in clause (i)
for a period not to exceed 30 days; or

            (s) an event shall occur, including, without limitation, a "change
in control" or "change of control" as defined in any documents or agreements
evidencing or creating the Bond Debt or the Fixed Asset Loan and (i) the trustee
or the required holders of any such Debt shall initiate notice under provisions
governing such Debt to require (or any Loan Party shall automatically be so
required) to

                                      -40-
<PAGE>
redeem or repurchase such Debt, or (ii) any Loan Party shall initiate notice to
holders of the Bond Debt or the Fixed Asset Loan in connection with a redemption
of such Debt.

         9.2 Remedies.

            (a) If a Default or an Event of Default exists, the Agent may, in
its discretion, and shall, at the direction of the Required Lenders, do one or
more of the following at any time or times and in any order, without notice to
or demand on the Borrower: (i) restrict the amount of or refuse to make
Revolving Loans; and (ii) restrict or refuse to provide Letters of Credit or
Credit Support. If an Event of Default exists, the Agent, may, in its
discretion, and shall, at the direction of the Required Lenders, reduce the
Maximum Revolver Amount, or the advance rates against Eligible Accounts and/or
Eligible Inventory used in computing the Borrowing Base, or reduce one or more
of the other elements used in computing the Borrowing Base. In addition, if an
Event of Default exists, the Agent shall, at the direction of the Required
Lenders, do one or more of the following, in addition to the actions described
in the preceding sentence, at any time or times and in any order, without notice
to or demand on the Borrower: (A) terminate the Commitments and this Agreement;
(B) declare any or all Obligations to be immediately due and payable; provided,
however, that upon the occurrence of any Event of Default described in SECTIONS
9.1(E), 9.1(F), 9.1(G), or 9.1(H), the Commitments shall automatically and
immediately expire and all Obligations shall automatically become immediately
due and payable without notice or demand of any kind; (C) require the Borrowers
to cash collateralize all outstanding Letter of Credit Obligations; and (D)
pursue its other rights and remedies under the Loan Documents and applicable
law.

            (b) If an Event of Default has occurred and is continuing: (i) the
Agent shall have for the benefit of the Lenders, in addition to all other rights
of the Agent and the Lenders, the rights and remedies of a secured party under
the Loan Documents and the UCC; (ii) the Agent may, at any time, take possession
of the Collateral and keep it on any Loan Party's premises, at no cost to the
Agent or any Lender, or remove any part of it to such other place or places as
the Agent may desire, or the Loan Parties shall, upon the Agent's demand, at the
Borrowers' cost, assemble the Collateral and make it available to the Agent at a
place reasonably convenient to the Agent; and (iii) the Agent may sell and
deliver any Collateral at public or private sales, for cash, upon credit or
otherwise, at such prices and upon such terms as the Agent deems advisable, in
its sole discretion, and may, if the Agent deems it reasonable, postpone or
adjourn any sale of the Collateral by an announcement at the time and place of
sale or of such postponed or adjourned sale without giving a new notice of sale.
Without in any way requiring notice to be given in the following manner, the
Loan Parties agree that any notice by the Agent of sale, disposition, or other
intended action hereunder or in connection herewith, whether required by the UCC
or otherwise, shall constitute reasonable notice to such Loan Party if such
notice is mailed by registered or certified mail, return receipt requested,
postage prepaid, or is delivered personally against receipt, at least five (5)
Business Days prior to such action to Westlake's address specified in or
pursuant to SECTION 13.8. If any Collateral is sold on terms other than payment
in full at the time of sale, no credit shall be given against the Obligations
until the Agent or the Lenders receive payment, and if the buyer defaults in
payment, the Agent may resell the Collateral without further notice to any Loan
Party. In the event the Agent seeks to take possession of all or any portion of
the Collateral by judicial process, the Loan Parties irrevocably waive to the
extent permitted under applicable Law: (A) the posting of any bond, surety, or
security with respect thereto which might otherwise be required; (B) any demand
for possession prior to the commencement of any suit or action to recover the
Collateral; and (C) any requirement that the Agent retain possession and not
dispose of any Collateral until after trial or final judgment. The Loan Parties
agree that the Agent has no obligation to preserve rights to the Collateral or
marshal any Collateral for the benefit of any Person. The Agent is hereby
granted a license or other right to use, without charge, the Loan Parties'
labels, patents, copyrights, name, trade secrets, trade names, trademarks, and
advertising matter, or any similar property, in advertising or selling any
Collateral, and unless the terms and

                                      -41-
<PAGE>
provisions of such rights provide otherwise, in completing production of any
Collateral, and the Loan Parties' rights under all licenses and all franchise
agreements shall inure to the Agent's benefit for such purpose. The proceeds of
sale shall be applied first to all expenses of sale, including attorneys' fees,
and then to the Obligations. The Agent will return any excess to the Borrowers
and the Borrowers shall remain liable for any deficiency.

            (c) If an Event of Default occurs and is continuing, the Loan
Parties hereby waive, to the extent permitted by applicable law, all rights to
notice and hearing prior to the exercise by the Agent of the Agent's rights to
repossess the Collateral without judicial process or to reply, attach or levy
upon the Collateral without notice or hearing.

                                   ARTICLE 10
                              TERM AND TERMINATION

         10.1 Term and Termination. The term of this Agreement shall end on the
Stated Termination Date unless sooner terminated in accordance with the terms
hereof. The Agent upon direction from the Required Lenders may terminate this
Agreement without notice upon the occurrence of an Event of Default. Upon the
effective date of termination of this Agreement for any reason whatsoever, all
Obligations (including all unpaid principal, accrued and unpaid interest, and
any early termination or prepayment fees or penalties) shall become immediately
due and payable, and the Borrowers shall immediately arrange for the
cancellation and return of Letters of Credit then outstanding (or, in the
alternative, shall provide (a) cash collateral for all remaining Letters of
Credit in an amount equal to 110% of the aggregate face amounts of such Letters
of Credit or (b) a back-up letter of credit for each remaining Letter of Credit
in form and substance and from an issuer acceptable to the Agent in its sole
discretion). Notwithstanding the termination of this Agreement, until all
Obligations are indefeasibly paid and performed in full in cash or acceptable
back-up letters of credit are provided as set forth in the immediately preceding
sentence, the Borrowers shall remain bound by the terms of this Agreement and
shall not be relieved of any of its Obligations hereunder or under any other
Loan Document, and the Agent and the Lenders shall retain all their rights and
remedies hereunder (including the Agent's Liens in and all rights and remedies
with respect to all then existing and after-arising Collateral).

                                   ARTICLE 11
         AMENDMENTS; WAIVERS; PARTICIPATIONS; ASSIGNMENTS; SUCCESSORS

         11.1 Amendments and Waivers.

            (a) No amendment or waiver of any provision of this Agreement or any
other Loan Document, and no consent with respect to any departure by the Loan
Parties therefrom, shall be effective unless the same shall be in writing and
signed by the Required Lenders (or by the Agent at the written request of the
Required Lenders) and the Borrowers and then any such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given; provided, however, that no such waiver, amendment, or consent shall,
unless in writing and signed by each Lender affected thereby and the Borrowers
and acknowledged by the Agent, do any of the following:

               (i) extend the Commitment of any Lender;

               (ii) postpone or delay any date fixed by this Agreement or any
other Loan Document for any payment of principal, interest, fees (other than
fees payable solely to the Agent), or other amounts due to the Lenders (or any
of them) hereunder or under any other Loan Document;

                                      -42-
<PAGE>
               (iii) reduce the principal of, or the rate of interest specified
herein on any Loan, or any fees or other amounts payable hereunder or under any
other Loan Document;

               (iv) change the percentage of the Commitments or of the aggregate
unpaid principal amount of the Loans which is required for the Lenders or any of
them to take any action hereunder;

               (v) increase any of the percentages set forth in the definition
of the Borrowing Base;

               (vi) amend this Section or any provision of this Agreement
providing for consent or other action by all Lenders;

               (vii) release all or substantially all of the Obligation
Guaranties or release Collateral other than as permitted by SECTION 12.11 or
amend any provisions of the Intercreditor Agreement that would affect the
priority of Agent's Liens in the Collateral;

               (viii) change the definitions of "Majority Lenders" or "Required
Lenders"; or

               (ix) increase the Maximum Revolver Amount, the Maximum Inventory
Loan Amount, or Letter of Credit Subfacility;

provided, however, the Agent may, in its sole discretion and notwithstanding the
limitations contained in CLAUSES (V) and (IX) above and any other terms of this
Agreement, make Agent Advances in accordance with SECTION 1.2(G) and, provided
further, that (A) no amendment, waiver, or consent shall, unless in writing and
signed by the Agent, affect the rights or duties of the Agent under this
Agreement or any other Loan Document; (B) no amendment shall increase the
Commitment of any Lender unless consented to by such Lender; and (C) SCHEDULE
1.2 hereto (Commitments) may be amended from time to time by Agent alone to
reflect assignments of Commitments in accordance herewith.

            (b) If any fees are paid to the Lenders as consideration for
amendments, waivers, or consents with respect to this Agreement, at Agent's
election, such fees may be paid only to those Lenders that agree to such
amendments, waivers or consents within the time specified for submission
thereof.

            (c) If, in connection with any proposed amendment, waiver or consent
(a "PROPOSED CHANGE"):

               (i) requiring the consent of all Lenders, the consent of Required
Lenders is obtained, but the consent of other Lenders is not obtained (any such
Lender whose consent is not obtained as described in this clause (i) and in
clause (ii) below being referred to as a "NON-CONSENTING LENDER"), or

               (ii) requiring the consent of Required Lenders, the consent of
Majority Lenders is obtained,

then, so long as the Agent is not a Non-Consenting Lender, at the Borrowers'
request, the Agent or an Eligible Assignee shall have the right (but not the
obligation) with the Agent's approval, to purchase from the Non-Consenting
Lenders, and the Non-Consenting Lenders agree that they shall sell, all the
Non-Consenting Lenders' Commitments for an amount equal to the principal
balances thereof and all accrued

                                      -43-
<PAGE>
interest and fees with respect thereto through the date of sale pursuant to
Assignment and Acceptance Agreement(s), without premium or discount.

         11.2 Assignments; Participations.

            (a) Any Lender may, with the written consent of the Agent (which
consent shall not be unreasonably withheld), assign and delegate to one or more
Eligible Assignees (provided that no consent of the Agent shall be required in
connection with any assignment and delegation by a Lender to an Affiliate of
such Lender) (each an "ASSIGNEE") all, or any ratable part of all, of the Loans,
the Commitment, and the other rights and obligations of such Lender hereunder,
in a minimum amount of $10,000,000 (provided that, unless an assignor Lender has
assigned and delegated all of its Loans and Commitment, no such assignment
and/or delegation shall be permitted unless, after giving effect thereto, such
assignor Lender retains a Commitment in a minimum amount of $10,000,000;
provided, however, that the Borrowers and the Agent may continue to deal solely
and directly with such Lender in connection with the interest so assigned to an
Assignee until (i) written notice of such assignment, together with payment
instructions, addresses and related information with respect to the Assignee,
shall have been given to the Borrowers and the Agent by such Lender and the
Assignee; (ii) such Lender and its Assignee shall have delivered to the
Borrowers and the Agent an Assignment and Acceptance in the form of EXHIBIT F
("ASSIGNMENT AND ACCEPTANCE") together with any note or notes, if any, subject
to such assignment and (iii) the assignor Lender or Assignee has paid to the
Agent a processing fee in the amount of $3,500. The Borrowers agree to promptly
execute and deliver new promissory notes and replacement promissory notes if
requested by an Assignee or assignor Lender to evidence assignments of the Loans
and Commitments in accordance herewith.

            (b) From and after the date that the Agent notifies the assignor
Lender that it has received an executed Assignment and Acceptance (and consent
of the Agent thereto, if required) and payment of the above-referenced
processing fee, (i) the Assignee thereunder shall be a party hereto and, to the
extent that rights and obligations, including, but not limited to, the
obligation to participate in Letters of Credit and Credit Support have been
assigned to it pursuant to such Assignment and Acceptance, shall have the rights
and obligations of a Lender under the Loan Documents, and (ii) the assignor
Lender shall, to the extent that rights and obligations hereunder and under the
other Loan Documents have been assigned by it pursuant to such Assignment and
Acceptance, relinquish its rights and be released from its obligations under
this Agreement (and in the case of an Assignment and Acceptance covering all or
the remaining portion of an assigning Lender's rights and obligations under this
Agreement, such Lender shall cease to be a party hereto).

            (c) By executing and delivering an Assignment and Acceptance, the
assigning Lender thereunder and the Assignee thereunder confirm to and agree
with each other and the other parties hereto as follows: (i) other than as
provided in such Assignment and Acceptance, such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to any
statements, warranties, or representations made in or in connection with this
Agreement or the execution, legality, validity, enforceability, genuineness,
sufficiency, or value of this Agreement or any other Loan Document furnished
pursuant hereto or the attachment, perfection, or priority of any Lien granted
by any Loan Party Borrower to the Agent or any Lender in the Collateral; (ii)
such assigning Lender makes no representation or warranty and assumes no
responsibility with respect to the financial condition of any Loan Party or the
performance or observance by any Loan Party of any of its obligations under this
Agreement or any other Loan Document furnished pursuant hereto; (iii) such
Assignee confirms that it has received a copy of this Agreement, together with
such other documents and information as it has deemed appropriate to make its
own credit analysis and decision to enter into such Assignment and Acceptance;
(iv) such Assignee will, independently (without reliance upon the Agent, such
assigning Lender, or any other Lender, and based on such documents and
information as it shall deem appropriate at the time), continue to make its own

                                      -44-
<PAGE>
credit decisions in taking or not taking action under this Agreement; (v) such
Assignee appoints and authorizes the Agent to take such action as agent on its
behalf and to exercise such powers under this Agreement as are delegated to the
Agent by the terms hereof, together with such powers, including the
discretionary rights and incidental power, as are reasonably incidental thereto;
and (vi) such Assignee agrees that it will perform in accordance with their
terms all of the obligations which by the terms of this Agreement are required
to be performed by it as a Lender.

            (d) Immediately upon satisfaction of the requirements of SECTION
11.2(A), this Agreement shall be deemed to be amended to the extent, but only to
the extent, necessary to reflect the addition of the Assignee and the resulting
adjustment of the Commitments arising therefrom. The Commitment allocated to
each Assignee shall reduce such Commitments of the assigning Lender pro tanto.

            (e) Any Lender may at any time sell to one or more commercial banks,
financial institutions, or other Persons not Affiliates of any Borrower (a
"PARTICIPANT") participating interests in any Loans, the Commitment of that
Lender and the other interests of that Lender (the "ORIGINATING LENDER")
hereunder and under the other Loan Documents; provided, however, that (i) the
Originating Lender's obligations under this Agreement shall remain unchanged;
(ii) the Originating Lender shall remain solely responsible for the performance
of such obligations; (iii) the Borrowers and the Agent shall continue to deal
solely and directly with the Originating Lender in connection with the
Originating Lender's rights and obligations under this Agreement and the other
Loan Documents; and (iv) no Lender shall transfer or grant any participating
interest under which the Participant has rights to approve any amendment to, or
any consent or waiver with respect to, this Agreement or any other Loan
Document, except the matters set forth in SECTION 11.1(A) (I), (II), and (III),
and all amounts payable by the Borrowers hereunder shall be determined as if
such Lender had not sold such participation; except that, if amounts outstanding
under this Agreement are due and unpaid, or shall have become due and payable
upon the occurrence of an Event of Default, each Participant shall be deemed to
have the right of set-off in respect of its participating interest in amounts
owing under this Agreement to the same extent and subject to the same limitation
as if the amount of its participating interest were owing directly to it as a
Lender under this Agreement.

            (f) Notwithstanding any other provision in this Agreement, any
Lender may at any time create a security interest in, or pledge, all or any
portion of its rights under and interest in this Agreement in favor of any
Federal Reserve Bank in accordance with Regulation A of the FRB or U.S. Treasury
Regulation 31 CFR Section 203.14, and such Federal Reserve Bank may enforce such
pledge or security interest in any manner permitted under applicable law.

                                   ARTICLE 12
                                    THE AGENT

         12.1 Appointment and Authorization. Each Lender hereby designates and
appoints the Bank as its Agent under this Agreement and the other Loan Documents
and each Lender hereby irrevocably authorizes the Agent to take such action on
its behalf under the provisions of this Agreement and each other Loan Document
and to exercise such powers and perform such duties as are expressly delegated
to it by the terms of this Agreement or any other Loan Document, together with
such powers as are reasonably incidental thereto. In addition, each Lender
hereby authorizes the Agent to enter into the Intercreditor Agreement. The Agent
agrees to act as such on the express conditions contained in this ARTICLE 12.
The provisions of this ARTICLE 12 are solely for the benefit of the Agent and
the Lenders and no Borrower shall have any rights as a third party beneficiary
of any of the provisions contained herein. Notwithstanding any provision to the
contrary contained elsewhere in this Agreement or in any other Loan Document,
the Agent shall not have any duties or responsibilities, except those expressly
set forth

                                      -45-
<PAGE>
herein, nor shall the Agent have or be deemed to have 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 Agent. Without limiting the generality
of the foregoing sentence, the use of the term "agent" in this Agreement with
reference to the Agent is not intended to connote any fiduciary or other implied
(or express) obligations arising under agency doctrine of any applicable law.
Instead, such term is used merely as a matter of market custom, and is intended
to create or reflect only an administrative relationship between independent
contracting parties. Except as expressly otherwise provided in this Agreement,
the Agent shall have and may use its sole discretion with respect to exercising
or refraining from exercising any discretionary rights or taking or refraining
from taking any actions which the Agent is expressly entitled to take or assert
under this Agreement and the other Loan Documents, including (a) the
determination of the applicability of ineligibility criteria with respect to the
calculation of the Borrowing Base, (b) the making of Agent Advances pursuant to
SECTION 1.2(I), and (c) the exercise of remedies pursuant to SECTION 9.2, and
any action so taken or not taken shall be deemed consented to by the Lenders.

         12.2 Delegation of Duties. The Agent may execute any of its duties
under this Agreement or any other Loan Document by or through agents, employees,
or attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties. The Agent shall not be responsible for the
negligence or misconduct of any agent or attorney-in-fact that it selects as
long as such selection was made without gross negligence or willful misconduct.

         12.3 Liability of Agent. None of the Agent-Related Persons shall (i) be
liable for any action taken or omitted to be taken by any of them under or in
connection with this Agreement or any other Loan Document or the transactions
contemplated hereby (except for its own gross negligence or willful misconduct),
or (ii) be responsible in any manner to any of the Lenders for any recital,
statement, representation, or warranty made by any Borrower, any Affiliate of
any Borrower, or any officer thereof, contained in this Agreement or in any
other Loan Document, or in any certificate, report, statement or other document
referred to or provided for in, or received by the Agent under or in connection
with, this Agreement or any other Loan Document, or the validity, effectiveness,
genuineness, enforceability, or sufficiency of this Agreement or any other Loan
Document, or for any failure of any Borrower or any other party to any Loan
Document to perform its obligations hereunder or thereunder. No Agent-Related
Person shall 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 Borrower or any Affiliates of any Borrower.

         12.4 Reliance by Agent. The Agent shall be entitled to rely, and shall
be fully protected in relying, upon any writing, resolution, notice, consent,
certificate, affidavit, letter, telegram, facsimile, telex or telephone message,
statement 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 counsel to any
Borrower), independent accountants and other experts selected by the Agent. The
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 as it deems appropriate and, if it
so requests, it shall first be indemnified to its satisfaction by the Lenders
against any and all liability and expense which may be incurred by it by reason
of taking or continuing to take any such action. The Agent shall in all cases be
fully protected in acting, or in refraining from acting, under this Agreement or
any other Loan Document in accordance with a request or consent of the Required
Lenders (or all Lenders if so required by SECTION 11.1) and such request and any
action taken or failure to act pursuant thereto shall be binding upon all of the
Lenders.

                                      -46-
<PAGE>
         12.5 Notice of Default. The Agent shall not be deemed to have knowledge
or notice of the occurrence of any Default or Event of Default, unless the Agent
shall have received written notice from a Lender or the Borrowers referring to
this Agreement, describing such Default or Event of Default and stating that
such notice is a "notice of default." The Agent will notify the Lenders of its
receipt of any such notice. The Agent shall take such action with respect to
such Default or Event of Default as may be requested by the Required Lenders in
accordance with SECTION 9; provided, however, that unless and until the Agent
has received any such request, the 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.

         12.6 Credit Decision. Each Lender acknowledges that none of the
Agent-Related Persons has made any representation or warranty to it, and that no
act by the Agent hereinafter taken, including any review of the affairs of the
Borrowers and their Affiliates, shall be deemed to constitute any representation
or warranty by any Agent-Related Person to any Lender. Each Lender represents to
the Agent that it has, independently (without reliance upon any Agent-Related
Person and based on such documents and information as it has deemed
appropriate), made its own appraisal of and investigation into the business,
prospects, operations, property, financial and other condition, and
creditworthiness of the Borrowers and their Affiliates, and all applicable bank
regulatory laws relating to the transactions contemplated hereby, and made its
own decision to enter into this Agreement and to extend credit to the Borrower.
Each Lender also represents that it will, independently (without reliance upon
any Agent-Related Person 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 investigations as it deems
necessary to inform itself as to the business, prospects, operations, property,
financial and other condition, and creditworthiness of the Borrowers. Except for
notices, reports, and other documents expressly herein required to be furnished
to the Lenders by the Agent, the Agent shall not have any duty or responsibility
to provide any Lender with any credit or other information concerning the
business, prospects, operations, property, financial and other condition, or
creditworthiness of the Borrowers which may come into the possession of any of
the Agent-Related Persons.

         12.7 Indemnification. Whether or not the transactions contemplated
hereby are consummated, the Lenders shall indemnify upon demand the
Agent-Related Persons (to the extent not reimbursed by or on behalf of the
Borrowers and without limiting the obligation of the Borrowers to do so), in
accordance with their Pro Rata Shares, from and against any and all Indemnified
Liabilities as such term is defined in SECTION 13.11; provided, however, that no
Lender shall be liable for the payment to the Agent-Related Persons of any
portion of such Indemnified Liabilities resulting solely from such Person's
gross negligence or willful misconduct. Without limitation of the foregoing,
each Lender shall reimburse the Agent upon demand for its Pro Rata Share of any
costs or out-of-pocket expenses (including Attorney Costs) incurred by the Agent
in connection with the preparation, execution, delivery, administration,
modification, amendment, or enforcement (whether through negotiations, legal
proceedings, or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Agreement, any other Loan Document, or any document
contemplated by or referred to herein, to the extent that the Agent is not
reimbursed for such expenses by or on behalf of the Borrower. The undertaking in
this SECTION 12.7 shall survive the payment of all Obligations hereunder and the
resignation or replacement of the Agent.

         12.8 Agent in Individual Capacity. The Bank and its Affiliates may make
loans to, issue letters of credit for the account of, accept deposits from,
acquire equity interests in and generally engage in any kind of banking, trust,
financial advisory, underwriting, or other business with the Borrowers and their
Affiliates as though the Bank were not the Agent hereunder and without notice to
or consent of the Lenders. The Bank or its Affiliates may receive information
regarding the Borrowers, their Affiliates and Account Debtors (including
information that may be subject to confidentiality obligations

                                      -47-
<PAGE>
in favor of the Borrowers, Affiliates, or Account Debtors) and acknowledge that
the Agent and the Bank shall be under no obligation to provide such information
to them. With respect to its Loans, the Bank shall have the same rights and
powers under this Agreement as any other Lender and may exercise the same as
though it were not the Agent, and the terms "Lender" and "Lenders" include the
Bank in its individual capacity.

         12.9 Successor Agent. The Agent may resign as Agent upon at least
thirty (30) days prior notice to the Lenders and the Borrowers, such resignation
to be effective upon the acceptance of a successor agent to its appointment as
Agent. In the event the Bank sells all of its Commitment and Revolving Loans as
part of a sale, transfer or other disposition by the Bank of substantially all
of its loan portfolio, the Bank shall resign as Agent and such purchaser or
transferee shall become the successor Agent hereunder. Subject to the foregoing,
if the Agent resigns under this Agreement, the Required Lenders shall appoint
from among the Lenders a successor agent for the Lenders. If no successor agent
is appointed prior to the effective date of the resignation of the Agent, the
Agent may appoint, after consulting with the Lenders and Westlake, a successor
agent from among the Lenders. Upon the acceptance of its appointment as
successor agent hereunder, (a) such successor agent shall succeed to all the
rights, powers, and duties of the retiring Agent, (b) the term "Agent" shall
mean such successor agent, (c) the retiring Agent's appointment, powers, and
duties as Agent shall be terminated. After any retiring Agent's resignation
hereunder as Agent, the provisions of this ARTICLE 12 shall continue to inure to
its benefit as to any actions taken or omitted to be taken by it while it was
Agent under this Agreement.

         12.10 Withholding Tax.

            (a) If any Lender is a "foreign corporation, partnership, or trust"
within the meaning of the Code and such Lender claims exemption from, or a
reduction of, U.S. withholding tax under Sections 1441 or 1442 of the Code, such
Lender agrees with and in favor of the Agent, to deliver to the Agent:

               (i) if such Lender claims an exemption from, or a reduction of,
withholding tax under a United States of America tax treaty, properly completed
IRS Forms W-8BEN and W-8ECI before the payment of any interest in the first
calendar year and before the payment of any interest in each third succeeding
calendar year during which interest may be paid under this Agreement;

               (ii) if such Lender claims that interest paid under this
Agreement is exempt from United States of America withholding tax because it is
effectively connected with a United States of America trade or business of such
Lender, two properly completed and executed copies of IRS Form W-8ECI before the
payment of any interest is due in the first taxable year of such Lender and in
each succeeding taxable year of such Lender during which interest may be paid
under this Agreement, and IRS Form W-9; and

               (iii) such other form or forms as may be required under the Code
or other laws of the United States of America as a condition to exemption from,
or reduction of, United States of America withholding tax.

Such Lender agrees to promptly notify the Agent of any change in circumstances
which would modify or render invalid any claimed exemption or reduction.

            (b) If any Lender claims exemption from, or reduction of,
withholding tax under a United States of America tax treaty by providing IRS
Form W-8BEN, and such Lender sells, assigns, grants a participation in, or
otherwise transfers all or part of the Obligations owing to such Lender, such
Lender agrees to notify the Agent of the percentage amount in which it is no
longer the beneficial owner

                                      -48-
<PAGE>
of Obligations of the Borrowers to such Lender. To the extent of such percentage
amount, the Agent will treat such Lender's IRS Form W-8BEN as no longer valid.

            (c) If any Lender claiming exemption from United States of America
withholding tax by filing IRS Form W-8ECI with the Agent sells, assigns, grants
a participation in, or otherwise transfers all or part of the Obligations owing
to such Lender, such Lender agrees to undertake sole responsibility for
complying with the withholding tax requirements imposed by Sections 1441 and
1442 of the Code.

            (d) If any Lender is entitled to a reduction in the applicable
withholding tax, the Agent may withhold from any interest payment to such Lender
an amount equivalent to the applicable withholding tax after taking into account
such reduction. If the forms or other documentation required by SUBSECTION (A)
of this Section are not delivered to the Agent, then the Agent may withhold from
any interest payment to such Lender not providing such forms or other
documentation an amount equivalent to the applicable withholding tax.

            (e) If the IRS or any other Governmental Authority of the United
States of America or other jurisdiction asserts a claim that the Agent did not
properly withhold tax from amounts paid to or for the account of any Lender
(because the appropriate form was not delivered, was not properly executed, or
because such Lender failed to notify the Agent of a change in circumstances
which rendered the exemption from, or reduction of, withholding tax ineffective,
or for any other reason), such Lender shall indemnify the Agent fully for all
amounts paid, directly or indirectly, by the Agent as tax or otherwise,
including penalties and interest, and including any taxes imposed by any
jurisdiction on the amounts payable to the Agent under this Section, together
with all costs and expenses (including Attorney Costs). The obligation of the
Lenders under this subsection shall survive the payment of all Obligations and
the resignation or replacement of the Agent.

         12.11 Collateral Matters.

            (a) The Lenders hereby irrevocably authorize the Agent, at its
option and in its sole discretion, to release any Agent's Liens upon any
Collateral (i) upon the termination of the Commitments and payment and
satisfaction in full by the Borrowers of all Aggregate Revolver Outstandings,
and the termination of all outstanding Letters of Credit (or, in the
alternative, with respect to Letters of Credit, providing (x) cash collateral
for all remaining Letters of Credit in an amount equal to 110% of the aggregate
face amounts of such Letters of Credit or (y) a back-up letter of credit for
each such Letter of Credit in form and substance and from an issuer acceptable
to the Agent in its sole discretion) (whether or not any of such obligations are
due) and all other Obligations; (ii) constituting property being sold or
disposed of if the Borrowers certify to the Agent that the sale or disposition
is made in compliance with SECTION 7.9 (and the Agent may rely conclusively on
any such certificate, without further inquiry); (iii) constituting property in
which the Loan Parties owned no interest at the time the Lien was granted or at
any time thereafter; or (iv) constituting property leased to the Loan Parties
under a lease which has expired or been terminated in a transaction permitted
under this Agreement. Except as provided above, the Agent will not release any
of the Agent's Liens without the prior written authorization of the Lenders;
provided that the Agent may, in its discretion, release the Agent's Liens on
Collateral valued in the aggregate not in excess of $500,000 during each Fiscal
Year without the prior written authorization of the Lenders and the Agent may
release the Agent's Liens on Collateral valued in the aggregate not in excess of
$1,000,000 during each Fiscal Year with the prior written authorization of
Required Lenders. Upon request by the Agent or the Borrowers at any time, the
Lenders will confirm in writing the Agent's authority to release any Agent's
Liens upon particular types or items of Collateral pursuant to this SECTION
12.11.

                                      -49-
<PAGE>
            (b) Upon receipt by the Agent of any authorization required pursuant
to SECTION 12.11(A) from the Lenders of the Agent's authority to release Agent's
Liens upon particular types or items of Collateral, and upon at least five (5)
Business Days prior written request by the Borrowers, the Agent shall (and is
hereby irrevocably authorized by the Lenders to) execute such documents as may
be necessary to evidence the release of the Agent's Liens upon such Collateral;
provided, however, that (i) the Agent shall not be required to execute any such
document on terms which, in the Agent's opinion, would expose the Agent to
liability or create any obligation or entail any consequence other than the
release of such Liens without recourse or warranty, and (ii) such release shall
not in any manner discharge, affect or impair the Obligations or any Liens
(other than those expressly being released) upon (or obligations of any Loan
Party in respect of) all interests retained by any Loan Party, including the
proceeds of any sale, all of which shall continue to constitute part of the
Collateral.

            (c) The Agent shall have no obligation whatsoever to any of the
Lenders to assure that the Collateral exists or is owned by any Loan Party or is
cared for, protected, or insured or has been encumbered, or that the Agent's
Liens have been properly or sufficiently or lawfully created, perfected,
protected, or enforced or are entitled to any particular priority, or to
exercise at all or in any particular manner or under any duty of care,
disclosure, or fidelity, or to continue exercising, any of the rights,
authorities, and powers granted or available to the Agent pursuant to any of the
Loan Documents, it being understood and agreed that in respect of the
Collateral, or any act, omission, or event related thereto, the Agent may act in
any manner it may deem appropriate, in its sole discretion given the Agent's own
interest in the Collateral in its capacity as one of the Lenders and that the
Agent shall have no other duty or liability whatsoever to any Lender as to any
of the foregoing.

         12.12 Restrictions on Actions by Lenders; Sharing of Payments.

            (a) Each of the Lenders agrees that it shall not, without the
express consent of all Lenders, and that it shall, to the extent it is lawfully
entitled to do so, upon the request of all Lenders, set off against the
Obligations, any amounts owing by such Lender to any Borrower or any accounts of
any Borrower now or hereafter maintained with such Lender. Each of the Lenders
further agrees that it shall not, unless specifically requested to do so by the
Agent, take or cause to be taken any action to enforce its rights under this
Agreement or against any Borrower, including the commencement of any legal or
equitable proceedings, to foreclose any Lien on, or otherwise enforce any
security interest in, any of the Collateral.

            (b) If at any time or times any Lender shall receive (i) by payment,
foreclosure, setoff, or otherwise, any proceeds of Collateral or any payments
with respect to the Obligations of any Borrower to such Lender arising under, or
relating to, this Agreement or the other Loan Documents, except for any such
proceeds or payments received by such Lender from the Agent pursuant to the
terms of this Agreement, or (ii) payments from the Agent in excess of such
Lender's ratable portion of all such distributions by the Agent, such Lender
shall promptly (1) turn the same over to the Agent, in kind, and with such
endorsements as may be required to negotiate the same to the Agent, or in same
day funds, as applicable, for the account of all of the Lenders and for
application to the Obligations in accordance with the applicable provisions of
this Agreement, or (2) purchase, without recourse or warranty, an undivided
interest and participation in the Obligations owed to the other Lenders so that
such excess payment received shall be applied ratably as among the Lenders in
accordance with their Pro Rata Shares; provided, however, that if all or part of
such excess payment received by the purchasing party is thereafter recovered
from it, those purchases of participations shall be rescinded in whole or in
part, as applicable, and the applicable portion of the purchase price paid
therefor shall be returned to such purchasing party, but without interest except
to the extent that such purchasing party is required to pay interest in
connection with the recovery of the excess payment.

                                      -50-
<PAGE>
         12.13 Agency for Perfection. Each Lender hereby appoints each other
Lender as agent for the purpose of perfecting the Lenders' security interest in
assets which, in accordance with Article 9 of the UCC can be perfected only by
possession or control. Should any Lender (other than the Agent) obtain
possession or control of any such Collateral, such Lender shall notify the Agent
thereof, and, promptly upon the Agent's request therefor shall deliver such
Collateral or control thereof to the Agent or in accordance with the Agent's
instructions.

         12.14 Payments by Agent to Lenders. All payments to be made by the
Agent to the Lenders shall be made by bank wire transfer or internal transfer of
immediately available funds to each Lender pursuant to wire transfer
instructions delivered in writing to the Agent on or prior to the Closing Date
(or if such Lender is an Assignee, on the applicable Assignment and Acceptance),
or pursuant to such other wire transfer instructions as each party may designate
for itself by written notice to the Agent. Concurrently with each such payment,
the Agent shall identify whether such payment (or any portion thereof)
represents principal, premium, or interest on the Revolving Loans or otherwise.
Unless the Agent receives notice from the Borrowers prior to the date on which
any payment is due to the Lenders that the Borrowers will not make such payment
in full as and when required, the Agent may assume that the Borrowers have made
such payment in full to the Agent on such date in immediately available funds
and the Agent may (but shall not be so required), in reliance upon such
assumption, distribute to each Lender on such due date an amount equal to the
amount then due such Lender. If and to the extent the Borrowers have not made
such payment in full to the Agent, each Lender shall repay to the Agent on
demand such amount distributed to such Lender, together with interest thereon at
the Federal Funds Rate for each day from the date such amount is distributed to
such Lender until the date repaid.

         12.15 Settlement.

            (a) (i) Each Lender's funded portion of the Revolving Loans is
intended by the Lenders to be equal at all times to such Lender's Pro Rata Share
of the outstanding Revolving Loans. Notwithstanding such agreement, the Agent,
the Bank, and the other Lenders agree (which agreement shall not be for the
benefit of or enforceable by any Borrower) that in order to facilitate the
administration of this Agreement and the other Loan Documents, settlement among
them as to the Revolving Loans, the Non-Ratable Loans and the Agent Advances
shall take place on a periodic basis in accordance with the following
provisions:

                (ii) The Agent shall request settlement ("Settlement") with the
Lenders on at least a weekly basis, or on a more frequent basis at Agent's
election, (A) on behalf of the Bank, with respect to each outstanding
Non-Ratable Loan, (B) for itself, with respect to each Agent Advance, and (C)
with respect to collections received, in each case, by notifying the Lenders of
such requested Settlement by telecopy, telephone or other similar form of
transmission, of such requested Settlement, no later than 12:00 noon (Houston,
Texas time) on the date of such requested Settlement (the "SETTLEMENT DATE").
Each Lender (other than the Bank, in the case of Non-Ratable Loans and the Agent
in the case of Agent Advances) shall transfer the amount of such Lender's Pro
Rata Share of the outstanding principal amount of the Non-Ratable Loans and
Agent Advances with respect to each Settlement to the Agent, to Agent's account,
not later than 2:00 p.m. (Houston, Texas time), on the Settlement Date
applicable thereto. Settlements may occur during the continuation of a Default
or an Event of Default and whether or not the applicable conditions precedent
set forth in ARTICLE 8 have then been satisfied. Such amounts made available to
the Agent shall be applied against the amounts of the applicable Non-Ratable
Loan or Agent Advance and, together with the portion of such Non-Ratable Loan or
Agent Advance representing the Bank's Pro Rata Share thereof, shall constitute
Revolving Loans of such Lenders. If any such amount is not transferred to the
Agent by any Lender on the Settlement Date applicable thereto, the Agent shall
be entitled to recover such amount on demand from such Lender together with
interest thereon at the Federal Funds Rate for the first three (3) days from and
after the

                                      -51-
<PAGE>
Settlement Date and thereafter at the Interest Rate then applicable to the
Revolving Loans (A) on behalf of the Bank, with respect to each outstanding
Non-Ratable Loan, and (B) for itself, with respect to each Agent Advance.

               (iii) Notwithstanding the foregoing, not more than one (1)
Business Day after demand is made by the Agent (whether before or after the
occurrence of a Default or an Event of Default and regardless of whether the
Agent has requested a Settlement with respect to a Non-Ratable Loan or Agent
Advance), each other Lender (A) shall irrevocably and unconditionally purchase
and receive from the Bank or the Agent, as applicable, without recourse or
warranty, an undivided interest and participation in such Non-Ratable Loan or
Agent Advance equal to such Lender's Pro Rata Share of such Non-Ratable Loan or
Agent Advance and (B) if Settlement has not previously occurred with respect to
such Non-Ratable Loans or Agent Advances, upon demand by Bank or Agent, as
applicable, shall pay to Bank or Agent, as applicable, as the purchase price of
such participation an amount equal to one-hundred percent (100%) of such
Lender's Pro Rata Share of such Non-Ratable Loans or Agent Advances. If such
amount is not in fact made available to the Agent by any Lender, the Agent shall
be entitled to recover such amount on demand from such Lender together with
interest thereon at the Federal Funds Rate for the first three (3) days from and
after such demand and thereafter at the Interest Rate then applicable to Base
Rate Loans. (iv) From and after the date, if any, on which any Lender purchases
an undivided interest and participation in any Non-Ratable Loan or Agent Advance
pursuant to CLAUSE (III) above, the Agent shall promptly distribute to such
Lender, such Lender's Pro Rata Share of all payments of principal and interest
and all proceeds of Collateral received by the Agent in respect of such
Non-Ratable Loan or Agent Advance.

               (v) Between Settlement Dates, the Agent, to the extent no Agent
Advances are outstanding, may pay over to the Bank any payments received by the
Agent, which in accordance with the terms of this Agreement would be applied to
the reduction of the Revolving Loans, for application to the Bank's Revolving
Loans including Non-Ratable Loans. If, as of any Settlement Date, collections
received since the then immediately preceding Settlement Date have been applied
to the Bank's Revolving Loans (other than to Non-Ratable Loans or Agent Advances
in which such Lender has not yet funded its purchase of a participation pursuant
to CLAUSE (III) above), as provided for in the previous sentence, the Bank shall
pay to the Agent for the accounts of the Lenders, to be applied to the
outstanding Revolving Loans of such Lenders, an amount such that each Lender
shall, upon receipt of such amount, have, as of such Settlement Date, its Pro
Rata Share of the Revolving Loans. During the period between Settlement Dates,
the Bank with respect to Non-Ratable Loans, the Agent with respect to Agent
Advances, and each Lender with respect to the Revolving Loans other than
Non-Ratable Loans and Agent Advances, shall be entitled to interest at the
applicable rate or rates payable under this Agreement on the actual average
daily amount of funds employed by the Bank, the Agent, and the other Lenders,
respectively.

               (vi) Unless the Agent has received written notice from a Lender
to the contrary, the Agent may assume that the applicable conditions precedent
set forth in ARTICLE 8 have been satisfied and the requested Borrowing will not
exceed Availability on any Funding Date for a Revolving Loan or Non-Ratable
Loan.

            (b) Lenders' Failure to Perform. All Revolving Loans (other than
Non-Ratable Loans and Agent Advances) shall be made by the Lenders
simultaneously and in accordance with their Pro Rata Shares. It is understood
that (i) no Lender shall be responsible for any failure by any other Lender to
perform its obligation to make any Revolving Loans hereunder, nor shall any
Commitment of any Lender be increased or decreased as a result of any failure by
any other Lender to perform its

                                      -52-
<PAGE>
obligation to make any Revolving Loans hereunder, (ii) no failure by any Lender
to perform its obligation to make any Revolving Loans hereunder shall excuse any
other Lender from its obligation to make any Revolving Loans hereunder, and
(iii) the obligations of each Lender hereunder shall be several, not joint and
several.

            (c) Defaulting Lenders. Unless the Agent receives notice from a
Lender on or prior to the Closing Date or, with respect to any Borrowing after
the Closing Date, at least one (1) Business Day prior to the date of such
Borrowing, that such Lender will not make available as and when required
hereunder to the Agent that Lender's Pro Rata Share of a Borrowing, the Agent
may assume that each Lender has made such amount available to the Agent in
immediately available funds on the Funding Date. Furthermore, the Agent may, in
reliance upon such assumption, make available to the Borrowers on such date a
corresponding amount. If any Lender has not transferred its full Pro Rata Share
to the Agent in immediately available funds and the Agent has transferred
corresponding amount to the Borrowers on the Business Day following such Funding
Date, that the Lender shall make such amount available to the Agent, together
with interest at the Federal Funds Rate for that day. A notice by the Agent
submitted to any Lender with respect to amounts owing shall be conclusive,
absent manifest error. If each Lender's full Pro Rata Share is transferred to
the Agent as required, the amount transferred to the Agent shall constitute that
Lender's Revolving Loan for all purposes of this Agreement. If that amount is
not transferred to the Agent on the Business Day following the Funding Date, the
Agent will notify the Borrowers of such failure to fund and, upon demand by the
Agent, the Borrowers shall pay such amount to the Agent for the Agent's account,
together with interest thereon for each day elapsed since the date of such
Borrowing, at a rate per annum equal to the Interest Rate applicable at the time
to the Revolving Loans comprising that particular Borrowing. The failure of any
Lender to make any Revolving Loan on any Funding Date (any such Lender, prior to
the cure of such failure, being hereinafter referred to as a "DEFAULTING
LENDER") shall not relieve any other Lender of its obligation hereunder to make
a Revolving Loan on that Funding Date. No Lender shall be responsible for any
other Lender's failure to advance such other Lenders' Pro Rata Share of any
Borrowing.

            (d) Retention of Defaulting Lender's Payments. The Agent shall not
be obligated to transfer to a Defaulting Lender any payments made by any
Borrower to the Agent for the Defaulting Lender's benefit; nor shall a
Defaulting Lender be entitled to the sharing of any payments hereunder. Amounts
payable to a Defaulting Lender shall instead be paid to or retained by the
Agent. In its discretion, the Agent may loan the Borrowers the amount of all
such payments received or retained by it for the account of such Defaulting
Lender. Any amounts so loaned to the Borrowers shall bear interest at the rate
applicable to Base Rate Loans and for all other purposes of this Agreement shall
be treated as if they were Revolving Loans, provided, however, that for purposes
of voting or consenting to matters with respect to the Loan Documents and
determining Pro Rata Shares, such Defaulting Lender shall be deemed not to be a
"Lender". Until a Defaulting Lender cures its failure to fund its Pro Rata Share
of any Borrowing (i) such Defaulting Lender shall not be entitled to any portion
of the Unused Line Fee and (ii) the Unused Line Fee shall accrue in favor of the
Lenders which have funded their respective Pro Rata Shares of such requested
Borrowing and shall be allocated among such performing Lenders ratably based
upon their relative Commitments. This Section shall remain effective with
respect to such Lender until such time as the Defaulting Lender shall no longer
be in default of any of its obligations under this Agreement. The terms of this
Section shall not be construed to increase or otherwise affect the Commitment of
any Lender, or relieve or excuse the performance by the Borrowers of their
duties and obligations hereunder.

            (e) Removal of Defaulting Lender. At the Borrowers' request, the
Agent or an Eligible Assignee reasonably acceptable to the Agent and the
Borrowers shall have the right (but not the obligation) to purchase from any
Defaulting Lender, and each Defaulting Lender shall, upon such request, sell and
assign to the Agent or such Eligible Assignee, all of the Defaulting Lender's
outstanding

                                      -53-
<PAGE>
Commitment hereunder. Such sale shall be consummated promptly after Agent has
arranged for a purchase by Agent or an Eligible Assignee pursuant to an
Assignment and Acceptance, and at a price equal to the outstanding principal
balance of the Defaulting Lender's Loans, plus accrued interest and fees,
without premium or discount.

         12.16 Letters of Credit; Intra-Lender Issues.

            (a) Notice of Letter of Credit Balance. On each Settlement Date the
Agent shall notify each Lender of the issuance of all Letters of Credit since
the prior Settlement Date.

            (b) Participations in Letters of Credit.

               (i) Purchase of Participations. Immediately upon issuance of any
Letter of Credit in accordance with SECTION 1.3(D), each Lender shall be deemed
to have irrevocably and unconditionally purchased and received without recourse
or warranty, an undivided interest and participation equal to such Lender's Pro
Rata Share of the face amount of such Letter of Credit or the Credit Support
provided through the Agent to the Letter of Credit Issuer, if not the Bank, in
connection with the issuance of such Letter of Credit (including all obligations
of the Borrowers with respect thereto, and any security therefor or guaranty
pertaining thereto).

               (ii) Sharing of Reimbursement Obligation Payments. Whenever the
Agent receives a payment from any Borrower on account of reimbursement
obligations in respect of a Letter of Credit or Credit Support as to which the
Agent has previously received for the account of the Letter of Credit Issuer
thereof payment from a Lender, the Agent shall promptly pay to such Lender such
Lender's Pro Rata Share of such payment from such Borrower. Each such payment
shall be made by the Agent on the next Settlement Date.

               (iii) Documentation. Upon the request of any Lender, the Agent
shall furnish to such Lender copies of any Letter of Credit, Credit Support for
any Letter of Credit, reimbursement agreements executed in connection therewith,
applications for any Letter of Credit, and such other documentation as may
reasonably be requested by such Lender.

               (iv) Obligations Irrevocable. The obligations of each Lender to
make payments to the Agent with respect to any Letter of Credit or with respect
to their participation therein or with respect to any Credit Support for any
Letter of Credit or with respect to the Revolving Loans made as a result of a
drawing under a Letter of Credit and the obligations of the Borrower for whose
account the Letter of Credit or Credit Support was issued to make payments to
the Agent, for the account of the Lenders, shall be irrevocable and shall not be
subject to any qualification or exception whatsoever, including any of the
following circumstances:

                  (1) any lack of validity or enforceability of this Agreement
or any of the other Loan Documents;

                  (2) the existence of any claim, setoff, defense, or other
right which any Borrower may have at any time against a beneficiary named in a
Letter of Credit or any transferee of any Letter of Credit (or any Person for
whom any such transferee may be acting), any Lender, the Agent, the issuer of
such Letter of Credit, or any other Person, whether in connection with this
Agreement, any Letter of Credit, the transactions contemplated herein, or any
unrelated transactions (including any underlying transactions between any
Borrower or any other Person and the beneficiary named in any Letter of Credit);

                                      -54-
<PAGE>
                  (3) any draft, certificate or any other document presented
under the Letter of Credit proving to be forged, fraudulent, invalid, or
insufficient in any respect or any statement therein being untrue or inaccurate
in any respect;

                  (4) the surrender or impairment of any security for the
performance or observance of any of the terms of any of the Loan Documents;

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

                  (6) the failure of the Borrowers to satisfy the applicable
conditions precedent set forth in ARTICLE 8.

            (c) Recovery or Avoidance of Payments; Refund of Payments In Error.
In the event any payment by or on behalf of any Borrower received by the Agent
with respect to any Letter of Credit or Credit Support provided for any Letter
of Credit and distributed by the Agent to the Lenders on account of their
respective participations therein is thereafter set aside, avoided, or recovered
from the Agent in connection with any receivership, liquidation, or bankruptcy
proceeding, the Lenders shall, upon demand by the Agent, pay to the Agent their
respective Pro Rata Shares of such amount set aside, avoided, or recovered,
together with interest at the rate required to be paid by the Agent upon the
amount required to be repaid by it. Unless the Agent receives notice from the
Borrowers prior to the date on which any payment is due to the Lenders that the
Borrowers will not make such payment in full as and when required, the Agent may
assume that the Borrowers have made such payment in full to the Agent on such
date in immediately available funds and the Agent may (but shall not be so
required), in reliance upon such assumption, distribute to each Lender on such
due date an amount equal to the amount then due such Lender. If and to the
extent the Borrowers have not made such payment in full to the Agent, each
Lender shall repay to the Agent on demand such amount distributed to such
Lender, together with interest thereon at the Federal Funds Rate for each day
from the date such amount is distributed to such Lender until the date repaid.

            (d) Indemnification by Lenders. To the extent not reimbursed by the
Borrowers and without limiting the obligations of the Borrowers hereunder, the
Lenders agree to indemnify the Letter of Credit Issuer ratably in accordance
with their respective Pro Rata Shares, for any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses
(including attorneys' fees), or disbursements of any kind and nature whatsoever
that may be imposed on, incurred by, or asserted against the Letter of Credit
Issuer in any way relating to or arising out of any Letter of Credit or the
transactions contemplated thereby or any action taken or omitted by the Letter
of Credit Issuer under any Letter of Credit or any Loan Document in connection
therewith; provided that no Lender shall be liable for any of the foregoing to
the extent it arises from the gross negligence or willful misconduct of the
Person to be indemnified. Without limitation of the foregoing, each Lender
agrees to reimburse the Letter of Credit Issuer promptly upon demand for its Pro
Rata Share of any costs or expenses payable by the Borrowers to the Letter of
Credit Issuer, to the extent that the Letter of Credit Issuer is not promptly
reimbursed for such costs and expenses by a Borrower. The agreement contained in
this Section shall survive payment in full of all other Obligations.

         12.17 Concerning the Collateral and the Related Loan Documents. Each
Lender authorizes and directs the Agent to enter into the other Loan Documents,
for the ratable benefit and obligation of the Agent and the Lenders. Each Lender
agrees that any action taken by the Agent, Majority Lenders, or Required
Lenders, as applicable, in accordance with the terms of this Agreement or the
other Loan Documents, and the exercise by the Agent, the Majority Lenders, or
the Required Lenders, as applicable, of their respective powers set forth
therein or herein, together with such other powers that are reasonably
incidental thereto, shall be binding upon all of the Lenders. The Lenders
acknowledge that the

                                      -55-
<PAGE>
Revolving Loans, Agent Advances, Non-Ratable Loans, Bank Products, and all
interest, fees and expenses hereunder constitute one Debt, secured pari passu by
all of the Collateral.

         12.18 Field Audit and Examination Reports; Disclaimer by Lenders. By
signing this Agreement, each Lender:

            (a) is deemed to have requested that the Agent furnish such Lender,
promptly after it becomes available, a copy of each field audit or examination
report (each a "Report" and collectively, "Reports") prepared by or on behalf of
the Agent;

            (b) expressly agrees and acknowledges that neither the Bank nor the
Agent (i) makes any representation or warranty as to the accuracy of any Report,
or (ii) shall be liable for any information contained in any Report;

            (c) expressly agrees and acknowledges that the Reports are not
comprehensive audits or examinations, that the Agent or the Bank or other party
performing any audit or examination will inspect only specific information
regarding the Borrowers and will rely significantly upon the Borrowers' books
and records, as well as on representations of the Borrowers' personnel;

            (d) agrees to keep all Reports confidential and strictly for its
internal use, and not to distribute except to its participants, or use any
Report in any other manner; and

            (e) without limiting the generality of any other indemnification
provision contained in this Agreement, agrees: (i) to hold the Agent and any
such other Lender preparing a Report harmless from any action the indemnifying
Lender may take or conclusion the indemnifying Lender may reach or draw from any
Report in connection with any loans or other credit accommodations that the
indemnifying Lender has made or may make to the Borrowers, or the indemnifying
Lender's participation in, or the indemnifying Lender's purchase of, a loan or
loans of the Borrower; and (ii) to pay and protect, and indemnify, defend and
hold the Agent and any such other Lender preparing a Report harmless from and
against, the claims, actions, proceedings, damages, costs, expenses, and other
amounts (including Attorney Costs) incurred by the Agent and any such other
Lender preparing a Report as the direct or indirect result of any third parties
who might obtain all or part of any Report through the indemnifying Lender.

         12.19 Relation Among Lenders. The Lenders are not partners or
co-venturers, and no Lender shall be liable for the acts or omissions of, or
(except as otherwise set forth herein in case of the Agent) authorized to act
for, any other Lender.

         12.20 Co-Agents. None of the Lenders identified on the facing page or
signature pages of this Agreement as a "co-agent" (if any) shall have any right,
power, obligation, liability, responsibility or duty under this Agreement other
than those applicable to all Lenders as such. Without limiting the foregoing,
none of the Lenders so identified as a "co-agent" (if any) shall have or be
deemed to have any fiduciary relationship with any Lender. Each Lender
acknowledges that it has not relied, and will not rely, on any of the Lenders so
identified in deciding to enter into this Agreement or in taking or not taking
action hereunder.

                                   ARTICLE 13
                                  MISCELLANEOUS

         13.1 No Waivers; Cumulative Remedies. No failure by the Agent or any
Lender to exercise any right, remedy, or option under this Agreement or any
present or future supplement thereto, or

                                      -56-
<PAGE>
in any other agreement between or among any Borrower and the Agent and/or any
Lender, or delay by the Agent or any Lender in exercising the same, will operate
as a waiver thereof. No waiver by the Agent or any Lender will be effective
unless it is in writing, and then only to the extent specifically stated. No
waiver by the Agent or the Lenders on any occasion shall affect or diminish the
Agent's and each Lender's rights thereafter to require strict performance by the
Borrowers of any provision of this Agreement. The Agent and the Lenders may
proceed directly to collect the Obligations without any prior recourse to the
Collateral. The Agent's and each Lender's rights under this Agreement will be
cumulative and not exclusive of any other right or remedy which the Agent or any
Lender may have.

         13.2 Severability. The illegality or unenforceability of any provision
of this Agreement or any Loan Document or any instrument or agreement required
hereunder shall not in any way affect or impair the legality or enforceability
of the remaining provisions of this Agreement or any instrument or agreement
required hereunder.

         13.3 Governing Law; Choice of Forum; Service of Process.

            (a) The Loan Documents have been entered into pursuant to Section
5-1401 of the New York General Obligations Law and the substantive laws of the
State of New York (except to the extent the laws of another jurisdiction govern
the creation, perfection, validity, or enforcement of Liens under the Collateral
Documents), and the applicable federal laws of the United States of America
shall govern the validity, construction, enforcement and interpretation of the
Loan Documents.

            (b) EACH PARTY HERETO (INCLUDING EACH GUARANTOR BY EXECUTION OF AN
OBLIGATION GUARANTY), IN EACH CASE FOR ITSELF, ITS SUCCESSORS AND ASSIGNS,
HEREBY (A) IRREVOCABLY SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF THE STATE
(PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW) AND FEDERAL
COURTS LOCATED IN THE BOROUGH OF MANHATTAN IN THE STATE OF NEW YORK, AND AGREES
AND CONSENTS THAT SERVICE OF PROCESS MAY BE MADE UPON IT IN ANY LEGAL PROCEEDING
ARISING OUT OF OR IN CONNECTION WITH THE LOAN DOCUMENTS AND THE OBLIGATION BY
SERVICE OF PROCESS AS PROVIDED BY NEW YORK LAW, (B) IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER
HAVE TO THE LAYING OF VENUE OF ANY LITIGATION ARISING OUT OF OR IN CONNECTION
WITH THE LOAN DOCUMENTS AND THE OBLIGATION BROUGHT IN ANY SUCH COURT, (C)
IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW ANY CLAIMS THAT ANY
LITIGATION BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM,
(D) AGREES TO DESIGNATE AND MAINTAIN AN AGENT FOR SERVICE OF PROCESS IN NEW YORK
IN CONNECTION WITH ANY SUCH LITIGATION AND TO DELIVER TO THE AGENT EVIDENCE
THEREOF, IF REQUESTED, AND (E) IRREVOCABLY AGREES TO THE FULLEST EXTENT
PERMITTED BY LAW THAT ANY LEGAL PROCEEDING AGAINST ANY PARTY HERETO ARISING OUT
OF OR IN CONNECTION WITH THE LOAN DOCUMENTS OR THE OBLIGATION SHALL BE BROUGHT
IN ONE OF THE AFOREMENTIONED COURTS. THE SCOPE OF EACH OF THE FOREGOING WAIVERS
IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN
ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING,
WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL
OTHER COMMON LAW AND STATUTORY CLAIMS. THE LOAN PARTIES AND EACH OTHER PARTY TO
THE LOAN DOCUMENTS ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO THE
AGREEMENT OF EACH PARTY HERETO TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH
HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THE LOAN DOCUMENTS, AND EACH
WILL CONTINUE TO RELY ON EACH OF SUCH WAIVERS IN RELATED FUTURE DEALINGS. THE
LOAN PARTIES AND EACH OTHER PARTY TO THE LOAN DOCUMENTS WARRANT AND REPRESENT
THAT THEY HAVE REVIEWED THESE WAIVERS WITH THEIR LEGAL COUNSEL, AND THAT THEY
KNOWINGLY AND VOLUNTARILY AGREE TO EACH SUCH WAIVER FOLLOWING CONSULTATION WITH
LEGAL

                                      -57-
<PAGE>
COUNSEL. THE WAIVERS IN THIS SECTION 13.3 ARE IRREVOCABLE, MEANING THAT THEY MAY
NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THESE WAIVERS SHALL APPLY TO
ANY SUBSEQUENT AMENDMENTS, SUPPLEMENTS, AND REPLACEMENTS TO OR OF THIS OR ANY
OTHER LOAN DOCUMENT. In the event of litigation, this agreement may be filed as
a written consent to a trial by the court. Notwithstanding the foregoing: (1)
the agent and the lenders shall have the right to bring any action or proceeding
against any loan party or their property in the courts of any other jurisdiction
the agent or the lenders deem necessary or appropriate in order to realize on
the collateral or other security for the obligations and (2) each of the parties
hereto acknowledges that any appeals from the courts described in the
immediately preceding sentence may have to be heard by a court located outside
those jurisdictions.

            (c) EACH BORROWER AND EACH OTHER LOAN PARTY (BY EXECUTION OF AN
OBLIGATION GUARANTY) HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON
IT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY REGISTERED MAIL
(RETURN RECEIPT REQUESTED) DIRECTED TO WESTLAKE AT ITS ADDRESS SET FORTH IN
SECTION 13.8 AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED UPON THE
EARLIER OF (I) TWO (2) DAYS AFTER THE SAME SHALL HAVE BEEN SO DEPOSITED WITH A
NATIONALLY-RECOGNIZED OVERNIGHT COURIER OR (II) WHEN ACTUALLY DELIVERED TO SUCH
PERSON. NOTHING CONTAINED HEREIN SHALL AFFECT THE RIGHT OF AGENT OR THE LENDERS
TO SERVE LEGAL PROCESS BY ANY OTHER MANNER PERMITTED BY LAW.

         13.4 WAIVER OF JURY TRIAL. EACH BORROWER AND EACH OTHER LOAN PARTY (BY
EXECUTION OF AN OBLIGATION GUARANTY), THE LENDERS, AND THE AGENT EACH
IRREVOCABLY WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR
CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE
OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, IN ANY
ACTION, PROCEEDING, OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY SUCH PARTIES
AGAINST ANY OTHER SUCH PARTY OR ANY AGENT-RELATED PERSON, PARTICIPANT, OR
ASSIGNEE, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE.
EACH BORROWER, THE LENDERS, AND THE AGENT EACH AGREE THAT ANY SUCH CLAIM OR
CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING
THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL
BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR
OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR
ENFORCEABILITY OF THIS AGREEMENT, THE OTHER LOAN DOCUMENTS, OR ANY PROVISION
HEREOF OR THEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS, SUPPLEMENTS, OR MODIFICATIONS TO THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS.

         13.5 Survival of Representations and Warranties. All of the Borrowers'
representations and warranties contained in this Agreement shall survive the
execution, delivery, and acceptance thereof by the parties, notwithstanding any
investigation by the Agent or the Lenders or their respective agents.

         13.6 Other Security and Guaranties. The Agent, may, without notice or
demand and without affecting any Borrower's obligations hereunder, from time to
time: (a) take from any Person and hold collateral (other than the Collateral)
for the payment of all or any part of the Obligations and exchange, enforce, or
release such collateral or any part thereof; and (b) accept and hold any
endorsement or guaranty of payment of all or any part of the Obligations and
release or substitute any such endorser or

                                      -58-
<PAGE>
guarantor, or any Person who has given any Lien in any other collateral as
security for the payment of all or any part of the Obligations, or any other
Person in any way obligated to pay all or any part of the Obligations.

         13.7 Fees and Expenses. The Borrowers agree to pay to the Agent and the
Arranger (as applicable), for their respective benefits, on demand, all
reasonable costs and expenses that the Agent and the Arranger pays or incurs in
connection with the negotiation, preparation, syndication, consummation,
administration, enforcement, and termination of this Agreement or any of the
other Loan Documents, including: (a) Attorney Costs; (b) costs and expenses
(including, without duplication, attorneys' and paralegals' fees and
disbursements) for any amendment, supplement, waiver, consent, or subsequent
closing in connection with the Loan Documents and the transactions contemplated
thereby; (c) costs and expenses of lien searches; (d) taxes, fees, and other
charges for recording any mortgages, filing financing statements and
continuations, and other actions to perfect, protect, and continue the Agent's
Liens (including costs and expenses paid or incurred by the Agent in connection
with the consummation of the Agreement); (e) sums paid or incurred to pay any
amount or take any action reasonably required of any Borrower under the Loan
Documents that Borrowers fail to pay or take; (f) costs of appraisals,
inspections, and verifications of the Collateral, including travel, lodging, and
meals for inspections of the Collateral and the Loan Parties' operations by the
Agent plus the Agent's then customary charge for field examinations and audits
and the preparation of reports thereof (such charge is currently $850 per day
(or portion thereof) for each Person retained or employed by the Agent with
respect to each field examination or audit); and (g) costs and expenses of
forwarding loan proceeds, collecting checks, and other items of payment, and
establishing and maintaining Payment Accounts and lock boxes, and costs and
expenses of preserving and protecting the Collateral. In addition, the Borrowers
agree to pay costs and expenses incurred by the Agent and the Arranger
(including Attorneys' Costs) to the Agent and the Arranger, as applicable, for
their respective benefit, on demand, and to the other Lenders for their benefit,
on demand, and all reasonable fees, expenses and disbursements incurred by such
other Lenders for one law firm retained by such other Lenders, in each case,
paid or incurred to obtain payment of the Obligations, enforce the Agent's
Liens, sell or otherwise realize upon the Collateral, and otherwise enforce the
provisions of the Loan Documents, or to defend any claims made or threatened
against the Agent, the Arranger, or any Lender arising out of the transactions
contemplated hereby (including preparations for and consultations concerning any
such matters). The foregoing shall not be construed to limit any other
provisions of the Loan Documents regarding costs and expenses to be paid by the
Borrower. All of the foregoing costs and expenses may be (in the sole discretion
of the Agent) charged to the Borrowers' Loan Account as Revolving Loans as
described in SECTION 3.7 up to the Maximum Revolver Amount.

         13.8 Notices. Except as otherwise provided herein, all notices, demands
and requests that any party is required or elects to give to any other shall be
in writing, or by a telecommunications device capable of creating a written
record, and any such notice shall become effective (a) on the earlier of (i) two
(2) days after the same shall have been so deposited with a
nationally-recognized overnight courier or (ii) when actually delivered to such
person, (b) four (4) days after it shall have been mailed by United States mail,
first class, certified or registered, with postage prepaid, or (c) in the case
of notice by such a telecommunications device, when properly transmitted, in
each case addressed to the party to be notified as follows:

                                      -59-
<PAGE>
            If to the Agent or to the Bank:

                  Bank of America, N.A.
                  55 S. Lake Avenue, Suite 900
                  Pasadena, CA  91101
                  Attention:  Robert Mostert
                  Facsimile  No.: 626.397.1275

                  with copies to:

                  Haynes and Boone, LLP
                  901 Main Street, Suite 3100
                  Dallas, TX  75202
                  Attention:  Sue P. Murphy
                  Facsimile No.: 214.200.0565

            If to the Borrower:

                  Westlake Chemical Corporation
                  2801 Post Oak Boulevard
                  Houston, TX  77056
                  Attention: Treasurer
                  Facsimile No.: 713.960.9420

or to such other address as each party may designate for itself by like notice.
Failure or delay in delivering copies of any notice, demand, request, consent,
approval, declaration or other communication to the persons designated above to
receive copies shall not adversely affect the effectiveness of such notice,
demand, request, consent, approval, declaration or other communication.

         13.9 Waiver of Notices. Unless otherwise expressly provided herein,
each Borrower waives presentment, and notice of demand or dishonor and protest
as to any instrument, notice of intent to accelerate the Obligations, and notice
of acceleration of the Obligations, as well as any and all other notices to
which it might otherwise be entitled. No notice to or demand on any Borrower
which the Agent or any Lender may elect to give shall entitle any Borrower to
any or further notice or demand in the same, similar, or other circumstances.

         13.10 Binding Effect. The provisions of this Agreement shall be binding
upon and inure to the benefit of the respective representatives, successors, and
assigns of the parties hereto; provided, however, that no interest herein may be
assigned by any Borrower without prior written consent of the Agent and each
Lender. The rights and benefits of the Agent and the Lenders hereunder shall, if
such Persons so agree, inure to any party acquiring any interest in the
Obligations or any part thereof.

         13.11 Indemnity of the Agent, the Arranger, and the Lenders by the
Borrower.

            (a) Each Borrower and each other Loan Party (by execution of an
Obligation Guaranty) agrees to defend, indemnify, and hold the Agent-Related
Persons, the Arranger, and each Lender and each of their respective officers,
directors, employees, counsel, representatives, agents, and attorneys-in-fact
(each, an "INDEMNIFIED PERSON") harmless from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, charges, expenses, and disbursements (including Attorney Costs) of any
kind or nature whatsoever which may at any time

                                      -60-
<PAGE>
(including at any time following repayment of the Loans and the termination,
resignation, or replacement of the Agent or replacement of any Lender) be
imposed on, incurred by, or asserted against any such Person in any way relating
to or arising out of this Agreement or any document contemplated by or referred
to herein, or the transactions contemplated hereby, or any action taken or
omitted by any such Person under or in connection with any of the foregoing,
including with respect to any investigation, litigation, or proceeding
(including any insolvency proceeding or appellate proceeding) related to or
arising out of this Agreement, any other Loan Document, or the Loans or the use
of the proceeds thereof, whether or not any Indemnified Person is a party
thereto (all the foregoing, collectively, the "INDEMNIFIED LIABILITIES");
provided, that the Borrower shall have no obligation hereunder to any
Indemnified Person with respect to Indemnified Liabilities to the extent
resulting from the gross negligence or willful misconduct of such Indemnified
Person. The agreements in this Section shall survive payment of all other
Obligations.

            (b) Each Borrower and each other Loan Party (by execution of an
Obligation Guaranty) agrees to indemnify, defend, and hold harmless the Agent
and the Lenders from any Environmental Liability, arising directly or
indirectly, in whole or in part, out of any breach of this Agreement, including
without limitation, any breach of SECTION 6.16 or SECTION 7.7 by any Loan Party.
This indemnity will apply whether the Hazardous Material is on, under, or about
any Real Estate or operations or property leased to, or formerly owned or
operated by, any Loan Party or any of their Subsidiaries. The indemnity
includes, but is not limited to, Attorneys Costs. The indemnity extends to the
Agent and the Lenders, their parents, affiliates, subsidiaries, and all of their
directors, officers, employees, agents, successors, attorneys, and assigns. This
indemnity will survive repayment of all other Obligations. This indemnity is
intended to allocate responsibility between the Loan Parties and the Agent and
the Lenders as contemplated by Section 107(e)(1) of CERCLA and any successor
federal statute, rule, or regulations or comparable state statute, rule, or
regulations.

         13.12 Limitation of Liability. NO CLAIM MAY BE MADE BY ANY LOAN PARTY,
ANY LENDER, OR OTHER PERSON AGAINST THE AGENT, THE ARRANGER, ANY LENDER, OR THE
AFFILIATES, DIRECTORS, OFFICERS, EMPLOYEES, COUNSEL, REPRESENTATIVES, AGENTS, OR
ATTORNEYS-IN-FACT OF ANY OF THEM FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL, OR
PUNITIVE DAMAGES IN RESPECT OF ANY CLAIM FOR BREACH OF CONTRACT OR ANY OTHER
THEORY OF LIABILITY ARISING OUT OF OR RELATED TO THE TRANSACTIONS CONTEMPLATED
BY THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY ACT, OMISSION, OR EVENT
OCCURRING IN CONNECTION THEREWITH, AND EACH BORROWER AND EACH OTHER LOAN PARTY
(BY EXECUTION OF AN OBLIGATION GUARANTY) AND EACH LENDER HEREBY WAIVES,
RELEASES, AND AGREES NOT TO SUE UPON ANY CLAIM FOR SUCH DAMAGES, WHETHER OR NOT
ACCRUED AND WHETHER OR NOT KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR.

         13.13 Final Agreement. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. No
modification, rescission, waiver, release, or amendment of any provision of this
Agreement or any other Loan Document shall be made, except by a written
agreement signed by the Borrowers and a duly authorized officer of each of the
Agent and the requisite Lenders.

         13.14 Counterparts. This Agreement may be executed in any number of
counterparts, and by the Agent, each Lender, and each Borrower in separate
counterparts, each of which shall be an

                                      -61-
<PAGE>
original, but all of which shall together constitute one and the same agreement;
signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are physically attached to
the same document.

         13.15 Captions. The captions contained in this Agreement are for
convenience of reference only, are without substantive meaning and should not be
construed to modify, enlarge, or restrict any provision.

         13.16 Right of Setoff. In addition to any rights and remedies of the
Lenders provided by law, if an Event of Default exists or the Loans have been
accelerated, each Lender is authorized at any time and from time to time,
without prior notice to any Borrower, any such notice being waived by each
Borrower to the fullest extent permitted by law, to set off and apply any and
all deposits (general or special, time or demand, provisional or final) at any
time held by, and other indebtedness at any time owing by, such Lender or any
Affiliate of such Lender to or for the credit or the account of any Borrower
against any and all Obligations (for the benefit of all Lenders as provided
herein), now or hereafter existing, irrespective of whether or not the Agent or
such Lender shall have made demand under this Agreement or any Loan Document and
although such Obligations may be contingent or unmatured. Each Lender agrees
promptly to notify the Borrowers and the Agent after any such set-off and
application made by such Lender; provided, however, that the failure to give
such notice shall not affect the validity of such set-off and application.
NOTWITHSTANDING THE FOREGOING, NO LENDER SHALL EXERCISE ANY RIGHT OF SET-OFF,
BANKER'S LIEN, OR THE LIKE AGAINST ANY DEPOSIT ACCOUNT OR PROPERTY OF ANY
BORROWER HELD OR MAINTAINED BY SUCH LENDER WITHOUT THE PRIOR WRITTEN UNANIMOUS
CONSENT OF THE LENDERS. If any Lender shall obtain any payment or prepayment
with respect to the Obligation as a result of exercising its Right under this
SECTION 13.16 which is in excess of its share of any such payment in accordance
with the relevant rights of the Lenders under the Loan Documents, then such
Lender shall purchase from the other Lenders such participations as shall be
necessary to cause such purchasing Lender to share the excess payment with each
other Lender in accordance with the relevant rights under the Loan Documents. If
all or any portion of such excess payment is subsequently recovered from such
purchasing Lender, then the purchase shall be rescinded and the purchase price
restored to the extent of such recovery. Each Loan Party agrees that any Lender
purchasing a participation from another Lender pursuant to this Section may, to
the fullest extent permitted by law, exercise all of its rights of payment
(including the right of offset) with respect to such participation as fully as
if such Lender were the direct creditor of such Loan Party in the amount of such
participation.

         13.17 Confidentiality.

            (a) Each Borrower hereby consents that the Agent and each Lender may
issue and disseminate to the public general non-confidential information
describing the credit accommodation entered into pursuant to this Agreement,
including the names and addresses of the Borrowers and a general description of
the business of the Borrowers and may use the Borrowers' name in advertising and
other promotional material.

            (b) The Agent and each Lender severally agrees to take customary and
reasonable precautions and exercise due care to maintain the confidentiality of
all information identified as "confidential" or "secret" by the Borrowers and
provided to the Agent or such Lender by or on behalf of the Borrowers, under
this Agreement, or any other Loan Document, except to the extent that such
information (i) was or becomes generally available to the public other than as a
result of disclosure by the Agent or such Lender, or (ii) was or becomes
available on a nonconfidential basis from a source other than the Borrowers,
provided that such source is not bound by a confidentiality agreement with the
Borrowers known to the Agent or such Lender; provided, however, that the Agent
and any Lender may

                                      -62-
<PAGE>
disclose such information (1) at the request or pursuant to any requirement of
any Governmental Authority to which the Agent or such Lender is subject or in
connection with an examination of the Agent or such Lender by any such
Governmental Authority; (2) pursuant to subpoena or other court process; (3)
when required to do so in accordance with the provisions of any applicable
Requirement of Law; (4) to the extent reasonably required in connection with any
litigation or proceeding (including, but not limited to, any bankruptcy
proceeding) to which the Agent, any Lender or their respective Affiliates may be
party; (5) to the extent reasonably required in connection with the exercise of
any remedy hereunder or under any other Loan Document; (6) to the Agent's or
such Lender's independent auditors, accountants, attorneys, and other
professional advisors; provided that such Persons have been informed that such
information is required to be kept confidential to the extent required by this
SECTION 13.17; (7) to any prospective Participant or Assignee under any
Assignment and Acceptance, actual or potential, provided that such prospective
Participant or Assignee agrees to keep such information confidential to the same
extent required of the Agent and the Lenders hereunder; (8) as expressly
permitted under the terms of any other document or agreement regarding
confidentiality to which any Borrower is party with the Agent or such Lender,
and (9) to its Affiliates; provided that such Persons have been informed that
such information is required to be kept confidential to the extent required by
this SECTION 13.17. Notwithstanding anything herein to the contrary, the
information subject to this SECTION 13.17(B) shall not include, and the Agent,
each Lender, and each employee, representative, or other agent of the Agent or
any Lender may disclose to any and all persons without limitation of any kind,
the "tax treatment" and "tax structure" (in each case, within the meaning of
Treasury Regulation Section 1.6011-4) of the transactions contemplated hereby
and all materials of any kind (including opinions or other tax analyses) that
are provided to the Agent or such Lender relating to such tax treatment and tax
structure.

         13.18 Conflicts with Other Loan Documents. Unless otherwise expressly
provided in this Agreement (or in another Loan Document by specific reference to
the applicable provision contained in this Agreement), if any provision
contained in this Agreement conflicts with any provision of any other Loan
Document, the provision contained in this Agreement shall govern and control.

         13.19 Westlake as Agent. By executing this Agreement, each of the
Borrowers confirms to the other parties to this Agreement that Westlake shall
(and has been duly appointed by each of the Borrowers to) act as agent for the
Borrowers for all purposes of the Loan Documents, including, without limitation,
taking any action or receiving any communication on behalf of such Borrower in
connection with the Loan Documents. Each of the Lenders and Agent shall be
entitled to deal with any Borrower through Westlake and to rely on any
instructions or other communications from Westlake on behalf of any Borrower.
None of the Lenders or Agent shall have any responsibility to any Borrower for
dealing with the Borrowers as provided in this SECTION 13.19, and the Obligation
of each of the Borrowers to the Lenders shall not be affected by any matter
relating to acts or omissions of Westlake relating to the Borrowing or otherwise
as agent for the Borrowers hereunder. Notwithstanding the appointment of
Westlake as agent for the Borrowers hereunder, Agent and the Lenders shall in
their sole discretion be entitled to deal directly with any Borrower for all
purposes of the Loan Documents.

                   [REMAINDER OF PAGE INTENTIONALLY BLANK.
                            SIGNATURE PAGE FOLLOWS.]

                                      -63-
<PAGE>
         SIGNATURE PAGE TO CREDIT AGREEMENT IN WITNESS WHEREOF, the parties have
entered into this Agreement on the date first above written.

                              BANK OF AMERICA, N.A., as Agent

                              By:         /s/ Robert Mostert
                                    -----------------------------------------
                                    Robert Mostert, Vice President

                       SIGNATURE PAGE TO CREDIT AGREEMENT
<PAGE>
      SIGNATURE PAGE TO THAT CERTAIN CREDIT AMENDMENT DATED AS OF JULY 31, 2003,
AMONG WESTLAKE CHEMICAL CORPORATION AND CERTAIN OF ITS DIRECT AND INDIRECT
SUBSIDIARIES, AS BORROWERS, BANK OF AMERICA, N.A., AS THE AGENT, AND THE LENDERS
DEFINED HEREIN.

                              BANK OF AMERICA, N.A., as a Lender

                              By:         /s/ Robert Mostert
                                    -----------------------------------------
                                    Robert Mostert, Vice President

                       SIGNATURE PAGE TO CREDIT AGREEMENT
<PAGE>
     SIGNATURE PAGE TO THAT CERTAIN CREDIT AMENDMENT DATED AS OF JULY 31, 2003,
AMONG WESTLAKE CHEMICAL CORPORATION AND CERTAIN OF ITS DIRECT AND INDIRECT
SUBSIDIARIES, AS BORROWERS, BANK OF AMERICA, N.A., AS THE AGENT, AND THE LENDERS
DEFINED HEREIN.

                             WESTLAKE CHEMICAL CORPORATION,
                             a Delaware corporation

                              By:         /s/ A. Chao
                                    ------------------------------------------
                                    Albert Chao
                                    President

                       SIGNATURE PAGE TO CREDIT AGREEMENT
<PAGE>
     SIGNATURE PAGE TO THAT CERTAIN CREDIT AMENDMENT DATED AS OF JULY 31, 2003,
AMONG WESTLAKE CHEMICAL CORPORATION AND CERTAIN OF ITS DIRECT AND INDIRECT
SUBSIDIARIES, AS BORROWERS, BANK OF AMERICA, N.A., AS THE AGENT, AND THE
LENDERS DEFINED HEREIN.

                             NORTH AMERICAN PIPE CORPORATION,
                             a Delaware corporation

                             VAN BUREN PIPE CORPORATION,
                             a Delaware corporation

                             WESTECH BUILDING PRODUCTS, INC.,
                             a Delaware corporation

                             WESTLAKE PVC CORPORATION,
                             a Delaware corporation

                             WESTLAKE VINYLS, INC.,
                             a Delaware corporation

                              By:         /s/ Tai-Li Keng
                                    ------------------------------------------
                                    Tai-Li Keng
                                    Vice-President of the above Borrowers

                       SIGNATURE PAGE TO CREDIT AGREEMENT
<PAGE>
     SIGNATURE PAGE TO THAT CERTAIN CREDIT AMENDMENT DATED AS OF JULY 31, 2003,
AMONG WESTLAKE CHEMICAL CORPORATION AND CERTAIN OF ITS DIRECT AND INDIRECT
SUBSIDIARIES, AS BORROWERS, BANK OF AMERICA, N.A., AS THE AGENT, AND THE
LENDERS DEFINED HEREIN.

                              GEISMAR VINYLS COMPANY LP,
                              a Delaware limited partnership

                              By:   GVGP, Inc., its general partner

                              WESTLAKE PETROCHEMICALS LP,
                              a Delaware limited partnership

                              By:   Westlake Chemical Investments, Inc.,
                                    its general partner

                              WESTLAKE POLYMERS LP,
                              a Delaware limited partnership

                              By:   Westlake Chemical Investments, Inc.,
                                    its general partner

                              WESTLAKE STYRENE LP, a Delaware limited
                                    partnership

                              By:   Westlake Chemical Holdings, Inc.,
                                     its general partner

                              WPT LP, a Delaware limited partnership

                              By:   Westlake Chemical Holdings, Inc.,
                                    its general partner

                                    By:         /s/ Tai-Li Keng
                                          ------------------------------------
                                          Tai-Li Keng
                                          Vice President of the general
                                          partners of the above Borrowers

                       SIGNATURE PAGE TO CREDIT AGREEMENT

<PAGE>

                                     ANNEX A
                                       TO
                                CREDIT AGREEMENT

                                   DEFINITIONS

            Capitalized terms used in the Loan Documents shall have the
following respective meanings (unless otherwise defined therein), and all
section references in the following definitions shall refer to sections of the
Agreement:

            "ACCOUNTS" means all of the Loan Party's now owned or hereafter
acquired or arising accounts, as defined in the UCC, including any rights to
payment for the sale or lease of goods or rendition of services, whether or not
they have been earned by performance.

            "ACCOUNT DEBTOR" means each Person obligated in any way on or in
connection with an Account, Chattel Paper, or General Intangibles (including a
payment intangible).

            "ACCOUNT TRIGGERING DATE" means the date upon which the Availability
is less than $60,000,000 at any time.

            "ACH TRANSACTIONS" means any cash management or related services
including the automatic clearing house transfer of funds by the Bank for the
account of any Borrower pursuant to agreement or overdrafts.

            "ACQUISITION" means any transaction or series of related
transactions for the purpose of, or resulting in, directly or indirectly, (a)
the acquisition by any Loan Party of all or substantially all of the assets of a
Person or of any business or division of a Person; (b) the acquisition by any
Loan Party of more than 50% of any class of Voting Stock (or similar ownership
interests) of any Person; or (c) a merger, consolidation, amalgamation, or other
combination by any Loan Party with another Person if a Loan Party is the
surviving entity, provided that, (i) in any merger involving any Borrower, a
Borrower must be the surviving entity; and (ii) for purpose of this Agreement,
any Acquisition among Loan Parties is not an "Acquisition."

            "ADJUSTED NET EARNINGS FROM OPERATIONS" means, with respect to any
fiscal period of Westlake, the Loan Parties' consolidated net income after
provision for income taxes for such fiscal period, as determined in accordance
with GAAP and reported on the Financial Statements for such period, excluding
any and all of the following included in such net income: (a) gain or loss
arising from the sale of any capital assets; (b) gain arising from any write-up
in the book value of any asset; (c) earnings of any Person, substantially all
the assets of which have been acquired by any Loan Party in any manner, to the
extent realized by such other Person prior to the date of acquisition; (d)
earnings of any Person in which any Loan Party has an ownership interest unless
(and only to the extent) such earnings shall actually have been received by such
Loan Party in the form of cash distributions; (e) earnings of any Person to
which assets of any Loan Party shall have been sold, transferred, or disposed
of, or into which any Loan Party shall have been merged, or which has been a
party with any Loan Party to any consolidation or other form of reorganization,
prior to the date of such transaction; (f) gain arising from the acquisition of
Debt or equity security of any Loan Party or from cancellation or forgiveness of
Debt; and (g) gain arising from extraordinary items, as determined in accordance
with GAAP, or from any other non-recurring transaction.

            "AFFILIATE" means, as to any Person, any other Person which,
directly or indirectly, is in control of, is controlled by, or is under common
control with, such Person or which owns, directly or

                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
indirectly, five percent (5%) or more of the outstanding equity interest of such
Person. A Person shall be deemed to control another Person if the controlling
Person possesses, directly or indirectly, the power to direct or cause the
direction of the management and policies of the other Person, whether through
the ownership of voting securities, by contract, or otherwise.

            "AGENT" means the Bank, solely in its capacity as agent for the
Lenders, and any successor agent.

            "AGENT ADVANCES" has the meaning specified in SECTION 1.2(I).

            "AGENT'S LIENS" means the Liens in the Collateral granted to the
Agent, for the benefit of the Lenders, Bank, and Agent pursuant to this
Agreement and the other Loan Documents.

            "AGENT-RELATED PERSONS" means the Agent, together with its
Affiliates, and the officers, directors, employees, counsel, representatives,
agents and attorneys-in-fact of the Agent and such Affiliates.

            "AGGREGATE REVOLVER OUTSTANDINGS" means, at any date of
determination: the sum of (a) the unpaid balance of Revolving Loans, (b) the
aggregate amount of Pending Revolving Loans, (c) one hundred percent (100%) of
the aggregate undrawn face amount of all outstanding Letters of Credit, and (d)
the aggregate amount of any unpaid reimbursement obligations in respect of
Letters of Credit.

            "AGREEMENT" means the Credit Agreement dated as of July 31, 2003, by
and among the Borrowers, the Agent, and the other Lenders, as from time to time
amended, modified or restated.

            "ANNIVERSARY DATE" means each anniversary of the Closing Date.

            "APPLICABLE MARGIN" means

            (i)   with respect to Base Rate Loans and all other Obligations
                  (other than LIBOR Rate Loans and the Unused Line Fee), 0.25%;

            (ii)  with respect to LIBOR Rate Loans, 2.25%; and

            (iii) with respect to the Unused Line Fee, .50%.

            The Applicable Margins with respect to Base Rate Loans and LIBOR
Rate Loans shall be adjusted (up or down) prospectively on a quarterly basis, as
determined by the Loan Parties' consolidated financial performance, commencing
with the first day of the first calendar quarter that occurs more than five (5)
days after delivery of the Borrowers' quarterly Financial Statements to Lenders
for the fiscal quarter ending June 30, 2004. Adjustments in Applicable Margins
shall be determined by reference to the following grids:

                                      A-2
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
<TABLE>
<CAPTION>
IF FIXED CHARGE COVERAGE RATIO IS:                        LEVEL OF
                                                          APPLICABLE MARGINS:
--------------------------------------------------------------------------------
<S>                                                       <C>
Less than 1.20:1.0                                        Level I
Less than 1.40:1.0, but greater than or equal to          Level II
1.20:1.0
Less than 1.60:1.0, but greater than or equal to          Level III
1.40:1.0
Less than 1.80:1.0, but greater than or equal to          Level IV
1.60:1.0
Greater than or equal to 1.80:1.0                         Level V
</TABLE>

            LOW TO HIGH

<TABLE>
<CAPTION>
                         APPLICABLE MARGINS
                         LEVEL I        LEVEL II        LEVEL III      LEVEL IV       LEVEL V
---------------------------------------------------------------------------------------------
<S>                      <C>            <C>             <C>            <C>            <C>
Base Rate Loans          1.00%          0.75%           0.50%          0.25%          0.00%
LIBOR Rate Loans         3.00%          2.75%           2.50%          2.25%          2.00%
</TABLE>

            All adjustments in the Applicable Margins after June 30, 2004 shall
be implemented quarterly on a prospective basis, for each calendar quarter
commencing at least five (5) days after the date of delivery to the Lenders of
monthly Financial Statements evidencing the need for an adjustment. Concurrently
with the delivery of those Financial Statements, the Borrowers shall deliver to
the Agent and the Lenders a certificate, signed by a Responsible Officer on
behalf of the Borrowers, setting forth in reasonable detail the basis for the
continuance of, or any change in, the Applicable Margins. Failure to timely
deliver such Financial Statements shall, in addition to any other remedy
provided for in this Agreement, result in an increase in the Applicable Margins
to the highest level set forth in the foregoing grid, until the first day of the
first calendar month following the delivery of those Financial Statements
demonstrating that such an increase is not required. If a Default or Event of
Default has occurred and is continuing at the time any reduction in the
Applicable Margins is to be implemented, no reduction may occur until the first
day of the first calendar month following the date on which such Default or
Event of Default is waived or cured.

            "ARRANGER" means Banc of America Securities LLC and its successors
and assigns, in its capacity as sole lead arrangers and sole book manager under
the Loan Documents.

            "ASSIGNEE" has the meaning specified in SECTION 11.2(A).

            "ASSIGNMENT AND ACCEPTANCE" has the meaning specified in SECTION
11.2(A).

            "ATTORNEY COSTS" means and includes all reasonable fees, expenses,
and disbursements of any law firm or other counsel engaged by the Agent or the
Arranger, and the reasonably allocated costs and expenses of internal legal
services of the Agent and the Arranger.

            "AVAILABILITY" means, at any time (a) the lesser of (i) the Maximum
Revolver Amount or (ii) the Borrowing Base, minus (b) Reserves from time to time
established by the Agent in its reasonable credit judgment without duplication
to the Reserves deducted in the calculation of the Borrowing Base, minus (c) in
each case, the Aggregate Revolver Outstandings.

            "BANK" means Bank of America, N.A., a national banking association,
or any successor entity thereto.

                                      A-3
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
            "BANK PRODUCTS" means any one or more of the following types of
services or facilities extended to any Loan Party by the Bank or any Affiliate
of the Bank in reliance on the Bank's agreement to indemnify such Affiliate: (i)
credit cards; (ii) ACH Transactions; (iii) cash management, including controlled
disbursement services; and (iv) Hedge Agreements.

            "BANK PRODUCT RESERVES" means all reserves which the Agent from time
to time establishes in its reasonable discretion for the Bank Products then
provided or outstanding.

            "BANKRUPTCY CODE" means Title 11 of the United States Code (11
U.S.C.Section 101 et seq.).

            "BASE RATE" means, for any day, the rate of interest in effect for
such day as publicly announced from time to time by the Bank in Charlotte, North
Carolina as its "prime rate" (the "prime rate" being a rate set by the Bank
based upon various factors including the Bank's costs and desired return,
general economic conditions and other factors, and is used as a reference point
for pricing some loans, which may be priced at, above, or below such announced
rate). Any change in the prime rate announced by the Bank shall take effect at
the opening of business on the day specified in the public announcement of such
change. Each Interest Rate based upon the Base Rate shall be adjusted
simultaneously with any change in the Base Rate.

            "BASE RATE LOAN" means, a Revolving Loan during any period in which
it bears interest based on the Base Rate.

            "BENEFICIAL OWNER" has the meaning assigned to such term in Rule
13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the
beneficial ownership of any particular "person" (as that term is used in Section
13(d)(3) of the Exchange Act), such "person" will be deemed to have beneficial
ownership of all securities that such "person" has the right to acquire by
conversion or exercise of other securities, whether such right is currently
exercisable or is exercisable only after the passage of time. The terms
"BENEFICIALLY OWNS" and "BENEFICIALLY OWNED" have corresponding meanings.

            "BLOCKED ACCOUNT AGREEMENT" means an agreement among any Borrower,
the Agent, and a Clearing Bank, in form and substance reasonably satisfactory to
the Agent, concerning the collection of payments which represent the proceeds of
Accounts or of any other Collateral of such Borrower.

            "BOND DEBT" means the 8-3/4% Senior Notes due 2011 issued by
Westlake pursuant to that certain Indenture dated as of the Closing Date,
between Westlake and JPMorgan Chase Bank in an aggregate original principal
amount of $380,000,000, and the documents and agreements evidencing and
establishing such Debt, as the same may be amended from time to time in
accordance with the terms thereof and hereof.

            "BORROWER" and "BORROWERS" have the meaning specified in the
preamble to this Agreement.

            "BORROWING" means a borrowing hereunder consisting of Revolving
Loans made on the same day by the Lenders to the Borrowers or by Bank in the
case of a Borrowing funded by Non-Ratable Loans or by the Agent in the case of a
Borrowing consisting of an Agent Advance, or the issuance of Letters of Credit
hereunder.

            "BORROWING BASE" means, at any time, an amount equal to (a) the sum
of (i) eighty-five percent (85%) of the Net Amount of Eligible Accounts; plus
(ii) the lesser of (y) seventy percent (70%) of the value of the lower of cost
or market of Eligible Inventory or (z) eighty-five percent (85%) of the Net

                                      A-4
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
Orderly Liquidation Value of all Eligible Inventory; minus (b) Reserves from
time to time established by the Agent in its reasonable credit judgment;
provided that the aggregate Revolving Loans advanced against Eligible Inventory
shall not exceed the Maximum Inventory Loan Amount.

            "BORROWING BASE CERTIFICATE" means a certificate by a Responsible
Officer for the benefit of the Borrowers, substantially in the form of EXHIBIT B
(or another form acceptable to the Agent) setting forth the calculation of the
Borrowing Base, including a calculation of each component thereof, all in such
detail as shall be reasonably satisfactory to the Agent. All calculations of the
Borrowing Base in connection with the preparation of any Borrowing Base
Certificate shall originally be made by the Borrowers and certified to the
Agent; provided, that the Agent shall have the right to review and adjust, in
the exercise of its reasonable credit judgment, any such calculation (1) to
reflect its reasonable estimate of declines in value of any of the Collateral
described therein, and (2) to the extent that such calculation is not in
accordance with this Agreement.

            "BUSINESS DAY" means (a) any day that is not a Saturday, Sunday, or
a day on which banks in Pasadena, California, Houston, Texas, New York, New
York, or Charlotte, North Carolina are required or permitted to be closed, and
(b) with respect to all notices, determinations, fundings and payments in
connection with the LIBOR Rate or LIBOR Rate Loans, any day that is a Business
Day pursuant to CLAUSE (A) above and that is also a day on which trading in
Dollars is carried on by and between banks in the London interbank market.

            "CAPITAL ADEQUACY REGULATION" means any guideline, request, or
directive of any central bank or other Governmental Authority, or any other law,
rule, or regulation, whether or not having the force of law, in each case,
regarding capital adequacy of any bank or of any corporation controlling a bank.

            "CAPITAL STOCK" means (a) in the case of a corporation, capital
stock, (b) in the case of an association or business entity, any and all shares,
interests, participations, rights, or other equivalents (however designated) of
capital stock, (c) in the case of a partnership, partnership interests (whether
general or limited), (d) in the case of a limited liability company, membership
interests, and (e) any other interest or participation that confers on a Person
the right to receive a share of the profits and losses of, or distributions of
assets of, the issuing Person.

            "CAPITAL EXPENDITURES" means all payments due (whether or not paid
during any fiscal period) in respect of the cost of any fixed asset or
improvement, or replacement, substitution, or addition thereto, which has a
useful life of more than one year, including, without limitation, those costs
arising in connection with the direct or indirect acquisition of such asset by
way of increased product or service charges or in connection with a Capital
Lease.

            "CAPITAL LEASE" means any lease of property by a Person which, in
accordance with GAAP, should be reflected as a capital lease on the balance
sheet of such Person.

            "CHANGE OF CONTROL" means the occurrence of any of the following:
(a) the direct or indirect sale, transfer, conveyance, or other disposition
(other than by way of merger or consolidation), in one or a series of related
transactions, of all or substantially all of the properties or assets of
Westlake and its Subsidiaries taken as a whole to any "person" (as that term is
used in Section 13(d) of the Exchange Act) other than a Principal or a Related
Party of a Principal; (b) the adoption of a plan relating to the liquidation or
dissolution of Westlake; (c) the consummation of any transaction (including,
without limitation, any merger or consolidation) the result of which is that any
"person" (as defined above), other than the Principals and their Related Parties
or a Permitted Group, becomes the Beneficial Owner, directly or indirectly, of
more than 50% of the Voting Stock of Westlake, measured by voting power

                                      A-5
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
rather than number of shares, other than in any transaction that complies with
CLAUSE (d) herein; (d) Westlake consolidates with, or merges with or into, any
Person, or any Person consolidates with, or merges with or into, Westlake, in
any such event pursuant to a transaction in which any of the outstanding Voting
Stock of Westlake or such other Person is converted into or exchanged for cash,
securities, or other property, other than any such transaction where the Voting
Stock of Westlake outstanding immediately prior to such transaction is converted
into or exchanged for Voting Stock (other than Disqualified Stock) of the
surviving or transferee Person constituting a majority of the outstanding shares
of such Voting Stock of such surviving or transferee Person (immediately after
giving effect to such issuance); or (e) after an initial public offering of
Westlake or any direct or indirect parent of Westlake, the first day on which a
majority of the members of the board of directors of Westlake are not Continuing
Directors.

            "CHATTEL PAPER" means all of any Loan Party's now owned or hereafter
acquired chattel paper, as defined in the UCC, including electronic chattel
paper.

            "CLEARING BANK" means the Bank or any other banking institution with
whom a Payment Account has been established pursuant to a Blocked Account
Agreement.

            "CLOSING DATE" means the date of this Agreement.

            "CLOSING FEE" has the meaning specified in SECTION 2.4.

            "CODE" means the Internal Revenue Code of 1986.

            "COLLATERAL" means (a) all of each Loan Party's Inventory, Accounts,
Instruments, Chattel Paper, Deposit Accounts (other than the Fixed Asset Loan
Collateral Account), Documents, and Related General Intangibles; and (b) all
other assets of any Person from time to time subject to Agent's Liens securing
payment or performance of the Obligations.

            "COLLATERAL DOCUMENTS" means all Security Agreements, pledge
agreements, Copyright Security Agreements, Patent and Trademark Agreements,
financing statements, assignments of partnership interests, Obligation
Guaranties, and mortgages at any time delivered to the Agent to create or
evidence Liens securing the Obligations, together with all reaffirmations,
amendments, and modifications thereof or supplements thereto.

            "COMMITMENT" means, at any time with respect to a Lender, the
principal amount set forth beside such Lender's name under the heading
"COMMITMENT" on SCHEDULE 1.2 attached to the Agreement or on the signature page
of the Assignment and Acceptance pursuant to which such Lender became a Lender
hereunder in accordance with the provisions of SECTION 11.2, as such Commitment
may be adjusted from time to time in accordance with the provisions of SECTION
11.2, and "COMMITMENTS" means, collectively, the aggregate amount of the
commitments of all of the Lenders.

            "CONTAMINANT" means any waste, pollutant, hazardous substance, toxic
substance, hazardous waste, special waste, petroleum or petroleum-derived
substance or waste, asbestos in any form or condition, PCBs, or any constituent
of any such substance or waste.

            "CONTINUATION/CONVERSION DATE" means the date on which a Loan is
converted into or continued as a LIBOR Rate Loan.

            "CONTINUING DIRECTORS" means, as of any date of determination, any
member of the board of directors of Westlake who (a) was a member of such board
of directors on the Closing Date or (b) was

                                      A-6
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
nominated for election or elected or appointed to such board of directors with
the approval of, or whose nomination for election by the stockholders was
approved by, a majority of the Continuing Directors who were members of such
board of directors at the time of such nomination, appointment, or election.

            "COPYRIGHT SECURITY AGREEMENT" means any Copyright Security
Agreement, executed and delivered by any Loan Party to the Agent, for the
benefit of the Agent and the Lenders, to evidence and perfect the Agent's
security interest in the Loan Parties' present and future copyrights and related
licenses and rights.

            "CREDIT SUPPORT" has the meaning specified in SECTION 1.3(A).

            "DEBT" means, without duplication, all liabilities, obligations, and
indebtedness of any Loan Party to any Person, of any kind or nature, now or
hereafter owing, arising, due or payable, howsoever evidenced, created,
incurred, acquired or owing, whether primary, secondary, direct, contingent,
fixed or otherwise, consisting of indebtedness for borrowed money, the deferred
purchase price of property, or preferred stock or other equity interests that
have characteristics of Debt such as, dividend requirements (whether cash or
paid in kind) or mandatory redemption requirements, excluding trade payables,
but including (a) all Obligations; (b) all obligations and liabilities of any
Person secured by any Lien on any Loan Party's property, even though such Loan
Party shall not have assumed or become liable for the payment thereof; provided,
however, that all such obligations and liabilities which are limited in recourse
to such property shall be included in Debt only to the extent of the book value
of such property as would be shown on a balance sheet of such Loan Party
prepared in accordance with GAAP; (c) all obligations or liabilities created or
arising under any Capital Lease or conditional sale or other title retention
agreement with respect to property used or acquired by any Borrower, even if the
rights and remedies of the lessor, seller or lender thereunder are limited to
repossession of such property; provided, however, that all such obligations and
liabilities which are limited in recourse to such property shall be included in
Debt only to the extent of the book value of such property as would be shown on
a balance sheet of any Loan Party prepared in accordance with GAAP; (d) all
obligations and liabilities under Guaranties of another Person of borrowed
money; and (e) the present value (discounted at the Base Rate) of lease payments
due under synthetic leases.

            "DEFAULT" means any event or circumstance which, with the giving of
notice, the lapse of time, or both, would (if not cured, waived, or otherwise
remedied during such time) constitute an Event of Default.

            "DEFAULT RATE" means a fluctuating per annum interest rate at all
times equal to the sum of (a) the otherwise applicable Interest Rate plus (b)
two percent (2%) per annum. Each Default Rate shall be adjusted simultaneously
with any change in the applicable Interest Rate. In addition, the Default Rate
shall result in an increase in the Letter of Credit Fee by two (2) percentage
points per annum.

            "DEFAULTING LENDER" has the meaning specified in SECTION 12.15(C).

            "DEPOSIT ACCOUNTS" means all "deposit accounts" as such term is
defined in the UCC, now or hereafter held in the name of any Borrower,
including, without limitation, the Payment Accounts.

            "DESIGNATED ACCOUNT" has the meaning specified in Section 1.2(c).

            "DISQUALIFIED STOCK" means any Capital Stock that, by its terms (or
by the terms of any security into which it is convertible, or for which it is
exchangeable, in each case at the option of the holder of the Capital Stock), or
upon the happening of any event, matures or is mandatorily redeemable, pursuant
to a sinking fund obligation or otherwise, or redeemable at the option of the
holder of the Capital

                                      A-7
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
Stock, in whole or in part, on or prior to the date that is 91 days after the
Stated Termination Date. Notwithstanding the preceding sentence, any Capital
Stock that would constitute Disqualified Stock solely because the holders of the
Capital Stock have the right to require Westlake to repurchase such Capital
Stock upon the occurrence of a change of control or an asset sale will not
constitute Disqualified Stock if the terms of such Capital Stock provide that
Westlake may not repurchase or redeem any such Capital Stock pursuant to such
provisions unless such repurchase or redemption complies with SECTION 7.10. The
amount of Disqualified Stock deemed to be outstanding at any time for purposes
of this Agreement will be the maximum amount that Westlake and its Subsidiaries
may become obligated to pay upon the maturity of, or pursuant to any mandatory
redemption provisions of, such Disqualified Stock, exclusive of accrued
dividends.

            "DISTRIBUTION" means, in respect of any corporation: (a) the payment
or making of any dividend or other distribution of property in respect of
capital stock (or any options or warrants for, or other rights with respect to,
such stock) of such corporation, other than distributions in capital stock (or
any options or warrants for such stock) of the same class; or (b) the redemption
or other acquisition by such corporation of any capital stock (or any options or
warrants for such stock) of such corporation.

            "DOCUMENTS" means all documents as such term is defined in the UCC,
including bills of lading, warehouse receipts or other documents of title, now
owned or hereafter acquired by any Borrower.

            "DOL" means the United States Department of Labor or any successor
department or agency.

            "DOLLAR" and "$" means dollars in the lawful currency of the United
States. Unless otherwise specified, all payments under this Agreement shall be
made in Dollars.

            "DOMESTIC SUBSIDIARY" of any Person means a direct or indirect
Subsidiary of such Person that is organized or incorporated under the laws of a
jurisdiction of the United States, other than a direct or indirect Subsidiary of
a Foreign Subsidiary of such Person.

            "EBITDA" means, with respect to any fiscal period of the Borrowers,
Adjusted Net Earnings from Operations, plus, to the extent deducted in the
determination of Adjusted Net Earnings from Operations for that fiscal period,
interest expenses, interest on financed insurance premiums permitted pursuant to
SECTION 7.13(J), Federal, state, local and foreign income taxes, depreciation
and amortization.

            "ELIGIBLE ACCOUNTS" means the Accounts which the Agent in the
exercise of its reasonable commercial discretion determines to be Eligible
Accounts. Without limiting the discretion of the Agent to establish other
criteria of ineligibility, Eligible Accounts shall not, unless the Agent in its
sole discretion elects, include any Account:

            (a) with respect to which more than ninety (90) days have elapsed
since the date of the original invoice therefor or which is more than sixty (60)
days past due (without duplication);

            (b) with respect to which any of the representations, warranties,
covenants, and agreements contained in the Security Agreement are incorrect or
have been breached;

            (c) with respect to which Account (or any other Account due from
such Account Debtor), in whole or in part, a check, promissory note, draft,
trade acceptance or other instrument for the payment of money has been received,
presented for payment, and returned uncollected for any reason;

                                      A-8
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
            (d) which represents a progress billing (as hereinafter defined) or
as to which any Loan Party has extended the time for payment without the consent
of the Agent; for the purposes hereof, "progress billing" means any invoice for
goods sold or leased or services rendered under a contract or agreement pursuant
to which the Account Debtor's obligation to pay such invoice is conditioned upon
any Loan Party's completion of any further performance under the contract or
agreement;

            (e) with respect to which any one or more of the following events
has occurred to the Account Debtor on such Account: death or judicial
declaration of incompetency of an Account Debtor who is an individual; the
filing by or against the Account Debtor of a request or petition for
liquidation, reorganization, arrangement, adjustment of debts, adjudication as a
bankrupt, winding-up, or other relief under the bankruptcy, insolvency, or
similar laws of the United States, any state or territory thereof, or any
foreign jurisdiction, now or hereafter in effect; the making of any general
assignment by the Account Debtor for the benefit of creditors; the appointment
of a receiver or trustee for the Account Debtor or for any of the assets of the
Account Debtor, including, without limitation, the appointment of or taking
possession by a "custodian," as defined in the Federal Bankruptcy Code; the
institution by or against the Account Debtor of any other type of insolvency
proceeding (under the bankruptcy laws of the United States or otherwise) or of
any formal or informal proceeding for the dissolution or liquidation of,
settlement of claims against, or winding up of affairs of, the Account Debtor;
the sale, assignment, or transfer of all or any material part of the assets of
the Account Debtor; the nonpayment generally by the Account Debtor of its debts
as they become due; or the cessation of the business of the Account Debtor as a
going concern;

            (f) if fifty percent (50%) or more of the aggregate Dollar amount of
outstanding Accounts owed at such time by the Account Debtor thereon is
classified as ineligible under CLAUSE (A) above;

            (g) owed by an Account Debtor which: (i) does not maintain its chief
executive office in the United States of America or Canada (other than the
Province of Newfoundland); or (ii) is not organized under the laws of the United
States of America or any state thereof; or (iii) is the government of any
foreign country or sovereign state, or of any state, province, municipality, or
other political subdivision thereof, or of any department, agency, public
corporation, or other instrumentality thereof; except to the extent that such
Account is secured or payable by a letter of credit in form and substance and
from a domestic issuer acceptable to the Agent in its sole discretion;

            (h) owed by an Account Debtor which is another Loan Party or an
Affiliate or employee of any Loan Party;

            (i) except as provided in CLAUSE (K) below, with respect to which
either the perfection, enforceability, or validity of the Agent's Liens in such
Account, or the Agent's right or ability to obtain direct payment to the Agent
of the proceeds of such Account, is governed by any federal, state, or local
statutory requirements other than those of the UCC;

            (j) owed by an Account Debtor to which any Loan Party is indebted in
any way, or which is subject to any right of setoff or recoupment by the Account
Debtor, unless the Account Debtor has entered into an agreement acceptable to
the Agent to waive setoff rights; or if the Account Debtor thereon has disputed
liability or made any claim with respect to any other Account due from such
Account Debtor; but in each such case only to the extent of such indebtedness,
setoff, recoupment, dispute, or claim, and other Accounts owing pursuant to
performance contracts which the Agent determines in its reasonable credit
judgment could be set off in the event of any Loan Party's default thereunder;

                                      A-9
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
            (k) owed by the government of the United States of America, or any
department, agency, public corporation, or other instrumentality thereof, unless
the Federal Assignment of Claims Act of 1940, as amended (31 U.S.C.Section 3727
et seq.), and any other steps necessary to perfect the Agent's Liens therein,
have been complied with to the Agent's satisfaction with respect to such
Account;

            (l) owed by any state, municipality, or other political subdivision
of the United States of America, or any department, agency, public corporation,
or other instrumentality thereof and as to which the Agent determines that its
Lien therein is not or cannot be perfected;

            (m) which represents a sale on a bill-and-hold, guaranteed sale,
sale and return, sale on approval, consignment, or other repurchase or return
basis, a sale on cash on delivery terms, or the remaining balances on Accounts
that were short paid by an Account Debtor and are evidenced by debit memoranda;

            (n) which is evidenced by a promissory note or other instrument or
by chattel paper;

            (o) if the Agent believes, in the exercise of its reasonable
judgment, that the prospect of collection of such Account is impaired or that
the Account may not be paid by reason of the Account Debtor's financial
inability to pay;

            (p) with respect to which the Account Debtor is located in any state
requiring the filing of a Notice of Business Activities Report or similar report
in order to permit a Loan Party to seek judicial enforcement in such State of
payment of such Account, unless such Loan Party has qualified to do business in
such state or has filed a Notice of Business Activities Report or equivalent
report for the then-current year;

            (q) which arises out of a sale not made in the ordinary course of
any Loan Party's business;

            (r) with respect to which the goods giving rise to such Account have
not been shipped and delivered to and accepted by the Account Debtor or the
services giving rise to such Account have not been performed by a Loan Party,
and, if applicable, accepted by the Account Debtor, or the Account Debtor
revokes its acceptance of such goods or services;

            (s) owed by an Account Debtor or a group of affiliated Account
Debtors which is obligated to one or more Loan Parties respecting Accounts the
aggregate unpaid balance of which exceeds fifteen percent (15%) of the aggregate
unpaid balance of all Accounts owed to the Loan Parties at such time by all of
the Loan Parties' Account Debtors, but only to the extent of such excess;

            (t) which is not subject to a first priority and perfected security
interest in favor of the Agent for the benefit of the Lenders;

            (u) owed by an Account Debtor pursuant to a performance contract
(including, without limitation, any exchange contracts), which Agent determines
in its reasonable credit judgment could be set off in the event of any Loan
Party's default thereunder; or

            (w) on and after a Default, Event of Default, or the Account
Triggering Date, with respect to which the Agent does not have control of the
Payment Accounts.

                                      A-10
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
            If any Account at any time ceases to be an Eligible Account, then
such Account shall promptly be excluded from the calculation of Eligible
Accounts.

            "ELIGIBLE ASSIGNEE" means (a) a commercial bank, commercial finance
company, or other asset based lender, having total assets in excess of
$1,000,000,000; (b) any Lender listed on the signature page of this Agreement;
(c) any Affiliate of any Lender; and (d) if an Event of Default has occurred and
is continuing, any Person reasonably acceptable to the Agent.

            "ELIGIBLE INVENTORY" means Inventory, valued at the lower of cost
(on a first-in, first-out basis) or market, which the Agent, in its reasonable
discretion, determines to be Eligible Inventory. Without limiting the discretion
of the Agent to establish other criteria of ineligibility, Eligible Inventory
shall not, unless the Agent in its sole discretion elects, include any
Inventory:

            (a) that is not owned by a Loan Party;

            (b) that is not subject to the Agent's Liens, which are perfected as
to such Inventory, or that are subject to any other Lien whatsoever (other than
the Liens described in CLAUSE (D) of the definition of Permitted Liens; provided
that such Permitted Liens (i) are junior in priority to the Agent's Liens or
subject to Reserves and (ii) do not impair directly or indirectly the ability of
the Agent to realize on or obtain the full benefit of the Collateral);

            (c) that does not consist of finished goods or raw materials;

            (d) that consists of work-in-process, spare parts, scrap Inventory,
additive, compounds, regrinds, samples, prototypes, supplies, or packing and
shipping materials;

            (e) that is not in good condition, is unmerchantable, is defective,
or does not meet all standards imposed by any Governmental Authority, having
regulatory authority over such goods, their use or sale;

            (f) that is not currently either usable or salable, at prices
approximating at least cost, in the normal course of any Loan Party's business,
or that is slow moving or stale;

            (g) that is obsolete or returned or repossessed or used goods taken
in trade;

            (h) that is located outside the United States of America or that is
in-transit from vendors or suppliers or to customers;

            (i) that is located in a public warehouse or in possession of a
bailee or in a facility leased by any Person for which appropriate bailee
letters and lien releases and waivers have not been obtained or for which
Reserves acceptable to Agent have not been established; notwithstanding the
foregoing, any Inventory that is located in a facility leased by any Loan Party
will be Eligible Inventory to the extent the value of Inventory in such location
equals or exceeds $250,000 if a Reserve for rents or storage charges has been
established for Inventory at such location;

            (j) that contains or bears any Proprietary Rights licensed to a Loan
Party by any Person, if the Agent is not satisfied that it may sell or otherwise
dispose of such Inventory in accordance with the terms of the Security Agreement
and SECTION 9.2 without infringing the rights of the licensor of such
Proprietary Rights or violating any contract with such licensor (and without
payment of any royalties other than any royalties due with respect to the sale
or disposition of such Inventory pursuant to the

                                      A-11
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
existing license agreement), and, as to which such Loan Party has not delivered
to the Agent a consent or sublicense agreement from such licensor in form and
substance acceptable to the Agent if requested;

            (k) that is not reflected in the details of a current perpetual
inventory report;

            (l) that is placed on consignment;

            (m) that is located in pipelines;

            (n) that is located with vendors to whom any Loan Party has any
accounts payable to the extent of such accounts payable balance; or

            (o) that has been capitalized on the Financial Statements of any
Loan Party.

            If any Inventory at any time ceases to be Eligible Inventory, such
Inventory shall promptly be excluded from the calculation of Eligible Inventory.

            "ENVIRONMENTAL CLAIMS" means all claims, however asserted, by any
Governmental Authority or other Person alleging potential liability or
responsibility for violation of any Environmental Law, or for a Release or
injury to the environment.

            "ENVIRONMENTAL COMPLIANCE RESERVE" means any reserve which the Agent
establishes in its reasonable discretion after prior written notice to the
Borrowers from time to time for amounts that are reasonably likely to be
expended by the Loan Parties in order for the Loan Parties and their operations
and property (a) to comply with any notice from a Governmental Authority
asserting material non-compliance with Environmental Laws, or (b) to correct any
such material non-compliance identified in a report delivered to the Agent and
the Lenders pursuant to SECTION 7.7.

            "ENVIRONMENTAL LAWS" means all federal, state or local laws,
statutes, common law duties, rules, regulations, ordinances and codes, together
with all administrative orders, directed duties, licenses, authorizations and
permits of, and agreements with, any Governmental Authority, in each case
relating to environmental, health, safety and land use matters.

            "ENVIRONMENTAL LIABILITY" means any obligation, liability
(including, without limitation, any strict liability), loss, fine, penalty,
charge, Lien, damage, cost, reasonable attorneys' and expert fees, or any other
expense arising under, or resulting from a violation of any Environmental Law,
the presence, Release, or threatened Release of any Hazardous Materials, or
actual or threatened damages to natural resources.

            "ENVIRONMENTAL LIEN" means a Lien in favor of any Governmental
Authority for (a) any liability under Environmental Laws, or (b) damages arising
from, or costs incurred by such Governmental Authority in response to, a Release
or threatened Release.

            "ENVIRONMENTAL PERMIT" means any permit, license, or other
authorization from any Governmental Authority that is required under any
Environmental Law for the lawful conduct of any business, process, or other
activity.

            "EQUIPMENT" means all of any Loan Party's now owned and hereafter
acquired machinery, equipment, furniture, furnishings, fixtures, and other
tangible personal property (except Inventory), including embedded software,
motor vehicles with respect to which a certificate of title has been issued,
aircraft, dies, tools, jigs, molds, and office equipment, as well as all of such
types of property

                                      A-12
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
leased by any Loan Party and all of any Loan Party's rights and interests with
respect thereto under such leases (including, without limitation, options to
purchase); together with all present and future additions and accessions
thereto, replacements therefor, component and auxiliary parts and supplies used
or to be used in connection therewith, and all substitutes for any of the
foregoing, and all manuals, drawings, instructions, warranties and rights with
respect thereto; wherever any of the foregoing is located.

            "EQUITY ISSUANCE" means the issuance on and after the Closing Date
by any Loan Party of any shares of any class of stock, warrants, or other equity
interests, other than present and future shares of stock, options, or warrants
issued to employees, or directors of any Loan Party under any Loan Party's stock
option or other benefit or compensation plans or arrangements, or stock issued
upon their exercise.

            "EQUITY PROCEEDS PREPAYMENT" means any prepayment of the Fixed Asset
Loan from the issuance of Capital Stock, as currently set forth in Sections
2.04(a)(ii) or 2.04(b)(iii)of the Fixed Asset in effect on the Closing Date.

            "ERISA" means the Employee Retirement Income Security Act of 1974,
and regulations promulgated thereunder.

            "ERISA AFFILIATE" means any trade or business (whether or not
incorporated) under common control with any Loan Party within the meaning of
Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for
purposes of provisions relating to Section 412 of the Code).

            "ERISA EVENT" means (a) a Reportable Event with respect to a Pension
Plan, (b) a withdrawal by any Loan Party or any ERISA Affiliate from a Pension
Plan subject to Section 4063 of ERISA during a plan year in which it was a
substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation
of operations which is treated as such a withdrawal under Section 4062(e) of
ERISA, (c) a complete or partial withdrawal by any Loan Party or any ERISA
Affiliate from a Multi-employer Plan or notification that a Multi-employer Plan
is in reorganization, (d) the filing of a notice of intent to terminate, the
treatment of a Plan amendment as a termination under Section 4041 or 4041A of
ERISA, or the commencement of proceedings by the PBGC to terminate a Pension
Plan or Multi-employer Plan, (e) the occurrence of an event or condition which
might reasonably be expected to constitute grounds under Section 4042 of ERISA
for the termination of, or the appointment of a trustee to administer, any
Pension Plan or Multi-employer Plan, or (f) the imposition of any liability
under Title IV of ERISA, other than for PBGC premiums due but not delinquent
under Section 4007 of ERISA, upon any Loan Party or any ERISA Affiliate.

            "EVENT OF DEFAULT" has the meaning specified in SECTION 9.1.

            "EXCESS CASH FLOW PREPAYMENT" means any prepayment of the Fixed
Asset Loan from "Excess Cash Flow", as defined in and as currently set forth in
Section 2.04(b)(i)of the Fixed Asset in effect on the Closing Date.

            "EXISTING LETTERS OF CREDIT" means (a) that certain letter of credit
in the amount of $11,268,475.00 issued by JPMorgan Chase Bank to JPMorgan Chase
Bank (formerly known as The Chase Manhattan Bank), as trustee on behalf of
Westlake to secure the payment of IRBs, (b) that certain letter of credit in the
amount of $100,000.00 issued by JPMorgan Chase Bank to Reliance National
Insurance Co., (c) that certain letter of credit in the amount of $362,635.00
issued by JPMorgan Chase Bank to Indemnity Insurance Co., (d) that certain
letter of credit in the amount of $500,000.00 issued by JPMorgan Chase Bank to
National Union Fire Insurance Co., (e) that certain letter of credit in the
amount of $650,000.00 issued by JPMorgan Chase Bank to Zurich Insurance Company,
and (e) that certain letter of credit in the amount of $595,000.00 issued by
JPMorgan Chase Bank to Oil Insurance Limited.

                                      A-13
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
            "EXCHANGE ACT" means the Securities Exchange Act of 1934, and
regulations promulgated thereunder.

            "FDIC" means the Federal Deposit Insurance Corporation, and any
Governmental Authority succeeding to any of its principal functions.

            "FEDERAL FUNDS RATE" means, for any day, the rate per annum (rounded
upwards, if necessary, to the nearest 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 (a) if such day is not a Business Day, the Federal Funds 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 (b) if no
such rate is so published on such next succeeding Business Day, the Federal

            Funds Rate for such day shall be the average rate charged to the
Bank on such day on such transactions as determined by the Agent.

            "FEDERAL RESERVE BOARD" means the Board of Governors of the Federal
Reserve System or any successor thereto.

            "FEE LETTER" means that certain letter agreement relating to certain
fees dated as of July 3, 2003, between Westlake, the Bank, and the Arranger.

            "FINANCIAL STATEMENTS" means, according to the context in which it
is used, the financial statements referred to in SECTIONS 5.2 and 6.6 or any
other financial statements required to be given to the Lenders pursuant to this
Agreement.

            "FISCAL YEAR" means the Loan Parties' fiscal year for financial
accounting purposes. The current Fiscal Year of the Loan Parties will end on
December 31, 2003.

            "FIXED ASSET AGENT" means the "Administrative Agent" under and as
defined in the Fixed Asset Loan.

            "FIXED ASSET LOAN" means the loans under the Credit Agreement dated
as of July __, 2003, among Westlake, as borrower, certain Subsidiaries of
Westlake, as guarantors, Bank of America, N.A., as administrative agent, and the
lenders party thereto.

            "FIXED ASSET LOAN COLLATERAL ACCOUNT" means the Deposit Account
maintained by Westlake with the Fixed Asset Agent into which (a) net proceeds
from the disposition of and (b) insurance proceeds with respect to the Term
Priority Collateral securing the Fixed Asset Loan shall be deposited pursuant to
the requirements of the Fixed Asset Loan; provided that no other amounts are
deposited into such Deposit Accounts.

            "FIXED CHARGE COVERAGE RATIO" means, with respect to any fiscal
period of the Loan Parties, the ratio of EBITDA during the preceding twelve (12)
months to Fixed Charges during such twelve (12) month period.

            "FIXED CHARGES" means, with respect to any fiscal period of the Loan
Parties on a consolidated basis, without duplication, interest expense, Capital
Expenditures (excluding Capital Expenditures funded with Debt other than
Revolving Loans, but including, without duplication, principal payments with
respect to such Debt), scheduled principal payments of Debt, prepayments and

                                      A-14
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
unscheduled payments of Debt (other than the Fixed Asset Loan), payments on any
deferred payment plan for insurance premiums permitted pursuant to SECTION
7.13(J), cash Distributions paid by any Loan Party, and Federal, state, local
and foreign income taxes, excluding deferred taxes.

            "FOREIGN SUBSIDIARY" of any Person means a Subsidiary of such Person
that is organized or incorporated under the laws of a jurisdiction other than a
jurisdiction of the United States.

            "FUNDING DATE" means the date on which a Borrowing occurs.

            "GAAP" means generally accepted accounting principles and practices
set forth from time to time in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and
statements and pronouncements of the Financial Accounting Standards Board (or
agencies with similar functions of comparable stature and authority within the
U.S. accounting profession), which are applicable to the circumstances as of the
Closing Date.

            "GENERAL INTANGIBLES" means all of the Loan Parties' now owned or
hereafter acquired general intangibles, choses in action, and causes of action
and all other intangible personal property of the Loan Parties of every kind and
nature (other than Accounts), including, without limitation, all contract
rights, payment intangibles, Proprietary Rights, corporate or other business
records, inventions, designs, blueprints, plans, specifications, patents, patent
applications, trademarks, service marks, trade names, trade secrets, goodwill,
copyrights, computer software, customer lists, registrations, licenses,
franchises, tax refund claims, any funds which may become due to any Loan Party
in connection with the termination of any Plan or other employee benefit plan or
any rights thereto and any other amounts payable to any Loan Party from any Plan
or other employee benefit plan, rights and claims against carriers and shippers,
rights to indemnification, business interruption insurance and proceeds thereof,
property, casualty, or any similar type of insurance and any proceeds thereof,
proceeds of insurance covering the lives of key employees on which any Loan
Party is beneficiary, rights to receive dividends, distributions, cash,
Instruments, and other property in respect of or in exchange for any letter of
credit, guarantee, claim, security interest, or other security held by or
granted to any Loan Party.

            "GOVERNMENTAL AUTHORITY" means any nation or government, any state
or other political subdivision thereof, any central bank (or similar monetary or
regulatory authority) thereof, any entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government,
and any corporation or other entity owned or controlled, through stock or
capital ownership or otherwise, by any of the foregoing.

            "GUARANTOR" means any Person, including, but not limited to, each
Restricted Subsidiary of Westlake, which undertakes to be liable for all or any
part of the Obligations by execution of an Obligations Guaranty or otherwise.

            "GUARANTY" means, with respect to any Person, all obligations of
such Person which in any manner directly or indirectly guarantee or assure, or
in effect guarantee or assure, the payment or performance of any indebtedness,
dividend or other obligations of any other Person (the "guaranteed
obligations"), or assure or in effect assure the holder of the guaranteed
obligations against loss in respect thereof, including any such obligations
incurred through an agreement, contingent or otherwise: (a) to purchase the
guaranteed obligations or any property constituting security therefor; (b) to
advance or supply funds for the purchase or payment of the guaranteed
obligations or to maintain a working capital or other balance sheet condition;
or (c) to lease property or to purchase any debt or equity securities or other
property or services.

                                      A-15
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
            "HAZARDOUS MATERIALS" means any material that poses a threat to, or
is regulated to protect, human health, safety, public welfare or the
environment, including without limitation, "hazardous substance," "pollutant or
contaminant," "petroleum" and "natural gas liquids," as those terms are defined
or used in Section 101 of the Comprehensive Environmental Response,
Compensation, and Liability Act, polychlorinated biphenyls, lead, asbestos, urea
formaldehyde, radioactive materials, putrescible materials, infectious
materials, and toxic microorganisms (including mold).

            "HEDGE AGREEMENT" means any and all transactions, agreements, or
documents now existing or hereafter entered into, which provides for an interest
rate, credit, commodity, or equity swap, cap, floor, collar, forward foreign
exchange transaction, currency swap, cross currency rate swap, currency option,
or any combination of, or option with respect to, these or similar transactions,
for the purpose of hedging any Loan Party's exposure to fluctuations in interest
or exchange rates, loan, credit exchange, security or currency valuations or
commodity prices; provided that such Hedge Agreement shall be incurred in the
ordinary course of business and consistent with prior business practices of the
Loan Parties and not for speculative purposes.

            "INSTRUMENTS" means all instruments as such term is defined in the
UCC, now owned or hereafter acquired by any Borrower.

            "INTANGIBLE ASSETS" means assets that are considered to be
intangible assets under GAAP, including customer lists, goodwill, computer
software, copyrights, trade names, trade marks, patents, unamortized deferred
charges, unamortized debt discount, and capitalized research and development
costs.

            "INTERCREDITOR AGREEMENT" means that certain Intercreditor Agreement
dated as of the Closing Date, by and among, Borrowers, Agent, and Fixed Asset
Agent.

            "INTEREST PERIOD" means, as to any LIBOR Rate Loan, the period
commencing on the Funding Date of such Loan or on the Continuation/Conversion
Date on which the Loan is converted into or continued as a LIBOR Rate Loan, and
ending on the date one, two, or three months thereafter as selected by the
Borrowers in any Notice of Borrowing, in the form attached hereto as EXHIBIT D,
or Notice of Continuation/Conversion, in the form attached hereto as EXHIBIT E,
provided that:

            (a) if any Interest Period would otherwise end on a day that is not
      a Business Day, that Interest Period shall be extended to the following
      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 preceding Business Day;

            (b) any Interest Period pertaining to a LIBOR Rate Loan 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; and

            (c) no Interest Period shall extend beyond the Stated Termination
      Date.

            "INTEREST RATE" means each or any of the interest rates, including
the Default Rate, set forth in SECTION 2.1.

            "INVENTORY" means all of any Loan Party's now owned and hereafter
acquired inventory, goods and merchandise, wherever located, to be furnished
under any contract of service or held for sale or lease, all returned goods, raw
materials, work-in-process, finished goods (including embedded software),

                                      A-16
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
other materials and supplies of any kind, nature, or description which are used
or consumed in any Loan Party's business or used in connection with the packing,
shipping, advertising, selling or finishing of such goods, merchandise, and all
documents of title or other Documents representing them.

            "IRBS" means the $10,889,000 original principal amount Calcasieu
Parish Public Trust Authority Waste Disposal Revenue Bonds issued pursuant to
the Indenture of Trust dated December 1, 1997, between Calcasieu Parish Public
Trust Authority, as issuer, and JPMorgan Chase Bank (formerly known as The Chase
Manhattan Bank), as trustee.

            "IRS" means the Internal Revenue Service and any Governmental
Authority succeeding to any of its principal functions under the Code.

            "LATEST PROJECTIONS" means: (a) on the Closing Date and thereafter
until the Agent receives new projections pursuant to SECTION 5.2(F), the
projections of the Loan Parties' financial condition, results of operations, and
cash flows, for the period commencing on April 1, 2003, and ending on December
31, 2007, and delivered to the Agent prior to the Closing Date; and (b)
thereafter, the projections most recently received by the Agent pursuant to
SECTION 5.2(F).

            "LENDER" and "LENDERS" have the meanings specified in the
introductory paragraph hereof and shall include the Agent to the extent of any
Agent Advance outstanding and the Bank to the extent of any Non-Ratable Loan
outstanding; provided that no such Agent Advance or Non-Ratable Loan shall be
taken into account in determining any Lender's Pro Rata Share.

            "LETTER OF CREDIT" has the meaning specified in SECTION 1.3(A).

            "LETTER OF CREDIT FEE" has the meaning specified in SECTION 2.6.

            "LETTER OF CREDIT ISSUER" means the Bank, any affiliate of the Bank,
or any other financial institution that issues any Letter of Credit pursuant to
this Agreement.

            "LETTER-OF-CREDIT RIGHTS" means "letter-of-credit rights" as such
term is defined in the UCC, now owned or hereafter acquired by any Loan Party,
including rights to payment or performance under a letter of credit, whether or
not any Loan Party, as beneficiary, has demanded or is entitled to demand
payment or performance.

            "LETTER OF CREDIT SUBFACILITY" means $50,000,000.

            "LIBOR INTEREST PAYMENT DATE" means, with respect to a LIBOR Rate
Loan, the Termination Date and the last day of each Interest Period applicable
to such Loan or, with respect to each Interest Period of greater than three
months in duration, the last day of the third month of such Interest Period and
the last day of such Interest Period.

            "LIBOR RATE" means, for any Interest Period, with respect to LIBOR
Rate Loans, the rate of interest per annum determined pursuant to the following
formula:

            LIBOR Rate  =       Offshore Base Rate
                           --------------------------------------
                                1.00 - Eurodollar Reserve Percentage

            Where,

                  "OFFSHORE BASE RATE" means the rate per annum appearing on
            Telerate Page 3750 (or any successor page) as the London interbank
            offered rate for deposits in Dollars at

                                      A-17
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
            approximately 11:00 a.m. (London time) two (2) Business Days prior
            to the first day of such Interest Period for a term comparable to
            such Interest Period. If for any reason such rate is not available,
            the Offshore Base Rate shall be, for any Interest Period, the rate
            per annum appearing on Reuters Screen LIBOR Page as the London
            interbank offered rate for deposits in Dollars at approximately
            11:00 a.m. (London time) two (2) Business Days prior to the first
            day of such Interest Period for a term comparable to such Interest
            Period; provided, however, if more than one rate is specified on
            Reuters Screen LIBO Page, the applicable rate shall be the
            arithmetic mean of all such rates. If for any reason none of the
            foregoing rates is available, the Offshore Base Rate shall be, for
            any Interest Period, the rate per annum determined by Agent as the
            rate of interest at which dollar deposits in the approximate amount
            of the LIBOR Rate Loan comprising part of such Borrowing would be
            offered by the Bank's London Branch to major banks in the offshore
            dollar market at their request at or about 11:00 a.m. (London time)
            two (2) Business Days prior to the first day of such Interest Period
            for a term comparable to such Interest Period.

                  "EURODOLLAR RESERVE PERCENTAGE" means, for any day during any
            Interest Period, the reserve percentage (expressed as a decimal,
            rounded upward to the next 1/100th of 1%) in effect on such day
            applicable to member banks under regulations issued from time to
            time by the Federal Reserve Board for determining the maximum
            reserve requirement (including any emergency, supplemental, or other
            marginal reserve requirement) with respect to Eurocurrency funding
            (currently referred to as "Eurocurrency liabilities"). The Offshore
            Rate for each outstanding LIBOR Rate Loan shall be adjusted
            automatically as of the effective date of any change in the
            Eurodollar Reserve Percentage.

            "LIBOR RATE LOAN" means a Revolving Loan during any period in which
it bears interest based on the LIBOR Rate.

            "LIEN" means: (a) any interest in property securing an obligation
owed to, or a claim by, a Person other than the owner of the property, whether
such interest is based on the common law, statute, or contract, and including a
security interest, charge, claim, or lien arising from a mortgage, deed of
trust, encumbrance, pledge, hypothecation, assignment, deposit arrangement,
agreement, security agreement, conditional sale or trust receipt, or a lease,
consignment, or bailment for security purposes; (b) to the extent not included
under CLAUSE (A), any reservation, exception, encroachment, easement,
right-of-way, covenant, condition, restriction, lease, or other title exception
or encumbrance affecting property; and (c) any contingent or other agreement to
provide any of the foregoing.

            "LOAN ACCOUNT" means the loan account of the Borrowers, which
account shall be maintained by the Agent.

            "LOAN DOCUMENTS" means this Agreement, the Notes, the Collateral
Documents, the Letters of Credit, any applications for Letters of Credit, the
Intercreditor Agreement, and any other agreements, instruments, and documents
heretofore, now or hereafter evidencing, securing, guaranteeing or otherwise
relating to the Obligations, the Collateral, or any other aspect of the
transactions contemplated by this Agreement.

            "LOAN PARTIES" means, on any date of determination, each Borrower
and all Guarantors, and "LOAN PARTY" means any Borrower or any Guarantor.

            "LOANS" means, collectively, all loans and advances provided for in
ARTICLE 1.

            "LOCAL ACCOUNTS" has the meaning specified in SECTION 8.1(K).

                                      A-18
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
            "MAJORITY LENDERS" means at any date of determination Lenders whose
Pro Rata Shares aggregate more than 50%.

            "MARGIN STOCK" means "margin stock" as such term is defined in
Regulation T, U, or X of the Federal Reserve Board.

            "MATERIAL ADVERSE EFFECT" means (a) a material adverse change in, or
a material adverse effect upon, the assets, liabilities, business, operations,
properties, or condition (financial or otherwise) of Westlake, the Loan Parties
taken as a whole or the Collateral; (b) a material impairment of the ability of
any Loan Party to perform under any Loan Document to which it is a party; or (c)
a material adverse effect upon the legality, validity, binding effect, or
enforceability against any Loan Party of any Loan Document to which it is a
party.

            "MATERIAL AGREEMENT" means any material written or oral agreement,
contract, commitment, or understanding to which any Loan Party is a party, by
which such Loan Party is directly or indirectly bound, or to which any assets of
such Loan Party may be subject, which involves amounts payable to any Loan Party
in excess of $10,000,000 in the aggregate during any 12-month period, or
financial obligations of any Loan Party in excess of $5,000,000 in the aggregate
during any 12-month period, and which is not cancellable by such Loan Party upon
30 days or less notice without liability for further payment (other than nominal
penalties).

            "MAXIMUM INVENTORY LOAN AMOUNT" means $120,000,000.

            "MAXIMUM RATE" has the same meaning specified in SECTION 2.3.

            "MAXIMUM REVOLVER AMOUNT" means $200,000,000, as such amount may be
reduced from time to time pursuant to the terms of this Agreement.

            "MULTI-EMPLOYER PLAN" means a "multi-employer plan" as defined in
Section 4001(a)(3) of ERISA which is or was at any time during the current year
or the immediately preceding six (6) years contributed to by any Loan Party or
any ERISA Affiliate.

            "NET AMOUNT OF ELIGIBLE ACCOUNTS" means, at any time, the gross
amount of Eligible Accounts less sales, excise, or similar taxes, and less
returns, discounts, claims, credits, allowances, accrued rebates, offsets,
deductions, counterclaims, disputes, and other defenses of any nature at any
time issued, owing, granted, outstanding, available, or claimed.

            "NET ORDERLY LIQUIDATION VALUE" shall mean (a) the "net orderly
liquidation value" determined by a valuation company acceptable to the Agent
after performance of an Inventory valuation to be done at the Agent's request
and the Borrowers' expense, less the amount estimated by such valuation company
for marshalling, reconditioning, carrying, and sales expenses designed to
maximize the resale value of such Inventory and assuming that the time required
to dispose of such Inventory is three (3) months; or (b) if no such Inventory
valuation has been requested by the Agent, the value customarily attributed to
Inventory in the appraisal industry for Inventory of similar quality and
quantity, and similarly dispersed (under similar and relevant circumstances
under standard asset-based lending procedures), at the time of the valuation,
less the amount customarily estimated in the appraisal industry at the time of
any determination for marshalling, recondition, carrying, and sales expenses
designed to maximize the resale value of such Inventory and assuming that the
time required to dispose of such Inventory is three (3) months.

                                      A-19
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
            "NON-RATABLE LOAN" and "NON-RATABLE LOANS" have the meanings
specified in SECTION 1.2(h).

            "NOTE and NOTES" have the same meaning specified in SECTION
1.2(a)(ii).

            "NOTICE OF BORROWING" has the meaning specified in SECTION 1.2(b).

            "NOTICE OF CONTINUATION/CONVERSION" has the meaning specified in
SECTION 2.2(b).

            "OBLIGATION GUARANTY" means the (a) a Guaranty of the Obligations in
substantially the form and upon the terms of EXHIBIT C, executed and delivered
by any Person pursuant to the requirements of the Loan Documents; and (b) any
amendments, modifications, supplements, restatements, ratifications, or
reaffirmations of any Guaranty made in accordance with the Loan Documents.

            "OBLIGATIONS" means all present and future loans, advances,
liabilities, obligations, covenants, duties, and debts owing by any Loan Party
to the Agent and/or any Lender, arising under or pursuant to this Agreement or
any of the other Loan Documents, whether or not evidenced by any note, or other
instrument or document, whether arising from an extension of credit, opening of
a letter of credit, acceptance, loan, guaranty, indemnification or otherwise,
whether direct or indirect, absolute or contingent, due or to become due,
primary or secondary, as principal or guarantor, and including all principal,
interest, charges, expenses, fees, attorneys' fees, filing fees, and any other
sums chargeable to any Loan Party hereunder or under any of the other Loan
Documents. "Obligations" includes, without limitation, (a) all debts,
liabilities, and obligations now or hereafter arising from or in connection with
the Letters of Credit and (b) all debts, liabilities and obligations now or
hereafter arising from or in connection with Bank Products.

            "OTHER TAXES" means any present or future stamp or documentary taxes
or any other excise or property taxes, charges or similar levies which arise
from any payment made hereunder or from the execution, delivery or registration
of, or otherwise with respect to, this Agreement or any other Loan Documents.

            "PARENT" means Westlake Polymer & Petrochemical, Inc., a Delaware
corporation.

            "PARTICIPANT" means any Person who shall have been granted the right
by any Lender to participate in the financing provided by such Lender under this
Agreement, and who shall have entered into a participation agreement in form and
substance satisfactory to such Lender.

            "PATENT AND TRADEMARK AGREEMENTS" means any Patent Security
Agreement and any Trademark Security Agreement, executed and delivered by any
Loan Party to the Agent to evidence and perfect the Agent's security interest in
each such Loan Party's present and future patents, trademarks, and related
licenses and rights, for the benefit of the Agent and the Lenders.

            "PAYMENT ACCOUNT" means each bank account established pursuant to
the Security Agreement, to which the proceeds of Accounts and other Collateral
are deposited or credited, and which is maintained in the name of the Agent or
the Borrowers, as the Agent may determine, on terms acceptable to the Agent.

            "PCBS" means polychlorinated biphenyls.

            "PBGC" means the Pension Benefit Guaranty Corporation or any
Governmental Authority succeeding to the functions thereof.

                                      A-20
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
            "PENDING REVOLVING LOANS" means, at any time, the aggregate
principal amount of all Revolving Loans requested in any Notice of Borrowing
received by the Agent which have not yet been advanced.

            "PENSION PLAN" means a pension plan (as defined in Section 3(2) of
ERISA) subject to Title IV of ERISA which any Loan Party or any ERISA Affiliate
sponsors, maintains, or to which it makes, is making, or is obligated to make
contributions, or in the case of a Multi-employer Plan has made contributions at
any time during the immediately preceding five (5) plan years.

            "PERMITTED GROUP" means any group of investors that is deemed to be
a "person" (as that term is used in Section 13(d)(3) of the Exchange Act) at any
time prior to Westlake's initial public offering of common stock, provided that
no single Person (other than the Principals and their Related Parties)
Beneficially Owns (together with its Affiliates) more of the Voting Stock of the
Borrower that is Beneficially Owned by such group of investors than is then
collectively Beneficially Owned by the Principals and their Related Parties in
the aggregate.

            "PERMITTED LIENS" means:

            (a) Liens for taxes not delinquent or statutory Liens for taxes and
other governmental charges in an amount not to exceed $100,000 provided that the
payment of such taxes or governmental charges which are due and payable is being
contested in good faith and by appropriate proceedings diligently pursued and as
to which adequate financial reserves have been established on the applicable
Loan Party's books and records and a stay of enforcement of any such Lien is in
effect;

            (b) the Agent's Liens;

            (c) Liens consisting of deposits made in the ordinary course of
business in connection with, or to secure payment of, obligations under workers'
compensation, unemployment insurance, social security, and other similar laws,
or to secure the performance of bids, tenders, or contracts (other than for the
repayment of Debt), or to secure indemnity, performance or other similar bonds
for the performance of bids, tenders or contracts (other than for the repayment
of Debt), or to secure statutory obligations (other than liens arising under
ERISA or Environmental Liens) or surety or appeal bonds, or to secure indemnity,
performance or other similar bonds;

            (d) Liens securing the claims or demands of materialmen, mechanics,
carriers, rail carriers, warehousemen, landlords, and other like Persons,
provided that if any such Lien arises from the nonpayment of such claims or
demand when due, such claims or demands do not exceed $1,000,000 in the
aggregate unless any such claims or demands is being contested in good faith and
by appropriate proceedings diligently pursued and as to which adequate financial
reserves have been established on the applicable Loan Party's books and records
and a stay of enforcement of any such Lien is in effect;

            (e) Liens constituting encumbrances in the nature of reservations,
exceptions, encroachments, easements, rights of way, covenants running with the
land, and other similar title exceptions or encumbrances affecting any Real
Estate; provided that they do not in the aggregate materially detract from the
value of the Real Estate or materially interfere with its use in the ordinary
conduct of the applicable Loan Party's business;

            (f) Liens arising from judgments and attachments in connection with
court proceedings provided that the attachment or enforcement of such Liens
would not result in an Event of Default hereunder and such Liens are being
contested in good faith by appropriate proceedings, adequate reserves have been
set aside and no material Property is subject to a material risk of loss or
forfeiture and

                                      A-21
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
the claims in respect of such Liens are fully covered by insurance (subject to
ordinary and customary deductibles) and a stay of execution pending appeal or
proceeding for review is in effect;

            (g) Financing statements filed by the owner of Equipment leased to a
Loan Party and filed solely for the purpose of putting third parties on notice
of such owner's interest (as a lessor under an operating lease) in such
Equipment, so long as such operating lease remains a true operating lease under
GAAP and under applicable law;

            (h) Liens securing the Existing Letters of Credit existing on the
Closing Date, so long as such Existing Letters of Credit are replaced with
Letters of Credit hereunder within ninety (90) days of the Closing Date;

            (i) Liens securing the Fixed Asset Loan (including, without
limitation, Liens in the Fixed Asset Loan Collateral Account), which to the
extent such Liens attach to Collateral, are subject to the Intercreditor
Agreement, but in no event shall such Liens attach to any Accounts or Inventory;

            (j) Liens securing Debt existing on the Closing Date to the extent
such Liens are described on SCHEDULE 7.17;

            (k) Liens evidencing consignments of Inventory;

            (l) Liens securing Debt permitted pursuant to SECTION 7.13(j) so
long as such Liens attached only to unearned premiums for such financed
insurance; and

            (m) Liens securing Hedge Agreements; provided that if such Hedge
Agreements do not constitute Bank Products, the amount secured by such Liens
does not exceed $1,000,000 and the assets subject to such Liens attach solely to
margin accounts related thereto.

            "PERSON" means any individual, sole proprietorship, partnership,
limited liability company, joint venture, trust, unincorporated organization,
association, corporation, Governmental Authority, or any other entity.

            "PLAN" means an employee benefit plan (as defined in Section 3(3) of
ERISA) which any Loan Party or any ERISA Affiliate makes, is making, or is
obligated to make contributions and includes any Pension Plan.

            "PRINCIPALS" means T.T. Chao, his descendents, including by
adoption, and the spouses of any such individuals.

            "PROPRIETARY RIGHTS" means all of any Loan Party's now owned and
hereafter arising or acquired: licenses, franchises, permits, patents, patent
rights, copyrights, works which are the subject matter of copyrights,
trademarks, service marks, trade names, trade styles, patent, trademark, and
service mark applications, and all licenses and rights related to any of the
foregoing, including those federally registered or otherwise material patents,
trademarks, service marks, trade names, and copyrights set forth on SCHEDULE
6.12 hereto, and all other rights under any of the foregoing, all extensions,
renewals, reissues, divisions, continuations, and continuations-in-part of any
of the foregoing, and all rights to sue for past, present and future
infringement of any of the foregoing.

            "PRO FORMA FIXED CHARGE COVERAGE RATIO" means, with respect to any
proposed Acquisition, calculation of the Fixed Charge Coverage Ratio with
respect to the immediately preceding twelve (12) months, calculated as though
the proposed Acquisition had occurred at the beginning of such

                                      A-22
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
period, and calculation of the Fixed Charge Coverage Ratio on a pro forma basis,
based on the Loan Parties' best estimates as of the date of calculation, of the
ratio of EBITDA during the succeeding twelve (12) months to the projected Fixed
Charges during such succeeding twelve (12) month period, after giving effect to
the proposed Acquisition.

            "PRO RATA SHARE" means, with respect to a Lender, a fraction
(expressed as a percentage), the numerator of which is the amount of such
Lender's Commitment and the denominator of which is the sum of the amounts of
all of the Lenders' Commitments, or if no Commitments are outstanding, a
fraction (expressed as a percentage), the numerator of which is the amount of
Obligations owed to such Lender and the denominator of which is the aggregate
amount of the Obligations owed to the Lenders, in each case giving effect to a
Lender's participation in Non-Ratable Loans and Agent Advances.

            "PURCHASE PRICE" means, with respect to any Acquisition, all direct,
indirect, and deferred cash and non-cash payments made to or for the benefit of
the Person being acquired (or whose assets are being acquired), its
shareholders, officers, directors, employees, or Affiliates in connection with
such Acquisition, including, without limitation, the amount of any Debt being
assumed in connection with such Acquisition (and subject to the limitations on
Debt in this Agreement), seller financing, payments under non-competition or
consulting agreements entered into in connection with such Acquisition and
similar agreements, all non-cash consideration and the value of any stock,
options, or warrants or other rights to acquire stock issued as part of the
consideration in such transaction; provided that, for the purposes hereof,
non-competition agreements and consulting agreements shall be valued at their
present value discounted over the term of such agreement at the Base Rate in
effect at the time of the Acquisition.

            "REAL ESTATE" means all of any Loan Party's now or hereafter owned
or leased estates in real property, including, without limitation, all fees,
leaseholds and future interests, together with all of

any Loan Party's now or hereafter owned or leased interests in the improvements
thereon, the fixtures attached thereto, and the easements appurtenant thereto.

            "RELATED GENERAL INTANGIBLES" means all of each Loan Parties'
intangible personal property used or useful for, in connection with, or in any
respect related to, any Accounts, Inventory, Instruments, Chattel Paper,
Documents, or Deposit Accounts, which Related General Intangibles shall include
all money, General Intangibles (including payment intangibles and software), and
Proprietary Rights, together with all additions, amendments, and modifications
thereto, extensions, renewals, enlargements, and proceeds thereof, substitutions
therefor, and income and profits therefrom. To the extent obtained in connection
with or otherwise related to Accounts, Inventory, Instruments, Chattel Paper,
Documents, or Deposit Accounts, the following are included, without limitation,
in the definition of "RELATED GENERAL INTANGIBLES": loan commitments, financing
arrangements, bonds, leases, permits, sales contracts, insurance policies, and
the proceeds therefrom, books and records, funds, bank deposits; all Proprietary
Rights used in connection therewith; any award, remuneration, settlement, or
compensation heretofore made or hereafter to be made by any Governmental
Authority to any Loan Party, all deposits, funds, accounts, contract rights, or
documents, arising from or by virtue of any transactions; all permits, licenses,
franchises, certificates, and other rights and privileges; all proceeds arising
from or by virtue of the sale, lease, or other disposal of all or any part of
the foregoing; and all proceeds (including premium refunds) payable or to be
payable under each policy of insurance relating to the foregoing.

            "RELATED PARTY" means (a) any controlling stockholder, 80% (or more)
owned Subsidiary, or immediate family member (in the case of an individual) of
any Principal or (b) any Person,

                                      A-23
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
the beneficiaries, stockholders, partners, owners, or Persons beneficially
holding a 50% or more controlling interest of which consist of any one or more
Principals and/or such other Persons referred to in the immediately preceding
CLAUSE (A).

            "RELEASE" means a release, spill, emission, leaking, pumping,
injection, deposit, disposal, discharge, dispersal, leaching, or migration of
any Hazardous Materials into the environment, including the movement of
Hazardous Materials through or in the air, soil, surface water, groundwater or
Real Estate or other property.

            "REPORTABLE EVENT" means, any of the events set forth in Section
4043(b) of ERISA or the regulations thereunder, other than any such event for
which the 30-day notice requirement under ERISA has been waived in regulations
issued by the PBGC.

            "REQUIRED LENDERS" means at any time Lenders whose Pro Rata Shares
aggregate more than 66-2/3%.

            "REQUIREMENT OF LAW" means, as to any Person, any law (statutory or
common), treaty, rule or regulation or determination of an arbitrator or of a
Governmental Authority, in each case applicable to or binding upon the Person or
any of its property or to which the Person or any of its property is subject.

            "RESERVES" means reserves that limit the availability of credit
hereunder, consisting of reserves against Availability, Eligible Accounts, or
Eligible Inventory, established by Agent from time to time in Agent's reasonable
credit judgment. Without limiting the generality of the foregoing, the following
reserves shall be deemed to be a reasonable exercise of Agent's credit judgment:
(a) Bank Product Reserves, (b) a reserve for accrued, unpaid interest on the
Obligations, (c) reserves for rent at leased locations subject to statutory or
contractual landlord liens, (d) Inventory shrinkage, (e) Environmental
Compliance Reserves, (f) customs charges, (g) dilution, and (h) warehousemen's
or bailees' charges.

            "RESPONSIBLE OFFICER" means the chief executive officer, president,
chief financial officer, treasurer, assistant treasurer, or controller of a Loan
Party. Any document delivered hereunder that is signed by a Responsible Officer
of a Loan Party shall be conclusively presumed to have been authorized by all
necessary corporate, partnership, and/or other action on the part of such Loan
Party and such Responsible Officer shall be conclusively presumed to have acted
on behalf of such Loan Party.

            "RESTRICTED INVESTMENT" means, as to any Loan Party, any acquisition
of property by such Loan Party in exchange for cash or other property, whether
in the form of an acquisition of stock, debt, or other indebtedness or
obligation, or the purchase or acquisition of any other property, or an
investment, loan, advance, extension of credit, capital contribution, or
subscription, except the following: (a) acquisitions of Equipment to be used in
the business of such Loan Party so long as the acquisition costs thereof
constitute Capital Expenditures permitted hereunder; (b) acquisitions of
Inventory in the ordinary course of business of such Loan Party; (c)
acquisitions of current assets acquired in the ordinary course of business of
such Loan Party; (d) direct obligations of the United States of America, or any
agency thereof, or obligations guaranteed by the United States of America,
provided that such obligations mature within one year from the date of
acquisition thereof; (e) acquisitions of certificates of deposit maturing within
one year from the date of acquisition, bankers' acceptances, Eurodollar bank
deposits, or overnight bank deposits, in each case issued by, created by, or
with a bank or trust company organized under the laws of the United States of
America or any state thereof having capital and surplus aggregating at least
$100,000,000; (f) acquisitions of commercial paper given a rating of "A2" or
better by Standard & Poor's Corporation or "P2" or better by Moody's Investors
Service, Inc. and maturing not more than 90

                                      A-24
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
days from the date of creation thereof; (g) loans, advances, extensions of
credit, capital contributions, and other investments (i) by any Loan Party to
its Subsidiaries or (ii) to any Loan Party by its Subsidiaries, or the direct or
indirect owners of the equity interests in such Loan Party; (h) investments
existing on the Closing Date and identified on SCHEDULE 7.10, including, without
limitation, loans, advances, extensions of credit to, and renewals or extensions
thereof in accordance with SECTION 7.13, or capital contributions and other
investments in any Unrestricted Subsidiary of Westlake; (i) Hedge Agreements;
(j) Acquisitions made in accordance with SECTION 7.26; (k) sales of Inventory by
one Loan Party to another Loan Party so long as the payment terms with respect
to such Inventory are in accordance with the customary business terms of such
Loan Parties and payment for such Inventory is made within thirty (30) days of
delivery of such Inventory; (l) payments on any Debt permitted by SECTION
7.13(k), and (m) transactions among Loan Parties so long as such transactions
are otherwise permitted by the terms of SECTION 7.15.

            "RESTRICTED SUBSIDIARY" means, at any time of determination, all
Subsidiaries of Westlake, other than Unrestricted Subsidiaries of Westlake.

            "REVOLVING LOANS" has the meaning specified in SECTION 1.2 and
includes each Agent Advance and Non-Ratable Loan.

            "SEC" has the meaning specified in SECTION 5.2(a).

            "SECURITY AGREEMENT" means, collectively, the Security Agreements of
even date herewith executed by the Loan Parties in favor of the Agent for the
benefit of the Agent and the other Lenders.

            "SETTLEMENT" AND "SETTLEMENT DATE" have the meanings specified in
SECTION 12.15(a)(ii).

            "SOLVENT" means, when used with respect to any Person, that at the
time of determination:

            (a) the assets of such Person, at a fair valuation, are in excess of
      the total amount of its debts (including contingent liabilities); and

            (b) the present fair saleable value of its assets is greater than
      its probable liability on its existing debts as such debts become absolute
      and matured; and

            (c) it is then able and expects to be able to pay its debts
      (including contingent debts and other commitments) as they mature; and

            (d) it has capital sufficient to carry on its business as conducted
      and as proposed to be conducted.

            For purposes of determining whether a Person is Solvent, the amount
of any contingent liability shall be computed as the amount that, in light of
all the facts and circumstances existing at such time, represents the amount
that can reasonably be expected to become an actual or matured liability of such
Person.

            "STATED TERMINATION DATE" means July 14, 2007.

            "SUBSIDIARY" of a Person means (a) any entity of which more than
fifty percent (50%) of the voting stock or other equity interests (in the case
of Persons other than corporations), is owned or controlled directly or
indirectly by the Person, or one or more of the Subsidiaries of the Person, or a
combination thereof or (b) any partnership (limited or general) of which such
Person shall at any time be

                                      A-25
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
the general partner or of which more than fifty percent (50%) of the issued and
outstanding partnership interests, is owned or controlled directly or indirectly
by the Person, or one or more of the Subsidiaries of the Person, or a
combination thereof. Unless the context otherwise clearly requires, references
herein to a "Subsidiary" refer to a Subsidiary of Westlake.

            "SUPPORTING LETTER OF CREDIT" has the meaning specified in SECTION
1.3(g).

            "TAXES" means any and all present or future taxes, levies, imposts,
deductions, charges, or withholdings, and all liabilities with respect thereto,
excluding, in the case of each Lender and the Agent, such taxes (including
income taxes or franchise taxes) as are imposed on or measured by the Agent's or
each Lender's net income in any the jurisdiction (whether federal, state or
local and including any political subdivision thereof) under the laws of which
such Lender or the Agent, as the case may be, is organized or maintains a
lending office.

            "TERMINATION DATE" means the earliest to occur of (a) the Stated
Termination Date, (b) the date the Total Facility is terminated either by the
Borrowers pursuant to SECTION 3.2 or by the Required Lenders pursuant to SECTION
9.2, and (c) the date this Agreement is otherwise terminated for any reason
whatsoever pursuant to the terms of this Agreement.

            "TERM PRIORITY COLLATERAL" has the meaning given such term in the
Intercreditor Agreement.

            "TOTAL FACILITY" has the meaning specified in SECTION 1.1.

            "TRIGGERING DATE" means the date upon which either (a) the
Availability has been less than $50,000,000 for the immediately preceding three
(3) consecutive Business Days or (b) the Availability is less than $35,000,000
at any time; provided that in the event (i) the Availability has been greater
than $50,000,000 at all times for ninety (90) consecutive days and (ii) the
Fixed Charge Coverage Ratio on such date of determination is 1.00 to 1.0,
commencing on the first day of any month after the criteria set forth above is
satisfied, then the Triggering Date shall be deemed to not be continuing for
purposes of this Agreement, and the requirements of SECTIONS 5.2(l)(iii) and
7.21 shall not be required unless a subsequent Triggering Date occurs.

            "UCC" means the Uniform Commercial Code, as in effect from time to
time, of the State of New York or of any other state the laws of which are
required as a result thereof to be applied in connection with the issue of
perfection of security interests; provided, that to the extent that the UCC is
used to define any term herein or in any other documents and such term is
defined differently in different Articles or Divisions of the UCC, the
definition of such term contained in Article or Division 9 shall govern.

            "UNFUNDED PENSION LIABILITY" means the excess of a Pension Plan's
benefit liabilities under Section 4001(a)(16) of ERISA for the most recent plan
year for which an Actuarial Valuation has been prepared, over the current value
of that Plan's assets, determined in accordance with any assumptions used for
funding the Pension Plan pursuant to Section 412 of the Code for the applicable
plan year.

            "UNRESTRICTED SUBSIDIARY" means, at any time of determination
thereof, (a) Westlake AR Corporation, (b) any Foreign Subsidiary of Westlake or
any other Loan Party (other than Westlake Overseas Corporation which shall be a
Restricted Subsidiary under this Agreement), and (c) any Subsidiary of an
Unrestricted Subsidiary of Westlake.

                                      A-26
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
            "UNUSED LETTER OF CREDIT SUBFACILITY" means an amount equal to
$50,000,000 minus the sum of (a) the aggregate undrawn amount of all outstanding
Letters of Credit plus, without duplication, (b) the aggregate unpaid
reimbursement obligations with respect to all Letters of Credit.

            "UNUSED LINE FEE" has the meaning specified in SECTION 2.5.

            "VOTING STOCK" of any Person as of any date means the Capital Stock
of such Person that is at the time entitled to vote in the election of the board
of directors of such Person.

      Accounting Terms. Any accounting term used in the Agreement shall have,
unless otherwise specifically provided herein, the meaning customarily given in
accordance with GAAP, and all financial computations in the Agreement shall be
computed, unless otherwise specifically provided therein, in accordance with
GAAP as consistently applied and using the same method for inventory valuation
as used in the preparation of the Financial Statements. If at any time any
change in GAAP would affect the computation of any financial ratio or
requirement set forth in any Loan Document, and either the Borrowers or the
Required Lenders shall so request, the Agent, the Lenders, and the Borrowers
shall negotiate in good faith to amend such ratio or requirement to preserve the
original intent thereof in light of such change in GAAP (subject to the approval
of the Required Lenders); provided that, until so amended, (i) such ratio or
requirement shall continue to be computed in accordance with GAAP prior to such
change therein and (ii) the Borrowers shall provide to the Agent and the Lenders
Financial Statements and other documents required under this Agreement or as
reasonably requested hereunder setting forth a reconciliation between
calculations of such ratio or requirement made before and after giving effect to
such change in GAAP.

            Interpretive Provisions. (a) The meanings of defined terms are
equally applicable to the singular and plural forms of the defined terms.

            (b) The words "hereof," "herein," "hereunder" and similar words
refer to the Agreement as a whole and not to any particular provision of the
Agreement; and Subsection, Section, Schedule and Exhibit references are to the
Agreement unless otherwise specified.

            (c) (i) The term "documents" includes any and all instruments,
documents, agreements, certificates, indentures, notices and other writings,
however evidenced.

                  (ii) The term "including" is not limiting and means "including
      without limitation."

                  (iii) In the computation of periods of time from a specified
      date to a later specified date, the word "from" means "from and
      including," the words "to" and "until" each mean "to but excluding" and
      the word "through" means "to and including."

                  (iv) The word "or" is not exclusive.

            (d) Unless otherwise expressly provided herein, (i) references to
agreements (including the Agreement) and other contractual instruments shall be
deemed to include all subsequent amendments and other modifications thereto, but
only to the extent such amendments and other modifications are not prohibited by
the terms of any Loan Document, and (ii) references to any statute or regulation
are to be construed as including all statutory and regulatory provisions
consolidating, amending, replacing, supplementing or interpreting the statute or
regulation.

                                      A-27
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
            (e) The captions and headings of the Agreement and other Loan
Documents are for convenience of reference only and shall not affect the
interpretation of the Agreement.

            (f) The Agreement and other Loan Documents may use several different
limitations, tests or measurements to regulate the same or similar matters. All
such limitations, tests and measurements are cumulative and shall each be
performed in accordance with their terms.

            (g) For purposes of SECTION 9.1, a breach of the financial covenant
contained in SECTION 7.21 shall be deemed to have occurred as of any date of
determination thereof by the Agent or as of the last day of any specified
measuring period, regardless of when the Financial Statements reflecting such
breach are delivered to the Agent.

            (h) The Agreement and the other Loan Documents are the result of
negotiations among and have been reviewed by counsel to the Agent, the Borrowers
and the other parties, and are the products of all parties. Accordingly, they
shall not be construed against the Lenders or the Agent merely because of the
Agent's or Lenders' involvement in their preparation.

                                      A-28
                                                     ANNEX A TO CREDIT AGREEMENT
<PAGE>
                                    EXHIBIT A

                                  FORM OF NOTE

$____________________                                        __________ __, 2003

      For Value Received, the undersigned (referred to herein as the
"BORROWERS") hereby jointly and severally promise to pay to the order of
____________________(the "LENDER") in care of Bank of America, N.A. (the
"AGENT"), at the Agent's office located at 55 S. Lake Avenue, Suite 900,
Pasadena, CA 91101, for the account of the Lender, the lesser of the principal
amount of _____________________ ($_______________) or the aggregate amount of
all outstanding Revolving Loans made to Borrowers by the Lender from time to
time. The undersigned also promise to pay interest on the unpaid principal
amount of each Borrowing from the date of such Borrowing until such principal
amount is paid. This Note shall be subject to the terms of that certain Credit
Agreement described below (the "CREDIT AGREEMENT"), and all principal and
interest payable hereunder shall be due and payable in accordance with the terms
of the Credit Agreement.

      This Note is the Note referred to in the Credit Agreement, dated as of
July 31, 2003, among the Borrowers, the Lender, certain other Lenders party
thereto, and Bank of America, N.A., as Agent for the Lenders. Terms defined in
the Credit Agreement are used herein with the same meanings. The Credit
Agreement, among other things, contains provisions for acceleration of the
maturity of this Note, upon the happening of certain stated events and also for
prepayments on account of the principal of this Note prior to the maturity of
this Note upon the terms and conditions specified in the Credit Agreement.
Without limiting the immediately preceding sentence, reference is made to
SECTION 2.3 of the Credit Agreement for usury savings provisions.

      Principal and interest payments shall be in money of the United States of
America, lawful at such times for the satisfaction of public and private debts,
and shall be in immediately available funds.

      The Borrowers jointly and severally promise to pay the costs of
collection, including reasonable attorney's fees, if default is made in the
payment of this Note.

      THIS NOTE AND THE OTHER LOAN DOCUMENTS HAVE BEEN ENTERED INTO PURSUANT TO
SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND THE SUBSTANTIVE LAWS
OF THE STATE OF NEW YORK, AND THE APPLICABLE FEDERAL LAWS OF THE UNITED STATES
OF AMERICA SHALL GOVERN THE VALIDITY, CONSTRUCTION, ENFORCEMENT, AND
INTERPRETATION HEREOF.

      IN WITNESS WHEREOF, the undersigned have caused this Note to be executed
by officers thereunto duly authorized and directed by appropriate corporate
authority.

         [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURES FOLLOW]

                                                                       EXHIBIT A
<PAGE>
BORROWERS:

WESTLAKE CHEMICAL CORPORATION, A DELAWARE CORPORATION

By:
   ---------------------------------------
      Name:
           -------------------------------
      Title:
            ------------------------------

NORTH AMERICAN PIPE CORPORATION, A DELAWARE CORPORATION

By:
   ---------------------------------------
      Name:
           -------------------------------
      Title:

WESTLAKE STYRENE LP, A DELAWARE LIMITED PARTNERSHIP

By:   Westlake Chemical Holdings, Inc., its general partner

      By:
         ---------------------------------
            Name:
                 -------------------------
            Title:
                  ------------------------

WPT LP, A DELAWARE LIMITED PARTNERSHIP

By:   Westlake Chemical Holdings, Inc., its general partner

      By:
         ---------------------------------
            Name:
                 -------------------------
            Title:
                  ------------------------

WESTLAKE VINYLS, INC., A DELAWARE CORPORATION

By:
   ---------------------------------------
      Name:
           -------------------------------
      Title:
            ------------------------------

                             SIGNATURE PAGE TO NOTE
<PAGE>
WESTLAKE PVC CORPORATION, A DELAWARE CORPORATION

By:
   ---------------------------------------
      Name:
           -------------------------------
      Title:
            ------------------------------

GEISMER VINYLS COMPANY LP, A DELAWARE LIMITED PARTNERSHIP

By:   GVGP, Inc., its general partner

      By:
         ---------------------------------
            Name:
                 -------------------------
            Title:
                  ------------------------

WESTECH BUILDING PRODUCTS, INC., A DELAWARE CORPORATION

By:
   ---------------------------------------
      Name:
           -------------------------------
      Title:
            ------------------------------

WESTLAKE PETROCHEMICALS LP, A DELAWARE LIMITED PARTNERSHIP

By:   Westlake Chemical Investments, Inc., its general partner

      By:
         ---------------------------------
            Name:
                 -------------------------
            Title:
                  ------------------------

WESTLAKE POLYMERS LP, A DELAWARE LIMITED PARTNERSHIP

By:   Westlake Chemical Investments, Inc., its general partner

      By:
         ---------------------------------
            Name:
                 -------------------------
            Title:
                  ------------------------

                             SIGNATURE PAGE TO NOTE
<PAGE>
VAN BUREN PIPE CORPORATION, A DELAWARE CORPORATION

By:
   ---------------------------------------
      Name:
           -------------------------------
      Title:
            ------------------------------

                             SIGNATURE PAGE TO NOTE
<PAGE>
                                    EXHIBIT B

                       FORM OF BORROWING BASE CERTIFICATE

REPORTING DATE:

To:   BANK OF AMERICA, N.A., individually as a Lender and as agent for itself
      and the other Lenders (the "AGENT") under that certain Credit Agreement
      dated as of July 31, 2003 (such agreement, as it may be amended, restated,
      or otherwise modified from time to time, the "CREDIT AGREEMENT"), by and
      among the Agent, Westlake Chemical Corporation and certain of its domestic
      subsidiaries listed as Borrowers thereto (collectively, the "BORROWERS"),
      and the Lenders party thereto.

      Reference is hereby made to the Credit Agreement, the terms defined
therein being used herein as therein defined. This Borrowing Base Certificate is
delivered pursuant to the terms of the Credit Agreement.

      The undersigned hereby certifies and warrants to the Agent and the Lenders
on behalf of the Borrowers as follows:

I.    I am a duly qualified and acting Responsible Officer of Westlake, and I am
      familiar with the financial statements and financial affairs of the Loan
      Parties. I am authorized to execute this Borrowing Base Certificate on
      behalf of the Loan Parties.

II.   Attached hereto as SCHEDULE 1 are true and correct computations of the
      Borrowing Base under the Credit Agreement as of the date set forth below.

      The Borrowers further represent and warrant to the Agent and the Lenders
that the representations and warranties contained in ARTICLE VI of the Credit
Agreement are true and correct in all material respects on and as of the date of
this Borrowing Base Certificate as if made on and as of the date hereof (except
to the extent that such representations and warranties expressly refer to an
earlier date, in which case they shall be true and correct in all material
respects as of such earlier date and except to the extent that (a) the Agent and
the Lenders have been notified in writing by the Borrowers that any
representation or warranty is not correct and the Required Lenders have
explicitly waived in writing compliance with such representation or warranty or
(b) any representation or warranty has been qualified by the updated information
reflected in, and as permitted under, the Compliance Certificate submitted by
Westlake to the Agent periodically), and that no Event of Default or Default has
occurred and is continuing, except as disclosed in an attachment to this
Certificate.

      IN WITNESS WHEREOF, Westlake has caused this Borrowing Base Certificate to
be executed and delivered on this ___ day of __________, 200_.

                                          WESTLAKE CHEMICAL CORPORATION, ON ITS
                                          BEHALF AND AS AGENT FOR THE OTHER
                                          BORROWERS

                                          By:
                                               ---------------------------------
                                               Name:
                                                    ----------------------------
                                               Title:
                                                     ---------------------------

                                                                       EXHIBIT B
<PAGE>
                                   SCHEDULE 1

                (See attached computations of the Borrowing Base)

                                                         SCHEDULE I TO EXHIBIT B
<PAGE>
                                    EXHIBIT C

                           FORM OF OBLIGATION GUARANTY

      THIS OBLIGATION GUARANTY (this "GUARANTY") is executed as of ____________,
2003, jointly and severally by the undersigned (each a "GUARANTOR" and
collectively the "GUARANTORS"), for the benefit of BANK OF AMERICA, N.A., a
national banking association (in its capacity as Agent for the benefit of
Lenders (defined below)).

                                    RECITALS

      A. WHEREAS, Westlake Chemical Corporation and certain of its domestic
subsidiaries listed as Borrowers thereto (each a "BORROWER" and collectively the
"BORROWERS"), Bank of America, N.A., as Agent (including its permitted
successors and assigns in such capacity, "AGENT"), and Lenders now or hereafter
party to the Credit Agreement have entered into a Credit Agreement, dated as of
July 31, 2003 (as amended, modified, supplemented, or restated from time to
time, the "CREDIT AGREEMENT");

      B. WHEREAS, provisions of the Credit Agreement permit Guarantors to
directly or indirectly receive proceeds of Borrowings made pursuant thereto; and

      C. WHEREAS, this Guaranty is integral to the transactions contemplated by
the Loan Documents and is a condition precedent to Lenders' obligations to
extend credit under the Loan Documents.

      ACCORDINGLY, for adequate and sufficient consideration, the receipt and
adequacy of which are hereby acknowledged, each Guarantor, jointly and severally
(together with any other Person that executes an Obligation Guaranty),
guarantees to Agent and Lenders the prompt payment of the Guaranteed Debt
(defined below) as follows:

      1. DEFINITIONS. Terms defined in the Credit Agreement or in ANNEX A
thereto have the same meanings when used, unless otherwise defined, in this
Guaranty. As used in this Guaranty:

      AGENT is defined in the recitals to this Guaranty.

      BORROWERS means Borrowers, any Borrower as debtors-in-possession, and any
receiver, trustee, liquidator, conservator, custodian, or similar party
appointed for any Borrower or for all or substantially all of any Borrower's
assets under any Debtor Relief Law.

      CREDIT AGREEMENT is defined in the recitals to this Guaranty.

      DEBTOR RELIEF LAW means the Bankruptcy Code of the United States of
America and all other applicable liquidation, conservatorship, bankruptcy,
moratorium, rearrangement, receivership, insolvency, reorganization, fraudulent
transfer or conveyance, suspension of payments, or similar laws from time to
time in effect affecting the rights of creditors generally.

      GUARANTEED DEBT means, collectively, (a) the Obligations and (b) all
present and future costs,

                                       1
                                                                       EXHIBIT C
<PAGE>
Attorney Costs, and expenses reasonably incurred by Agent or any Lender to
enforce any Borrower's, any Guarantor's, or any other obligor's payment of any
of the Guaranteed Debt, including, without limitation (to the extent lawful),
all present and future amounts that would become due but for the operation of
Sections 502 or 506 or any other provision of Title 11 of the United
States Code and all present and future accrued and unpaid interest (including,
without limitation, all post-maturity interest and any post-petition interest in
any proceeding under Debtor Relief Laws to which any Borrower or any Guarantor
becomes subject).

      GUARANTOR and GUARANTORS is defined in the preamble to this Guaranty.

      LENDER means, individually, or LENDERS means, collectively, on any date of
determination, Agent and the Lenders and their permitted successors and assigns.

      SUBORDINATED DEBT means, for each Guarantor, all present and future
obligations of any Company to such Guarantor, whether those obligations are (a)
direct, indirect, fixed, contingent, liquidated, unliquidated, joint, several,
or joint and several, (b) due or to become due to such Guarantor, (c) held by or
are to be held by such Guarantor, (d) created directly or acquired by assignment
or otherwise, or (e) evidenced in writing.

      2. GUARANTY. This is an absolute, irrevocable, and continuing guaranty of
payment, not collection, and the circumstance that at any time or from time to
time the Guaranteed Debt may be paid in full does not affect the obligation of
any Guarantor with respect to the Guaranteed Debt incurred after that. This
Guaranty remains in effect until the Guaranteed Debt is fully paid and
performed, all commitments to extend any credit under the Loan Documents have
terminated, all Letters of Credit which have not been fully cash collateralized
have expired or been terminated, and all Hedge Agreements with any Lender have
expired. No Guarantor may rescind or revoke its obligations with respect to the
Guaranteed Debt. Notwithstanding any contrary provision, it is the intention of
Guarantors, Lenders, and Agent that the amount of the Guaranteed Debt guaranteed
by Guarantors by this Guaranty shall be, but not in excess of, the maximum
amount permitted by fraudulent conveyance, fraudulent transfer, or similar laws
applicable to Guarantors. Accordingly, notwithstanding anything to the contrary
contained in this Guaranty or any other agreement or instrument executed in
connection with the payment of any of the Guaranteed Debt, the amount of the
Guaranteed Debt guaranteed by any Guarantor by this Guaranty shall be limited to
an aggregate amount equal to the largest amount that would not render such
Guarantor's obligations hereunder subject to avoidance under Section 548 of the
United States Bankruptcy Code or any comparable provision of any applicable
state law.

      3. CONSIDERATION. Each Guarantor represents and warrants that its
liability under this Guaranty may reasonably be expected to directly or
indirectly benefit it.

      4. CUMULATIVE RIGHTS. If any Guarantor becomes liable for any indebtedness
owing by any Borrower to Agent or any Lender, other than under this Guaranty,
that liability shall not be in any manner impaired or affected by this Guaranty.
The rights of Agent or Lenders under this Guaranty are cumulative of any and all
other rights that Agent or Lenders may ever have against any Guarantor. The
exercise by Agent or Lenders of any right under this Guaranty or otherwise does
not preclude the concurrent or subsequent exercise of any other right.

      5. PAYMENT UPON DEMAND. If an Event of Default exists, each Guarantor
shall, on demand and without further notice of dishonor and without any notice
having been given to any

                                       2
                                                                       EXHIBIT C
<PAGE>
Guarantor previous to that demand of either the acceptance by Agent or Lenders
of this Guaranty or the creation or incurrence of any Guaranteed Debt, pay the
amount of the Guaranteed Debt then due and payable to Agent and Lenders;
provided that, if an Event of Default exists and Agent or Lenders cannot, for
any reason, accelerate the Obligations, then the Guaranteed Debt shall be, as
among Guarantors, Agent, and Lenders, a fully matured, due, and payable
obligation of Guarantors to Agent and Lenders. It is not necessary for Agent or
Lenders, in order to enforce that payment by any Guarantor, first or
contemporaneously to institute suit or exhaust remedies against any Borrower or
others liable on any Guaranteed Debt or to enforce rights against any Collateral
securing any Guaranteed Debt.

      6. SUBORDINATION. The Subordinated Debt is expressly subordinated to the
full and final payment of the Guaranteed Debt. Each Guarantor agrees not to
accept any payment of any Subordinated Debt from any Company if an Event of
Default exists. If any Guarantor receives any payment of any Subordinated Debt
in violation of the foregoing, such Guarantor shall hold that payment in trust
for Agent and Lenders and promptly turn it over to Agent, in the form received
(with any necessary endorsements), to be applied to the Guaranteed Debt.

      7. SUBROGATION AND CONTRIBUTION. Until payment in full of the Guaranteed
Debt, the termination of the obligation of Lenders to extend credit under the
Loan Documents, and expiration of all Hedge Agreements between any Loan Party
and any Lender, (a) no Guarantor may assert, enforce, or otherwise exercise any
right of subrogation to any of the rights or Liens of Agent or Lenders or any
other beneficiary against any Borrower or any other obligor on the Guaranteed
Debt or any Collateral or other security or any right of recourse,
reimbursement, subrogation, contribution, indemnification, or similar right
against any Borrower or any other obligor on any Guaranteed Debt or any
guarantor of it, (b) each Guarantor defers all of the foregoing rights (whether
they arise in equity, under contract, by statute, under common law, or
otherwise), and (c) each Guarantor defers the benefit of, and subordinates any
right to participate in, any Collateral or other security given to Agent or
Lenders or any other beneficiary to secure payment of any Guaranteed Debt.

      8. NO RELEASE. Guarantors' obligations under this Guaranty shall not be
released, diminished, or affected by the occurrence of any one or more of the
following events: (a) any taking or accepting of any other security or assurance
for any Guaranteed Debt; (b) any release, surrender, exchange, subordination,
impairment, or loss of any Collateral securing any Guaranteed Debt; (c) any full
or partial release of the liability of any other obligor on any Guaranteed Debt,
except for any final release resulting from payment in full of such Guaranteed
Debt; (d) the modification of, or waiver of compliance with, any terms of any
other Loan Document; (e) the insolvency, bankruptcy, or lack of corporate or
partnership power of any other obligor at any time liable for any Guaranteed
Debt, whether now existing or occurring in the future; (f) any renewal,
extension, or rearrangement of any Guaranteed Debt or any adjustment,
indulgence, forbearance, or compromise that may be granted or given by Agent or
any Lender to any other obligor on any Guaranteed Debt; (g) any neglect, delay,
omission, failure, or refusal of Agent or any Lender to take or prosecute any
action in connection with the Guaranteed Debt or to foreclose, take, or
prosecute any action in connection with any Loan Document; (h) any failure of
Agent or any Lender to notify any Guarantor of any renewal, extension, or
assignment of any Guaranteed Debt, or the release of any security or of any
other action taken or refrained from being taken by Agent or any Lender against
any Borrower or any new agreement between Agent, any Lender, and any Borrower;
it being understood that neither Agent nor any Lender is required to give any
Guarantor any notice of any kind under any circumstances whatsoever with respect
to or in connection with any Guaranteed Debt, other than any notice required to
be given to any Guarantor by law or elsewhere in this Guaranty; (i) the
unenforceability of any Guaranteed Debt against any other obligor or any
security securing same because

                                       3
                                                                       EXHIBIT C
<PAGE>
it exceeds the amount permitted by law, the act of creating it is ultra vires,
the officers creating it exceeded their authority or violated their fiduciary
duties in connection with it, or otherwise; or (j) any payment of any Guaranteed
Debt to Agent or any Lender is held to constitute a preference under any Debtor
Relief Law or for any other reason Agent or any Lender is required to refund
that payment or make payment to someone else (and in each such instance this
Guaranty will be reinstated in an amount equal to that payment).

      9. WAIVERS. By execution hereof, each Guarantor acknowledges and agrees to
the waivers set forth in SECTION 13.9 of the Credit Agreement. To the maximum
extent lawful, each Guarantor waives all rights by which it might be entitled to
require suit on an accrued right of action in respect of any Guaranteed Debt or
require suit against any Borrower or others.

      10. LOAN DOCUMENTS. By execution hereof, each Guarantor covenants and
agrees that certain representations, warranties, terms, covenants, and
conditions set forth in the Loan Documents are applicable to Guarantors and
shall be imposed upon Guarantors, and each Guarantor reaffirms that each such
representation and warranty is true and correct and covenants and agrees to
promptly and properly perform, observe, and comply with each such term,
covenant, or condition. Moreover, each Guarantor acknowledges and agrees that
this Guaranty is subject to the offset provisions of the Loan Documents in favor
of Agent and Lenders. In the event the Credit Agreement or any other Loan
Document shall cease to remain in effect for any reason whatsoever during any
period when any part of the Guaranteed Debt remains unpaid, the terms,
covenants, and agreements of the Credit Agreement or such other Loan Document
incorporated herein by reference shall nevertheless continue in full force and
effect as obligations of Guarantors under this Guaranty.

      11. RELIANCE AND DUTY TO REMAIN INFORMED. Each Guarantor confirms that it
has executed and delivered this Guaranty after reviewing the terms and
conditions of the Loan Documents and such other information as it has deemed
appropriate in order to make its own credit analysis and decision to execute and
deliver this Guaranty. Each Guarantor confirms that it has made its own
independent investigation with respect to Borrowers' creditworthiness and is not
executing and delivering this Guaranty in reliance on any representation or
warranty by Agent or any Lender as to that creditworthiness. Each Guarantor
expressly assumes all responsibilities to remain informed of the financial
condition of Borrowers and any circumstances affecting Borrowers' ability to
perform under the Loan Documents to which it is a party or any Collateral
securing any Guaranteed Debt.

      12. NO REDUCTION. The Guaranteed Debt shall not be reduced, discharged, or
released because or by reason of any existing or future offset, claim, or
defense (except for the defense of complete and final payment of the Guaranteed
Debt) of any Borrower or any other obligor against Agent or any Lender or
against payment of the Guaranteed Debt, whether that offset, claim, or defense
arises in connection with the Guaranteed Debt or otherwise. Those claims and
defenses include, without limitation, failure of consideration, breach of
warranty, fraud, bankruptcy, incapacity/infancy, statute of limitations, lender
liability, accord and satisfaction, usury, forged signatures, mistake,
impossibility, frustration of purpose, and unconscionability.

      13. INSOLVENCY OF GUARANTOR. Should any Guarantor become insolvent, or
fail to pay such Guarantor's debts generally as they become due, or voluntarily
seek, consent to, or acquiesce in, the benefit or benefits of any Debtor Relief
Law (other than as a creditor or claimant), or become a party to (or be made the
subject of) any proceeding provided for by any Debtor Relief Law (other than as
a creditor or claimant) that could suspend or otherwise adversely affect the
rights of Agent or any Lender

                                       4
                                                                       EXHIBIT C
<PAGE>
granted hereunder, then, in any such event, the Guaranteed Debt shall be, as
among such Guarantor, Agent and Lenders, a fully matured, due, and payable
obligation of such Guarantor to Agent and Lenders (without regard to whether any
Borrower is then in default under the Loan Documents or whether the Obligations,
or any part thereof, is then due and owing by any Borrower to any Lender),
payable in full by such Guarantor to Lenders upon demand, and the amount thereof
so payable shall be the estimated amount owing in respect of the contingent
claim created hereunder.

      14. LOAN DOCUMENT. This Guaranty is a Loan Document and is subject to the
applicable provisions of SECTION 13 of the Credit Agreement, including, without
limitation, the provisions relating to GOVERNING LAW, CHOICE OF FORUM, SERVICE
OF PROCESS AND JURISDICTION, AND WAIVER OF JURY TRIAL, all of which are
incorporated into this Guaranty by reference the same as if set forth in this
Guaranty verbatim.

      15. NOTICES. To be effective, notices required or permitted to be given
under this Guaranty must be in writing, shall be delivered as provided in
SECTION 13.8 of the Credit Agreement to the address or facsimile number set
forth on the signature pages to this Guaranty, and shall be effective as
provided in SECTION 13.8 of the Credit Agreement.

      16. AMENDMENTS, ETC. No amendment, waiver, or discharge to or under this
Guaranty is valid unless it is in writing and is signed by the party against
whom it is sought to be enforced.

      17. AGENT AND LENDERS. Agent is Agent for each Lender under the Credit
Agreement. All rights granted to Agent under or in connection with this Guaranty
are for each Lender's ratable benefit. Agent may, without the joinder of any
Lender, exercise any rights in Agent's or Lenders' favor under or in connection
with this Guaranty. Agent's and each Lender's rights and obligations vis-a-vis
each other may be subject to one or more separate agreements between those
parties. However, no Guarantor is required to inquire about any such agreement
or is subject to any terms of such agreement unless such Guarantor specifically
joins such agreement. Therefore, neither Guarantor nor its successors or assigns
is entitled to any benefits or provisions of any such separate agreement or is
entitled to rely upon or raise as a defense any party's failure or refusal to
comply with the provisions of such agreement.

      18. PARTIES. This Guaranty benefits Agent, Lenders, and their respective
successors and assigns and binds Guarantors and their respective successors and
assigns. Upon appointment of any successor Agent under the Credit Agreement, all
of the rights of Agent under this Guaranty automatically vest in that new Agent
as successor Agent on behalf of Lenders without any further act, deed,
conveyance, or other formality other than that appointment. The rights of Agent
and Lenders under this Guaranty may be transferred with any assignment of the
Guaranteed Debt. The Credit Agreement contains provisions governing assignments
of the Guaranteed Debt and of rights and obligations under this Guaranty.

                     REMAINDER OF PAGE INTENTIONALLY BLANK.
                          SIGNATURE PAGE(S) TO FOLLOW.

                                       5
                                                                       EXHIBIT C
<PAGE>
      EXECUTED as of the date first stated in this Guaranty.

GUARANTORS:                               NOTICE INFORMATION FOR ALL GUARANTORS:

---------------------------------         --------------------------------------

                                          --------------------------------------

                                          --------------------------------------

By:
   ---------------------------------
      Name:
           -------------------------
      Title:
            ------------------------

                      SIGNATURE PAGE TO OBLIGATION GUARANTY
<PAGE>
                                    EXHIBIT D

                               NOTICE OF BORROWING

Date: __________________, 200_

To:   BANK OF AMERICA, N.A., individually as a Lender and as agent for itself
      and the other Lenders (the "AGENT") under that certain Credit Agreement
      dated as of July 31, 2003 (such agreement, as it may be amended, restated,
      or otherwise modified from time to time, the "CREDIT AGREEMENT"), by and
      among the Agent, Westlake Chemical Corporation and certain of its domestic
      subsidiaries listed as Borrowers thereto (collectively, the "BORROWERS"),
      and the Lenders party thereto.

Ladies and Gentlemen:

      The undersigned, Westlake Chemical Corporation ("WESTLAKE"), on its behalf
and as agent for the other Borrowers refers to the Credit Agreement, the terms
defined therein being used herein as therein defined, and hereby gives you
notice irrevocably of the Borrowing specified below:

      1. The Business Day of the proposed Borrowing is ____________, 200___.

      2. The aggregate amount of the proposed Borrowing is $_____________.

      3. The Borrowing is to be comprised of $_______ of Base Rate and $_______
of LIBOR Rate Loans.

      4. The duration of the Interest Period for the LIBOR Rate Loans, if any,
included in the Borrowing shall be _____ month[s].

      5. Name of Borrower or Borrowers to receive all or any portion of the
requested Borrowing and the amount to be advanced to such Borrower or Borrowers:
_________________________

      The undersigned hereby certifies that the following statements are true on
the date hereof, and will be true on the date of the proposed Borrowing, before
and after giving effect thereto and to the application of the proceeds
therefrom:

      (a) The representations and warranties of the Loan Parties contained in
the Credit Agreement are true and correct as though made on and as of such date
and except to the extent that (a) the Agent and the Lenders have been notified
in writing by any Borrower that any representation or warranty is not correct
and the Required Lenders have explicitly waived in writing compliance with such
representation or warranty or (b) any representation or warranty has been
qualified by the updated information reflected in, and as permitted under, the
Compliance Certificate submitted by Westlake to the Agent periodically;

      (b) No Default or Event of Default has occurred and is continuing, or
would result from such proposed Borrowing;

            (c) The full amount of the Maximum Revolver Amount has been reserved
under (a) Section [4.09(b)(1)] (the basket permitting the credit facilities) of
the indenture for the Bond Debt and (b) Section 8.03(c)(i) of the Fixed Asset
Loan; and

                                       1
                                                                       EXHIBIT D
<PAGE>
      (d) The proposed Borrowing will not cause the aggregate principal amount
of all outstanding Revolving Loans plus the aggregate amount available for
drawing under all outstanding Letters of Credit, to exceed the Borrowing Base,
the Maximum Revolver Amount, or the Maximum Inventory Amount.

      IN WITNESS WHEREOF, Westlake has caused this Notice of Borrowing to be
executed and delivered on this ___ day of __________, 200_.

                                       2
                                                                       EXHIBIT D
<PAGE>
                                          WESTLAKE CHEMICAL CORPORATION, ON ITS
                                          BEHALF AND AS AGENT FOR THE OTHER
                                          BORROWERS

                                          By:
                                               ---------------------------------
                                               Name:
                                                    ----------------------------
                                               Title:
                                                     ---------------------------

                      Signature Page to Notice of Borrowing

<PAGE>
                                   EXHIBIT E

                       NOTICE OF CONTINUATION/CONVERSION

Date: __________________, 200_

To:   BANK OF AMERICA, N.A., individually as a Lender and as agent for itself
      and the other Lenders (the "AGENT") under that certain Credit Agreement
      dated as of July 31, 2003 (such agreement, as it may be amended, restated,
      or otherwise modified from time to time, the "CREDIT AGREEMENT"), by and
      among the Agent, Westlake Chemical Corporation and certain of its domestic
      subsidiaries listed as Borrowers thereto (collectively, the "BORROWERS"),
      and the Lenders party thereto.

Ladies and Gentlemen:

      The undersigned, Westlake Chemical Corporation ("WESTLAKE"), on its behalf
and as agent for the other Borrowers refers to the Credit Agreement, the terms
defined therein being used herein as therein defined, and hereby gives you
notice irrevocably of the [conversion] [continuation] of the Loans specified
herein, that:

      1.    The Continuation/Conversion Date is _______, 200_.

      2.    The aggregate amount of the Loans to be [converted] [continued] is
$________.

      3.    The Loans are to be [converted into] [continued as] [LIBOR Rate]
[Base Rate] Loans.

      4.    The duration of the Interest Period for the LIBOR Rate Loans
included in the [conversion] [continuation] shall be ____ month[s].

            The undersigned hereby certifies that the following statements are
true on the date hereof, and will be true on the proposed
Continuation/Conversion Date, before and after giving effect thereto and to the
application of the proceeds therefrom:

      (a)   The representations and warranties of the Loan Parties contained in
the Credit Agreement are true and correct as though made on and as of such date
and except to the extent that (a) the Agent and the Lenders have been notified
in writing by any Borrower that any representation or warranty is not correct
and the Required Lenders have explicitly waived in writing compliance with such
representation or warranty or (b) any representation or warranty has been
qualified by the updated information reflected in, and as permitted under, the
Compliance Certificate submitted by Westlake to the Agent periodically;

      (b)   No Default or Event of Default has occurred and is continuing, or
would result from such proposed [conversion] [continuation]; and

      (c)   The proposed conversion-continuation will not cause the aggregate
principal amount of all outstanding Revolving Loans plus the aggregate amount
available for drawing under all outstanding Letters of Credit to exceed the
Borrowing Base, the Maximum Revolver Amount, or the Maximum Inventory Amount.

      IN WITNESS WHEREOF, Westlake has caused this Notice of
Continuation/Conversion to be executed and delivered on this ___ day of
__________, 200_.

                                       1                               EXHIBIT E
<PAGE>
                                    WESTLAKE CHEMICAL CORPORATION, ON ITS
                                    BEHALF AND AS AGENT FOR THE OTHER BORROWERS

                                    By:   ______________________________________
                                          Name: ________________________________
                                          Title: _______________________________

                                       2
<PAGE>
                                   EXHIBIT F

                      ASSIGNMENT AND ACCEPTANCE AGREEMENT

            This ASSIGNMENT AND ACCEPTANCE AGREEMENT (this "ASSIGNMENT AND
ACCEPTANCE") dated as of ____________________, 200_ is made between
______________________________ (the "ASSIGNOR") and __________________________
(the "ASSIGNEE").

                                    RECITALS

            WHEREAS, the Assignor is party to that certain Credit Agreement
dated as of July 31, 2003 (as amended, amended and restated, modified,
supplemented, or renewed, the "CREDIT AGREEMENT") by and among Westlake Chemical
Corporation and certain of its domestic subsidiaries listed as Borrowers thereto
(collectively, the "BORROWERS"), the several financial institutions from time to
time party thereto (including the Assignor, the "LENDERS"), and Bank of America,
N.A., as agent for the Lenders (the "Agent"). Any terms defined in the Credit
Agreement and not defined in this Assignment and Acceptance are used herein as
defined in the Credit Agreement;

            WHEREAS, as provided under the Credit Agreement, the Assignor has
committed to make Revolving Loans (the "REVOLVING COMMITTED LOANS") to the
Borrowers in an aggregate amount not to exceed $__________ (the "REVOLVING
COMMITMENT");

            WHEREAS, the Assignor has made Revolving Committed Loans in the
aggregate principal amount of $__________ to the Borrowers;

            WHEREAS, [the Assignor has acquired a participation in its pro rata
share of the Letter of Credit Issuer's liabilities under Letters of Credit in an
aggregate principal amount of $____________ (the "L/C OBLIGATIONS")] [no Letters
of Credit are outstanding under the Credit Agreement]; and

            WHEREAS, the Assignor wishes to assign to the Assignee [part of the]
[all] rights and obligations of the Assignor under the Credit Agreement in
respect of its Revolving Commitment, together with a corresponding portion of
each of its outstanding Revolving Committed Loans and L/C Obligations, in an
aggregate amount equal to $__________ (the "ASSIGNED AMOUNT") on the terms and
subject to the conditions set forth herein and the Assignee wishes to accept
assignment of such rights and to assume such obligations from the Assignor on
such terms and subject to such conditions;

            NOW, THEREFORE, in consideration of the foregoing and the mutual
agreements contained herein, the parties hereto agree as follows:

            1.    Assignment and Acceptance.

                  (a)   Subject to the terms and conditions of this Assignment
and Acceptance, (i) the Assignor hereby sells, transfers, and assigns to the
Assignee, and (ii) the Assignee hereby purchases, assumes, and undertakes from
the Assignor, without recourse and without representation or warranty (except as
provided in this Assignment and Acceptance) __% (the "ASSIGNEE'S PERCENTAGE
SHARE") of (A) the Revolving Commitment, the Revolving Committed Loans, and the
L/C Obligations of the Assignor and (B) all related rights, benefits,
obligations, liabilities, and indemnities of the Assignor under and in
connection with the Credit Agreement and the Loan Documents.

                  (b)   With effect on and after the Effective Date (as defined
in SECTION 5

                                       1                               EXHIBIT F
<PAGE>
hereof), the Assignee shall be a party to the Credit Agreement and succeed to
all of the rights and be obligated to perform all of the obligations of a Lender
under the Credit Agreement, including the requirements concerning
confidentiality and the payment of indemnification, with a Revolving Commitment
in an amount equal to the Assigned Amount. The Assignee agrees that it will
perform in accordance with their terms all of the obligations which by the terms
of the Credit Agreement are required to be performed by it as a Lender. It is
the intent of the parties hereto that the Revolving Commitment of the Assignor
shall, as of the Effective Date, be reduced by an amount equal to the Assigned
Amount, and the Assignor shall relinquish its rights and be released from its
obligations under the Credit Agreement to the extent such obligations have been
assumed by the Assignee; provided, however, the Assignor shall not relinquish
its rights under SECTIONS 3.8, 4, and 13.11 of the Credit Agreement to the
extent such rights relate to the time prior to the Effective Date.

                  (c)   After giving effect to the assignment and assumption set
forth herein, on the Effective Date the Assignee's Revolving Commitment will be
$__________ and Revolving Committed Loans will be $__________.

                  (d)   After giving effect to the assignment and assumption set
forth herein, on the Effective Date the Assignor's Revolving Commitment will be
$__________ and Revolving Committed Loans will be $__________.

            2.    Payments.

                  (a)   As consideration for the sale, assignment, and transfer
contemplated in SECTION 1 hereof, the Assignee shall pay to the Assignor on the
Effective Date in immediately available funds an amount equal to the purchase
price agreed between the Assignor and the Assignee for the Assigned Amount.

                  (b)   The [Assignor] [Assignee] further agrees to pay to the
Agent a processing fee in the amount specified in SECTION 11.2(A) of the Credit
Agreement.

            3.    Reallocation of Payments.

                  Any interest, fees, and other payments accrued to the
Effective Date with respect to the Revolving Commitment, Revolving Committed
Loans, and L/C Obligations shall be for the account of the Assignor. Any
interest, fees, and other payments accrued on and after the Effective Date with
respect to the Assigned Amount shall be for the account of the Assignee. Each of
the Assignor and the Assignee agrees that it will hold in trust for the other
party any interest, fees, and other amounts which it may receive to which the
other party is entitled pursuant to the preceding sentence and pay to the other
party any such amounts which it may receive promptly upon receipt.

            4.    Independent Credit Decision.

                  The Assignee (a) acknowledges that it has received a copy of
the Credit Agreement and the Schedules and Exhibits thereto, together with
copies of the most recent Financial Statements of the Loan Parties, and such
other documents and information as it has deemed appropriate to make its own
credit and legal analysis and decision to enter into this Assignment and
Acceptance; and (b) agrees that it will, independently and without reliance upon
the Assignor, the 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 and legal decisions in taking or not taking action under the Credit
Agreement.

            5.    Effective Date; Notices.

                                       2                               EXHIBIT F
<PAGE>
                  (a)   As between the Assignor and the Assignee, the effective
date for this Assignment and Acceptance shall be __________, 200_ (the
"EFFECTIVE DATE"); provided that the following conditions precedent have been
satisfied on or before the Effective Date:

                  (i)   this Assignment and Acceptance shall be executed and
delivered by the Assignor and the Assignee;

                  (ii)  the consent of the Agent (if necessary) required for an
effective assignment of the Assigned Amount by the Assignor to the Assignee
shall have been duly obtained and shall be in full force and effect as of the
Effective Date;

                  (iii) the Assignee shall pay to the Assignor all amounts due
to the Assignor under this Assignment and Acceptance;

                  (iv)  the Assignee shall have complied with SECTION 11.2 of
the Credit Agreement (if applicable);

                  (v)   the processing fee referred to in SECTION 2(B) hereof
and in SECTION 11.2(A) of the Credit Agreement shall have been paid to the
Agent; and

                  (b)   Promptly following the execution of this Assignment and
Acceptance, the Assignor shall deliver to the Borrowers and the Agent for
acknowledgment by the Agent, a Notice of Assignment in the form attached hereto
as SCHEDULE 1.

            6.    Agent.

                  (a)   The Assignee hereby appoints and authorizes the Agent to
take such action as agent on its behalf and to exercise such powers under the
Credit Agreement as are delegated to the Agent by the Lenders pursuant to the
terms of the Credit Agreement.

                  [INCLUDE (b) ONLY IF ASSIGNOR IS AGENT]

                  (b)   The Assignee shall assume no duties or obligations held
by the Assignor in its capacity as Agent under the Credit Agreement.]

            7.    Withholding Tax.

                  The Assignee (a) represents and warrants to the Agent and the
Borrowers that under applicable law and treaties no tax will be required to be
withheld by the Agent or the Borrowers with respect to any payments to be made
to the Assignee hereunder, (b) agrees to furnish (if it is organized under the
laws of any jurisdiction other than the United States or any State thereof) to
the Agent and the Borrowers prior to the time that the Agent or the Borrowers is
required to make any payment of principal, interest, or fees in respect of the
interest assigned hereunder, duplicate executed originals of either U.S.
Internal Revenue Service Form W-8ECI or U.S. Internal Revenue Service Form
W-8BEN (wherein the Assignee claims entitlement to the benefits of a tax treaty
that provides for a complete exemption from U.S. federal income withholding tax
on all payments hereunder) and agrees to provide new Forms W-8ECI or W-8BEN upon
the expiration of any previously delivered form or comparable statements in
accordance with applicable U.S. law and regulations and amendments thereto, duly
executed and completed by the Assignee, and (c) agrees to comply with all
applicable U.S. laws and regulations with regard to such withholding tax
exemption.

                                       3                               EXHIBIT F
<PAGE>
            8.    Representations and Warranties.

                  (a)   The Assignor represents and warrants that (i) it is the
legal and beneficial owner of the interest being assigned by it hereunder and
that such interest is free and clear of any Lien or other adverse claim; (ii) it
is duly organized and existing and it has the full power and authority to take,
and has taken, all action necessary to execute and deliver this Assignment and
Acceptance and any other documents required or permitted to be executed or
delivered by it in connection with this Assignment and Acceptance and to fulfill
its obligations hereunder; (iii) no notices to, or consents, authorizations, or
approvals of, any Person are required (other than any already given or obtained)
for its due execution, delivery, and performance of this Assignment and
Acceptance, and apart from any agreements or undertakings or filings required by
the Credit Agreement, no further action by, or notice to, or filing with, any
Person is required of it for such execution, delivery, or performance; and (iv)
this Assignment and Acceptance has been duly executed and delivered by it and
constitutes the legal, valid, and binding obligation of the Assignor,
enforceable against the Assignor in accordance with the terms hereof, subject,
as to enforcement, to bankruptcy, insolvency, moratorium, reorganization, and
other laws of general application relating to or affecting creditors' rights and
to general equitable principles.

                  (b)   The Assignor makes no representation or warranty and
assumes no responsibility with respect to any statements, warranties, or
representations made in or in connection with the Credit Agreement or the
execution, legality, validity, enforceability, genuineness, sufficiency, or
value of the Credit Agreement or any other instrument or document furnished
pursuant thereto. The Assignor makes no representation or warranty in connection
with, and assumes no responsibility with respect to, the solvency, financial
condition, or statements of the Companies, or the performance or observance by
any Loan Party of any of its respective obligations under the Credit Agreement
or any other instrument or document furnished in connection therewith.

                  (c)   The Assignee represents and warrants that (i) it is duly
organized and existing and it has full power and authority to take, and has
taken, all action necessary to execute and deliver this Assignment and
Acceptance and any other documents required or permitted to be executed or
delivered by it in connection with this Assignment and Acceptance, and to
fulfill its obligations hereunder; (ii) no notices to, or consents,
authorizations, or approvals of, any Person are required (other than any already
given or obtained) for its due execution, delivery, and performance of this
Assignment and Acceptance; and apart from any agreements or undertakings or
filings required by the Credit Agreement, no further action by, or notice to, or
filing with, any Person is required of it for such execution, delivery, or
performance; (iii) this Assignment and Acceptance has been duly executed and
delivered by it and constitutes the legal, valid, and binding obligation of the
Assignee, enforceable against the Assignee in accordance with the terms hereof,
subject, as to enforcement, to bankruptcy, insolvency, moratorium,
reorganization, and other laws of general application relating to or affecting
creditors' rights and to general equitable principles; and (iv) it is an
Eligible Assignee.

            9.    Further Assurances.

                  The Assignor and the Assignee each hereby agree to execute and
deliver such other instruments, and take such other action, as either party may
reasonably request in connection with the transactions contemplated by this
Assignment and Acceptance, including the delivery of any notices or other
documents or instruments to the Borrowers or the Agent, which may be required in
connection with the assignment and assumption contemplated hereby.

            10.   Miscellaneous.

                  (a)   Any amendment or waiver of any provision of this
Assignment and

                                       4                               EXHIBIT F
<PAGE>
Acceptance shall be in writing and signed by the parties hereto. No failure or
delay by either party hereto in exercising any right, power, or privilege
hereunder shall operate as a waiver thereof and any waiver of any breach of the
provisions of this Assignment and Acceptance shall be without prejudice to any
rights with respect to any other or further breach thereof.

                  (b)   All payments made hereunder shall be made without any
set-off or counterclaim.

                  (c)   The Assignor and the Assignee shall each pay its own
costs and expenses incurred in connection with the negotiation, preparation,
execution, and performance of this Assignment and Acceptance.

                  (d)   This Assignment and Acceptance may be executed in any
number of counterparts and all of such counterparts taken together shall be
deemed to constitute one and the same instrument.

                  (e)   THIS ASSIGNMENT AND ACCEPTANCE SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF [TEXAS]. The Assignor and
the Assignee each irrevocably submits to the non-exclusive jurisdiction of any
State or Federal court sitting in Texas over any suit, action, or proceeding
arising out of or relating to this Assignment and Acceptance and irrevocably
agrees that all claims in respect of such action or proceeding may be heard and
determined in such Texas State or Federal court. Each party to this Assignment
and Acceptance hereby irrevocably waives, to the fullest extent it may
effectively do so, the defense of an inconvenient forum to the maintenance of
such action or proceeding.

                  (f)   THE ASSIGNOR AND THE ASSIGNEE EACH HEREBY KNOWINGLY,
VOLUNTARILY, AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY
IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN
CONNECTION WITH THIS ASSIGNMENT AND ACCEPTANCE, THE CREDIT AGREEMENT, ANY
RELATED DOCUMENTS AND AGREEMENTS, OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
OR STATEMENTS (WHETHER ORAL OR WRITTEN).

                  IN WITNESS WHEREOF, the Assignor and the Assignee have caused
this Assignment and Acceptance to be executed and delivered by their duly
authorized officers as of the date first above written.

                                       5                               EXHIBIT F
<PAGE>
                                                      [ASSIGNOR]

                                       By:______________________________________
                                       Title:___________________________________
                                       Address:_________________________________

                                                      [ASSIGNEE]

                                       By:______________________________________
                                       Title:___________________________________
                                       Address:_________________________________

                                       6                               EXHIBIT F
<PAGE>
                                   SCHEDULE 1
                                       TO
                           ASSIGNMENT AND ACCEPTANCE

                      NOTICE OF ASSIGNMENT AND ACCEPTANCE

_________________, 200_

Bank of America, N.A, as Agent (as hereinafter defined)
55 S. Lake Avenue, Suite 900
Pasadena, CA  91101
Attn:  Robert Mostert

Re: Westlake Chemical Corporation et al.

Ladies and Gentlemen:

      We refer to the Credit Agreement dated as of July 31, 2003 (such
agreement, as it may be amended, restated, or otherwise modified from time to
time, the "CREDIT AGREEMENT") by and among Westlake Chemical Corporation and
certain of its domestic subsidiaries listed as Borrowers thereto (collectively,
the "BORROWERS"), the Lenders referred to therein, and Bank of America, N.A., as
agent for the Lenders (the "AGENT"). Terms defined in the Credit Agreement are
used herein as therein defined.

      1.    We hereby give the Agent notice of, and request the Agent's consent
to, the assignment by __________________ (the "ASSIGNOR") to _______________
(the "ASSIGNEE") of _____% of the right, title, and interest of the Assignor in
and to the Credit Agreement (including the right, title, and interest of the
Assignor in and to the Revolving Commitment of the Assignor to make Revolving
Loans, all outstanding Revolving Loans made by the Assignor, and the Assignor's
participation in the Letters of Credit pursuant to the Assignment and Acceptance
Agreement attached hereto (the "ASSIGNMENT AND ACCEPTANCE"). We understand and
agree that the Assignor's Revolving Commitment to make Revolving Loans, as of ,
200 , is $ ___________, the aggregate amount of its outstanding Revolving Loans
is $_____________, and its participation in Letters of Credit is $_____________.

      2.    The Assignee agrees that, upon receiving the consent of the Agent to
such assignment, the Assignee will be bound by the terms of the Credit Agreement
as fully and to the same extent as if the Assignee were the Lender originally
holding such interest in the Credit Agreement.

      3.    The following administrative details apply to the Assignee:

            (A)   Notice Address: ____________________

                  Assignee name: _____________________

                  Address: ___________________________

                  Attention: _________________________

                  Telephone:  (___) __________________

                  Telecopier:  (___) _________________

                                         SCHEDULE I TO ASSIGNMENT AND ACCEPTANCE
<PAGE>
                  Telex (Answerback): ___

            (B)   Payment Instructions:

                  Account No.:        ______________________
                  At:                 ______________________
                                      ______________________
                                      ______________________
                  Reference:          ______________________
                  Attention:          ______________________

            4.    The Agent is entitled to rely upon the representations,
warranties, and covenants of each of the Assignor and Assignee contained in the
Assignment and Acceptance.

      IN WITNESS WHEREOF, the Assignor and the Assignee have caused this Notice
of Assignment and Acceptance to be executed by their respective duly authorized
officials, officers, or agents as of the date first above mentioned.

            Very truly yours,

            [NAME OF ASSIGNOR]

            By:     __________________________

            Title:  __________________________

            [NAME OF ASSIGNEE]

            By:     __________________________

            Title:  __________________________

ACKNOWLEDGED AND ASSIGNMENT
CONSENTED TO:

Bank of America, N.A.,
as Agent

By:     _________________________
Title:  _________________________

                                       2
<PAGE>
                                   EXHIBIT G

                         FORM OF COMPLIANCE CERTIFICATE

                     (Westlake Chemical Corporation et al.)

                   FOR ________ENDED ________________, ______

                         DATE: _________________, _____

AGENT:    Bank of America, N.A.

BORROWER: Westlake Chemical Corporation and certain of its domestic subsidiaries

      This certificate is delivered under the Credit Agreement, dated as of July
31, 2003 (as amended, modified, supplemented, or restated from time to time, the
"CREDIT AGREEMENT"), among Agent, Westlake Chemical Corporation and certain of
its domestic subsidiaries listed as Borrowers thereto (collectively, the
"BORROWERS"), and the Lenders party thereto. Capitalized terms used herein and
not otherwise defined herein shall have the meaning given to such terms in the
Credit Agreement.

      I certify to Agent and Lenders on behalf of the Loan Parties that:

      (a)   I am a Responsible Officer of the Loan Parties in the position(s)
set forth under my signature below;

      (b)   the Financial Statements of the Loan Parties attached to this
certificate were prepared in accordance with GAAP, and present fairly in all
material respects the consolidated, and, with respect to annual or quarterly
Financial Statements, consolidating, financial condition and results of
operations of Westlake and its Subsidiaries as of, and for the (______ months,
or fiscal year) ended on, ____________, _____(the "SUBJECT PERIOD") [(subject
only to normal year-end audit adjustments)];

      (c)   a review of the activities of the Loan Parties during the Subject
Period has been made under my supervision with a view to determining whether,
during the Subject Period, the Loan Parties have kept, observed, performed, and
fulfilled all of their respective obligations under the Loan Documents, and
during the Subject Period, (i) all of the representations and warranties of the
Loan Parties contained in the Credit Agreement and the other Loan Documents are
correct and complete in all material respects as at the date pf this
certificate, except for those that speak as of a particular date, (ii) each of
the Loan Parties is, as of the date of this certificate, in compliance in all
material respects with all of its respective covenants and agreements in the
Credit Agreement and the other Loan Documents (except for the deviations, if
any, set forth on ANNEX A to this certificate), and (iii) no Event of Default
(nor any Default) exists as of the date of this certificate or existed during
the Subject Period and at the end of such period, which has not been cured or
waived (except the Defaults or Events of Defaults, if any, described on ANNEX A
to this Certificate);

      (d)   ANNEX B to this certificate sets forth in reasonable detail the
calculation of the Fixed Charge Coverage Ratio at the end of the Subject Period
(for the immediately preceding twelve (12) month period);

      (e)   to the extent any Equity Issuance or Collateral disposition occurred
during the Subject

                                                                       EXHIBIT G
<PAGE>
Period, all mandatory prepayments reductions required pursuant to SECTION 3.3
have been made;

      (f)   attached hereto as ANNEX C, is a true and correct copy of a schedule
indicating the outstanding principal amount of the Debt permitted by SECTION
7.13(K) of the Credit Agreement at the end of the Subject Period; and

      (g)   during the Subject Period, any revisions to SCHEDULES 6.3, 6.5,
6.12, and 6.13 to the Credit Agreement or any Schedule or Annex to each
Collateral Document that was required to be revised and supplied to Agent in
accordance with the terms of the Loan Documents has been so revised and
supplied.

                                 WESTLAKE CHEMICAL CORPORATION, ON ITS
                                 BEHALF AND AS AGENT FOR THE OTHER LOAN PARTIES

                                 By:     _______________________________________
                                         Name:  ________________________________
                                         Title: ________________________________

                                                                       EXHIBIT G

                                       2
<PAGE>
                       ANNEX A TO COMPLIANCE CERTIFICATE

                        DEVIATIONS FROM LOAN DOCUMENTS/
                         EVENTS OF DEFAULTS OR DEFAULTS

                              (If none, so state.)

                                               ANNEX A TO COMPLIANCE CERTIFICATE
<PAGE>
                       ANNEX B TO COMPLIANCE CERTIFICATE

                    FIXED CHARGE COVERAGE RATIO CALCULATION

                 [Form to be Agreed to by Agent and Borrowers]

                                               ANNEX B TO COMPLIANCE CERTIFICATE<PAGE>
                                                                    EXHIBIT 10.2

                                                                  CONFORMED COPY

================================================================================
                                                                  EXECUTION COPY

                                CREDIT AGREEMENT

                            Dated as of July 31, 2003

                                      among

                         WESTLAKE CHEMICAL CORPORATION,
                                as the Borrower,

                      CERTAIN SUBSIDIARIES OF THE BORROWER
                         FROM TIME TO TIME PARTY HERETO,
                                 as Guarantors,

                             BANK OF AMERICA, N.A.,
                            as Administrative Agent,

                                       and

                            THE LENDERS PARTY HERETO

                         BANC OF AMERICA SECURITIES LLC,
                                       as
                     Joint Lead Arranger and Co-Book Manager

                           CREDIT SUISSE FIRST BOSTON,
                                       as
                     Joint Lead Arranger and Co-Book Manager

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TABLE OF CONTENTS

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Section                                                                                                         Page
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THE LENDERS PARTY HERETO..........................................................................................i
ARTICLE I DEFINITIONS AND ACCOUNTING TERMS........................................................................1
         1.01     Defined Terms...................................................................................1
         1.02     Other Interpretive Provisions..................................................................24
         1.03     Accounting Terms...............................................................................24
         1.04     Rounding.......................................................................................25
         1.05     References to Agreements and Laws..............................................................25
         1.06     Times of Day...................................................................................25
ARTICLE II THE COMMITMENTS AND BORROWINGS........................................................................25
         2.01     Loans..........................................................................................25
         2.02     Borrowings, Conversions and Continuations of Loans.............................................27
         2.03     [Intentionally Omitted]........................................................................28
         2.04     Prepayments....................................................................................28
         2.05     [Intentionally Omitted]........................................................................30
         2.06     Repayment of Loans.............................................................................30
         2.07     Interest.......................................................................................31
         2.08     Fees...........................................................................................32
         2.09     Computation of Interest and Fees...............................................................32
         2.10     Evidence of Debt...............................................................................32
         2.11     Payments Generally.............................................................................32
         2.12     Sharing of Payments............................................................................34
ARTICLE III TAXES, YIELD PROTECTION AND ILLEGALITY...............................................................34
         3.01     Taxes..........................................................................................34
         3.02     Illegality.....................................................................................35
         3.03     Inability to Determine Rates...................................................................36
         3.04     Increased Cost and Reduced Return; Capital Adequacy; Reserves on Eurodollar Rate Loans.........36
         3.05     Funding Losses.................................................................................37
         3.06     Matters Applicable to all Requests for Compensation............................................37
         3.07     Survival.......................................................................................37
ARTICLE IV GUARANTY..............................................................................................38
         4.01     The Guaranty...................................................................................38
         4.02     Obligations Unconditional......................................................................38
         4.03     Reinstatement..................................................................................39
         4.04     Certain Additional Waivers.....................................................................39
         4.05     Remedies.......................................................................................39
         4.06     Rights of Contribution.........................................................................39
         4.07     Guarantee of Payment; Continuing Guarantee.....................................................40
ARTICLE V CONDITIONS PRECEDENT TO BORROWINGS.....................................................................40
         5.01     Conditions of Closing Date and Initial Borrowing...............................................40
         5.02     Conditions to all Borrowings...................................................................44
ARTICLE VI REPRESENTATIONS AND WARRANTIES........................................................................45
         6.01     Existence, Qualification and Power; Compliance with Laws.......................................45
         6.02     Authorization; No Contravention................................................................45
         6.03     Governmental Authorization; Other Consents.....................................................45
         6.04     Binding Effect.................................................................................46
         6.05     Financial Statements; No Material Adverse Effect...............................................46
         6.06     Litigation.....................................................................................46
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         6.07     No Default.....................................................................................47
         6.08     Ownership of Property; Liens...................................................................47
         6.09     Environmental Compliance.......................................................................47
         6.10     Insurance......................................................................................48
         6.11     Taxes..........................................................................................48
         6.12     ERISA Compliance...............................................................................48
         6.13     Subsidiaries...................................................................................49
         6.14     Margin Regulations; Investment Company Act; Public Utility Holding Company Act.................49
         6.15     Disclosure.....................................................................................49
         6.16     Compliance with Laws...........................................................................49
         6.17     Intellectual Property..........................................................................50
         6.18     Solvency.......................................................................................50
         6.19     Tax Shelter Regulations........................................................................50
         6.20     Business Locations.............................................................................50
         6.21     Labor Matters..................................................................................50
         6.22     Nature of Business.............................................................................50
         6.23     Representations and Warranties from Other Loan Documents.......................................51
         6.24     Collateral Documents...........................................................................51
ARTICLE VII AFFIRMATIVE COVENANTS................................................................................51
         7.01     Financial Statements...........................................................................51
         7.02     Certificates; Other Information................................................................52
         7.03     Notices and Information........................................................................53
         7.04     Payment of Obligations.........................................................................54
         7.05     Preservation of Existence, Etc.................................................................54
         7.06     Maintenance of Properties......................................................................54
         7.07     Maintenance of Insurance.......................................................................54
         7.08     Compliance with Laws...........................................................................55
         7.09     Books and Records..............................................................................55
         7.10     Inspection Rights..............................................................................55
         7.11     Use of Proceeds................................................................................55
         7.12     Additional Guarantors..........................................................................56
         7.13     Pledged Assets.................................................................................56
         7.14     Further Assurances.............................................................................56
ARTICLE VIII NEGATIVE COVENANTS..................................................................................57
         8.01     Asset Sales....................................................................................57
         8.02     Restricted Payments............................................................................58
         8.03     Incurrence of Indebtedness and Issuance of Preferred Stock.....................................60
         8.04     Liens..........................................................................................62
         8.05     Dividend and Other Payment Restrictions Affecting Subsidiaries.................................62
         8.06     Merger, Consolidation or Sale of Assets........................................................63
         8.07     Transactions with Affiliates...................................................................63
         8.08     Sale and Leaseback Transactions................................................................65
         8.09     Anti-Layering..................................................................................65
         8.10     Organization Documents; Fiscal Year............................................................65
         8.11     Specified Facilities...........................................................................65
         8.12     Accounts Receivable Facilities.................................................................65
         8.13     Designation of Restricted and Unrestricted Subsidiaries........................................66
         8.14     Collateral Account.............................................................................66
ARTICLE IX EVENTS OF DEFAULT AND REMEDIES........................................................................66
         9.01     Events of Default..............................................................................66
         9.02     Remedies Upon Event of Default.................................................................68
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                                       ii

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<S>                                                                                                             <C>
         9.03     Application of Funds...........................................................................68
ARTICLE X ADMINISTRATIVE AGENT...................................................................................69
         10.01    Appointment and Authorization of Administrative Agent..........................................69
         10.02    Delegation of Duties...........................................................................69
         10.03    Liability of Administrative Agent..............................................................69
         10.04    Reliance by Administrative Agent...............................................................70
         10.05    Notice of Default..............................................................................70
         10.06    Credit Decision; Disclosure of Information by Administrative Agent.............................70
         10.07    Indemnification of Administrative Agent........................................................71
         10.08    Administrative Agent in its Individual Capacity................................................71
         10.09    Successor Administrative Agent.................................................................72
         10.10    Administrative Agent May File Proofs of Claim..................................................72
         10.11    Collateral and Guaranty Matters................................................................73
         10.12    Other Agents; Arrangers and Managers...........................................................73
         10.13    Intercreditor Agreement........................................................................73
ARTICLE XI MISCELLANEOUS.........................................................................................74
         11.01    Amendments, Etc................................................................................74
         11.02    Notices and Other Communications; Facsimile Copies.............................................75
         11.03    No Waiver; Cumulative Remedies.................................................................76
         11.04    Attorney Costs, Expenses and Taxes.............................................................76
         11.05    Indemnification by the Borrower................................................................76
         11.06    Payments Set Aside.............................................................................77
         11.07    Successors and Assigns.........................................................................77
         11.08    Confidentiality................................................................................80
         11.09    Set-off........................................................................................80
         11.10    Interest Rate Limitation.......................................................................81
         11.11    Counterparts...................................................................................81
         11.12    Integration....................................................................................81
         11.13    Survival of Representations and Warranties.....................................................81
         11.14    Severability...................................................................................82
         11.15    Tax Forms......................................................................................82
         11.16    Replacement of Lenders.........................................................................83
         11.17    Governing Law..................................................................................83
         11.18    Waiver of Right to Trial by Jury...............................................................84
         11.19    Entire Agreement...............................................................................84
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                                       iii

<PAGE>

SCHEDULES

         1.01(a)    Existing Indebtedness
         1.01(b)    Existing Liens
         2.01       Commitments and Pro Rata Shares
         6.03       Required Consents, Authorizations, Notices and Filings
         6.10       Insurance
         6.13       Subsidiaries
         6.17       Intellectual Property Matters
         6.20(a)    Real Properties
         6.20(b)    Collateral Locations
         6.20(c)    Chief Executive Office, Jurisdiction of Incorporation,
                    Principal Place of Business
         6.21       Labor Agreements
         11.02      Administrative Agent's Office, Certain Addresses for Notices

EXHIBITS

         1.01       Form of Security Agreement
         2.01       Form of New Commitment Agreement
         2.02       Form of Loan Notice
         7.01       Form of Excess Cash Flow Calculation Certificate
         7.12       Form of Joinder Agreement
         11.07      Form of Assignment and Assumption

                                       iv

<PAGE>

                                CREDIT AGREEMENT

         This CREDIT AGREEMENT (as amended, modified, restated or supplemented
from time to time, the "Agreement") is entered into as of July 31, 2003 by and
among WESTLAKE CHEMICAL CORPORATION, a Delaware corporation (together with any
permitted successors and assigns, the "Borrower"), the Guarantors (as defined
herein), the Lenders (as defined herein), and BANK OF AMERICA, N.A., as
Administrative Agent (as defined herein).

         The Borrower has requested that the Lenders provide a term loan in an
aggregate amount of $120,000,000 for the purposes hereinafter set forth, and the
Lenders are willing to do so on the terms and conditions set forth herein.

         In consideration of the mutual covenants and agreements herein
contained, the parties hereto covenant and agree as follows:

                                    ARTICLE I
                        DEFINITIONS AND ACCOUNTING TERMS

1.01 DEFINED TERMS.

         As used in this Agreement, the following terms shall have the meanings
set forth below:

         "Accounts Receivable Subsidiary" means any Wholly-Owned Subsidiary of
the Borrower (i) which is formed solely for the purpose of, and which engages in
no substantial activities other than activities in connection with, financing
accounts receivable of the Borrower and/or its Restricted Subsidiaries, (ii)
which is designated by the Borrower as an Accounts Receivables Subsidiary
pursuant to an officers' certificate delivered to the Administrative Agent,
(iii) no portion of Indebtedness or any other obligation (contingent or
otherwise) of which is at any time recourse to or obligates the Borrower or any
Restricted Subsidiary in any way, or subjects any property or asset of the
Borrower or any Restricted Subsidiary, directly or indirectly, contingently or
otherwise, to the satisfaction thereof, other than pursuant to (1)
representations, warranties and covenants (or, any indemnity with respect to
such representations, warranties and covenants) entered into in the ordinary
course of business in connection with the sale (including a sale in exchange for
a promissory note of or Equity Interest in such Accounts Receivable Subsidiary)
of accounts receivable to such Accounts Receivable Subsidiary or (2) any
guarantee of any such accounts receivable financing by the Borrower or any
Restricted Subsidiary that is permitted to be incurred pursuant to Sections 8.02
and 8.03, (iv) with which neither the Borrower nor any Restricted Subsidiary has
any contract, agreement, arrangement or understanding other than contracts,
agreements, arrangements and understandings entered into in the ordinary course
of business in connection with the sale (including a sale in exchange for a
promissory note of or Equity Interest in such Accounts Receivable Subsidiary) of
accounts receivable in accordance with Section 8.12 and fees payable in the
ordinary course of business in connection with servicing accounts receivable and
(v) with respect to which neither the Borrower nor any Restricted Subsidiary has
any obligation (a) to subscribe for additional Equity Interests therein or make
any additional capital contribution or similar payment or transfer thereto other
than in connection with the sale (including a sale in exchange for a promissory
note of or Equity Interest in such Accounts Receivable Subsidiary) of accounts
receivable to such Accounts Receivable Subsidiary in accordance with Section
8.12 or (b) to maintain or preserve the solvency, any balance sheet term,
financial condition, level of income or results of operations thereof.

         "Acquired Debt" means, with respect to any specified Person, (a)
Indebtedness of any other Person existing at the time such other Person is
merged with or into or became a Restricted Subsidiary of

<PAGE>

such specified Person, whether or not such Indebtedness is incurred in
connection with, or in contemplation of, such other Person merging with or into,
or becoming a Restricted Subsidiary of, such specified Person and (b)
Indebtedness secured by a Lien that, at the time of acquisition of an asset by
such specified Person, encumbers such asset.

         "Additional Commitment" means, with respect to any Lender which
executes a New Commitment Agreement in accordance with Section 2.01(b), the
commitment of such Lender in an aggregate principal amount up to the amount
specified in such New Commitment Agreement to make Tranche B Term Loans in
accordance with the provisions of Section 2.01.

         "Administrative Agent" means Bank of America in its capacity as
administrative agent under any of the Loan Documents, or any successor
administrative agent.

         "Administrative Agent's Office" means the Administrative Agent's
address and, as appropriate, account as set forth on Schedule 11.02, or such
other address or account as the Administrative Agent may from time to time
notify the Borrower and the Lenders.

         "Administrative Questionnaire" means an Administrative Questionnaire in
a form supplied by the Administrative Agent.

         "Affiliate" means, with respect to any Person, another Person that
directly, or indirectly through one or more intermediaries, Controls or is
Controlled by or is under common Control with the Person specified. "Control"
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a Person, whether through the
ability to exercise voting power, by contract or otherwise. "Controlling" and
"Controlled" have meanings correlative thereto.

         "Agent-Related Persons" means the Administrative Agent, together with
its Affiliates (including, in the case of Bank of America in its capacity as the
Administrative Agent, BAS), and the officers, directors, employees, agents and
attorneys-in-fact of such Persons and Affiliates.

         "Agreement" has the meaning assigned to such term in the heading
hereof.

         "Applicable Rate" means, (a) with respect to Base Rate Loans, 2.75% and
(b) with respect to Eurodollar Loans, 3.75%.

         "Asset-Based Facility" means the senior secured revolving credit
agreement dated as of the Closing Date among the Borrower, the guarantors named
therein, Bank of America, N.A., Banc of America LLC and the lenders named
therein providing for a revolving credit facility with availability of up to
$200,000,000, subject to borrowing base limitations, as amended, restated,
modified, renewed, refunded, replaced or refinanced in whole or in part from
time to time.

         "Asset Sale" means (a) the sale, lease, conveyance or other disposition
(other than the creation of a Lien) of any assets or rights; provided that the
sale, conveyance or other disposition of all or substantially all of the assets
of the Borrower and its Restricted Subsidiaries taken as a whole will also be
subject to Section 8.06 and Section 9.01(m) and not by the provisions of Section
8.01; and (b) the issuance of Equity Interests in any Restricted Subsidiary or
the sale by any Consolidated Party of Equity Interests in any of its
Subsidiaries or Joint Ventures. Notwithstanding the preceding sentence, none of
the following items will be deemed to be an Asset Sale: (i) any single
transaction or series of related transactions (to the extent not involving
Collateral) for which the Borrower or its Restricted Subsidiaries receive
aggregate consideration of less than $15,000,000; (ii) a transfer of assets
between or among the Loan Parties; (iii) a transfer of assets between or among
Consolidated Parties that are not Loan Parties;

                                       2

<PAGE>

(iv) an issuance of Equity Interests by a Restricted Subsidiary to another
Consolidated Party; (v) the sale or lease of products, services, accounts
receivable, rolling stock, barges, pipeline capacity or chemical products in the
ordinary course of business; (vi) except to the extent such transaction (or
series or related transactions) involves Collateral having a net book value of
more than $5,000,000, any sale or other disposition of damaged, worn-out or
obsolete assets in the ordinary course of business; (vii) a sale (including a
sale in exchange for a promissory note of or Equity Interest in such Accounts
Receivable Subsidiary) of accounts receivable and/or related assets to an
Accounts Receivable Subsidiary in connection with any Receivables Facility;
(viii) the sale or other disposition of cash or Cash Equivalents; or (ix) a
Restricted Payment that does not involve the sale, lease, conveyance or other
disposition of Collateral and does not violate Section 8.02.

         "Assignment and Assumption" means an Assignment and Assumption
substantially in the form of Exhibit 11.07, and shall include, in the case of
the initial assignments of portions of Tranche B Term Loan B by the sole initial
Lender, one or more master assignments and assumption agreements to effect
assignments to multiple assignees substantially on the terms of the form of
Assignment and Assumption set forth in Exhibit 11.07.

         "Attorney Costs" means and includes all fees, expenses and
disbursements of any law firm or other external counsel and, without
duplication, the allocated cost of internal legal services and all expenses and
disbursements of internal counsel.

         "Attributable Debt" in respect of a sale and leaseback transaction
means, at the time of determination, the present value of the obligation of the
lessee for net rental payments during the remaining term of the lease included
in such sale and leaseback transaction including any period for which such lease
has been extended on may, at the option of the lessor, be extended. Such present
value shall be calculated using a discount rate equal to the rate of interest
implied in such transaction, determined in accordance with GAAP; provided,
however, that if such sale and leaseback transaction results in a Capital Lease
Obligation, the amount of Indebtedness represented thereby will be determined in
accordance with the definition of "Capital Lease Obligation".

         "Audited Financial Statements" means the audited consolidated and
consolidating balance sheet of the Borrower and its Restricted Subsidiaries for
the fiscal year ended December 31, 2002, and the related consolidated and
consolidating statements of income or operations, shareholders' equity and cash
flows for such fiscal year of the Borrower and its Restricted Subsidiaries,
including the notes thereto.

         "Bank of America" means Bank of America, N.A. and its successors.

         "Bankruptcy Code" means the Bankruptcy Code in Title 11 of the United
States Code, as amended, modified, succeeded or replaced from time to time.

         "BAS" means Banc of America Securities LLC.

         "Base Rate" means for any day a fluctuating rate per annum equal to the
higher of (a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest
in effect for such day as publicly announced from time to time by Bank of
America as its "prime rate." The "prime rate" is a rate set by Bank of America
based upon various factors including Bank of America's costs and desired return,
general economic conditions and other factors, and is used as a reference point
for pricing some loans, which may be priced at, above, or below such announced
rate. Any change in such rate announced by Bank of America shall take effect at
the opening of business on the day specified in the public announcement of such
change.

         "Base Rate Loan" means a Loan that bears interest based on the Base
Rate.

                                       3
<PAGE>

         "Beneficial Owner" has the meaning assigned to such term in Rule 13d-3
and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial
ownership of any particular "person" (as that term is used in Section 13(d)(3)
of the Exchange Act), such "person" will be deemed to have beneficial ownership
of all securities that such "person" has the right to acquire by conversion or
exercise of other securities, whether such right is currently exercisable or is
exercisable only after the passage of time. The terms "Beneficially Owns" and
"Beneficially Owned" have a corresponding meaning.

         "Borrower" has the meaning specified in the heading hereof.

         "Borrowing" means a borrowing consisting of simultaneous Loans of the
same Type and, in the case of Eurodollar Rate Loans, having the same Interest
Period made by each of the Lenders pursuant to Section 2.01.

         "Business Day" means any day other than a Saturday, Sunday or other day
on which commercial banks are authorized to close under the Laws of, or are in
fact closed in, the state where the Administrative Agent's Office is located
and, if such day relates to any Eurodollar Rate Loan, means any such day on
which dealings in Dollar deposits are conducted by and between banks in the
London interbank eurodollar market.

         "Businesses" means, at any time, a collective reference to the
businesses operated by the Consolidated Parties at such time.

         "Capital Lease Obligations" means, at the time any determination is to
be made, the amount of the liability in respect of a capital lease that would at
that time be required to be capitalized on a balance sheet in accordance with
GAAP, and the Stated Maturity thereof shall be the date of the last payment of
rent or any other amount due under such lease prior to the first date upon which
such lease may be prepaid by the lessee without payment of a penalty.

         "Capital Stock" means (i) in the case of a corporation, capital stock,
(ii) in the case of an association or business entity, any and all shares,
interests, participations, rights or other equivalents (however designated) of
capital stock, (iii) in the case of a partnership, partnership interests
(whether general or limited), (iv) in the case of a limited liability company,
membership interests and (v) any other interest or participation that confers on
a Person the right to receive a share of the profits and losses of, or
distributions of assets of, the issuing Person.

         "Cash Equivalents" means (a) Dollars; (b) securities issued or directly
and fully guaranteed or insured by the United States government or any agency or
instrumentality of the United States government (provided that the full faith
and credit of the United States is pledged in support of those securities)
having maturities of not more than one-year from the date of acquisition; (c)
certificates of deposit and eurodollar time deposits with maturities of one year
or less from the date of acquisition, bankers' acceptances with maturities not
exceeding one year and overnight bank deposits, in each case, with any domestic
commercial bank having capital and surplus in excess of $500,000,000 and a
Thomson Bank Watch Rating of "B" or better; (d) repurchase obligations with a
term of not more than seven days for underlying securities of the types
described in clauses (b) and (c) above entered into with any financial
institution meeting the qualifications specified in clause (c) above; (e)
commercial paper having one of the two highest ratings obtainable from Moody's
or S&P and in each case maturing within nine months after the date of
acquisition; and (f) investments in any Dollar denominated money market fund as
defined by Rule 2a-7 under the Investment Company Act of 1940.

         "Casualty Proceeds" shall have the meaning assigned to such term in
Section 7.07(b).

                                       4
<PAGE>

         "Change of Control" means the occurrence of any of the following: (a)
the direct or indirect sale, transfer, conveyance or other disposition (other
than by way of merger or consolidation), in one or a series of related
transactions, of all or substantially all of the properties or assets of the
Borrower and its Restricted Subsidiaries taken as a whole to any "person" (as
that term is used in Section 13(d) of the Exchange Act) other than a Principal
or a Related Party of a Principal; (b) the adoption of a plan relating to the
liquidation or dissolution of the Borrower; (c) the consummation of any
transaction (including, without limitation, any merger or consolidation) the
result of which is that any "person" (as defined above), other than the
Principals and their Related Parties or a Permitted Group, becomes the
Beneficial Owner, directly or indirectly, of more than 50% of the Voting Stock
of the Borrower, measured by voting power rather than number of shares, other
than in any transaction that complies with clause (d) herein; (d) the Borrower
consolidates with, or merges with or into, any Person, or any Person
consolidates with, or merges with or into, the Borrower, in any such event
pursuant to a transaction in which any of the outstanding Voting Stock of the
Borrower or such other Person is converted into or exchanged for cash,
securities or other property, other than any such transaction where the Voting
Stock of the Borrower outstanding immediately prior to such transaction is
converted into or exchanged for Voting Stock (other than Disqualified Stock) of
the surviving or transferee Person constituting a majority of the outstanding
shares of such Voting Stock of such surviving or transferee Person (immediately
after giving effect to such issuance); or (e) after an initial public offering
of the Borrower or any direct or indirect parent of the Borrower, the first day
on which a majority of the members of the board of directors of the Borrower are
not Continuing Directors.

         "Closing Date" means the first date all the conditions precedent in
Section 5.01 are satisfied or waived in accordance with Section 5.01.

         "Code" means the Internal Revenue Code of 1986.

         "Collateral" means a collective reference to all real and personal
Property with respect to which Liens in favor of the Administrative Agent are
purported to be granted pursuant to and in accordance with the terms of the
Collateral Documents.

         "Collateral Account" means the deposit account maintained by the
Borrower with the Administrative Agent (and subject to the security interest of
the Administrative Agent) into which Net Proceeds from Asset Sales of Collateral
and Casualty Proceeds from Involuntary Dispositions affecting Collateral shall
be deposited pending final application of such proceeds in accordance with the
terms of this Agreement.

         "Collateral Documents" means a collective reference to the Security
Agreement, the Mortgage Instruments and such other security documents as may be
executed and delivered by the Loan Parties pursuant to the terms of Section
7.13.

         "Commitment" means, as to each Lender, the Tranche B Term Loan
Commitment of such Lender.

         "Consolidated Cash Flow" means, with respect to any specified Person
for any period, the Consolidated Net Income of such Person for such period plus,
without duplication: (a) an amount equal to any extraordinary loss plus any net
loss realized by such Person or any of its Restricted Subsidiaries in connection
with an Asset Sale, to the extent such losses were deducted in computing such
Consolidated Net Income; plus (b) provision for taxes based on income or profits
of such Person and its Restricted Subsidiaries for such period (including any
provision for taxes on the Net Income of any Joint Venture that is a
pass-through entity for federal income tax purposes, to the extent such taxes
are paid or payable

                                       5
<PAGE>

by such Person or any of its Restricted Subsidiaries, provided, however, that
such provision for taxes shall only be equal to such Person's proportional share
in the Joint Venture), to the extent that such provision for taxes was deducted
in computing such Consolidated Net Income; plus (c) the Fixed Charges of such
Person and its Restricted Subsidiaries for such period, to the extent that such
Fixed Charges were deducted in computing such Consolidated Net Income; plus (d)
depreciation, amortization (including amortization of intangibles but excluding
amortization of prepaid cash expenses that were paid in a prior period) and
other non-cash expenses (excluding any such non-cash expense to the extent that
it represents an accrual of or reserve for cash expenses in any future period or
amortization of a prepaid cash expense that was paid in a prior period) of such
Person and its Restricted Subsidiaries for such period to the extent that such
depreciation, amortization and other non-cash expenses were deducted in
computing such Consolidated Net Income; minus (e) non-cash items increasing such
Consolidated Net Income for such period, other than the accrual of revenue in
the ordinary course of business, in each case, on a consolidated basis and
determined in accordance with GAAP. Notwithstanding the preceding, the provision
for taxes based on the income or profits of, and the depreciation and
amortization and other non-cash expenses of, a Restricted Subsidiary of the
Borrower will be added to Consolidated Net Income to compute Consolidated Cash
Flow of the Borrower only to the extent that a corresponding amount would be
permitted at the date of determination to be distributed as a dividend to the
Borrower by such Restricted Subsidiary without prior governmental approval (that
has not been obtained), and without direct or indirect restriction pursuant to
the terms of its charter and all agreements, instruments, judgments, decrees,
orders, statutes, rules and governmental regulations applicable to that
Restricted Subsidiary or its stockholders.

         "Consolidated Net Income" means, with respect to any specified Person
for any period, the aggregate of the Net Income of such Person and its
Restricted Subsidiaries for such period, on a consolidated basis, determined in
accordance with GAAP; provided that (a) the Net Income (but not loss) of any
Person that is not a Restricted Subsidiary or that is accounted for by the
equity method of accounting will be included only to the extent of the amount of
dividends or similar distributions paid in cash to the specified Person or a
Restricted Subsidiary of the Person; (b) the Net Income of any Restricted
Subsidiary will be excluded to the extent that the declaration or payment of
dividends or similar distributions by that Restricted Subsidiary of that Net
Income is not at the date of determination permitted without any prior
governmental approval (that has not been obtained) or, directly or indirectly,
by operation of the terms of its charter or any agreement, instrument, judgment,
decree, order, statute, rule or governmental regulation applicable to that
Restricted Subsidiary or its stockholders; (c) the cumulative effect of a change
in accounting principles will be excluded; and (d) notwithstanding clause (a)
above, the Net Income (but not loss) of any Unrestricted Subsidiary will be
excluded, whether or not distributed to the specified Person or one of its
Subsidiaries.

         "Consolidated Parties" means a collective reference to the Borrower and
its Restricted Subsidiaries, and "Consolidated Party" means any one of them.

         "Continuing Directors" means, as of any date of determination, any
member of the board of directors of the Borrower who (a) was a member of such
board of directors on the Closing Date or (b) was nominated for election or
elected or appointed to such board of directors with the approval of, or whose
nomination for election by the stockholders was approved by, a majority of the
Continuing Directors who were members of such board of directors at the time of
such nomination, appointment or election.

         "Contractual Obligation" means, 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" has the meaning specified in the definition of "Affiliate"
set forth in this Section 1.01.

                                       6
<PAGE>

         "Debtor Relief Laws" means the Bankruptcy Code of the United States,
and all other liquidation, conservatorship, bankruptcy, assignment for the
benefit of creditors, moratorium, rearrangement, receivership, insolvency,
reorganization, or similar debtor relief Laws of the United States or other
applicable jurisdictions from time to time in effect and affecting the rights of
creditors generally.

         "Default" means any event or condition that constitutes an Event of
Default or that, with the giving of any notice, the passage of time, or both,
would be an Event of Default.

         "Default Rate" means an interest rate equal to (a) the Base Rate plus
(b) the Applicable Rate, if any, applicable to Base Rate Loans plus (c) 2% per
annum; provided, however, that with respect to a Eurodollar Rate Loan, the
Default Rate shall be an interest rate equal to the interest rate (including any
Applicable Rate) otherwise applicable to such Loan plus 2% per annum, in each
case to the fullest extent permitted by applicable Laws.

         "Defaulting Lender" means any Lender that (a) has failed to fund any
portion of the Loans required to be funded by it hereunder within one Business
Day of the date required to be funded by it hereunder, (b) has otherwise failed
to pay over to the Administrative Agent or any other Lender any other amount
required to be paid by it hereunder within one Business Day of the date when
due, unless the subject of a good faith dispute, or (c) has been deemed
insolvent or become the subject of a bankruptcy or insolvency proceeding.

         "Disqualified Stock" means any Capital Stock that, by its terms (or by
the terms of any security into which it is convertible, or for which it is
exchangeable, in each case at the option of the holder of the Capital Stock), or
upon the happening of any event, matures or is mandatorily redeemable, pursuant
to a sinking fund obligation or otherwise, or redeemable at the option of the
holder of the Capital Stock, in whole or in part, on or prior to the date that
is 91 days after the Maturity Date. Notwithstanding the preceding sentence, any
Capital Stock that would constitute Disqualified Stock solely because the
holders of the Capital Stock have the right to require the Borrower to
repurchase such Capital Stock upon the occurrence of a change of control or an
asset sale will not constitute Disqualified Stock if the terms of such Capital
Stock provide that the Borrower may not repurchase or redeem any such Capital
Stock pursuant to such provisions unless such repurchase or redemption complies
with Section 8.02. The amount of Disqualified Stock deemed to be outstanding at
any time for purposes of this Agreement will be the maximum amount that the
Borrower and its Restricted Subsidiaries may become obligated to pay upon the
maturity of, or pursuant to any mandatory redemption provisions of, such
Disqualified Stock, exclusive of accrued dividends.

         "Dollar" and "$" mean lawful money of the United States.

         "Domestic Subsidiary" means any Restricted Subsidiary that is organized
under the laws of any political subdivision of the United States.

         "Eligible Assignee" has the meaning specified in Section 11.07(g).

         "Environmental Laws" means any and all Federal, state, local, and
foreign statutes, laws, regulations, ordinances, rules, judgments, orders,
decrees, permits, concessions, grants, franchises, licenses, agreements or
governmental restrictions relating to pollution and the protection of the
environment or the release of any materials into the environment, including
those related to hazardous substances or wastes, air emissions and discharges to
waste or public systems.

                                       7
<PAGE>

         "Environmental Liability" means any liability, contingent or otherwise
(including any liability for damages, costs of environmental remediation, fines,
penalties or indemnities), of the Borrower, any other Loan Party or any of their
respective Restricted Subsidiaries directly or indirectly resulting from or
based upon (a) violation of any Environmental Law, (b) the generation, use,
handling, transportation, storage, treatment or disposal of any Hazardous
Materials, (c) exposure to any Hazardous Materials, (d) the release or
threatened release of any Hazardous Materials into the environment or (e) any
contract, agreement or other consensual arrangement pursuant to which liability
is assumed or imposed with respect to any of the foregoing.

         "Equity Interests" means Capital Stock and all warrants, options or
other rights to acquire Capital Stock (but excluding any debt security that is
convertible into, or exchangeable for, Capital Stock).

         "ERISA" means the Employee Retirement Income Security Act of 1974.

         "ERISA Affiliate" means any trade or business (whether or not
incorporated) under common control with the Borrower within the meaning of
Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for
purposes of provisions relating to Section 412 of the Code).

         "ERISA Event" means (a) a Reportable Event with respect to a Pension
Plan; (b) a withdrawal by the Borrower or any ERISA Affiliate from a Pension
Plan subject to Section 4063 of ERISA during a plan year in which it was a
substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation
of operations that is treated as such a withdrawal under Section 4062(e) of
ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA
Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is
in reorganization; (d) the filing of a notice of intent to terminate a Pension
Plan under Section 4041(c) of ERISA, the treatment of a Plan amendment as a
termination under Sections 4041 or 4041A of ERISA if such termination could
reasonably be expected to have a Material Adverse Effect, or the commencement of
proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (e)
an event or condition which constitutes grounds under Section 4042 of ERISA for
the termination of, or the appointment of a trustee to administer, any Pension
Plan or Multiemployer Plan; or (f) the imposition of any liability under Title
IV of ERISA, other than for PBGC premiums due but not delinquent under Section
4007 of ERISA, upon the Borrower or any ERISA Affiliate.

         "Eurodollar Rate" means for any Interest Period with respect to any
Eurodollar Rate Loan:

                  (a) the rate per annum equal to the rate determined by the
         Administrative Agent to be the offered rate that appears on the page of
         the Telerate screen (or any successor thereto) that displays an average
         British Bankers Association Interest Settlement Rate for deposits in
         Dollars (for delivery on the first day of such Interest Period) with a
         term equivalent to such Interest Period, determined as of approximately
         11:00 a.m. (London time) two Business Days prior to the first day of
         such Interest Period, or

                  (b) if the rate referenced in the preceding clause (a) does
         not appear on such page or service or such page or service shall not be
         available, the rate per annum equal to the rate determined by the
         Administrative Agent to be the offered rate on such other page or other
         service that displays an average British Bankers Association Interest
         Settlement Rate for deposits in Dollars (for delivery on the first day
         of such Interest Period) with a term equivalent to such Interest
         Period, determined as of approximately 11:00 a.m. (London time) two
         Business Days prior to the first day of such Interest Period, or

                  (c) if the rates referenced in the preceding clauses (a) and
         (b) are not available, the rate per annum determined by the
         Administrative Agent as the rate of interest at which deposits in

                                       8
<PAGE>

         Dollars for delivery on the first day of such Interest Period in same
         day funds in the approximate amount of the Eurodollar Rate Loan being
         made, continued or converted and with a term equivalent to such
         Interest Period would be offered by Bank of America's London Branch to
         major banks in the London interbank eurodollar market at their request
         at approximately 4:00 p.m. (London time) two Business Days prior to the
         first day of such Interest Period.

         "Eurodollar Rate Loan" means a Loan that bears interest at a rate based
on the Eurodollar Rate.

         "Event of Default" has the meaning specified in Section 9.01.

         "Excess Cash Flow" means, for any fiscal year, with respect to the
Borrower and its Restricted Subsidiaries on a consolidated basis, as reported in
the financial statements delivered pursuant to Section 7.01(a) and as determined
in accordance with GAAP, an amount (rounded to the nearest $1,000,000) equal to
the sum (without duplication) of (a) net cash provided by operating activities,
after excluding the impact of changes in any Receivables Facility, minus (b)
capital expenditures (except to the extent attributable to the incurrence of
Capital Lease Obligations or otherwise financed with Indebtedness (other than
Indebtedness under the Asset-Based Facility)), minus (c) the aggregate principal
amount of the Loans repaid or prepaid (whether voluntary or mandatory) during
such period.

         "Excess Cash Flow Payment Date" means, with respect to any fiscal year
of the Borrower beginning with the fiscal year ending December 31, 2004, the
tenth Business Day following the 90th day after the end of such fiscal year;
provided, however, if on such date, Availability (after giving effect to the
prepayment required by Section 2.04(b)(i)) is less than $50,000,000 or the Fixed
Charge Coverage Ratio is less than 1.0 to 1.0, then the "Excess Cash Flow
Payment Date" shall be the earlier of (a) the third Business Day thereafter that
Availability (after giving effect to the prepayment required by Section
2.04(b)(i)) is at least $50,000,000 and the Fixed Charge Coverage Ratio is at
least 1.0 to 1.0 and (b) the date that the prepayment described in Section
2.04(b)(iii) is otherwise permitted under the Asset-Based Facility. For purposes
of this definition, the terms "Availability" and "Fixed Charge Coverage Ratio"
shall have the meanings assigned thereto in the Asset-Based Facility (as in
effect on the Closing Date).

         "Exchange Act" means the Security Exchange Act of 1934, as amended, and
the rules and regulations promulgated thereunder.

         "Existing Financings" means (a) that certain Third Amended and Restated
Revolving Credit Agreement dated as of June 21, 2002 between the Borrower, the
Lenders party thereto and JPMorgan Chase Bank, as Administrative Agent, (b) that
certain Second Amended and Restated Term Loan Agreement dated as of June 21,
2002 between the Borrower, the Lenders party thereto and JPMorgan Chase Bank, as
Administrative Agent, (c) that certain Amended and Restated Note Agreement dated
as of June 21, 2002, between the Borrower and the noteholders party thereto and
(d)the accounts receivable facility originally evidenced by that certain
Receivables Transfer Agreement by and among Park Avenue Receivables Corporation,
Westlake AR Corporation, Westlake Management Services, Inc., and The Chase
Manhattan Bank, dated as of October 29, 1997, and the other agreements related
thereto.

         "Existing Indebtedness" means the Indebtedness of the Borrower and its
Subsidiaries (other than Indebtedness under this Agreement) in existence on the
Closing Date and set forth on Schedule 1.01(a), including all reimbursement
obligations with respect to letters of credit outstanding as of that date, in
each case until such amounts are repaid.

         "Fair Market Value" means the price that could be negotiated in an
arm's-length transaction between a willing buyer and a willing seller not
involving distress or necessity of either party, determined in good faith by the
board of directors of the Borrower (unless otherwise provided in this
Agreement).

                                       9
<PAGE>

         "Federal Funds Rate" means, for any day, the rate per annum (rounded
upward, if necessary, to a whole multiple of 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 on the Business Day next succeeding such
day; provided that (a) if such day is not a Business Day, the Federal Funds 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 (b) if no
such rate is so published on such next succeeding Business Day, the Federal
Funds Rate for such day shall be the average rate charged to Bank of America on
such day on such transactions as determined by the Administrative Agent.

         "Fee Letter" means the letter agreement, dated June 26, 2003, among the
Borrower, the Administrative Agent and BAS.

         "Fixed Charge Coverage Ratio" means, with respect to any specified
Person for any period, the ratio of the Consolidated Cash Flow of such Person
for such period to the Fixed Charges of such Person for such period. In the
event that the specified Person or any of its Restricted Subsidiaries incurs,
assumes, Guarantees, repays, repurchases, redeems, defeases or otherwise
discharges any Indebtedness (other than ordinary working capital borrowings) or
issues, repurchases or redeems preferred stock subsequent to the commencement of
the period for which the Fixed Charge Coverage Ratio is being calculated and on
or prior to the date on which the event for which the calculation of the Fixed
Charge Coverage Ratio is made (the "Calculation Date"), then the Fixed Charge
Coverage Ratio will be calculated giving pro forma effect to such incurrence,
assumption, Guarantee, repayment, repurchase, redemption, defeasance or other
discharge of Indebtedness, or such issuance, repurchase or redemption of
preferred stock, and the use of the proceeds therefrom, as if the same had
occurred at the beginning of the applicable four-quarter reference period. In
addition, for purposes of calculating the Fixed Charge Coverage Ratio: (a)
acquisitions that have been made by the specified Person or any of its
Restricted Subsidiaries, including through mergers or consolidations, or any
Person or any of its Restricted Subsidiaries acquired by the specified Person or
any of its Restricted Subsidiaries, and including any related financing
transactions and including increases in ownership of Restricted Subsidiaries,
during the four-quarter reference period or subsequent to such reference period
and on or prior to the Calculation Date will be given pro forma effect (in
accordance with Regulation S-X under the Securities Act) as if they had occurred
on the first day of the four-quarter reference period; (b) the Consolidated Cash
Flow attributable to discontinued operations, as determined in accordance with
GAAP, and operations or businesses (and ownership interests therein) disposed of
prior to the Calculation Date, will be excluded; (c) the Fixed Charges
attributable to discontinued operations, as determined in accordance with GAAP,
and operations or businesses (and ownership interests therein) disposed of prior
to the Calculation Date, will be excluded, but only to the extent that the
obligations giving rise to such Fixed Charges will not be obligations of the
specified Person or any of its Restricted Subsidiaries following the Calculation
Date; (d) any Person that is a Restricted Subsidiary on the Calculation Date
will be deemed to have been a Restricted Subsidiary at all times during such
four-quarter period; (e) any Person that is not a Restricted Subsidiary on the
Calculation Date will be deemed not to have been a Restricted Subsidiary at any
time during such four-quarter period; and (f) if any Indebtedness bears a
floating rate of interest, the interest expense on such Indebtedness will be
calculated as if the rate in effect on the Calculation Date had been the
applicable rate for the entire period (taking into account any Hedging
Obligation applicable to such Indebtedness if such Hedging Obligation has a
remaining term as at the Calculation Date in excess of 12 months).

        "Fixed Charges" means, with respect to any specified Person for any
period, the sum, without duplication, of: (a) the consolidated interest expense
of such Person and its Restricted Subsidiaries for such period, whether paid or
accrued, including, without limitation, amortization of debt issuance costs

                                       10
<PAGE>

and original issue discount, non-cash interest payments, the interest component
of any deferred payment obligations, the interest component of all payments
associated with Capital Lease Obligations, imputed interest with respect to
Attributable Debt, commissions, discounts and other fees and charges incurred in
respect of letter of credit or bankers' acceptance financings, and net of the
effect of all payments made or received pursuant to Hedging Obligations; plus
(b) the consolidated interest of such Person and its Restricted Subsidiaries
that was capitalized during such period; plus (c) any interest accruing on
Indebtedness of another Person that is Guaranteed by such Person or one of its
Restricted Subsidiaries or secured by a Lien on assets of such Person or one of
its Restricted Subsidiaries, whether or not such Guarantee or Lien is called
upon; plus (d) the product of (i) all dividends, whether paid or accrued and
whether or not in cash, on any series of preferred stock of such Person or any
of its Restricted Subsidiaries, other than dividends on Equity Interests payable
solely in Equity Interests of the Borrower (other than Disqualified Stock) or to
the Borrower or a Restricted Subsidiary of the Borrower, times (i) a fraction,
the numerator of which is one and the denominator of which is one minus the then
current combined federal, state and local statutory tax rate of such Person,
expressed as a decimal, in each case, on a consolidated basis and in accordance
with GAAP. However, interest payments on Indebtedness of a Joint Venture shall,
in each case, not be deemed Fixed Charges of the Borrower or any Restricted
Subsidiary as of any date of determination when such Indebtedness is not
considered Indebtedness of the Borrower or any Restricted Subsidiary.

         "Foreign Lender" has the meaning specified in Section 11.15(a)(i).

         "Foreign Subsidiary" means any Restricted Subsidiary that is not a
Domestic Subsidiary.

         "FRB" means the Board of Governors of the Federal Reserve System of the
United States.

         "Fully Satisfied" means, with respect to the Obligations as of any
date, that, as of such date, (a) all principal of and interest accrued to such
date which constitute Obligations shall have been irrevocably paid in full in
cash and (b) all fees, expenses and other amounts then due and payable which
constitute Obligations shall have been irrevocably paid in cash.

         "GAAP" means generally accepted accounting principles in the United
States set forth in the opinions and pronouncements of the Accounting Principles
Board and the American Institute of Certified Public Accountants and statements
and pronouncements of the Financial Accounting Standards Board or such other
principles as may be approved by a significant segment of the accounting
profession in the United States, that are applicable to the circumstances as of
the date of determination, consistently applied.

         "General Partner" means a Restricted Subsidiary of the Borrower or any
of its Restricted Subsidiaries that has no assets and conducts no operations
other than its ownership of a general partnership interest in a Joint Venture.

         "Governmental Authority" means any nation or government, any state or
other political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, administrative tribunal, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government.

         "Guarantors" means a collective reference to the Persons identified as
"Guarantors" on the signature pages hereto, and each other Person that
subsequently becomes a Guarantor by executing a Joinder Agreement as
contemplated by Section 7.12, and "Guarantor" means any one of them.

                                       11
<PAGE>

         "Guarantee" means a guarantee other than by endorsement of negotiable
instruments for collection or deposit in the ordinary course of business, direct
or indirect, in any manner including, without limitation, by way of a pledge of
assets or through letters of credit or reimbursement agreements in respect
thereof, of all or any part of any Indebtedness (whether arising by virtue of
partnership arrangements (other than with respect to the obligations of a Joint
Venture, solely by virtue of a Restricted Subsidiary being the General Partner
of such Joint Venture if, as of the date of determination, no payment on such
Indebtedness has been made by such General Partner of such Joint Venture and
such arrangement would not be classified and accounted for, in accordance with
GAAP, as a liability on a consolidated balance sheet of the Borrower), or by
agreements to keep-well, to purchase assets, goods, securities or services, to
take or pay or to maintain financial statement conditions or otherwise).

         "Guaranty" means the Guaranty made by the Guarantors in favor of the
Administrative Agent and the Lenders pursuant to Article IV hereof.

         "Hazardous Materials" means all explosive or radioactive substances or
wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, asbestos or asbestos-containing
materials, polychlorinated biphenyls, radon gas, infectious or medical wastes
and all other substances or wastes of any nature regulated pursuant to any
Environmental Law.

         "Hedging Obligations" means with respect to any specified Person, the
obligations of such Persons under (a) interest rate swap agreements (whether
from fixed to floating or from floating to fixed), interest rate cap agreements
and interest rate collar agreements, (b) other agreements or arrangements
designed to manage interest rate risk and (c) other agreements on arrangements
designed to protect such Person against fluctuations in currency exchange rates,
currency values or commodity prices.

         "Indebtedness" means, with respect to any specified Person, without
duplication, any indebtedness of such Person (excluding accrued expenses and
trade payables), whether or not contingent: (a) in respect of borrowed money,
(b) evidenced by bonds, notes, debentures or similar instruments or letters of
credit (or reimbursement agreements in respect thereof), (c) in respect of
banker's acceptances, (d) representing Capital Lease Obligations on Attributable
Debt in respect of sale and leaseback transactions, (e) representing the balance
deferred and unpaid of the purchase price of any property due more than six
months after such property is acquired, or (f) representing any Hedging
Obligations, if and to the extent any of the preceding items (other than letters
of credit, Attributable Debt and Hedging Obligations) would appear as a
liability upon a balance sheet of the specified Person prepared in accordance
with GAAP. In addition, the term "Indebtedness" includes all Indebtedness of
others secured by a Lien on any asset of the specified Person (whether or not
such Indebtedness is assumed by the specified Person) and, to the extent not
otherwise included, the Guarantee by the specified Person of any Indebtedness of
any other Person. The amount of any Indebtedness outstanding as of any date will
be (i) the accreted value of the Indebtedness, in the case of any Indebtedness
issued within original issue discount; (ii) the principal amount of the
Indebtedness, in the case of any other Indebtedness, and (iii) in respect of
Indebtedness of another Person secured by a Lien on the assets of the specified
Person, the lesser of (A) the Fair Market Value of such assets at the date of
determination, and (B) the amount of the Indebtedness of the other Person.

         "Indemnified Liabilities" has the meaning set forth in Section 11.05.

         "Indemnitees" has the meaning set forth in Section 11.05.

         "Intellectual Property" has the meaning set forth in Section 6.17.

                                       12
<PAGE>

         "Intercreditor Agreement" means that certain Intercreditor Agreement
dated as of the Closing Date among the Administrative Agent, on behalf of itself
and the Lenders, and the administrative agent under the Asset-Based Facility, on
behalf of itself and the lenders thereunder, as amended, modified, restated or
supplemented from time to time.

         "Interest Payment Date" means, (a) as to any Loan other than a Base
Rate Loan, the last day of each Interest Period applicable to such Loan and the
Maturity Date; provided, however, that if any Interest Period for a Eurodollar
Rate Loan exceeds three months, the respective dates that fall every three
months after the beginning of such Interest Period shall also be Interest
Payment Dates; and (b) as to any Base Rate Loan, the last Business Day of each
March, June, September and December and the Maturity Date.

         "Interest Period" means, as to each Eurodollar Rate Loan, the period
commencing on the date such Eurodollar Rate Loan is disbursed or converted to or
continued as a Eurodollar Rate Loan and ending on the date one, two, three or
six months thereafter, as selected by the Borrower in its Loan Notice; provided
that:

                  (i) any Interest Period that would otherwise end on a day that
         is not a Business Day shall be extended to the next succeeding Business
         Day unless such Business Day falls in another calendar month, in which
         case such Interest Period shall end on the next preceding Business Day;

                  (ii) 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; and

                  (iii) no Interest Period shall extend beyond the Maturity
         Date.

         "Investment Grade" means a rating of Baa3 or better by Moody's and BBB-
or better by S&P (or, if either such entity ceases to rate the Senior Notes for
reasons outside of the control of the Borrower, the equivalent investment grade
credit rating from any other "nationally recognized statistical rating
organization" within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange
Act selected by the Borrower as a replacement agency).

         "Investments" means, with respect to any Person, all direct or indirect
investments by such Person in other Persons (including Affiliates) in the forms
of loans (including Guarantees or other obligations), advances or capital
contributions (excluding commission, loans, fees, compensation and advances to
officers, directors and employees made in the ordinary course of business),
purchases or other acquisitions for consideration of Indebtedness, Equity
Interests or other securities, together with all items that are or would be
classified as investments on a balance sheet prepared in accordance with GAAP.
"Investment" excludes trade credit and accounts receivable in the ordinary
course of business and reimbursement obligations in respect of letters of credit
and tender, bid, performance, government contract, surety and appeal bonds, in
each case solely with respect to obligations of the Borrower or any of its
Restricted Subsidiaries. If the Borrower or any Restricted Subsidiary sells or
otherwise disposes of any Equity Interests of any direct or indirect Restricted
Subsidiary such that, after giving effect to any such sale or disposition, such
Person is no longer a Restricted Subsidiary, the Borrower will be deemed to have
made an Investment on the date of any such sale or disposition equal to the Fair
Market Value of the Borrower's Investments in such Restricted Subsidiary that
were not sold or disposed of in an amount determined as provided in the final
paragraph of Section 8.02. The acquisition by the Borrower or any Restricted
Subsidiary of a Person that holds an Investment in a third Person will be deemed
to be an Investment by the Borrower or such Restricted Subsidiary in such third
Person in an amount equal to the

                                       13
<PAGE>

Fair Market Value of the Investments held by the acquired Person in such third
Person in an amount determined as provided in the final paragraph of Section
8.02. Except as otherwise provided in this Agreement, the amount of an
Investment will be determined at the time the Investment is made and without
giving effect to subsequent changes in value.

         "Involuntary Disposition" means any loss of, damage to or destruction
of, or any condemnation or other taking for public use of, any Property of any
Consolidated Party.

         "Involuntary Disposition Prepayment Event" means, with respect to any
Involuntary Disposition affecting the Collateral, the failure of the Loan
Parties to apply (or cause to be applied) an amount equal to the Casualty
Proceeds of such Involuntary Disposition, if any, either (a) to prepay the Loans
or (b) to repair or replace the Property affected by such Involuntary
Disposition, in each case within 300 days following receipt by a Consolidated
Party of the Casualty Proceeds of such Involuntary Disposition as required by
Section 7.07(b).

         "IRS" means the United States Internal Revenue Service.

         "Joinder Agreement" means a Joinder Agreement substantially in the form
of Exhibit 7.12 hereto, executed and delivered by a new Guarantor in accordance
with the provisions of Section 7.12.

         "Joint Venture" means any joint venture between the Borrower and/or any
Restricted Subsidiary and any other Person, and such joint venture is: (a) owned
50% or less by the Borrower and/or any of its Restricted Subsidiaries; and (b)
not directly or indirectly Controlled by or under direct or indirect common
Control of the Borrower and/or any of its Restricted Subsidiaries.

         "Laws" means, collectively, all international, foreign, Federal, state
and local statutes, treaties, rules, guidelines, regulations, ordinances, codes
and administrative or judicial precedents or authorities, including the
interpretation or administration thereof by any Governmental Authority charged
with the enforcement, interpretation or administration thereof, and all
applicable administrative orders, directed duties, requests, licenses,
authorizations and permits of, and agreements with, any Governmental Authority,
in each case whether or not having the force of law.

         "Lenders" means each of the Persons identified as a "Lender" on the
signature pages hereto, any Person which becomes a Lender by executing a New
Commitment Agreement pursuant to Section 2.01(b), and their successors and
assigns, and "Lender" means any one of them.

         "Lending Office" means, as to any Lender, the office or offices of such
Lender described as such in such Lender's Administrative Questionnaire, or such
other office or offices as a Lender may from time to time notify the Borrower
and the Administrative Agent.

         "Lien" means, with respect to any asset, any mortgage, lien, pledge,
charge, security interest or encumbrance of any kind in respect of such asset,
whether or not filed, recorded or otherwise perfected under applicable law,
including any conditional sale or other title retention agreement, any lease in
the nature thereof, any option on other agreement to give a security interest in
and any filing of or agreement to give any financing statement under the Uniform
Commercial Code (or equivalent statutes) of any jurisdiction.

         "Limited Recourse Stock Pledge" means the pledge of Equity Interests in
any Joint Venture or Unrestricted Subsidiary to secure Non-Recourse Debt of such
Joint Venture or such Unrestricted Subsidiary, which pledge is made by a
Restricted Subsidiary of the Borrower, the activities of which are

                                       14
<PAGE>

limited to making and managing Investments, and owning Equity Interests, in such
Joint Venture or Unrestricted Subsidiary, but only for so long as its activities
are so limited.

         "Loan" means any extension of credit by a Lender to the Borrower under
Article II in the form of a Tranche B Term Loan.

         "Loan Documents" means this Agreement, each Note, each Joinder
Agreement, the Collateral Documents and the Fee Letter.

         "Loan Notice" means a notice of (a) a Borrowing, (b) a conversion of
Loans from one Type to the other, or (c) a continuation of Eurodollar Rate
Loans, pursuant to Section 2.02(a), which, if in writing, shall be substantially
in the form of Exhibit 2.02.

         "Loan Parties" means, collectively, the Borrower and each Guarantor.

         "Material Adverse Effect" means (a) a material adverse change in, or a
material adverse effect upon, the operations, business, properties, liabilities
(actual or contingent) or condition (financial or otherwise) of the Borrower or
the Borrower and its Restricted Subsidiaries taken as a whole; (b) a material
impairment of the ability of any Loan Party to perform its obligations under any
Loan Document to which it is a party; (c) a material adverse effect upon the
legality, validity, binding effect or enforceability against any Loan Party of
any Loan Document to which it is a party; or (d) a material adverse effect on
the Collateral (or the value thereof).

         "Maturity Date" means July 31, 2010.

         "Moody's" means Moody's Investors Service, Inc. and any successor
thereto.

         "Mortgage Instruments" shall have the meaning assigned such term in
Section 5.01(d).

         "Mortgage Policies" shall have the meaning assigned such term in
Section 5.01(d).

         "Mortgaged Properties" shall have the meaning assigned such term in
Section 5.01(d).

         "Multiemployer Plan" means any employee benefit plan of the type
described in Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA
Affiliate makes or is obligated to make contributions, or during the preceding
five plan years, has made or been obligated to make contributions.

         "Net Income" means, with respect to any specified Person, the net
income (loss) of such Person, determined in accordance with GAAP and before any
reduction in respect of preferred stock dividends, excluding, however: (a) any
gain (but not loss), together with any related provision for taxes on such gain
(but not loss), realized in connection with: (i) any Asset Sale or any
disposition pursuant to a sale and leaseback transaction or (ii) the disposition
of any securities by such Person or any of its Restricted Subsidiaries or the
extinguishment of any Indebtedness of such Person or any of its Restricted
Subsidiaries; and (b) any extraordinary gain (but not loss), together with any
related provision for taxes on such extraordinary gain (but not loss).

         "Net Proceeds" means the aggregate cash proceeds received by the
Borrower or any of its Restricted Subsidiaries in respect of any Asset Sale
(including, without limitation, any cash received upon the sale or other
disposition of any non-cash consideration received in any Asset Sale), net of
(a) the direct costs relating to such Asset Sale, including, without limitation,
legal, accounting and investment

                                       15
<PAGE>

banking fees, and sales commissions, and any relocation expenses incurred as a
result of the Asset Sale, (b) taxes paid or payable as a result of the Asset
Sale, in each case, after taking into account any available tax credits or
deductions and any tax sharing arrangements, (c) amounts required to be paid to
holders of minority interests in Restricted Subsidiaries or Joint Ventures as a
result of such Asset Sale, (d) amounts required to be applied to the repayment
of Indebtedness secured by a Permitted Lien (ranking senior to any Lien of the
Administrative Agent) on the asset or assets that were the subject of such Asset
Sale, or which must by the terms of such Lien or by applicable Law be repaid out
of the proceeds of such Asset Sale, (e) all payments made with respect to
liabilities directly associated with the assets which are the subject of the
Asset Sale, including, without limitation, trade payables and other accrued
liabilities, and (f) any reserve for adjustment in respect of the sale price of
such asset or assets established in accordance with GAAP.

         "New Commitment Agreement" has the meaning assigned to such term in
Section 2.01(b).

         "Non-Recourse Debt" means Indebtedness (a) as to which neither the
Borrower nor any of its Restricted Subsidiaries (i) provides credit support of
any kind (including any undertaking, agreement or instrument that would
constitute Indebtedness), (ii) is directly or indirectly liable as a guarantor
or otherwise, or (iii) constitutes the lender; (b) no default with respect to
which (including any rights that the holders of the Indebtedness may have to
take enforcement action against an Unrestricted Subsidiary) would permit upon
notice, lapse of time or both any holder of any other Indebtedness of the
Borrower or any of its Restricted Subsidiaries to declare a default on such
other Indebtedness or cause the payment of the Indebtedness to be accelerated or
payable prior to its Stated Maturity; and (c) as to which the lenders have been
notified in writing that they will not have any recourse to the stock or assets
of the Borrower or any of its Restricted Subsidiaries, other than the Equity
Interests of a Joint Venture that is not a Restricted Subsidiary or of an
Unrestricted Subsidiary pledged by the Borrower or any of its Restricted
Subsidiaries as a Limited Recourse Stock Pledge.

         "Note" or "Notes" has the meaning specified in Section 2.10(a).

         "Obligations" means all advances to, and debts, liabilities,
obligations, covenants and duties of, any Loan Party arising under any Loan
Document or otherwise with respect to any Loan, whether direct or indirect
(including those acquired by assumption), absolute or contingent, due or to
become due, now existing or hereafter arising and including interest and fees
that accrue after the commencement by or against any Loan Party or any Affiliate
thereof of any proceeding under any Debtor Relief Laws naming such Person as the
debtor in such proceeding, regardless of whether such interest and fees are
allowed claims in such proceeding.

         "Organization Documents" means, (a) with respect to any corporation,
the certificate or articles of incorporation and the bylaws (or equivalent or
comparable constitutive documents with respect to any non-U.S. jurisdiction);
(b) with respect to any limited liability company, the certificate or articles
of formation or organization and operating agreement; and (c) with respect to
any partnership, joint venture, trust or other form of business entity, the
partnership, joint venture or other applicable agreement of formation or
organization and any agreement, instrument, filing or notice with respect
thereto filed in connection with its formation or organization with the
applicable Governmental Authority in the jurisdiction of its formation or
organization and, if applicable, any certificate or articles of formation or
organization of such entity.

         "Parent" means Westlake Polymer and Petrochemical, Inc., a Delaware
corporation.

         "Pari Passu Indebtedness" means, in the case of the Obligations, any
senior Indebtedness of the Loan Parties.

                                       16
<PAGE>

         "Participant" has the meaning specified in Section 11.07(d).

         "PBGC" means the Pension Benefit Guaranty Corporation or any
Governmental Authority succeeding to the functions thereof.

         "Pension Plan" means any "employee pension benefit plan" (as such term
is defined in Section 3(2) of ERISA), other than a Multiemployer Plan, that is
subject to Title IV of ERISA and is sponsored or maintained by the Borrower or
any ERISA Affiliate or to which the Borrower or any ERISA Affiliate contributes
or has an obligation to contribute, or in the case of a multiple employer or
other plan described in Section 4064(a) of ERISA, has made contributions at any
time during the immediately preceding five plan years.

         "Permitted Business" means the petrochemical, chemicals, and vinyls or
plastic fabrications business and any other businesses related, incidental,
complementary or ancillary thereto.

         "Permitted Group" means any group of investors that is deemed to be a
"person" (as that term is used in Section 13(d)(3) of the Exchange Act) at any
time prior to the Borrower's initial public offering of common stock, provided
that no single Person (other than the Principals and their Related Parties)
Beneficially Owns (together with its Affiliates) more of the Voting Stock of the
Borrower that is Beneficially Owned by such group of investors than is then
collectively Beneficially Owned by the Principals and their Related Parties in
the aggregate.

        "Permitted Investments" means (a) any Investment in any Loan Party; (b)
any Investment in Cash Equivalents; (c) any Investment by the Borrower or any
Restricted Subsidiary in a Person, if as a result of such Investment (i) such
Person becomes a Loan Party or (ii) such Person is merged, consolidated or
amalgamated with or into, or transfers or conveys substantially all of its
assets to, or is liquidated into, a Loan Party; (d) any Investment made as a
result of the receipt of non-cash consideration from an Asset Sale that was made
pursuant to and in compliance with Section 8.01; (e) any acquisition of assets
or Capital Stock solely in exchange for the, or out of the net cash proceeds of
a substantially concurrent, issuance of Equity Interests (other than
Disqualified Stock) of the Borrower; (f) any Investments received in settlement,
compromise or resolution of (i) obligations of trade creditors or customers that
were incurred in the ordinary course of business of the Borrower or any of its
Restricted Subsidiaries, including pursuant to any plan of reorganization or
similar arrangement upon the bankruptcy or insolvency of any trade creditor or
customer; or (ii) litigation, arbitration or other disputes with Persons who are
not Affiliates; (g) Investments represented by Hedging Obligations; (h) loans or
advances to employees made in the ordinary course of business of the Borrower or
the Restricted Subsidiary in an aggregate principal amount not to exceed
$2,000,000 at any one time outstanding; (i) Investments in an Accounts
Receivable Subsidiary that, as conclusively determined by the board of directors
of the Borrower, are necessary or advisable to effect a Receivables Facility;
(j) Limited Recourse Stock Pledges; (k) additional Investments in a Subsidiary
holding an interest in Suzhou Huasu Plastics Co. Ltd. in an aggregate amount not
to exceed $8,500,000; (l) Investments in Joint Ventures in an aggregate amount
not to exceed $25,000,000; and (m) other Investments in any Person (excluding
contributions of Collateral to such Person) having an aggregate Fair Market
Value (measured on the date each such Investment was made and without giving
effect to subsequent changes in value), when taken together with all other
Investments made pursuant to this clause (m) that are at the time outstanding
not to exceed $10,000,000.

         "Permitted Liens" means:

         (a) Liens on assets of any Loan Party (other than Collateral) securing
Pari Passu Indebtedness that is permitted by this Agreement to be incurred
and/or securing Hedging Obligations related thereto;

                                       17
<PAGE>

         (b)      Liens in favor of any Loan Party;

         (c) Liens on property of a Person existing at the time such Person
becomes a Subsidiary or is merged with or into or consolidated with the Borrower
or any Subsidiary; provided that such Liens were in existence prior to the
contemplation of such acquisition, merger or consolidation and do not extend to
any assets other than those of the Person merged into or consolidated with the
Borrower or the Subsidiary or that becomes a Subsidiary;

         (d) Liens on property (including Capital Stock) existing at the time of
acquisition of the property by the Borrower or any Subsidiary, provided that
such Liens were in existence prior to, and not incurred in contemplation of,
such acquisition;

         (e) Liens to secure Indebtedness (including Capital Lease Obligations)
permitted by clause (d) of the second paragraph of Section 8.03 covering only
the assets acquired with or financed by such Indebtedness;

         (f) Liens existing on the Closing Date and set forth on Schedule
1.01(b);

         (g) Liens imposed by law, such as carriers', warehousemen's, landlord's
and mechanics' Liens, in each case, incurred in the ordinary course of business;
provided that such Liens secure only amounts not yet due and payable or, if due
and payable, are unfiled and no other action has been taken to enforce the same
or are being contested in good faith by appropriate proceedings for which
adequate reserves determined in accordance with GAAP have been established;

         (h) Liens created by the Loan Documents;

         (i) Liens securing reimbursement obligations with respect to commercial
letters of credit obtained in the ordinary course of business, consistent with
past practices, which encumber documents and other property or assets relating
to such letters of credit and products and proceeds thereof;

         (j) Liens incurred or assumed in connection with the issuance of
revenue bonds the interest on which is exempt from federal income taxation
pursuant to Section 103(b) of the Code, including, without limitation, liens as
a cash collateral account securing existing reimbursement obligations with
respect to a letter of credit issued pursuant thereto;

         (k) customary Liens for the fees, costs and expenses of trustees and
escrow agents pursuant to any indenture, escrow agreement or similar agreement
establishing a trust or escrow arrangement;

         (l) Liens on assets of the Borrower or any Restricted Subsidiary
arising as a result of a sale and leaseback transaction with respect to such
assets; provided that the proceeds from such sale and leaseback transaction are
applied to the repayment of Indebtedness or acquisition of assets or the making
of capital expenditures pursuant to Section 8.01(b) or 8.01(c), as applicable;

         (m) Liens (on assets other than the Collateral Account, real property,
fixtures and equipment) that secure the Asset-Based Facility, which to the
extent that such Liens attach to Collateral, are subject to the Intercreditor
Agreement;

         (n) the interest of a lessor or licensor under an operating lease or
license under which the Borrower or any of its Restricted Subsidiaries are
lessee, sublessee, or licensee, including protective financing statement
filings;

                                       18
<PAGE>

         (o) Limited Recourse Stock Pledges;

         (p) Liens encumbering customary initial deposits and margin deposits,
netting provisions and setoff rights, in each case securing Indebtedness under
Hedging Obligations;

         (q) Liens to secure any Permitted Refinancing Indebtedness permitted to
be incurred by this Agreement; provided, however, that: (i) the new Lien shall
be limited to all or part of the same property and assets that secured or, under
the written agreements pursuant to which the original Lien arose, could secure
the original Lien (plus improvements and accessions to, such property or
proceeds or distributions thereof); and (ii) the Indebtedness secured by the new
Lien is not increased to any amount greater than the sum of (x) the outstanding
principal amount or, if greater, committed amount, of the Permitted Referencing
Indebtedness and (y) an amount necessary to pay any fees and expenses, including
premiums, related to such refinancings, refunding, extension, renewal or
replacement;

         (r) Liens on accounts receivable and related property deemed to arise
in connection with any Receivables Facility; and

         (s) Liens incurred in the ordinary course of business of the Borrower
or any Restricted Subsidiary with respect to obligations that do not exceed
$10,000,000 at any one time outstanding.

         "Permitted Payments to Parent" means, without duplication as to
amounts: (a) payments to the Parent to permit the Parent to pay when due, or the
incurrence by the Borrower or any Restricted Subsidiary of expenses on behalf of
Parent with respect to, reasonable accounting, legal and administrative expenses
of the Parent, in an aggregate amount not to exceed $1,000,000 million per
annum; and (b) for so long as the Borrower is a member of a group filing a
consolidated or combined tax return with the Parent, payments to the Parent in
the amount of the relevant tax (including any penalties and interest) that the
Borrower would owe if the Borrower were filing a separate tax return (or a
separate consolidated or combined return with its Subsidiaries that are members
of the consolidated or combined group), taking into account any carryovers and
carrybacks of tax attributes (such as net operating losses) of the Borrower and
such Subsidiaries from other taxable years.

         "Permitted Refinancing Indebtedness" means any Indebtedness of the
Borrower or any of its Restricted Subsidiaries issued in exchange for, or the
net proceeds of which are used to extend, refinance, renew, replace, defease or
refund other Indebtedness of the Borrower or any of its Restricted Subsidiaries
(other than intercompany Indebtedness); provided that (a) the principal amount
(or initial accreted value, if applicable) of such Permitted Refinancing
Indebtedness does not exceed the principal amount outstanding, or in the case of
a revolving line of credit, available (or accreted value, if applicable) of the
Indebtedness extended, refinanced, renewed, replaced, defeased or refunded (plus
all accrued interest on the Indebtedness and the amount of all expenses and
premiums incurred in connection therewith); (b) such Permitted Refinancing
Indebtedness has a final maturity date later than the final maturity date of,
and has a Weighted Average Life to Maturity equal to or greater than the
Weighted Average Life to Maturity of, the Indebtedness being extended,
refinanced, renewed, replaced, defeased or refunded; (c) if the Indebtedness
being extended, refinanced, renewed, replaced, defeased or refunded is
subordinated in right of payment to the Obligations, such Permitted Refinancing
Indebtedness has a final maturity date later than the final maturity date of,
and is subordinated in right of payment to, the Obligations on subordination
terms at least as favorable to the Lenders as those contained in the
documentation governing the Indebtedness being extended, refinanced, renewed,
replaced, defeased or refunded; and (d) such Indebtedness is incurred either by
the Borrower or by the Restricted Subsidiary who is the obligor on the
Indebtedness being extended, refinanced, renewed, replaced, defeased or
refunded.

                                       19
<PAGE>

         "Person" means any natural person, corporation, limited liability
company, trust, joint venture, association, company, partnership, Governmental
Authority or other entity.

         "Principals" means T.T. Chao, his descendents, including by adoption,
and the spouses of any such individuals.

         "Plan" means any "employee benefit plan" (as such term is defined in
Section 3(3) of ERISA) established by the Borrower or, with respect to any such
plan that is subject to Section 412 of the Code or Title IV of ERISA, any ERISA
Affiliate.

         "Principal Amortization Payment" means a principal payment on the
Tranche B Term Loan as set forth in Section 2.06.

         "Property" means any interest in any kind of property or asset, whether
real, personal or mixed, or tangible or intangible.

         "Pro Rata Share" means as to each Lender, a fraction (expressed as a
percentage, carried out to the ninth decimal place), the numerator of which is
the principal amount of the Term Loan held by such Lender at such time and the
denominator of which is the aggregate principal amount of the Term Loan at such
time. The initial Pro Rata Share of each Lender is set forth opposite the name
of such Lender on Schedule 2.01 or in the Assignment and Assumption pursuant to
which such Lender becomes a party hereto, as applicable.

         "Real Properties" means, at any time, a collective reference to each of
the facilities and real properties owned, leased or operated by the Consolidated
Parties at such time.

         "Receivables Facility" means one or more receivables financing
facilities or arrangements, as amended from time to time, pursuant to which the
Borrower or any of its Restricted Subsidiaries sells (including a sale in
exchange for a promissory note of or Equity Interest in an Accounts Receivable
Subsidiary) its accounts receivable, related assets and the provision of
billing, collection and other services in connection therewith, in each case to
an Accounts Receivable Subsidiary.

         "Receivables Fees" means distributions or payments made directly or by
means of discounts with respect to any participation interests issued or sold in
connection with, and other fees paid to a Person that is not the Borrower or a
Restricted Subsidiary in connection with, any Receivables Facility.

         "Register" has the meaning set forth in Section 11.07(c).

         "Related Party" means (a) any controlling stockholder, 80% (or more)
owned Subsidiary, or immediate family member (in the case of an individual) of
any Principal or (b) any Person, the beneficiaries, stockholders, partners,
owners or Persons beneficially holding a 50% or more controlling interest of
which consist of any one or more Principals and/or such other Persons referred
to in the immediately preceding clause (a).

         "Reportable Event" means, any of the events set forth in Section
4043(b) of ERISA or the regulations thereunder, other than any such event for
which the 30-day notice requirement under ERISA has been waived in regulations
issued by the PBGC.

                                       20
<PAGE>

         "Required Lenders" means, at any time, Lenders holding in the aggregate
more than 50% of the outstanding Loans. The unfunded Commitments of, and the
outstanding Loans held or deemed held by, any Defaulting Lender shall be
excluded for purposes of making a determination of Required Lenders.

         "Responsible Officer" means the chief executive officer, president,
chief financial officer, treasurer, assistant treasurer or controller of a Loan
Party. Any document delivered hereunder that is signed by a Responsible Officer
of a Loan Party shall be conclusively presumed to have been authorized by all
necessary corporate, partnership and/or other action on the part of such Loan
Party and such Responsible Officer shall be conclusively presumed to have acted
on behalf of such Loan Party.

         "Restricted Investment" means an Investment other than a Permitted
Investment.

         "Restricted Payment" means (a) the declaration or payment of any
dividend or the making of any other distribution on account of the Borrower's or
any of its Restricted Subsidiaries' Equity Interests (including, without
limitation, any payment in connection with any merger or consolidation involving
the Borrower or any of its Restricted Subsidiaries) or to the direct or indirect
holders of the Borrower's or any of its Restricted Subsidiaries' Equity
Interests in their capacity as such (other than dividends or distributions
payable in Equity Interests (other than Disqualified Stock) of the Borrower or
to the Borrower or a Restricted Subsidiary); (b) the purchase, redemption or
other acquisition or retirement for value (including, without limitation, in
connection with any merger or consolidation involving the Borrower) of any
Equity Interests of the Borrower or any direct or indirect parent of the
Borrower; (c) any payment on or with respect to, or purchase, redemption,
defeaseance or other acquisition or retirement for value of, any Indebtedness of
any Loan Party that is contractually subordinated to the Obligations (excluding
any intercompany Indebtedness between or among the Borrower and any of its
Restricted Subsidiaries), except a payment of interest or principal at or after
the Stated Maturity of such interest or principal; (d) any Restricted
Investment; or (e) any voluntary, optional or other non-scheduled payment,
prepayment, redemption, acquisition for value (including without limitation, by
way of depositing money or securities with the trustee with respect thereto
before due for the purpose of paying when due), refund, refinance or exchange of
any Indebtedness of such the Borrower or any of its Restricted Subsidiaries
(other than Indebtedness under the Loan Documents or the Asset-Based Facility)
(in each case, whether or not mandatory).

         "Restricted Subsidiary" of a Person means any Subsidiary of the such
Person that is not an Unrestricted Subsidiary. Unless the context otherwise
requires, each reference to a "Restricted Subsidiary" shall refer to a
Subsidiary of the Borrower.

         "S&P" means Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc. and any successor thereto.

         "SEC" means the Securities and Exchange Commission, or any Governmental
Authority succeeding to any of its principal functions.

         "Security Agreement" means the security and pledge agreement in the
form of Exhibit 1.01 dated as of the Closing Date executed in favor of the
Administrative Agent by each of the Loan Parties, as amended, modified, restated
or supplemented from time to time.

         "Senior Note" means any one of the 8 3/4 % Notes due 2011 issued by the
Borrower in favor of the Senior Noteholders pursuant to the Senior Note
Indenture, as such Senior Notes may be amended, modified, restated or
supplemented and in effect from time to time in accordance with the terms
hereof.

                                       21
<PAGE>

         "Senior Note Indenture" means the Indenture, dated as of the Closing
Date, by and among the Borrower and the Senior Noteholders, as the same may be
amended, modified, restated or supplemented and in effect from time to time in
accordance with the terms hereof.

         "Senior Noteholder" means any one of the holders from time to time of
the Senior Notes.

         "Solvent" or "Solvency" means, with respect to any Person as of a
particular date, that on such date (a) such Person is able to pay its debts and
other liabilities, contingent obligations and other commitments as they mature
in the ordinary course of business, (b) such Person does not intend to, and does
not believe that it will, incur debts or liabilities beyond such Person's
ability to pay as such debts and liabilities mature in their ordinary course,
(c) such Person is not engaged in a business or a transaction, and is not about
to engage in a business or a transaction, for which such Person's Property would
constitute unreasonably small capital after giving due consideration to the
prevailing practice in the industry in which such Person is engaged or is to
engage, (d) the fair value of the Property of such Person is greater than the
total amount of liabilities, including, without limitation, contingent
liabilities, of such Person and (e) the present fair salable value of the assets
of such Person is not less than the amount that will be required to pay the
probable liability of such Person on its debts as they become absolute and
matured. In computing the amount of contingent liabilities at any time, it is
intended that such liabilities will be computed at the amount which, in light of
all the facts and circumstances existing at such time, represents the amount
that can reasonably be expected to become an actual or matured liability.

         "Specified Facilities" means the Calcasieu Parish, Louisiana ethylene,
styrene and polyethylene facilities and the Marshall County, Kentucky ethylene,
chlor-alkali, vinyl chloride monomer and polyvinyl chloride facilities.

         "Specified Permitted Liens" means Liens of the type described in
clauses (d), (e), (f), (g), (h), (m) and (n) of the definition of "Permitted
Liens".

         "Stated Maturity" means, with respect to any installment of interest on
principal on any series of Indebtedness, the date on which the payment of
interest or principal was scheduled to be paid in the documentation governing
such Indebtedness, and will not include any contingent obligations to repay,
redeem or repurchase any such interest on principal prior to the date originally
scheduled for the payment thereof.

         "Styrene Plant Sale" means an Asset Sale of the plant, properties and
equipment comprising the styrene manufacturing facility located in Calcasieu
Parish, Louisiana and owned by Westlake Styrene Corporation.

         "Subsidiary" means, with respect to any specified Person: (a) any
corporation, association or other business entity of which more than 50% of the
total voting power of shares of Capital Stock entitled (without regard to the
occurrence of any contingency and after giving effect to any voting agreement or
stockholders' agreement that effectively transfers voting power) to vote in the
election of directors, managers or trustees of the corporation, association or
other business entity is at the time owned or controlled, directly or
indirectly, by that Person or one or more of the other Subsidiaries of that
Person (or a combination thereof); and (b) any partnership (i) the sole general
partner or the managing general partner of which is such Person or a Subsidiary
of such Person or (ii) the only general partners of which are that Person or one
or more Subsidiaries of that Person (or any combination thereof). Unless
otherwise specified, all references herein to a "Subsidiary" or to
"Subsidiaries" shall refer to a Subsidiary or Subsidiaries of the Borrower.

         "Tranche B Term Loan" has the meaning specified in Section 2.01(b).

                                       22
<PAGE>

         "Tranche B Term Loan Commitment" means, as to each Lender, its
obligation to make its portion of the Tranche B Term Loan to the Borrower
pursuant to Section 2.01(a), in the principal amount set forth opposite such
Lender's name on Schedule 2.01 or in the Assignment and Assumption or New
Commitment Agreement, as applicable, pursuant to which such Lender becomes a
party hereto. The aggregate principal amount of the Tranche B Term Loan
Commitments of all of the Lenders as in effect on the Closing Date is ONE
HUNDRED TWENTY MILLION DOLLARS ($120,000,000) and may be increased from time to
time in accordance with Section 2.01(b).

         "Type" means, with respect to any Loan, its character as a Base Rate
Loan or a Eurodollar Rate Loan.

         "Unfunded Pension Liability" means the excess of a Pension Plan's
benefit liabilities under Section 4001(a)(16) of ERISA, over the current value
of that Pension Plan's assets, determined in accordance with the assumptions
used for funding the Pension Plan pursuant to Section 412 of the Code for the
applicable plan year.

         "United States" and "U.S." mean the United States of America.

         "Unrestricted Subsidiary" means (i) any Accounts Receivable Subsidiary,
(ii) Westlake International Investments Corporation, a British Virgin Islands
corporation, (iii) any Subsidiary of an Unrestricted Subsidiary and (iv) any
other Subsidiary of the Borrower that is designated by the board of directors of
the Borrower as an Unrestricted Subsidiary pursuant to a board resolution, but
only to the extent that such Subsidiary: (A) has no Indebtedness other than
Non-Recourse Debt; (B) is not party to any agreement, contract, arrangement or
understanding with the Borrower or any Restricted Subsidiary unless the terms of
any such agreement, contract, arrangement or understanding are no less favorable
to the Borrower or such Restricted Subsidiary than those that might be obtained
at the time from Persons who are not Affiliates of the Borrower; (C) is a Person
with respect to which neither the Borrower nor any of its Restricted
Subsidiaries has any direct or indirect obligation (1) to subscribe for
additional Equity Interests or (2) to maintain or preserve such Person's
financial condition or to cause such Person to achieve any specified levels of
operating results; and (D) has not guaranteed or otherwise directly or
indirectly provided credit support for any Indebtedness of the Borrower or any
of its Restricted Subsidiaries. Any designation of a Subsidiary of the Borrower
as an Unrestricted Subsidiary will be evidenced to the Administrative Agent by
filing with the Administrative Agent a certified copy of the board resolution of
the Borrower giving effect to such designation and an officers' certificate
certifying that such designation complied with the preceding conditions and was
permitted by Section 8.02. If, at any time, any Unrestricted Subsidiary would
fail to meet the preceding requirements as an Unrestricted Subsidiary, it will
thereafter cease to be an Unrestricted Subsidiary for purposes of this Agreement
and any Indebtedness of such Subsidiary will be deemed to be incurred by a
Restricted Subsidiary of the Borrower as of such date and, if such Indebtedness
is not permitted to be incurred by Section 8.03, an Event of Default shall
exist. The board of directors of the Borrower may at any time designate any
Unrestricted Subsidiary to be a Restricted Subsidiary; provided that such
designation will be deemed to be an incurrence of Indebtedness by a Restricted
Subsidiary of the Borrower of any outstanding Indebtedness of such Unrestricted
Subsidiary and such designation will only be permitted if (1) such Indebtedness
is permitted under Section 8.03, calculated on a pro forma basis as if such
designation had occurred at the beginning of the four-quarter reference period;
and (2) no Default would be in existence following such designation.

         "Voting Stock" of any Person as of any date means the Capital Stock of
such Person that is at the time entitled to vote in the election of the board of
directors of such Person.

                                       23
<PAGE>

        "Weighted Average Life to Maturity" means, when applied to any
Indebtedness at any date, the number of years obtained by dividing: (a) the sum
of the products obtained by multiplying (i) the amount of each then remaining
installment, sinking fund, serial maturity or other required payments of
principal, including payment at final maturity, in respect of the Indebtedness,
times (ii) the number of years (calculated to the nearest one-twelfth) that will
elapse between such date and the making of such payment times (b) the then
outstanding principal amount of such Indebtedness.

         "Wholly-Owned Subsidiary" of any specified Person means a Restricted
Subsidiary of such Person all of the outstanding Capital Stock or other
ownership interests of which (other than directors' qualifying shares) will at
the time be owned by such Person or by one or more Wholly-Owned Subsidiaries of
such Person and one or more Wholly-Owned Subsidiaries of such Person.

1.02 OTHER INTERPRETIVE PROVISIONS.

         With reference to this Agreement and each other Loan Document, unless
otherwise specified herein or in such other Loan Document:

                  (a) The meanings of defined terms are equally applicable to
         the singular and plural forms of the defined terms.

                  (b) (i) The words "herein," "hereto," "hereof" and "hereunder"
         and words of similar import when used in any Loan Document shall refer
         to such Loan Document as a whole and not to any particular provision
         thereof.

                           (ii) Article, Section, Exhibit and Schedule
                  references are to the Loan Document in which such reference
                  appears.

                           (iii) The term "including" is by way of example and
                  not limitation.

                           (iv) The term "documents" includes any and all
                  instruments, documents, agreements, certificates, notices,
                  reports, financial statements and other writings, however
                  evidenced, whether in physical or electronic form.

                  (c) Section headings herein and in the other Loan Documents
         are included for convenience of reference only and shall not affect the
         interpretation of this Agreement or any other Loan Document.

1.03 ACCOUNTING TERMS.

         (a) Except as otherwise specifically prescribed herein, all accounting
terms not specifically or completely defined herein shall be construed in
conformity with, and all financial data (including financial ratios and other
financial calculations) required to be submitted pursuant to this Agreement
shall be prepared in conformity with, GAAP applied on a consistent basis, as in
effect from time to time, applied in a manner consistent with that used in
preparing the Audited Financial Statements.

         (b) If at any time any change in GAAP would affect the computation of
any financial ratio or requirement set forth in any Loan Document, and either
the Borrower or the Required Lenders shall so request, the Administrative Agent,
the Lenders and the Borrower shall negotiate in good faith to amend such ratio
or requirement to preserve the original intent thereof in light of such change
in GAAP (subject to the approval of the Required Lenders); provided that, until
so amended, (i) such ratio or requirement shall continue to be computed in
accordance with GAAP prior to such change therein and (ii) the

                                       24
<PAGE>

Borrower shall provide to the Administrative Agent and the Lenders financial
statements and other documents required under this Agreement or as reasonably
requested hereunder setting forth a reconciliation between calculations of such
ratio or requirement made before and after giving effect to such change in GAAP.

1.04 ROUNDING.

         Any financial ratios required to be maintained by the Borrower pursuant
to this Agreement shall be calculated by dividing the appropriate component by
the other component, carrying the result to one place more than the number of
places by which such ratio is expressed herein and rounding the result up or
down to the nearest number (with a rounding-up if there is no nearest number).

1.05 REFERENCES TO AGREEMENTS AND LAWS.

         Unless otherwise expressly provided herein, (a) references to
Organization Documents, agreements (including the Loan Documents) and other
contractual instruments shall be deemed to include all subsequent amendments,
restatements, extensions, supplements and other modifications thereto, but only
to the extent that such amendments, restatements, extensions, supplements and
other modifications are not prohibited by any Loan Document; and (b) references
to any Law shall include all statutory and regulatory provisions consolidating,
amending, replacing, supplementing or interpreting such Law.

1.06 TIMES OF DAY.

         Unless otherwise specified, all references herein to times of day shall
be references to Eastern time (daylight or standard, as applicable).

                                   ARTICLE II
                         THE COMMITMENTS AND BORROWINGS

2.01 LOANS.

         (a) Tranche B Term Loan. Subject to the terms and conditions set forth
herein, each Lender severally agrees to make its portion of a term loan (the
"Tranche B Term Loan") to the Borrower on the Closing Date (or on the effective
date of any increase in the Tranche B Term Loan Commitment pursuant to Section
2.01(b), as applicable) in an amount not to exceed such Lender's Tranche B Term
Loan Commitment. Amounts repaid on the Tranche B Term Loan may not be
reborrowed. The Tranche B Term Loan may consist of Base Rate Loans or Eurodollar
Rate Loans, as further provided herein.

         (b) Increases of the Tranche B Term Loan Commitments. The Borrower
shall have the right upon at least fifteen (15) Business Days' prior written
notice to the Administrative Agent to increase the Tranche B Term Loan
Commitments by up to $50,000,000 in the aggregate, in a single increase, at any
time and from time to time during the period commencing on the Closing Date and
ending on the fourth anniversary of the Closing Date, subject, however, in any
such case, to satisfaction of the following conditions precedent:

                  (i) no Default exists on the date on which such increase is to
         become effective;

                  (ii) the representations and warranties set forth in Article
         VI of this Agreement shall be true and correct in all material respects
         on and as of the date on which such increase is to

                                       25
<PAGE>

         become effective, except to the extent that such representations and
         warranties specifically refer to an earlier date, in which case they
         shall be true and correct as of such earlier date;

                  (iii) such increase shall be an integral multiple of
         $1,000,000 and shall in no event be less than $5,000,000;

                  (iv) such requested increase shall be effective on such date
         only to the extent that, on or before such date, (A) the Administrative
         Agent shall have received and accepted a corresponding amount of
         Additional Commitment(s) pursuant to a commitment letter(s) reasonably
         acceptable to the Administrative Agent from one or more lenders
         reasonably acceptable to the Administrative Agent and, with respect to
         any lender that is not at such time a Lender hereunder, the Borrower,
         (B) each such lender has executed an agreement in the form of Exhibit
         2.01 (hereto (each such agreement a "New Commitment Agreement"),
         accepted in writing therein by the Administrative Agent and, with
         respect to any lender that is not at such time a Lender hereunder, the
         Borrower, with respect to the Additional Commitment of such lender and
         (C) the Administrative Agent shall have received from the Borrower a
         Loan Notice with respect to the funding of such Additional Commitment;

                  (v) the Borrower shall have paid to each Lender (that is a
         Lender prior to giving effect to such Additional Commitment(s)) an
         amount equal to the product of (A) the amount of such Lender's
         Commitment (prior to giving effect to such Additional Commitment(s))
         multiplied by (B) the weighted average (expressed as a percentage and
         determined as of the date of payment thereof) of the commitment,
         upfront and/or other similar fees paid by the Loan Parties in respect
         of any Additional Commitment(s) pertaining to any such increase;

                  (vi) the Administrative Agent shall have received all
         documents (including resolutions of the board of directors of the
         Borrower) it may reasonably request relating to the corporate or other
         necessary authority for and the validity of such increase in the
         Aggregate Revolving Commitments, and any other matters relevant
         thereto, all in form and substance reasonably satisfactory to the
         Administrative Agent; and

                  (vii) the Borrower shall have purchased additional title
         insurance with respect to the Mortgaged Properties such that after
         giving effect to the funding of such Additional Commitment, the amount
         of title insurance on the Mortgaged Properties shall not be less than
         the outstanding amount of the Loans.

         Upon the effectiveness of the increase in the Tranche B Term Loan
Commitments pursuant to this Section 2.01(b), (i) the Pro Rata Shares of each
Lender shall be automatically adjusted to give effect to such increase, provided
that the amount of each Lender's Tranche B Term Loan Commitment (other than a
Lender whose Tranche B Term Loan Commitment shall have been increased in
connection with such increase) shall remain unchanged, (ii) the Borrower, the
Administrative Agent and the Lenders will use all commercially reasonable
efforts to assign and assume outstanding Tranche B Term Loans to conform the
respective amounts thereof held by each Lender to the respective Pro Rata
Shares, as so adjusted, it being understood that the parties hereto shall use
commercially reasonable efforts to avoid prepayment or assignment of any
affected Tranche B Term Loan that is a Eurodollar Rate Loan on a day other than
the last day of the Interest Period applicable thereto and (iii) beginning with
the date of the next Principal Amortization Payment next succeeding the date of
such increase, the amount of each Principal Amortization Payment on the Tranche
B Term Loans shall be increased by the minimum amount that, when allocated
ratably (based on outstandings) among all of the Lenders holding Tranche B Term
Loans immediately after giving effect to such increase in the Tranche B Term
Loan Commitments, would provide (assuming all other things to be equal) for each
of the Lenders holding Tranche B Term Loans immediately prior to giving effect
to such

                                       26
<PAGE>

increase in the Tranche B Term Commitments to receive in connection with such
Principal Amortization Payment an amount at least equal to the amount that such
Lender would have received had such increase in the Tranche B Term Loan
Commitments (and the corresponding adjustment to such Principal Amortization
Payment pursuant to this Section 2.01(b)) not taken place.

         At such time as the Borrower has received and accepted Additional
Commitments in an aggregate amount equal to $50,000,000, the Borrower's ability
to solicit and accept commitments pursuant to this Section 2.01(b) shall
terminate.

2.02 BORROWINGS, CONVERSIONS AND CONTINUATIONS OF LOANS.

         (a) Each Borrowing, each conversion of Loans from one Type to the
other, and each continuation of Eurodollar Rate Loans shall be made upon the
irrevocable notice from the Borrower to the Administrative Agent, which may be
given by telephone (provided that such telephonic notice complies with the
information requirements of the form of Loan Notice attached hereto). Each such
notice must be received by the Administrative Agent not later than 11:00 a.m.
(i) three Business Days prior to the requested date of any Borrowing of,
conversion to or continuation of Eurodollar Rate Loans, and (ii) on the
requested date of any Borrowing of Base Rate Loans; provided, however, all
Borrowings made on the Closing Date shall be made as Base Rate Loans. Each
telephonic notice by the Borrower pursuant to this Section 2.02(a) must be
confirmed promptly by delivery to the Administrative Agent of a written Loan
Notice, appropriately completed and signed by a Responsible Officer of the
Borrower on behalf of the Borrower. Each Borrowing of, conversion to or
continuation of Eurodollar Rate Loans shall be in a principal amount of
$5,000,000 or a whole multiple of $1,000,000 in excess thereof. Each Borrowing
of or conversion to Base Rate Loans shall be in a principal amount of $500,000
or a whole multiple of $100,000 in excess thereof. Each Loan Notice (whether
telephonic or written) shall specify (i) whether the Borrower is requesting a
Borrowing, a conversion of Loans from one Type to the other, or a continuation
of Eurodollar Rate Loans, (ii) the requested date of the Borrowing, conversion
or continuation, as the case may be (which shall be a Business Day), (iii) the
principal amount of Loans to be borrowed, converted or continued, (iv) the Type
of Loans to be borrowed or to which existing Loans are to be converted, and (v)
if applicable, the duration of the Interest Period with respect thereto. If the
Borrower fails to specify a Type of Loan in a Loan Notice or if the Borrower
fails to give a timely notice requesting a conversion or continuation, then the
applicable Loans shall be made as, or converted to, Base Rate Loans. Any such
automatic conversion to Base Rate Loans shall be effective as of the last day of
the Interest Period then in effect with respect to the applicable Eurodollar
Rate Loans. If the Borrower requests a Borrowing of, conversion to, or
continuation of Eurodollar Rate Loans in any such Loan Notice, but fails to
specify an Interest Period, it will be deemed to have specified an Interest
Period of one month.

         (b) Following receipt of a Loan Notice, the Administrative Agent shall
promptly notify each Lender of the amount of its Pro Rata Share of the
applicable Loans, and if no timely notice of a conversion or continuation is
provided by the Borrower, the Administrative Agent shall notify each Lender of
the details of any automatic conversion to Base Rate Loans described in the
preceding subsection. In the case of a Borrowing, each Lender shall make the
amount of its Loan available to the Administrative Agent in immediately
available funds at the Administrative Agent's Office not later than 1:00 p.m. on
the Business Day specified in the applicable Loan Notice. Upon satisfaction of
the applicable conditions set forth in Section 5.02 (and, if such Borrowing is
the initial Borrowing, Section 5.01), the Administrative Agent shall make all
funds so received available to the Borrower in like funds as received by the
Administrative Agent either by (i) crediting the account of the Borrower on the
books of Bank of America with the amount of such funds or (ii) wire transfer of
such funds, in each case in accordance with instructions provided to (and
reasonably acceptable to) the Administrative Agent by the Borrower.

                                       27
<PAGE>

         (c) Subject to Section 3.05, a Eurodollar Rate Loan may be continued or
converted only on the last day of an Interest Period for such Eurodollar Rate
Loan. During the existence of a Default, no Loans may be requested as, converted
to or continued as Eurodollar Rate Loans having Interest Periods greater than
one month without the consent of the Required Lenders. During the existence of
an Event of Default, no Loans may be converted to or continued as Eurodollar
Rate Loans without the consent of the Required Lenders.

         (d) The Administrative Agent shall promptly notify the Borrower and the
Lenders of the interest rate applicable to any Interest Period for Eurodollar
Rate Loans upon determination of such interest rate. The determination of the
Eurodollar Rate by the Administrative Agent shall be conclusive in the absence
of manifest error. At any time that Base Rate Loans are outstanding, the
Administrative Agent shall notify the Borrower and the Lenders of any change in
Bank of America's prime rate used in determining the Base Rate promptly
following the public announcement of such change.

         (e) After giving effect to all Borrowings, all conversions of Loans
from one Type to the other, and all continuations of Loans as the same Type,
there shall not be more than four (4) Interest Periods in effect with respect to
the Tranche B Term Loan.

2.03 [INTENTIONALLY OMITTED].

2.04 PREPAYMENTS.

         (a) Voluntary Prepayments of Loans.

                  (i) General. The Borrower may, upon notice to the
         Administrative Agent, at any time after the first anniversary of the
         Closing Date (i) voluntarily prepay Base Rate Loans in whole or in part
         without premium or penalty, and (ii) subject to Section 3.05 hereof,
         voluntarily prepay Eurodollar Rate Loans in whole or in part on the
         last day of the applicable Interest Period without premium or penalty;
         provided that (A) such notice must be received by the Administrative
         Agent not later than 11:00 a.m. (x) three Business Days prior to any
         date of prepayment of Eurodollar Rate Loans and (y) on the date of
         prepayment of Base Rate Loans; (B) any prepayment of Eurodollar Rate
         Loans shall be in a principal amount of $5,000,000 or a whole multiple
         of $1,000,000 in excess thereof (or, if less, the entire principal
         amount thereof then outstanding); (C) any prepayment of Base Rate Loans
         shall be in a principal amount of $500,000 or a whole multiple of
         $100,000 in excess thereof (or, if less, the entire principal amount
         thereof then outstanding); and (D) any prepayment of the Tranche B Term
         Loan shall be applied to remaining Principal Amortization Payments in
         inverse order of maturities thereof. Each such notice shall specify the
         date and amount of such prepayment and the Type(s) of Loans to be
         prepaid. The Administrative Agent will promptly notify each Lender of
         its receipt of each such notice, and of the amount of such Lender's Pro
         Rata Share of such prepayment. If such notice is given by the Borrower,
         the Borrower shall make such prepayment and the payment amount
         specified in such notice shall be due and payable on the date specified
         therein. Any prepayment of a Eurodollar Rate Loan shall be accompanied
         by all accrued interest thereon, together with any additional amounts
         required pursuant to Section 3.05. Each such prepayment shall be
         applied to the Loans of the Lenders in accordance with their respective
         Pro Rata Shares.

                  (ii) Certain Prepayments Permitted Prior to First Anniversary
         of the Closing Date. Notwithstanding the foregoing clause (i), the
         Borrower shall be permitted to prepay up to 35% of the outstanding
         principal of the Tranche B Term loan prior to the first anniversary of
         the Closing

                                       28
<PAGE>

         Date with the net proceeds from the issuance of Capital Stock by the
         Borrower subject to the satisfaction of the following conditions:

                           (A) after giving effect to such prepayment, the
                  outstanding principal amount of the Tranche B Term Loan shall
                  not be less than the sum of (1) $65,000,000 plus (2) 65% of
                  all Additional Commitments that have been funded;

                           (B) such prepayment occurs not later than 90 days
                  after the date of such issuance of Capital Stock; and

                           (C) such prepayment shall be subject to an additional
                  premium equal to the amount of such prepayment multiplied by
                  1%.

         (b) Mandatory Prepayments.

                  (i) Excess Cash Flow. If Excess Cash Flow for any fiscal year
         is at least $2,000,000 then on the Excess Cash Flow Payment Date for
         such fiscal year, the Borrower shall prepay the Loans in an amount
         equal to 50% of such Excess Cash Flow (such prepayment to be applied as
         set forth in clause (iv) below).

                  (ii)              (A) Asset Sales.

                                            (1) Collateral. Within 5 days after
                                    the receipt of any Net Proceeds from an
                                    Asset Sale of Collateral (but subject to the
                                    applicable reinvestment provisions of
                                    Section 8.01(c), if any), the Borrower shall
                                    prepay the Loans in an aggregate amount
                                    equal to 100% of the Net Proceeds of the
                                    related Asset Sale (such prepayment to be
                                    applied as set forth in clause (iv) below).
                                    In connection with any such prepayment, the
                                    Borrower shall deliver to the Administrative
                                    Agent a notice of such prepayment together
                                    with a certificate of a Responsible Officer,
                                    on behalf of the Borrower, setting forth in
                                    reasonable detail the calculation of the Net
                                    Proceeds from the related Asset Sale; the
                                    Borrower will also endeavor to provide such
                                    documentation to the Administrative Agent at
                                    least three days notice prior to such
                                    prepayment.

                                            (2) Other Assets. Immediately upon
                                    the failure of the Loan Parties to apply (or
                                    cause to be applied) the Net Proceeds of any
                                    Asset Sale of assets other than Collateral
                                    in the manner contemplated by the terms of
                                    Section 8.01(b), the Borrower shall prepay
                                    the Loans in an aggregate amount equal to
                                    100% of the Net Proceeds of the related
                                    Asset Sale not applied (or caused to be
                                    applied) by the Loan Parties in the manner
                                    contemplated by the terms of Section 8.01(b)
                                    (such prepayment to be applied as set forth
                                    in clause (iv) below). In connection with
                                    any such prepayment, the Borrower shall
                                    deliver to the Administrative Agent a notice
                                    of such prepayment together with a
                                    certificate of a Responsible Officer, on
                                    behalf of the Borrower, setting forth in
                                    reasonable detail the calculation of the Net
                                    Proceeds from the related Asset Sale.

                                    (B) Involuntary Dispositions. Immediately
                           upon the occurrence of an Involuntary Disposition
                           Prepayment Event, the Borrower shall prepay the Loans
                           in an aggregate amount equal to 100% of the Casualty
                           Proceeds of the related

                                       29
<PAGE>

                           Involuntary Disposition (such prepayment to be
                           applied as set forth in clause (iv) below). In
                           connection with any such prepayment, the Borrower
                           shall deliver to the Administrative Agent a notice of
                           such prepayment together with a certificate of a
                           Responsible Officer, on behalf of the Borrower,
                           setting forth in reasonable detail the calculation of
                           the Casualty Proceeds from the related Involuntary
                           Disposition; the Borrower will also endeavor to
                           provide such documentation to the Administrative
                           Agent at least three days notice prior to such
                           prepayment.

                  (iii) Certain Issuances of Equity. If, prior to the first
         anniversary of the Closing Date, the Borrower elects to prepay any
         portion of the Senior Notes with the net proceeds from the issuance of
         Capital Stock by the Borrower, the Borrower shall immediately make a
         ratable prepayment of the Loans (but in no event shall such prepayment
         exceed 35% of the outstanding principal of the Tranche B Term Loan)
         which prepayment shall comply with clauses (A) through (C) of Section
         2.04(a)(ii) (such prepayment to be applied as set forth in clause (iv)
         below).

                  (iv) Application of Mandatory Prepayments. All amounts
         required to be paid pursuant to this Section 2.04(b) shall be applied
         to prepay the Tranche B Term Loan (to remaining Principal Amortization
         Payments in inverse order of maturities thereof). Within the parameters
         of the applications set forth above, prepayments shall be applied first
         to Base Rate Loans and then to Eurodollar Rate Loans in direct order of
         Interest Period maturities. All prepayments under this Section 2.04(b)
         shall be subject to Section 3.05, but otherwise without premium or
         penalty, and shall be accompanied by interest on the principal amount
         prepaid through the date of prepayment.

                  (v) Prepayment Account. If the Borrower is required to make a
         mandatory prepayment of Eurodollar Rate Loans under this Section
         2.04(b), the Borrower shall have the right, in lieu of making such
         prepayment in full, to deposit an amount equal to such mandatory
         prepayment with the Administrative Agent in a cash collateral account
         maintained (pursuant to documentation reasonably satisfactory to the
         Administrative Agent) by and in the sole dominion and control of the
         Administrative Agent. Any amounts so deposited shall be held by the
         Administrative Agent as collateral for the prepayment of such
         Eurodollar Rate Loans and shall be applied to the prepayment of the
         applicable Eurodollar Rate Loans at the end of the current Interest
         Periods applicable thereto. At the request of the Borrower, amounts so
         deposited shall be invested by the Administrative Agent, as instructed
         by the Borrower, in Cash Equivalents maturing prior to the date or
         dates on which it is anticipated that such amounts will be applied to
         prepay such Eurodollar Rate Loans; any interest earned on such Cash
         Equivalents will be for the account of the Borrower and the Borrower
         will deposit with the Administrative Agent the amount of any loss on
         any such Cash Equivalents to the extent necessary in order that the
         amount of the prepayment to be made with the deposited amounts may not
         be reduced.

2.05 [INTENTIONALLY OMITTED].

2.06 REPAYMENT OF LOANS.

         The Borrower shall repay the outstanding principal amount of the
Tranche B Term Loan in consecutive quarterly installments as follows (as such
installments may hereafter be adjusted as a result of prepayments made pursuant
to Section 2.04 or as the result of an increase in the amount of the Tranche B
Term Loan Commitments pursuant to Section 2.01(b)), unless accelerated sooner
pursuant to Section 9.02:

                                       30
<PAGE>

<Table>
<Caption>
                                    PRINCIPAL AMORTIZATION
                                   PAYMENT (EXPRESSED AS A
         PAYMENT DATE             PERCENTAGE OF THE TRANCHE
  (THE LAST BUSINESS DAY OF             B TERM LOAN
    EACH OF THE FOLLOWING            COMMITMENT ON THE
            MONTHS)                     CLOSING DATE)
 -----------------------------    --------------------------
<S>                               <C>
      September, 2003,
   December, 2003, March,
    2004 and June, 2004                     0.25%

      September, 2004,
   December, 2004, March,
     2005 and June, 2005                    0.25%

      September, 2005,
   December, 2005, March,
     2006 and June, 2006                    0.25%

      September, 2006,
   December, 2006, March,
     2007 and June, 2007                    0.25%

      September, 2007,
   December, 2007, March,
     2008 and June, 2008                    0.25%

      September, 2008,
   December, 2008, March,
     2009 and June, 2009                    0.25%

      September, 2009,
    December, 2009 and
        March, 2010                        23.50%

       Maturity Date                      Balance
</Table>

2.07 INTEREST.

         (a) Subject to the provisions of subsection (b) below, (i) each
Eurodollar Rate Loan shall bear interest on the outstanding principal amount
thereof for each Interest Period at a rate per annum equal to the Eurodollar
Rate for such Interest Period plus the Applicable Rate; and (ii) each Base Rate
Loan shall bear interest on the outstanding principal amount thereof from the
applicable borrowing date at a rate per annum equal to the Base Rate plus the
Applicable Rate.

         (b) If any amount payable by the Borrower under any Loan Document is
not paid when due (without regard to any applicable grace periods), whether at
stated maturity, by acceleration or otherwise, such amount shall thereafter bear
interest at a fluctuating interest rate per annum at all times equal to the
Default Rate to the fullest extent permitted by applicable Laws. Furthermore,
upon the request of the Required Lenders, while any Event of Default exists, the
Borrower shall pay interest on the principal amount of all outstanding
Obligations hereunder at a fluctuating interest rate per annum at all times
equal to the Default Rate to the fullest extent permitted by applicable Laws.
Accrued and unpaid interest on past due amounts (including interest on past due
interest) shall be due and payable upon demand.

         (c) Interest on each Loan shall be due and payable in arrears on each
Interest Payment Date applicable thereto and at such other times as may be
specified herein. Interest hereunder shall be due and payable in accordance with
the terms hereof before and after judgment, and before and after the
commencement of any proceeding under any Debtor Relief Law.

                                       31
<PAGE>

2.08 FEES.

         (a) The Borrower shall pay to the BAS and the Administrative Agent for
their own respective accounts fees in the amounts and at the times specified in
the Fee Letter. Such fees shall be fully earned when paid and shall not be
refundable for any reason whatsoever.

         (b) The Borrower shall pay to the Lenders such fees as shall have been
separately agreed upon in writing in the amounts and at the times so specified.
Such fees shall be fully earned when paid and shall not be refundable for any
reason whatsoever, except as expressly provided in such writing.

2.09 COMPUTATION OF INTEREST AND FEES.

         All computations of interest for Base Rate Loans when the Base Rate is
determined by Bank of America's "prime rate" shall be made on the basis of a
year of 365 or 366 days, as the case may be, and actual days elapsed. All other
computations of fees and interest shall be made on the basis of a 360-day year
and actual days elapsed (which results in more fees or interest, as applicable,
being paid than if computed on the basis of a 365-day year). Interest shall
accrue on each Loan for the day on which the Loan is made, and shall not accrue
on a Loan, or any portion thereof, for the day on which the Loan or such portion
is paid, provided that any Loan that is repaid on the same day on which it is
made shall, subject to Section 2.11(a), bear interest for one day.

2.10 EVIDENCE OF DEBT.

         (a) The Borrowings made by each Lender shall be evidenced by one or
more accounts or records maintained by such Lender and by the Administrative
Agent in the ordinary course of business. The accounts or records maintained by
the Administrative Agent and each Lender shall be conclusive absent manifest
error of the amount of the Borrowings made by the Lenders to the Borrower and
the interest and payments thereon. Any failure to so record or any error in
doing so shall not, however, limit or otherwise affect the obligation of the
Borrower hereunder to pay any amount owing with respect to the Obligations. In
the event of any conflict between the accounts and records maintained by any
Lender and the accounts and records of the Administrative Agent in respect of
such matters, the accounts and records of the Administrative Agent shall control
in the absence of manifest error. Upon the request of any Lender made through
the Administrative Agent, the Borrower shall execute and deliver to such Lender
(through the Administrative Agent) a promissory note (a "Note") which shall
evidence such Lender's Loans in addition to such accounts or records. Each
Lender may attach schedules to its Note and endorse thereon the date, Type (if
applicable), amount and maturity of its Loans and payments with respect thereto.

         (b) In the event of any conflict between the accounts and records
maintained by the Administrative Agent and the accounts and records of any
Lender in respect of such matters, the accounts and records of the
Administrative Agent shall control in the absence of manifest error.

2.11 PAYMENTS GENERALLY.

         (a) All payments to be made by the Borrower shall be made without
condition or deduction for any counterclaim, defense, recoupment or setoff.
Except as otherwise expressly provided herein, all payments by the Borrower
hereunder shall be made to the Administrative Agent, for the account of the
respective Lenders to which such payment is owed, at the Administrative Agent's
Office in Dollars and in immediately available funds not later than 2:00 p.m. on
the date specified herein. The Administrative Agent will promptly distribute to
each Lender its Pro Rata Share (or other applicable share as provided

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<PAGE>

herein) of such payment in like funds as received by wire transfer to such
Lender's Lending Office. All payments received by the Administrative Agent after
2:00 p.m. shall be deemed received on the next succeeding Business Day and any
applicable interest or fee shall continue to accrue.

         (b) If any payment to be made by the Borrower shall come due on a day
other than a Business Day, payment shall be made on the next following Business
Day, and such extension of time shall be reflected in computing interest or
fees, as the case may be.

         (c) Unless the Borrower or any Lender has notified the Administrative
Agent, prior to the date any payment is required to be made by it to the
Administrative Agent hereunder, that the Borrower or such Lender, as the case
may be, will not make such payment, the Administrative Agent may assume that the
Borrower or such Lender, as the case may be, has timely made such payment and
may (but shall not be so required to), in reliance thereon, make available a
corresponding amount to the Person entitled thereto. If and to the extent that
such payment was not in fact made to the Administrative Agent in immediately
available funds, then:

                  (i) if the Borrower failed to make such payment, each Lender
         shall forthwith on demand repay to the Administrative Agent the portion
         of such assumed payment that was made available to such Lender in
         immediately available funds, together with interest thereon in respect
         of each day from and including the date such amount was made available
         by the Administrative Agent to such Lender to the date such amount is
         repaid to the Administrative Agent in immediately available funds at
         the Federal Funds Rate from time to time in effect; and

                  (ii) if any Lender failed to make such payment, such Lender
         shall forthwith on demand pay to the Administrative Agent the amount
         thereof in immediately available funds, together with interest thereon
         for the period from the date such amount was made available by the
         Administrative Agent to the Borrower to the date such amount is
         recovered by the Administrative Agent (the "Compensation Period") at a
         rate per annum equal to the Federal Funds Rate from time to time in
         effect. If such Lender pays such amount to the Administrative Agent,
         then such amount shall constitute such Lender's Loan included in the
         applicable Borrowing. If such Lender does not pay such amount forthwith
         upon the Administrative Agent's demand therefor, the Administrative
         Agent may make a demand therefor upon the Borrower, and the Borrower
         shall pay such amount to the Administrative Agent, together with
         interest thereon for the Compensation Period at a rate per annum equal
         to the rate of interest applicable to the applicable Borrowing. Nothing
         herein shall be deemed to relieve any Lender from its obligation to
         fulfill its Commitment or to prejudice any rights which the
         Administrative Agent or the Borrower may have against any Lender as a
         result of any default by such Lender hereunder.

         A notice of the Administrative Agent to any Lender or the Borrower with
respect to any amount owing under this subsection (c) shall be conclusive,
absent manifest error.

         (d) If any Lender makes available to the Administrative Agent funds for
any Loan to be made by such Lender as provided in the foregoing provisions of
this Article II, and such funds are not made available to the Borrower by the
Administrative Agent because the conditions to the applicable Borrowing set
forth in Article V are not satisfied or waived in accordance with the terms
hereof, the Administrative Agent shall return such funds (in like funds as
received from such Lender) to such Lender, without interest.

         (e) The obligations of the Lenders hereunder to make Loans are several
and not joint. The failure of any Lender to make any Loan on any date required
hereunder shall not relieve any other Lender

                                       33
<PAGE>

of its corresponding obligation to do so on such date, and no Lender shall be
responsible for the failure of any other Lender to so make its Loan.

         (f) Nothing herein shall be deemed to obligate any Lender to obtain the
funds for any Loan in any particular place or manner or to constitute a
representation by any Lender that it has obtained or will obtain the funds for
any Loan in any particular place or manner.

2.12 SHARING OF PAYMENTS.

         If, other than as expressly provided elsewhere herein, any Lender shall
obtain on account of the Loans made by it any payment (whether voluntary,
involuntary, through the exercise of any right of set-off, or otherwise) in
excess of its ratable share (or other share contemplated hereunder) thereof,
such Lender shall immediately (a) notify the Administrative Agent of such fact,
and (b) purchase from the other Lenders such participations in the Loans made by
them as shall be necessary to cause such purchasing Lender to share the excess
payment in respect of such Loans or such participations, as the case may be, pro
rata with each of them; provided, however, that if all or any portion of such
excess payment is thereafter recovered from the purchasing Lender under any of
the circumstances described in Section 11.06 (including pursuant to any
settlement entered into by the purchasing Lender in its discretion), such
purchase shall to that extent be rescinded and each other Lender shall repay to
the purchasing Lender the purchase price paid therefor, together with an amount
equal to such paying Lender's ratable share (according to the proportion of (i)
the amount of such paying Lender's required repayment to (ii) the total amount
so recovered from the purchasing Lender) of any interest or other amount paid or
payable by the purchasing Lender in respect of the total amount so recovered,
without further interest thereon. The Borrower agrees that any Lender so
purchasing a participation from another Lender may, to the fullest extent
permitted by law, exercise all its rights of payment (including the right of
set-off, but subject to Section 11.09) with respect to such participation as
fully as if such Lender were the direct creditor of the Borrower in the amount
of such participation. The Administrative Agent will keep records (which shall
be conclusive and binding in the absence of manifest error) of participations
purchased under this Section and will in each case notify the Lenders following
any such purchases or repayments. Each Lender that purchases a participation
pursuant to this Section shall from and after such purchase have the right to
give all notices, requests, demands, directions and other communications under
this Agreement with respect to the portion of the Obligations purchased to the
same extent as though the purchasing Lender were the original owner of the
Obligations purchased.

                                   ARTICLE III
                     TAXES, YIELD PROTECTION AND ILLEGALITY

3.01 TAXES.

         (a) Any and all payments by any Loan Party to or for the account of the
Administrative Agent or any Lender under any Loan Document shall be made free
and clear of and without deduction for any and all present or future taxes,
duties, levies, imposts, deductions, assessments, fees, withholdings or similar
charges, and all liabilities with respect thereto, excluding, in the case of the
Administrative Agent and each Lender, taxes imposed on or measured by its
overall net income, and franchise taxes imposed on it (in lieu of net income
taxes), by the jurisdiction (or any political subdivision thereof) under the
Laws of which the Administrative Agent or such Lender, as the case may be, is
organized or maintains a lending office (all such non-excluded taxes, duties,
levies, imposts, deductions, assessments, fees, withholdings or similar charges,
and liabilities being hereinafter referred to as "Taxes"). If any Loan Party
shall be required by any Laws to deduct any Taxes from or in respect of any sum
payable under any Loan Document to the Administrative Agent or any Lender, (i)
the sum payable shall be increased as necessary

                                       34
<PAGE>

so that after making all required deductions (including deductions applicable to
additional sums payable under this Section), each of the Administrative Agent
and such Lender receives an amount equal to the sum it would have received had
no such deductions been made, (ii) such Loan Party shall make such deductions,
(iii) such Loan Party shall pay the full amount deducted to the relevant
taxation authority or other authority in accordance with applicable Laws, and
(iv) within 30 days after the date of such payment, such Loan Party shall
furnish to the Administrative Agent (which shall forward the same to such
Lender) the original or a certified copy of a receipt evidencing payment
thereof.

         (b) In addition, the Borrower agrees to pay any and all present or
future stamp, court or documentary taxes and any other excise or property taxes
or charges or similar levies which arise from any payment made under any Loan
Document or from the execution, delivery, performance, enforcement or
registration of, or otherwise with respect to, any Loan Document (hereinafter
referred to as "Other Taxes").

         (c) If the Borrower shall be required to deduct or pay any Taxes or
Other Taxes from or in respect of any sum payable under any Loan Document to the
Administrative Agent or any Lender, the Borrower shall also pay to the
Administrative Agent or to such Lender, as the case may be, at the time interest
is paid, such additional amount that the Administrative Agent or such Lender
specifies is necessary to preserve the after-tax yield (after factoring in all
taxes, including taxes imposed on or measured by net income) that the
Administrative Agent or such Lender would have received if such Taxes or Other
Taxes had not been imposed.

         (d) The Borrower agrees to indemnify the Administrative Agent and each
Lender for (i) the full amount of Taxes and Other Taxes (including any Taxes or
Other Taxes imposed or asserted by any jurisdiction on amounts payable under
this Section) paid by the Administrative Agent and such Lender, (ii) amounts
payable under Section 3.01(c) and (iii) any liability (including additions to
tax, penalties, interest and expenses) arising therefrom or with respect
thereto, in each case whether or not such Taxes or Other Taxes were correctly or
legally imposed or asserted by the relevant Governmental Authority. Payment
under this subsection (d) shall be made within 30 days after the date the Lender
or the Administrative Agent makes a demand therefor (which demand shall be
accompanied by a certificate of the type described in Section 3.06(a)).

3.02 ILLEGALITY.

         If any Lender determines that any Law has made it unlawful, or that any
Governmental Authority has asserted that it is unlawful, for any Lender or its
applicable Lending Office to make, maintain or fund Eurodollar Rate Loans, or to
determine or charge interest rates based upon the Eurodollar Rate, then, on
notice thereof by such Lender to the Borrower through the Administrative Agent,
together with an explanation of the circumstances, any obligation of such Lender
to make or continue Eurodollar Rate Loans or to convert Base Rate Loans to
Eurodollar Rate Loans shall be suspended until such Lender notifies the
Administrative Agent and the Borrower that the circumstances giving rise to such
determination no longer exist. Upon receipt of such notice, the Borrower shall,
upon demand from such Lender (with a copy to the Administrative Agent), prepay
or, if applicable, convert all Eurodollar Rate Loans of such Lender to Base Rate
Loans, either on the last day of the Interest Period therefor, if such Lender
may lawfully continue to maintain such Eurodollar Rate Loans to such day, or
immediately, if such Lender may not lawfully continue to maintain such
Eurodollar Rate Loans. Upon any such prepayment or conversion, the Borrower
shall also pay accrued interest on the amount so prepaid or converted. Each
Lender agrees to designate a different Lending Office if such designation will
avoid the need for such notice and will not, in the good faith judgment of such
Lender, otherwise be materially disadvantageous to such Lender.

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<PAGE>

3.03 INABILITY TO DETERMINE RATES.

         If the Required Lenders determine that for any reason adequate and
reasonable means do not exist for determining the Eurodollar Rate for any
requested Interest Period with respect to a proposed Eurodollar Rate Loan, or
that the Eurodollar Rate for any requested Interest Period with respect to a
proposed Eurodollar Rate Loan does not adequately and fairly reflect the cost to
such Lenders of funding such Loan, the Administrative Agent will promptly so
notify the Borrower and each Lender. Thereafter, the obligation of the Lenders
to make or maintain Eurodollar Rate Loans shall be suspended until the
Administrative Agent (upon the instruction of the Required Lenders) revokes such
notice. Upon receipt of such notice, the Borrower may revoke any pending request
for a Borrowing of, conversion to or continuation of Eurodollar Rate Loans or,
failing that, will be deemed to have converted such request into a request for a
Borrowing of Base Rate Loans in the amount specified therein.

3.04 INCREASED COST AND REDUCED RETURN; CAPITAL ADEQUACY; RESERVES ON EURODOLLAR
RATE LOANS.

         (a) If any Lender determines that as a result of the introduction of or
any change in or in the interpretation of any Law after the Closing Date, or
such Lender's compliance with any guideline, request, directive or other
instruction issued or made after the Closing Date by any central bank or
Governmental Authority, there shall be any increase in the cost to such Lender
of agreeing to make or making, funding or maintaining Eurodollar Rate Loans, or
a reduction in the amount received or receivable by such Lender in connection
with any of the foregoing (excluding for purposes of this subsection (a) any
such increased costs or reduction in amount resulting from (i) Taxes or Other
Taxes (as to which Section 3.01 shall govern), (ii) changes in the basis of
taxation of overall net income or overall gross income by the United States or
any foreign jurisdiction or any political subdivision of either thereof under
the Laws of which such Lender is organized or has its Lending Office, and (iii)
reserve requirements contemplated by Section 3.04(c)), then from time to time
upon demand of such Lender, which shall include a certificate of the type
described in Section 3.06(a), (with a copy of such demand to the Administrative
Agent), the Borrower shall pay to such Lender such additional amounts as will
compensate such Lender for such increased cost or reduction.

         (b) If any Lender determines that the introduction of any Law after the
Closing Date regarding capital adequacy or any change therein or in the
interpretation thereof by any central bank or other Governmental Authority
charged with the interpretation or administration thereof, or compliance by such
Lender (or its Lending Office) therewith, has the effect of reducing the rate of
return on the capital of such Lender or any corporation controlling such Lender
as a consequence of such Lender's obligations hereunder (taking into
consideration its policies with respect to capital adequacy and such Lender's
desired return on capital), then from time to time upon demand of such Lender,
which shall include a certificate of the type described in Section 3.06(a),
(with a copy of such demand to the Administrative Agent), the Borrower shall pay
to such Lender such additional amounts as will compensate such Lender for such
reduction.

         (c) The Borrower shall pay to each Lender, as long as such Lender shall
be required to maintain reserves with respect to liabilities or assets
consisting of or including Eurocurrency funds or deposits (currently known as
"Eurocurrency liabilities"), additional interest on the unpaid principal amount
of each Eurodollar Rate Loan equal to the actual costs of such reserves
allocated to such Loan by such Lender (as determined by such Lender in good
faith, which determination shall be conclusive), which shall be due and payable
on each date on which interest is payable on such Loan, provided the Borrower
shall have received at least 15 days' prior notice, which shall include a
certificate of the type described in Section 3.06(a), (with a copy to the
Administrative Agent) of such additional interest from

                                       36
<PAGE>

such Lender. If a Lender fails to give notice 15 days prior to the relevant
Interest Payment Date, such additional interest shall be due and payable 15 days
from receipt of such notice.

3.05 FUNDING LOSSES.

         Upon demand of any Lender, which shall include a certificate of the
type described in Section 3.06(a), (with a copy to the Administrative Agent)
from time to time, the Borrower shall promptly compensate such Lender for and
hold such Lender harmless from any loss, cost or expense incurred by it as a
result of:

                  (a) any continuation, conversion, payment or prepayment of any
         Loan other than a Base Rate Loan on a day other than the last day of
         the Interest Period for such Loan (whether voluntary, mandatory,
         automatic, by reason of acceleration, or otherwise);

                  (b) any failure by the Borrower (for a reason other than the
         failure of such Lender to make a Loan) to prepay, borrow, continue or
         convert any Loan other than a Base Rate Loan on the date or in the
         amount notified by the Borrower; or

                  (c) any assignment of a Eurodollar Rate Loan on a day other
         than the last day of the Interest Period therefor as a result of a
         request by the Borrower pursuant to Section 11.16;

including any loss or expense (other than any loss of anticipated profits)
arising from the liquidation or reemployment of funds obtained by it to maintain
such Loan or from fees payable to terminate the deposits from which such funds
were obtained. The Borrower shall also pay any customary administrative fees
charged by such Lender in connection with the foregoing.

For purposes of calculating amounts payable by the Borrower to the Lenders under
this Section 3.05, each Lender shall be deemed to have funded each Eurodollar
Rate Loan made by it at the Eurodollar Rate for such Loan by a matching deposit
or other borrowing in the London interbank eurodollar market for a comparable
amount and for a comparable period, whether or not such Eurodollar Rate Loan was
in fact so funded.

3.06 MATTERS APPLICABLE TO ALL REQUESTS FOR COMPENSATION.

         (a) A certificate of the Administrative Agent or any Lender claiming
compensation under this Article III and setting forth in reasonable detail the
additional amount or amounts to be paid to it hereunder shall be delivered to
the Borrower by the Agent or such Lender and shall be conclusive in the absence
of manifest error. In determining such amount, the Administrative Agent or such
Lender may use any reasonable averaging and attribution methods.

         (b) Upon any Lender's making a claim for compensation under Section
3.01 or 3.04 or if the circumstances described in Section 3.02 exist with
respect to any Lender, the Borrower may replace such Lender in accordance with
Section 11.16.

3.07 SURVIVAL.

         All of the Borrower's obligations under this Article III shall survive
the repayment of all other Obligations hereunder.

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<PAGE>

                                   ARTICLE IV
                                    GUARANTY

4.01 THE GUARANTY.

         Each of the Guarantors hereby jointly and severally guarantees to each
Lender and the Administrative Agent as hereinafter provided, as primary obligor
and not as surety, the prompt payment of the Obligations in full when due
(whether at stated maturity, as a mandatory prepayment, by acceleration, as a
mandatory cash collateralization or otherwise) strictly in accordance with the
terms thereof. The Guarantors hereby further agree that if any of the
Obligations are not paid in full when due (whether at stated maturity, as a
mandatory prepayment, by acceleration, as a mandatory cash collateralization or
otherwise), the Guarantors will, jointly and severally, promptly pay the same,
without any demand or notice whatsoever, and that in the case of any extension
of time of payment or renewal of any of the Obligations, the same will be
promptly paid in full when due (whether at extended maturity, as a mandatory
prepayment, by acceleration, as a mandatory cash collateralization or otherwise)
in accordance with the terms of such extension or renewal.

         Notwithstanding any provision to the contrary contained herein or in
any other of the Loan Documents, the obligations of each Guarantor under this
Agreement and the other Loan Documents shall be limited to an aggregate amount
equal to the largest amount that would not render such obligations subject to
avoidance under the Debtor Relief Laws or any comparable provisions of any
applicable state law.

4.02 OBLIGATIONS UNCONDITIONAL.

         The obligations of the Guarantors under Section 4.01 are joint and
several, absolute and unconditional, irrespective of the value, genuineness,
validity, regularity or enforceability of any of the Loan Documents, or any
other agreement or instrument referred to therein, or any substitution, release,
impairment or exchange of any other guarantee of or security for any of the
Obligations, and, to the fullest extent permitted by applicable law,
irrespective of any other circumstance whatsoever which might otherwise
constitute a legal or equitable discharge or defense of a surety or guarantor,
it being the intent of this Section 4.02 that the obligations of the Guarantors
hereunder shall be absolute and unconditional under any and all circumstances.
Each Guarantor agrees that such Guarantor shall have no right of subrogation,
indemnity, reimbursement or contribution against the Borrower or any other
Guarantor for amounts paid under this Article IV until such time as the
Obligations have been Fully Satisfied. Without limiting the generality of the
foregoing, it is agreed that, to the fullest extent permitted by law, the
occurrence of any one or more of the following shall not alter or impair the
liability of any Guarantor hereunder which shall remain absolute and
unconditional as described above:

                  (a) at any time or from time to time, without notice to any
         Guarantor, the time for any performance of or compliance with any of
         the Obligations shall be extended, or such performance or compliance
         shall be waived;

                  (b) any of the acts mentioned in any of the provisions of any
         of the Loan Documents or any other agreement or instrument referred to
         in the Loan Documents shall be done or omitted;

                  (c) the maturity of any of the Obligations shall be
         accelerated, or any of the Obligations shall be modified, supplemented
         or amended in any respect, or any right under any of the Loan Documents
         or any other agreement or instrument referred to in the Loan Documents
         shall be waived or any other guarantee of any of the Obligations or any
         security therefor shall be released, impaired or exchanged in whole or
         in part or otherwise dealt with;

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<PAGE>

                  (d) any Lien granted to, or in favor of, the Administrative
         Agent or any Lender or Lenders as security for any of the Obligations
         shall fail to attach or be perfected; or

                  (e) any of the Obligations shall be determined to be void or
         voidable (including, without limitation, for the benefit of any
         creditor of any Guarantor) or shall be subordinated to the claims of
         any Person (including, without limitation, any creditor of any
         Guarantor).

         With respect to its obligations hereunder, each Guarantor hereby
expressly waives diligence, presentment, demand of payment, protest and all
notices whatsoever, and any requirement that the Administrative Agent or any
Lender exhaust any right, power or remedy or proceed against any Person under
any of the Loan Documents or any other agreement or instrument referred to in
the Loan Documents, or against any other Person under any other guarantee of, or
security for, any of the Obligations.

4.03 REINSTATEMENT.

         The obligations of the Guarantors under this Article IV shall be
automatically reinstated if and to the extent that for any reason any payment by
or on behalf of any Person in respect of the Obligations is rescinded or must be
otherwise restored by any holder of any of the Obligations, whether as a result
of any proceedings in bankruptcy or reorganization or otherwise, and each
Guarantor agrees that it will indemnify the Administrative Agent and each Lender
on demand for all reasonable costs and expenses (including, without limitation,
fees and expenses of counsel) incurred by the Administrative Agent or such
Lender in connection with such rescission or restoration, including any such
costs and expenses incurred in defending against any claim alleging that such
payment constituted a preference, fraudulent transfer or similar payment under
any bankruptcy, insolvency or similar law.

4.04 CERTAIN ADDITIONAL WAIVERS.

         Each Guarantor agrees that such Guarantor shall have no right of
recourse to security for the Obligations, except through the exercise of rights
of subrogation pursuant to Section 4.02 and through the exercise of rights of
contribution pursuant to Section 4.06, unless and until such time as all
Obligations are Fully Satisfied.

4.05 REMEDIES.

         The Guarantors agree that, to the fullest extent permitted by law, as
between the Guarantors, on the one hand, and the Administrative Agent and the
Lenders, on the other hand, the Obligations may be declared to be forthwith due
and payable as provided in Section 9.02 (and shall be deemed to have become
automatically due and payable in the circumstances provided in said Section
9.02) for purposes of Section 4.01 notwithstanding any stay, injunction or other
prohibition preventing such declaration (or preventing the Obligations from
becoming automatically due and payable) as against any other Person and that, in
the event of such declaration (or the Obligations being deemed to have become
automatically due and payable), the Obligations (whether or not due and payable
by any other Person) shall forthwith become due and payable by the Guarantors
for purposes of Section 4.01. The Guarantors acknowledge and agree that their
obligations hereunder are secured in accordance with the terms of the Collateral
Documents and that the Lenders may exercise their remedies thereunder in
accordance with the terms thereof.

4.06 RIGHTS OF CONTRIBUTION.

         The Guarantors hereby agree as among themselves that, if any Guarantor
shall make an Excess Payment (as defined below), such Guarantor shall have a
right of contribution from each other Guarantor in an amount equal to such other
Guarantor's Contribution Share (as defined below) of such Excess Payment.

                                       39
<PAGE>

The payment obligations of any Guarantor under this Section 4.06 shall be
subordinate and subject in right of payment to the Obligations until such time
as the Obligations have been Fully Satisfied, and none of the Guarantors shall
exercise any right or remedy under this Section 4.06 against any other Guarantor
until such Obligations have been Fully Satisfied. For purposes of this Section
4.06, (a) "Excess Payment" shall mean the amount paid by any Guarantor in excess
of its Ratable Share of any Guaranteed Obligations; (b) "Ratable Share" shall
mean, for any Guarantor in respect of any payment of Obligations, the ratio
(expressed as a percentage) as of the date of such payment of Guaranteed
Obligations of (i) the amount by which the aggregate present fair salable value
of all of its assets and properties exceeds the amount of all debts and
liabilities of such Guarantor (including contingent, subordinated, unmatured,
and unliquidated liabilities, but excluding the obligations of such Guarantor
hereunder) to (ii) the amount by which the aggregate present fair salable value
of all assets and other properties of all of the Loan Parties exceeds the amount
of all of the debts and liabilities (including contingent, subordinated,
unmatured, and unliquidated liabilities, but excluding the obligations of the
Loan Parties hereunder) of the Loan Parties; provided, however, that, for
purposes of calculating the Ratable Shares of the Guarantors in respect of any
payment of Obligations, any Guarantor that became a Guarantor subsequent to the
date of any such payment shall be deemed to have been a Guarantor on the date of
such payment and the financial information for such Guarantor as of the date
such Guarantor became a Guarantor shall be utilized for such Guarantor in
connection with such payment; (c) "Contribution Share" shall mean, for any
Guarantor in respect of any Excess Payment made by any other Guarantor, the
ratio (expressed as a percentage) as of the date of such Excess Payment of (i)
the amount by which the aggregate present fair salable value of all of its
assets and properties exceeds the amount of all debts and liabilities of such
Guarantor (including contingent, subordinated, unmatured, and unliquidated
liabilities, but excluding the obligations of such Guarantor hereunder) to (ii)
the amount by which the aggregate present fair salable value of all assets and
other properties of the Loan Parties other than the maker of such Excess Payment
exceeds the amount of all of the debts and liabilities (including contingent,
subordinated, unmatured, and unliquidated liabilities, but excluding the
obligations of the Loan Parties) of the Loan Parties other than the maker of
such Excess Payment; provided, however, that, for purposes of calculating the
Contribution Shares of the Guarantors in respect of any Excess Payment, any
Guarantor that became a Guarantor subsequent to the date of any such Excess
Payment shall be deemed to have been a Guarantor on the date of such Excess
Payment and the financial information for such Guarantor as of the date such
Guarantor became a Guarantor shall be utilized for such Guarantor in connection
with such Excess Payment; and (d) "Guaranteed Obligations" shall mean the
Obligations guaranteed by the Guarantors pursuant to this Article IV. This
Section 4.06 shall not be deemed to affect any right of subrogation, indemnity,
reimbursement or contribution that any Guarantor may have under Law against the
Borrower in respect of any payment of Guaranteed Obligations. Notwithstanding
the foregoing, all rights of contribution against any Guarantor shall terminate
from and after such time, if ever, that such Guarantor shall be relieved of its
obligations in accordance with Section 10.11.

4.07 GUARANTEE OF PAYMENT; CONTINUING GUARANTEE.

         The guarantee in this Article IV is a guaranty of payment and not of
collection, is a continuing guarantee, and shall apply to all Obligations
whenever arising.

                                    ARTICLE V
                       CONDITIONS PRECEDENT TO BORROWINGS

5.01 CONDITIONS OF CLOSING DATE AND INITIAL BORROWING.

         The occurrence of the Closing Date, the effectiveness of this Agreement
and the obligation of each Lender to make its initial Borrowing hereunder is
subject to satisfaction of the following conditions precedent:

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<PAGE>

                  (a) Loan Documents, Organization Documents, Etc. The
         Administrative Agent's receipt of the following, each of which shall be
         originals or facsimiles (followed promptly by originals) unless
         otherwise specified, each properly executed by a Responsible Officer of
         the signing Loan Party on behalf of the signing Loan Party, each dated
         the Closing Date (or, in the case of certificates of governmental
         officials, a recent date before the Closing Date) and each in form and
         substance satisfactory to the Administrative Agent and its legal
         counsel:

                           (i) executed counterparts of this Agreement and the
                  other Loan Documents;

                           (ii) copies of the Organization Documents of each
                  Loan Party certified to be true and complete as of a recent
                  date by the appropriate Governmental Authority of the state or
                  other jurisdiction of its incorporation or organization, where
                  applicable, and certified by a Responsible Officer of such
                  Loan Party to be true and correct as of the Closing Date;

                           (iii) such certificates of resolutions or other
                  action, incumbency certificates and/or other certificates of
                  Responsible Officers of each Loan Party as the Administrative
                  Agent may require evidencing the identity, authority and
                  capacity of each Responsible Officer thereof authorized to act
                  as a Responsible Officer of each Loan Party signed on behalf
                  of each Loan Party in connection with this Agreement and the
                  other Loan Documents to which such Loan Party is a party; and

                           (iv) such documents and certifications as the
                  Administrative Agent may reasonably require to evidence that
                  each Loan Party is duly organized or formed, and is validly
                  existing, in good standing and qualified to engage in business
                  in (A) the jurisdiction of its incorporation or organization
                  and (B) each jurisdiction where its ownership, lease or
                  operation of properties or the conduct of its business
                  requires such qualification, except to the extent that failure
                  to do so could not reasonably be expected to have a Material
                  Adverse Effect.

                  (b) Opinions of Counsel. The Administrative Agent shall have
         received, in each case dated as of the Closing Date and in form and
         substance reasonably satisfactory to the Administrative Agent:

                           (i) a legal opinion of Baker Botts, general counsel
                  for the Loan Parties; and

                           (ii) a legal opinion of special local counsel for the
                  Loan Parties for each state in which any Mortgaged Property is
                  located.

                  (c) Personal Property Collateral. The Administrative Agent
         shall have received:

                           (i) searches of Uniform Commercial Code filings in
                  the jurisdiction of the chief executive office of each Loan
                  Party and each jurisdiction where any Collateral is located or
                  where a filing would need to be made in order to perfect the
                  Administrative Agent's security interest in the Collateral,
                  copies of the financing statements on file in such
                  jurisdictions and evidence that no Liens exist other than
                  Permitted Liens;

                           (ii) UCC financing statements for each appropriate
                  jurisdiction as is necessary, in the Administrative Agent's
                  sole discretion, to perfect the Administrative Agent's
                  security interest in the Collateral;

                                       41

<PAGE>

                           (iii) searches of ownership of, and Liens on,
                  intellectual property of each Loan Party in the appropriate
                  governmental offices;

                           (iv) duly executed notices of grant of security
                  interest in the form required by the Security Agreement as are
                  necessary, in the Administrative Agent's sole discretion, to
                  perfect the Administrative Agent's security interest in the
                  Collateral consisting of intellectual property; and

                           (v) in the case of any personal property Collateral
                  located at a premises leased by a Loan Party, such estoppel
                  letters, consents and waivers from the landlords on such real
                  property as may be required by the Administrative Agent.

                  (d) Real Property Collateral. The Administrative Agent shall
         have received, in form and substance reasonably satisfactory to the
         Administrative Agent:

                           (i) fully executed and notarized mortgages, deeds of
                  trust or deeds to secure debt (each, as the same may be
                  amended, modified, restated or supplemented from time to time,
                  a "Mortgage Instrument" and collectively the "Mortgage
                  Instruments") encumbering the fee or leasehold interest of any
                  Loan Party in each of the Real Properties designated in
                  Schedule 6.20(a) as a "Mortgaged Property" (each a "Mortgaged
                  Property" and collectively the "Mortgaged Properties");

                           (ii) in the case of each real property leasehold
                  interest of any Loan Party constituting Mortgaged Property,
                  (a) such estoppel letters, consents and waivers from the
                  landlords on such real property as may be required by the
                  Administrative Agent, which estoppel letters shall be in the
                  form and substance reasonably satisfactory to the
                  Administrative Agent and (b) evidence that the applicable
                  lease, a memorandum of lease with respect thereto, or other
                  evidence of such lease in form and substance reasonably
                  satisfactory to the Administrative Agent, has been or will be
                  recorded in all places to the extent necessary or desirable,
                  in the reasonable judgment of the Administrative Agent, so as
                  to enable the Mortgage Instrument encumbering such leasehold
                  interest to effectively create a valid and enforceable first
                  priority lien (subject to Specified Permitted Liens) on such
                  leasehold interest in favor of the Administrative Agent (or
                  such other Person as may be required or desired under local
                  law) for the benefit of Lenders;

                            (iii) maps or plats of an existing boundary survey
                  of the sites of the real property covered by the Mortgage
                  Instruments prepared by an independent professional licensed
                  land surveyor and dated a date reasonably satisfactory to each
                  of the Administrative Agent and the title insurance company,
                  which maps or plats and the surveys on which they are based
                  shall be sufficient to delete any standard printed survey
                  exception contained in the applicable title policy;

                           (iv) ALTA mortgagee title insurance policies (the
                  "Mortgage Policies") with respect to each Mortgaged Property,
                  assuring the Administrative Agent that each of the Mortgage
                  Instruments creates a valid and enforceable first priority
                  mortgage lien on the applicable Mortgaged Property, free and
                  clear of all defects and encumbrances except Specified
                  Permitted Liens, which Mortgage Policies shall otherwise be in
                  form and substance reasonably satisfactory to the
                  Administrative Agent and shall include such endorsements as
                  are reasonably requested by the Administrative Agent and are
                  available in the applicable jurisdictions;

                                       42
<PAGE>

                           (v) evidence as to (A) whether any Mortgaged Property
                  is in an area designated by the Federal Emergency Management
                  Agency as having special flood or mud slide hazards (a "Flood
                  Hazard Property") and (B) if any Mortgaged Property is a Flood
                  Hazard Property, (1) whether the community in which such
                  Mortgaged Property is located is participating in the National
                  Flood Insurance Program, (2) the applicable Loan Party's
                  written acknowledgment of receipt of written notification from
                  the Administrative Agent (a) as to the fact that such
                  Mortgaged Property is a Flood Hazard Property and (b) as to
                  whether the community in which each such Flood Hazard Property
                  is located is participating in the National Flood Insurance
                  Program and (3) copies of insurance policies or certificates
                  of insurance of the Consolidated Parties evidencing flood
                  insurance satisfactory to the Administrative Agent and naming
                  the Administrative Agent as sole loss payee on behalf of the
                  Lenders; and

                           (vi) evidence reasonably satisfactory to the
                  Administrative Agent that each of the Mortgaged Properties,
                  and the uses of the Mortgaged Properties, are in compliance in
                  all material respects with all applicable zoning laws (the
                  evidence submitted as to which should include the zoning
                  designation made for each of the Mortgaged Properties, the
                  permitted uses of each such Mortgaged Properties under such
                  zoning designation and, if available, zoning requirements as
                  to parking, lot size, ingress, egress and building setbacks);
                  a zoning endorsement to the Mortgage Policies shall be deemed
                  to satisfy this requirement.

                  (e) Evidence of Insurance. Receipt by the Administrative Agent
         of copies of insurance policies or certificates of insurance of the
         Loan Parties evidencing liability and casualty insurance meeting the
         requirements set forth in the Loan Documents, including, but not
         limited to, naming the Administrative Agent as additional insured (in
         the case of liability insurance) or loss payee (in the case of hazard
         insurance) on behalf of the Lenders.

                  (f) Consummation of Related Financings. The Borrower (i) shall
         (or the initial purchaser of the Senior Notes shall) have initiated
         funding of Senior Notes in an aggregate principal amount of $380
         million and (ii) shall have borrowed approximately $23 million under
         the Asset-Based Facility. BAS shall be satisfied with the terms and
         conditions of the Senior Note Indenture and the Asset-Based Facility,
         and the Administrative Agent shall have received a copy, certified on
         behalf of the Borrower by a Responsible Officer of the Borrower as true
         and complete, of the Senior Note Indenture and the loan documents
         evidencing the Asset-Based Facility, all as originally executed and
         delivered, together with all exhibits and schedules thereto.

                  (g) Officer's Certificates. The Administrative Agent shall
         have received a certificate or certificates executed on behalf of the
         Borrower by a Responsible Officer of the Borrower as of the Closing
         Date, in form and substance satisfactory to the Administrative Agent,
         stating that (A) the conditions specified in Sections 5.02(a) and (b)
         have been satisfied, (B) each Loan Party is in compliance with all
         existing financial obligations, (C) all governmental, shareholder and
         third party consents and approvals, if any, with respect to the Loan
         Documents and the transactions contemplated thereby have been obtained,
         (D) no action, suit, investigation or proceeding is pending or
         threatened in any court or before any arbitrator or governmental
         instrumentality that purports to affect any Loan Party or any
         transaction contemplated by the Loan Documents, if such action, suit,
         investigation or proceeding could have a Material Adverse Effect and
         (E) immediately after giving effect to the initial Borrowing, (1) no
         Default or Event of Default exists and (2) all representations and
         warranties contained herein and in the other Loan Documents are true
         and correct in all material respects.

                                       43
<PAGE>

                  (h) Fees. Any fees required to be paid on or before the
         Closing Date shall have been paid.

                  (i) Attorney Costs. The Borrower shall have paid all Attorney
         Costs of the Administrative Agent to the extent invoiced prior to the
         Closing Date, plus such additional amounts of Attorney Costs as shall
         constitute its reasonable estimate of Attorney Costs incurred or to be
         incurred by it through the closing proceedings (provided that such
         estimate shall not thereafter preclude a final settling of accounts
         between the Borrower and the Administrative Agent).

                  (j) Existing Financings. The Administrative Agent shall have
         received evidence, in form and substance satisfactory to the
         Administrative Agent, that the Existing Financings have been or
         concurrently with the Closing Date is being terminated and all Liens
         securing the Existing Financings have been or concurrently with the
         Closing Date are being released.

                  (k) Accuracy of Representations and Warranties. The
         representations and warranties of the Borrower and each other Loan
         Party contained in Article VI or any other Loan Document, or which are
         contained in any document furnished at any time under or in connection
         herewith or therewith, shall be true and correct on and as of the
         Closing Date.

                  (l) No Default. No Default shall exist and be continuing as of
         the Closing Date.

                  (m) Intercreditor Agreement. The Administrative Agent shall
         have received an executed copy of the Intercreditor Agreement.

                  (n) Other. Receipt by the Lenders of such other documents,
         instruments, agreements or information as reasonably requested by any
         Lender, including, but not limited to, information regarding
         litigation, tax, accounting, labor, insurance, pension liabilities
         (actual or contingent), real estate leases, material contracts, debt
         agreements, property ownership and contingent liabilities of the
         Consolidated Parties.

5.02 CONDITIONS TO ALL BORROWINGS.

         The obligation of each Lender to honor any Loan Notice (other than a
Loan Notice requesting only a conversion of Loans to the other Type, or a
continuation of Eurodollar Rate Loans) is subject to the following conditions
precedent:

                  (a) The representations and warranties of the Borrower and
         each other Loan Party contained in Article VI or any other Loan
         Document, or which are contained in any document furnished at any time
         under or in connection herewith or therewith, shall be true and correct
         on and as of the date of such Borrowing, except to the extent that such
         representations and warranties specifically refer to an earlier date,
         in which case they shall be true and correct as of such earlier date,
         and except that for purposes of this Section 5.02, the representations
         and warranties contained in subsections (a) and (b) of Section 6.05
         shall be deemed to refer to the most recent statements furnished
         pursuant to clauses (a) and (b), respectively, of Section 7.01.

                  (b) No Default shall exist, or would result from, such
         proposed Borrowing.

                  (c) There shall not have been commenced against any
         Consolidated Party an involuntary case under any applicable Debtor
         Relief Law, now or hereafter in effect, or any case, proceeding or
         other action for the appointment of a receiver, liquidator, assignee,
         custodian, trustee,

                                       44
<PAGE>

         sequestrator (or similar official) of such Person or for any
         substantial part of its Property or for the winding up or liquidation
         of its affairs, and such involuntary case or other case, proceeding or
         other action shall remain undismissed.

                  (d) The Administrative Agent shall have received a Loan Notice
         in accordance with the requirements hereof.

         Each Loan Notice (other than a Loan Notice requesting only a conversion
of Loans to the other Type or a continuation of Eurodollar Rate Loans) submitted
by the Borrower shall be deemed to be a representation and warranty that the
conditions specified in Sections 5.02(a), (b) and (c) have been satisfied on and
as of the date of the applicable Borrowing.

                                   ARTICLE VI
                         REPRESENTATIONS AND WARRANTIES

         The Loan Parties represent and warrant to the Administrative Agent and
the Lenders that:

6.01 EXISTENCE, QUALIFICATION AND POWER; COMPLIANCE WITH LAWS.

         Each Consolidated Party (a) is duly organized or formed, validly
existing and in good standing under the Laws of the jurisdiction of its
incorporation or organization, (b) has all requisite power and authority and all
requisite governmental licenses, authorizations, consents and approvals to (i)
own its assets and carry on its business and (ii) execute, deliver and perform
its obligations under the Loan Documents, if any, to which it is a party and (c)
is duly qualified and is licensed and in good standing under the Laws of each
jurisdiction where its ownership, lease or operation of properties or the
conduct of its business requires such qualification or license; except in each
case referred to in clause (b)(i) or (c), to the extent that failure to do so
could not reasonably be expected to have a Material Adverse Effect.

6.02 AUTHORIZATION; NO CONTRAVENTION.

         The execution, delivery and performance by each Loan Party of each Loan
Document to which such Person is party, have been duly authorized by all
necessary corporate or other organizational action, and do not and will not (a)
contravene the terms of any of such Person's Organization Documents; (b)
conflict with or result in any breach or contravention of, or result in or
require the creation of any Lien under, (i) any Contractual Obligation to which
such Person is a party or (ii) any order, injunction, writ or decree of any
Governmental Authority or any arbitral award to which such Person or its
property is subject; or (c) violate any Law (including, without limitation,
Regulation U or Regulation X issued by the FRB).

6.03 GOVERNMENTAL AUTHORIZATION; OTHER CONSENTS.

         No approval, consent, exemption, authorization, or other action by, or
notice to, or filing with, any Governmental Authority or any other Person is
necessary or required in connection with the execution, delivery or performance
by, or enforcement against, any Loan Party of this Agreement or any other Loan
Document, except for (a) consents, authorizations, notices and filings described
in Schedule 6.03, all of which have been obtained or made and (b) filings to
perfect the Liens created by the Collateral Documents.

                                       45
<PAGE>

6.04 BINDING EFFECT.

         This Agreement has been, and each other Loan Document, when delivered
hereunder, will have been, duly executed and delivered by each Loan Party that
is party thereto. This Agreement constitutes, and each other Loan Document when
so delivered will constitute, a legal, valid and binding obligation of such Loan
Party, enforceable against each Loan Party that is party thereto in accordance
with its terms except as enforceability may be limited by applicable Debtor
Relief Laws and by general equitable principles (whether enforcement is sought
by proceedings in equity or at law).

6.05 FINANCIAL STATEMENTS; NO MATERIAL ADVERSE EFFECT.

         (a) The Audited Financial Statements (i) were prepared in accordance
with GAAP consistently applied throughout the period covered thereby, except as
otherwise expressly noted therein; (ii) fairly present the financial condition
of the Consolidated Parties as of the date thereof and their results of
operations for the period covered thereby in accordance with GAAP consistently
applied throughout the period covered thereby, except as otherwise expressly
noted therein; and (iii) show all material indebtedness and other liabilities,
direct or contingent, of the Consolidated Parties as of the date thereof,
including liabilities for taxes, material commitments and Indebtedness.

         (b) The unaudited consolidated financial statements of the Consolidated
Parties dated March 31, 2003, and the related consolidated statements of income
or operations, shareholders' equity and cash flows for the fiscal quarter ended
on that date (i) were prepared in accordance with GAAP consistently applied
throughout the period covered thereby, except as otherwise expressly noted
therein, and (ii) fairly present the financial condition of the Consolidated
Parties as of the date thereof and their results of operations for the period
covered thereby, subject, in the case of clauses (i) and (ii), to the absence of
footnotes and to normal year-end audit adjustments.

         (c) During the period from December 31, 2002 to and including the
Closing Date, there has been no sale, transfer or other disposition by any
Consolidated Party of any material part of the business or Property of the
Consolidated Parties, taken as a whole, and no purchase or other acquisition by
any of them of any business or property (including any Capital Stock of any
other Person) material in relation to the consolidated financial condition of
the Consolidated Parties, taken as a whole, in each case, which is not reflected
in the foregoing financial statements or in the notes thereto and has not
otherwise been disclosed in writing to the Lenders on or prior to the Closing
Date.

         (d) The financial statements delivered pursuant to Section 7.01(a) and
(b) have been prepared in accordance with GAAP (except as may otherwise be
permitted under Section 7.01(a) and (b)) and present fairly (on the basis
disclosed in the footnotes to such financial statements) the consolidated and
consolidating financial condition, results of operations and cash flows of the
Consolidated Parties as of such date and for such periods.

         (e) Since the date of the Audited Financial Statements, there has been
no event or circumstance, either individually or in the aggregate, that has had
or could reasonably be expected to have a Material Adverse Effect.

6.06 LITIGATION.

         There are no actions, suits, proceedings, claims or disputes pending
or, to the knowledge of the Loan Parties after due and diligent investigation,
threatened or contemplated, at law, in equity, in arbitration or before any
Governmental Authority, by or against any Consolidated Party or against any of
its properties or revenues that (a) purport to adversely affect or expressly
pertain to this Agreement or any

                                       46
<PAGE>

other Loan Document, or any of the transactions contemplated hereby or (b)
either individually or in the aggregate, if determined adversely, could
reasonably be expected to have a Material Adverse Effect.

6.07 NO DEFAULT.

         No Consolidated Party is in default under or with respect to any
Contractual Obligation that could, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. No Default has
occurred and is continuing or would result from the consummation of the
transactions contemplated by this Agreement or any other Loan Document.

6.08 OWNERSHIP OF PROPERTY; LIENS.

         Each Consolidated Party has good record title in fee simple to, or
valid leasehold interests in, all real property necessary or used in the
ordinary conduct of its business, except for such defects in title as could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect. The property of the Consolidated Parties is subject to no Liens,
other than Permitted Liens.

6.09 ENVIRONMENTAL COMPLIANCE.

                  Except as would not reasonably be expected to have a Material
         Adverse Effect:

                  (a) Each of the Real Properties and all operations at the Real
         Properties are in compliance with all applicable Environmental Laws,
         there is no violation of any Environmental Law with respect to the Real
         Properties or the Businesses, and there are no conditions relating to
         the Real Properties or the Businesses that could give rise to liability
         under any applicable Environmental Laws.

                  (b) None of the Real Properties contains, or has previously
         contained, any Hazardous Materials at, on or under the Real Properties
         in amounts or concentrations that constitute or constituted a violation
         of, or could give rise to liability under, Environmental Laws.

                  (c) No Consolidated Party has received any written or verbal
         notice of, or inquiry from any Governmental Authority regarding, any
         violation, alleged violation, non-compliance, liability or potential
         liability regarding environmental matters or compliance with
         Environmental Laws with regard to any of the Real Properties or the
         Businesses, nor does any Responsible Officer of any Loan Party have
         knowledge or reason to believe that any such notice will be received or
         is being threatened.

                  (d) Hazardous Materials have not been transported or disposed
         of from the Real Properties, or generated, treated, stored or disposed
         of at, on or under any of the Real Properties or any other location, in
         each case by or on behalf of any Consolidated Party in violation of, or
         in a manner that could give rise to liability under, any applicable
         Environmental Law.

                  (e) No judicial proceeding or governmental or administrative
         action is pending or, to the best knowledge of the Responsible Officers
         of the Loan Parties, threatened, under any Environmental Law to which
         any Consolidated Party is or will be named as a party, nor are there
         any consent decrees or other decrees, consent orders, administrative
         orders or other orders, or other administrative or judicial
         requirements outstanding under any Environmental Law with respect to
         the Consolidated Parties, the Real Properties or the Businesses.

                                       47
<PAGE>

                  (f) There has been no release, or threat of release, of
         Hazardous Materials at or from the Real Properties, or arising from or
         related to the operations (including, without limitation, disposal) of
         any Consolidated Party in connection with the Real Properties or
         otherwise in connection with the Businesses, in violation of or in
         amounts or in a manner that could give rise to liability under
         Environmental Laws.

6.10 INSURANCE.

         The properties of the Borrower and its Restricted Subsidiaries are
insured with financially sound and reputable insurance companies not Affiliates
of the Borrower, in such amounts, with such deductibles and covering such risks
as are customarily carried by companies engaged in similar businesses and owning
similar properties in localities where the Borrower or the applicable Restricted
Subsidiary operates. The present insurance coverage of the Loan Parties is
outlined as to carrier, policy number, expiration date, type and amount on
Schedule 6.10.

6.11 TAXES.

         The Consolidated Parties have filed all Federal, state and other
material tax returns and reports required to be filed, and have paid all
Federal, state and other material taxes, assessments, fees and other
governmental charges levied or imposed upon them or their properties, income or
assets otherwise due and payable, except those which are being contested in good
faith by appropriate proceedings diligently conducted and for which adequate
reserves have been provided in accordance with GAAP. There is no proposed tax
assessment against the Borrower or any Restricted Subsidiary that would, if
made, have a Material Adverse Effect.

6.12 ERISA COMPLIANCE.

         (a) Each Plan is in compliance in all material respects with the
applicable provisions of ERISA, the Code and other Federal or state Laws. Each
Plan that is intended to qualify under Section 401(a) of the Code has received a
favorable determination letter from the IRS or an application for such a letter
is currently being processed by the IRS with respect thereto and, to the best
knowledge of the Loan Parties, nothing has occurred which would prevent, or
cause the loss of, such qualification. Each Loan Party and each ERISA Affiliate
have made all required contributions to each Plan subject to Section 412 of the
Code, and no application for a funding waiver or an extension of any
amortization period pursuant to Section 412 of the Code has been made with
respect to any Plan.

         (b) There are no pending or, to the best knowledge of the Loan Parties,
threatened claims, actions or lawsuits, or action by any Governmental Authority,
with respect to any Plan that could be reasonably be expected to have a Material
Adverse Effect. There has been no prohibited transaction or violation of the
fiduciary responsibility rules with respect to any Plan that has resulted or
could reasonably be expected to result in a Material Adverse Effect.

         (c) (i) No ERISA Event has occurred within the past five years or is
reasonably expected to occur which could reasonably be expected to have a
Material Adverse Effect; (ii) no Pension Plan has any Unfunded Pension Liability
in excess of $20,000,000; (iii) no Loan Party nor any ERISA Affiliate has
incurred, or reasonably expects to incur, any liability under Title IV of ERISA
with respect to any Pension Plan (other than premiums due and not delinquent
under Section 4007 of ERISA); (iv) no Loan Party nor any ERISA Affiliate has
incurred, or reasonably expects to incur, any liability (and no event has
occurred which, with the giving of notice under Section 4219 of ERISA, would
result in such liability) under Sections 4201 or 4243 of ERISA with respect to a
Multiemployer Plan which could

                                       48
<PAGE>

reasonably be expected to have a Material Adverse Effect; and (v) no Loan Party
nor any ERISA Affiliate has engaged in a transaction that could be subject to
Sections 4069 or 4212(c) of ERISA.

6.13 SUBSIDIARIES.

         Set forth on Schedule 6.13 is a complete and accurate list as of the
Closing Date with respect to the Borrower and each of its direct and indirect
Subsidiaries of (i) jurisdiction of incorporation and (ii) number and percentage
of outstanding shares of each class owned (directly or indirectly) by the
Consolidated Parties. Neither the Borrower nor any of its Restricted
Subsidiaries has outstanding any securities convertible into or exchangeable for
its Capital Stock nor does any such Person have outstanding any rights to
subscribe for or to purchase or any options for the purchase of, or any
agreements providing for the issuance (contingent or otherwise) of, or any
calls, commitments or claims of any character relating to its Capital Stock.

6.14 MARGIN REGULATIONS; INVESTMENT COMPANY ACT; PUBLIC UTILITY HOLDING COMPANY
ACT.

         (a) The Borrower is not engaged and will not engage, principally or as
one of its important activities, in the business of purchasing or carrying
margin stock (within the meaning of Regulation U issued by the FRB), or
extending credit for the purpose of purchasing or carrying margin stock.

         (b) None of the Borrower, any Person Controlling the Borrower, or any
Subsidiary (i) is a "holding company," or a "subsidiary company" of a "holding
company," or an "affiliate" of a "holding company" or of a "subsidiary company"
of a "holding company," within the meaning of the Public Utility Holding Company
Act of 1935, (ii) is or is required to be registered as an "investment company"
under the Investment Company Act of 1940 or (iii) subject to regulation under
any other Law which limits its ability to incur Indebtedness.

6.15 DISCLOSURE.

         Each Loan Party has disclosed to the Administrative Agent and the
Lenders all agreements, instruments and corporate or other restrictions to which
it or any of its Restricted Subsidiaries is subject, and all other matters known
to it, that, individually or in the aggregate, could reasonably be expected to
result in a Material Adverse Effect. No report, financial statement, certificate
or other written information furnished by or on behalf of any Loan Party to the
Administrative Agent or any Lender in connection with the transactions
contemplated hereby and the negotiation of this Agreement or delivered hereunder
(as modified or supplemented by other information so furnished) contains any
material misstatement of fact or omits to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they
were made, not misleading; provided that, with respect to projections, estimates
and pro forma financial information, the Loan Parties represent only that such
information was prepared in good faith based upon assumptions believed to be
reasonable at the time.

6.16 COMPLIANCE WITH LAWS.

         Each Consolidated Party is in compliance in all material respects with
the requirements of all Laws and all orders, writs, injunctions and decrees
applicable to it or to its properties, except in such instances in which (a)
such requirement of Law or order, writ, injunction or decree is being contested
in good faith by appropriate proceedings diligently conducted or (b) the failure
to comply therewith, either individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect.

                                       49
<PAGE>

6.17 INTELLECTUAL PROPERTY.

         Each Consolidated Party owns, or has the legal right to use, all
material trademarks, service marks, trade names, trade dress, patents,
copyrights, technology, know-how and processes (the "Intellectual Property")
necessary for each of them to conduct its business as currently conducted. Set
forth on Schedule 6.17 is a list of all Intellectual Property registered or
pending registration with the United States Copyright Office or the United
States Patent and Trademark Office and owned by each Loan Party or that any Loan
Party has the right to use. No claim has been asserted by any Person against any
Loan Party and is pending that challenges or questions the use of the
Intellectual Property or the validity or effectiveness of the Intellectual
Property, nor does any Loan Party know of any such claim, and, to the knowledge
of the Responsible Officers of the Loan Parties, the use of the Intellectual
Property by any Consolidated Party or the granting of a right or a license in
respect of the Intellectual Property from any Consolidated Party does not
infringe on the rights of any Person, except for such claims and infringements
that, in the aggregate, could not reasonably be expected to have a Material
Adverse Effect. As of the Closing Date, none of the Intellectual Property of the
Loan Parties is subject to any licensing agreement or similar arrangement except
as set forth on Schedule 6.17.

6.18 SOLVENCY.

         The Loan Parties are Solvent on a consolidated basis.

6.19 TAX SHELTER REGULATIONS.

         The Borrower does not intend to treat the Loans as being a "reportable
transaction" (within the meaning of Treasury Regulation Section 1.6011-4). In
the event the Borrower determines to take any action inconsistent with such
intention, it will promptly notify the Administrative Agent thereof. If the
Borrower so notifies the Administrative Agent, the Borrower acknowledges that
one or more of the Lenders may treat its Committed Loans as part of a
transaction that is subject to Treasury Regulation Section 301.6112-1, and such
Lender or Lenders, as applicable, will maintain the lists and other records
required by such Treasury Regulation.

6.20 BUSINESS LOCATIONS.

         Set forth on Schedule 6.20(a) is a list of all Real Properties located
in the United States that are owned or leased by the Loan Parties as of the
Closing Date that constitute Collateral. Set forth on Schedule 6.20(b) is a list
of all locations where any Collateral of a Loan Party is located as of the
Closing Date. Set forth on Schedule 6.20(c) is the chief executive office,
taxpayer identification number, organizational identification number,
jurisdiction of incorporation or formation and principal place of business of
each Loan Party as of the Closing Date.

6.21 LABOR MATTERS.

         Except as set forth on Schedule 6.21, there are no collective
bargaining agreements covering the employees of a Consolidated Party as of the
Closing Date. None of the Consolidated Parties has suffered any strikes,
walkouts, work stoppages or other material labor difficulty within the last five
years. The Consolidated Parties have no Multiemployer Plans.

6.22 NATURE OF BUSINESS.

         As of the Closing Date, the Consolidated Parties are primarily engaged
in a Permitted Business.

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<PAGE>

6.23 REPRESENTATIONS AND WARRANTIES FROM OTHER LOAN DOCUMENTS.

         Each of the representations and warranties made by any of the Loan
Parties in any of the other Loan Documents is true and correct in all material
respects, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they shall be true and
correct as of such earlier date.

6.24 COLLATERAL DOCUMENTS.

         The provisions of the Collateral Documents are effective to create in
favor of the Administrative Agent for the benefit of the Lenders and any other
secured parties identified therein, a legal, valid and enforceable first
priority (subject to Specified Permitted Liens) security interest in all right,
title and interest of the Loan Parties in the Collateral described therein and
all proceeds thereof. Except for filings completed prior to the Closing Date and
as contemplated by this Agreement and the Collateral Documents, no filing or
other action will be necessary to perfect or protect such security interest.

                                   ARTICLE VII
                              AFFIRMATIVE COVENANTS

         So long as any Lender shall have any Commitment hereunder, any Loan or
other Obligation hereunder shall remain unpaid or unsatisfied, each Loan Party
shall, and shall (except in the case of the covenants set forth in Sections
7.01, 7.02, 7.03 and 7.11) cause each Restricted Subsidiary to:

7.01 FINANCIAL STATEMENTS.

         Deliver to the Administrative Agent, in form and detail satisfactory to
the Administrative Agent and the Required Lenders:

                  (a) as soon as available, but in any event within 90 days
         after the end of each fiscal year of the Borrower, a consolidated
         balance sheet of the Consolidated Parties as at the end of such fiscal
         year, and the related consolidated statements of income or operations,
         shareholders' equity and cash flows for such fiscal year, setting forth
         in each case in comparative form the figures for the previous fiscal
         year, all in reasonable detail and prepared in accordance with GAAP,
         audited and accompanied by a report and opinion of an independent
         certified public accountant of nationally recognized standing
         reasonably acceptable to the Required Lenders, which report and opinion
         shall be prepared in accordance with generally accepted auditing
         standards and shall not be subject to any "going concern" or like
         qualification, exception, assumption or explanatory language or any
         qualification, exception, assumption or explanatory language as to the
         scope of such audit; and

                  (b) as soon as available, but in any event within 45 days
         after the end of each of the first three fiscal quarters of each fiscal
         year of the Borrower, a consolidated balance sheet of the Consolidated
         Parties as at the end of such fiscal quarter, and the related
         consolidated statements of income or operations, shareholders' equity
         and cash flows for such fiscal quarter and for the portion of the
         Borrower's fiscal year then ended, setting forth in each case in
         comparative form the figures for the corresponding fiscal quarter of
         the previous fiscal year and the corresponding portion of the previous
         fiscal year, all in reasonable detail and certified by a Responsible
         Officer of the Borrower as fairly presenting the financial condition,
         results of operations, shareholders' equity and cash flows of the
         Consolidated Parties in accordance with GAAP, subject only to normal
         year-end audit adjustments and the absence of footnotes.

                                       51
<PAGE>

7.02 CERTIFICATES; OTHER INFORMATION.

         Deliver to the Administrative Agent, in form and detail satisfactory to
the Administrative Agent and the Required Lenders:

                  (a) concurrently with the delivery of the financial statements
         referred to in Section 7.01(a), a certificate of its independent
         certified public accountants certifying such financial statements;

                  (b) at least 30 days after the end of each fiscal year of the
         Borrower, beginning with the fiscal year ending December 31, 2003,
         annual financial projections for the next fiscal year;

                  (c) within 90 days after the end of each fiscal year of the
         Borrower, a certificate in the form of Exhibit 7.01 containing
         information regarding the calculation of Excess Cash Flow;

                  (d) promptly after the same are available, (i) copies of each
         annual report, proxy or financial statement or other report or
         communication sent to the stockholders of the Borrower, and copies of
         all annual, regular, periodic and special reports and registration
         statements which the Borrower may file or be required to file with the
         SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934 or
         to a holder of any Indebtedness owed by any Consolidated Party in its
         capacity as such a holder and not otherwise required to be delivered to
         the Administrative Agent pursuant hereto and (ii) upon the request of
         the Administrative Agent, all reports and material written information
         to and from the United States Environmental Protection Agency, or any
         state or local agency responsible for environmental matters, the United
         States Occupational Health and Safety Administration, or any state or
         local agency responsible for health and safety matters, or any
         successor agencies or authorities concerning environmental, health or
         safety matters;

                  (e) promptly upon receipt thereof, a copy of any "management
         letter" submitted by independent accountants to any Consolidated Party
         in connection with any annual, interim or special audit of the books of
         such Person;

                  (f) promptly after the Borrower has notified the
         Administrative Agent of any intention by the Borrower to treat the
         Loans as being a "reportable transaction" (within the meaning of
         Treasury Regulation Section 1.6011-4), a duly completed copy of IRS
         Form 8886 or any successor form; and

                  (g) promptly, such additional information regarding the
         business, financial or corporate affairs of the Borrower or any
         Subsidiary, or compliance with the terms of the Loan Documents, as the
         Administrative Agent or any Lender may from time to time reasonably
         request.

                  Documents required to be delivered pursuant to Section 7.01(a)
         or (b) or Section 7.02(f) may be delivered electronically and if so
         delivered, shall be deemed to have been delivered on the date (i) on
         which the Borrower posts such documents, or provides a link thereto, on
         the Borrower's website on the Internet at the website address listed on
         Schedule 11.02; or (ii) on which such documents are posted on the
         Borrower's behalf on IntraLinks/IntraAgency or another relevant
         website, if any, to which each Lender and the Administrative Agent have
         access (whether a commercial, third-party website or whether sponsored
         by the Administrative Agent); provided that: (i) the Borrower shall
         deliver paper copies of such documents to the Administrative

                                       52
<PAGE>

         Agent or any Lender that requests the Borrower to deliver such paper
         copies until a written request to cease delivering paper copies is
         given by the Administrative Agent or such Lender and (ii) the Borrower
         shall notify (which may be by facsimile or electronic mail) the
         Administrative Agent and each Lender of the posting of any such
         documents and provide to the Administrative Agent by electronic mail
         electronic versions (i.e., soft copies) of such documents. The
         Administrative Agent shall have no obligation to request the delivery
         or to maintain copies of the documents referred to above, and in any
         event shall have no responsibility to monitor compliance by the
         Borrower with any such request for delivery, and each Lender shall be
         solely responsible for requesting delivery to it or maintaining its
         copies of such documents.

7.03 NOTICES AND INFORMATION.

         (a) Upon knowledge obtained by a Responsible Officer of any Loan Party,
promptly notify the Administrative Agent and each Lender of the occurrence of
any Default.

         (b) Upon knowledge obtained by a Responsible Officer of any Loan Party,
promptly notify the Administrative Agent and each Lender of any matter that has
resulted or could reasonably be expected to result in a Material Adverse Effect,
including (i) breach or non-performance of, or any default under, a Contractual
Obligation of the Borrower or any Restricted Subsidiary; (ii) any dispute,
litigation, investigation, proceeding or suspension between the Borrower or any
Restricted Subsidiary and any Governmental Authority; or (iii) the commencement
of, or any material development in, any litigation or proceeding affecting the
Borrower or any Restricted Subsidiary, including pursuant to any applicable
Environmental Laws.

         (c) Promptly notify the Administrative Agent and each Lender of the
occurrence of any ERISA Event.

         (d) Promptly notify the Administrative Agent and each Lender of any
material change in accounting policies or financial reporting practices by the
Borrower or any Restricted Subsidiary.

         (e) Following the occurrence of any event or the discovery of any
condition which the Administrative Agent or the Required Lenders reasonably
believe has caused (or could be reasonably expected to cause) the
representations and warranties set forth in Section 6.09 to be untrue in any
material respect and upon the request of the Administrative Agent, the Loan
Parties will furnish or cause to be furnished to the Administrative Agent, at
the Loan Parties' expense, a report of an environmental assessment of reasonable
scope, form and depth, (including, where appropriate, invasive soil or
groundwater sampling) by a consultant reasonably acceptable to the
Administrative Agent as to the nature and extent of the presence of any
Hazardous Materials on any Real Properties and as to the compliance by any
Consolidated Party with Environmental Laws at such Real Properties. If the Loan
Parties fail to deliver such an environmental report within seventy-five (75)
days after receipt of such written request then the Administrative Agent may
arrange for same, and the Consolidated Parties hereby grant to the
Administrative Agent and its representatives access to the Real Properties to
reasonably undertake such an assessment (including, where appropriate, invasive
soil or groundwater sampling). The reasonable cost of any assessment arranged
for by the Administrative Agent pursuant to this provision will be payable by
the Loan Parties on demand and added to the obligations secured by the
Collateral Documents.

         (f) At the time of delivery of the financial statements and reports
provided for in Section 7.01, deliver to the Administrative Agent a report
signed on behalf of the Borrower by a Responsible Officer of the Borrower on
behalf of the Borrower setting forth (i) to the extent necessary or used in
connection with the Specified Facilities, a list of registration numbers for all
patents, trademarks, service marks, trade names and copyrights awarded to any
Loan Party since the last day of the immediately preceding fiscal year and (ii)
a list

                                       53
<PAGE>

of all patent applications, trademark applications, service mark applications,
trade name applications and copyright applications submitted by any Loan Party
since the last day of the immediately preceding fiscal year and the status of
each such application, all in such form as shall be reasonably satisfactory to
the Administrative Agent.

         Each notice pursuant to this Section 7.03(a) through (e) shall be
accompanied by a statement of a Responsible Officer of the Borrower on behalf of
the Borrower setting forth details of the occurrence referred to therein and
stating what action the Borrower has taken and proposes to take with respect
thereto. Each notice pursuant to Section 7.03(a) shall describe with
particularity any and all provisions of this Agreement and any other Loan
Document that have been breached.

7.04 PAYMENT OF OBLIGATIONS.

         Pay and discharge as the same shall become due and payable, all its
obligations and liabilities, including (a) all tax liabilities, assessments and
governmental charges or levies upon it or its properties or assets, unless the
same are being contested in good faith by appropriate proceedings diligently
conducted and adequate reserves in accordance with GAAP are being maintained by
the Borrower or such Restricted Subsidiary; and (b) all lawful claims which, if
unpaid, would by law become a Lien upon its property.

7.05 PRESERVATION OF EXISTENCE, ETC.

         (a) Preserve, renew and maintain in full force and effect its legal
existence and good standing under the Laws of the jurisdiction of its
organization except in a transaction not prohibited by this Agreement; (b) take
all reasonable action to maintain all rights, privileges, permits, licenses and
franchises necessary or desirable in the normal conduct of its business; and (c)
preserve or renew all of its material registered copyrights, patents,
trademarks, trade names and service marks.

7.06 MAINTENANCE OF PROPERTIES.

         (a) Maintain, preserve and protect all of its material properties and
equipment necessary in the operation of its business in good working order and
condition, ordinary wear and tear and Involuntary Dispositions excepted; and (b)
make all necessary repairs thereto and renewals and replacements thereof; and
(c) use the standard of care typical in the industry in the operation and
maintenance of its facilities.

7.07 MAINTENANCE OF INSURANCE.

         (a) Maintain in full force and effect insurance (including worker's
compensation insurance, liability insurance, property insurance and, except with
respect to North American Pipe Corporation, Westlake Profiles Limited and North
American Profiles Limited, business interruption insurance) in such amounts,
covering such risks and liabilities and with such deductibles or self-insurance
retentions as are in accordance with normal industry practice. The
Administrative Agent shall be named as loss payee or mortgagee, as its interest
may appear, and/or additional insured with respect to any such insurance
providing coverage in respect of any Collateral, and each provider of any such
insurance shall agree, by endorsement upon the policy or policies issued by it
or by independent instruments furnished to the Administrative Agent, that it
will give the Administrative Agent thirty (30) days prior written notice before
any such policy or policies shall be altered or canceled (ten (10) days prior
written notice if such policy or policies are being cancelled for any failure to
pay premiums).

         (b) In the event that the Consolidated Parties receive net cash
proceeds ("Casualty Proceeds") on account of Involuntary Dispositions affecting
the Collateral, the Loan Parties shall, within 300 days, apply (or cause to be
applied) an amount equal to such Casualty Proceeds to (i) repair or replace the
related

                                       54
<PAGE>

Collateral or (ii) prepay the Loans in accordance with the terms of Section
2.04(b)(ii)(B). All insurance proceeds on account of Collateral shall be subject
to the security interest of the Administrative Agent (for the ratable benefit of
the Lenders) under the Collateral Documents. Pending final application of any
Casualty Proceeds, the Loan Parties shall deposit such Casualty Proceeds in the
Collateral Account. At the request of the Borrower, amounts so deposited shall
be invested by the Administrative Agent, as instructed by the Borrower, in Cash
Equivalents; any interest earned on such Cash Equivalents will be for the
account of the Borrower and the Borrower will deposit with the Administrative
Agent the amount of any loss on any such Cash Equivalents to the extent
necessary in order that the amount of the prepayment to be made with the
deposited amounts may not be reduced. Provided that no Event of Default exists,
the Administrative Agent will release amounts on deposit in the Collateral
Account upon written request of the Borrower certifying that such amounts will
be applied in accordance with this Section 7.07(b) within five (5) Business
Days. In the case of any Involuntary Disposition that includes both Collateral
and other assets, the Loan Parties shall deliver to the Administrative Agent
satisfactory evidence of the amount of the Casualty Proceeds that are
attributable to Collateral; if the Administrative Agent is not satisfied with
such evidence, the Administrative Agent may, at the expense of the Loan Parties,
retain an independent third party to perform such valuation.

7.08 COMPLIANCE WITH LAWS.

         Comply with the requirements of all Laws and all orders, writs,
injunctions and decrees applicable to it or to its business or property, except
in such instances in which (a) such requirement of Law or order, writ,
injunction or decree is being contested in good faith by appropriate proceedings
diligently conducted; or (b) the failure to comply therewith could not
reasonably be expected to have a Material Adverse Effect.

7.09 BOOKS AND RECORDS.

         (a) Maintain proper books of record and account, in which full, true
and correct entries in conformity with GAAP consistently applied shall be made
of all financial transactions and matters involving the assets and business of
the Borrower or such Restricted Subsidiary, as the case may be; and (b) maintain
such books of record and account in material conformity with all applicable
requirements of any Governmental Authority having regulatory jurisdiction over
the Borrower or such Restricted Subsidiary, as the case may be.

7.10 INSPECTION RIGHTS.

         Permit representatives and independent contractors of the
Administrative Agent and each Lender to visit and inspect any of its properties,
to examine its corporate, financial and operating records, and make copies
thereof or abstracts therefrom, and to discuss its affairs, finances and
accounts with its directors, officers, and independent public accountants, all
at the expense of the Borrower and at such reasonable times during normal
business hours and as often as may be reasonably desired, upon reasonable
advance notice to the Borrower; provided, however, that when an Event of Default
exists the Administrative Agent or any Lender (or any of their respective
representatives or independent contractors) may do any of the foregoing at the
expense of the Borrower at any time during normal business hours and without
advance notice. The Loan Parties agree that the Administrative Agent, and its
representatives, may conduct an annual audit of the Collateral, at the expense
of the Loan Parties.

7.11 USE OF PROCEEDS.

         Use the proceeds of the Borrowings to repay certain existing
Indebtedness on the Closing Date and for general corporate purposes not in
contravention of any Law or of any Loan Document.

                                       55
<PAGE>

7.12 ADDITIONAL GUARANTORS.

         Notify the Administrative Agent at the time that (a) any Person becomes
a Domestic Subsidiary or (b) any Subsidiary of any Loan Party guarantees the
Borrower's obligations under the Senior Note Indenture or the Asset-Based
Facility, and promptly thereafter (and in any event within 30 days), cause such
Person to (i) become a Guarantor by executing and delivering to the
Administrative Agent a Joinder Agreement, and (ii) deliver to the Administrative
Agent documents of the types referred to in clauses (iii) and (iv) of Section
5.01(a) and favorable opinions of counsel to such Person (which shall cover,
among other things, the legality, validity, binding effect and enforceability of
the documentation referred to in clause (a)), all in form, content and scope
reasonably satisfactory to the Administrative Agent.

7.13 PLEDGED ASSETS.

         Each Loan Party will cause (i) all of its owned and leased real
property, fixtures and equipment comprising or used for or in connection with
the Specified Facilities that is (a) located on, contiguous to or connected with
and in reasonable proximity to, any Specified Facility and (b) necessary or used
for or in connection with the ownership, expansion, operation, use or
maintenance of any Specified Facility and (ii) all of its general intangibles
(including patents, copyrights, trademarks, trade secrets and other intellectual
property, whether owned or licensed, customer and supplier contracts, drawings,
plans books and records, employment, consulting, operating, maintenance or
services agreements and other contractual rights, public and private licenses,
permits, franchises, powers, authorities, pollution and environmental credits
and allowances, goodwill and other intangible property of every type or
description) at any time owned or acquired by any Loan Party that is necessary
or used for or in connection with, or in any respect related, incidental or
ancillary to, the ownership, expansion, operation, use, maintenance or sale or
other disposition of any Specified Facility, to be subject at all times to first
priority, perfected and, in the case of real Property (whether leased or owned),
title insured Liens in favor of the Administrative Agent to secure the
Obligations pursuant to the terms and conditions of the Collateral Documents or
such other additional security documents as the Administrative Agent shall
reasonably request, subject in any case to Specified Permitted Liens and rights
of lenders under the Asset-Based Facility as provided in the Intercreditor
Agreement. In furtherance of the foregoing, the Loan Parties agree to deliver
such other documentation as the Administrative Agent may reasonably request
(subject to reasonable time limitations) in connection with the foregoing,
including, without limitation, appropriate UCC-1 financing statements, real
estate title insurance policies, surveys, environmental reports, landlord's
waivers, certified resolutions and other organizational and authorizing
documents of such Person, favorable opinions of counsel to such Person (which
shall cover, among other things, the legality, validity, binding effect and
enforceability of the documentation referred to above and the perfection of the
Administrative Agent's Liens thereunder) and other items of the types required
to be delivered pursuant to Section 5.01(c) and (d), all in form, content and
scope reasonably satisfactory to the Administrative Agent.

7.14 FURTHER ASSURANCES.

         Within 30 days following the Closing Date, the Loan Parties shall
deliver to the Administrative Agent satisfactory evidence that the mechanics
lien in the amount of $650,000 in favor of Cambridge Lee encumbering the
Mortgaged Property located in Calvert City, Kentucky has either (a) been
satisfied in full and released, (b) has been fully bonded or (c) has been
otherwise discharged, released or terminated.

                                       56
<PAGE>

                                  ARTICLE VIII
                               NEGATIVE COVENANTS

         So long as any Lender shall have any Commitment hereunder, any Loan or
other Obligation hereunder shall remain unpaid or unsatisfied:

8.01 ASSET SALES.

         (a) No Loan Party shall, nor shall it permit any Restricted Subsidiary
to, directly or indirectly consummate an Asset Sale unless: (i) the
consideration received at the time of such Asset Sale is at least equal to the
Fair Market Value (as determined by the Borrower's board of directors and
evidenced by a resolution of the board of directors set forth in an officers'
certificate delivered to the Administrative Agent) of the assets or Equity
Interests issued or sold or otherwise disposed of; and (ii) at least 75% of the
consideration received in such Asset Sale is in the form of cash or Cash
Equivalents or a controlling interest in a business engaged in a Permitted
Business. For purposes of this provision, each of the following will also be
deemed to be cash: (A) any liabilities, as shown on its most recent balance
sheet, of the Consolidated Parties (other than contingent liabilities and
liabilities that are by their terms subordinated to the Obligations) that are
assumed by the transferee of any such assets pursuant to a customary novation
agreement that releases the Consolidated Parties from further liability; (B) any
securities, notes or other obligations received by the Consolidated Parties from
such transferee that are promptly, subject to ordinary settlement periods,
converted or monetized by the Consolidated Parties into cash, to the extent of
the cash received in that conversion or monetization; and (C) any Capital Stock
or assets of the kind referred to in clauses (ii) or (iv) of Section 8.01(b).

         (b) Within 300 days after the receipt of any Net Proceeds from an Asset
Sale of assets other than Collateral, the Borrower shall apply those Net
Proceeds, at its option:

                  (i) to repay the Loans pursuant to Section 2.04(b)(ii)(A) or
         to repay Indebtedness outstanding under the Asset-Based Facility (so
         long as there is a corresponding permanent reduction of the commitments
         thereunder);

                  (ii) to acquire all or substantially all of the assets of, or
         any Capital Stock of, any Person or division thereof conducting a
         Permitted Business, if, in the case of any such acquisition of Capital
         Stock and after giving effect thereto, such Person will be a Restricted
         Subsidiary (or enter into a binding commitment for any such
         acquisition); provided that such binding commitment shall be treated as
         a permitted application of Net Proceeds from the date of such
         commitment until and only until the earlier of (x) the date on which
         such acquisition is consummated and (y) the 180th day following the
         expiration of the aforementioned 300-day period. If the acquisition or
         expenditure contemplated by such binding commitment is not consummated
         on or before such 180th day and the Borrower shall not have applied (or
         caused to be applied) such Net Proceeds pursuant to clause (i), (iii)
         or (iv) of this Section 8.01(b) on or before such 180th day, such
         commitment shall be deemed not to have been a permitted application of
         Net Proceeds;

                  (iii) to make a capital expenditure; or

                  (iv) to acquire other assets that are not classified as
         current assets under GAAP and that are used or useful in a Permitted
         Business. Pending the final application of any Net Proceeds, the
         Consolidated Parties may invest the Net Proceeds in any manner that is
         not prohibited by this Agreement.

                                       57
<PAGE>

         (c) Within 5 days after the receipt of any Net Proceeds from an Asset
Sale of Collateral (including any Collateral that is transferred in connection
with the sale or other disposition of the Capital Stock of a Subsidiary), the
Borrower shall apply those Net Proceeds to repay the Loans pursuant to Section
2.04(b)(ii)(A); provided, however, in connection with (i) the Styrene Plant Sale
and (ii) other Asset Sales to the extent that the net book value of the
Collateral subject to such Asset Sale (or a series of related Asset Sales) does
not exceed $10,000,000, in each case, within 300 days after the receipt of the
Net Proceeds from such Asset Sale, the Borrower shall apply those Net Proceeds,
at its option to either repay the Loans pursuant to Section 2.04(b)(ii)(A) or to
acquire replacement assets that are used or useful in a Specified Facility and
are pledged as Collateral to the Administrative Agent, on behalf of the Lenders,
pursuant to the Collateral Documents; pending the final application of such Net
Proceeds, the Loan Parties shall deposit such Net Proceeds in the Collateral
Account. At the request of the Borrower, amounts so deposited shall be invested
by the Administrative Agent, as instructed by the Borrower, in Cash Equivalents;
any interest earned on such Cash Equivalents will be for the account of the
Borrower and the Borrower will deposit with the Administrative Agent the amount
of any loss on any such Cash Equivalents to the extent necessary in order that
the amount of the prepayment to be made with the deposited amounts may not be
reduced. Provided that no Event of Default exists, the Administrative Agent will
release amounts on deposit in the Collateral Account upon written request of the
Borrower certifying that such amounts will be applied in accordance with this
Section 8.01(c) within five (5) Business Days. In the case of any Asset Sale
that includes both Collateral and other assets, the Loan Parties shall deliver
to the Administrative Agent satisfactory evidence of the amount of the Net
Proceeds that are attributable to Collateral; if the Administrative Agent is not
satisfied with such evidence, the Administrative Agent may, at the expense of
the Loan Parties, retain an independent third party to perform such valuation.

8.02 RESTRICTED PAYMENTS.

        (a) No Loan Party shall, nor shall it permit any Restricted Subsidiary
to, directly or indirectly make any Restricted Payment unless, at the time of
and after giving effect to such Restricted Payment:

                  (i) no Default or Event of Default has occurred and is
         continuing or would occur as a consequence of such Restricted Payment;
         and

                  (ii) the Borrower would, at the time of such Restricted
         Payment and after giving pro forma effect thereto as if such Restricted
         Payment had been made at the beginning of the applicable four-quarter
         period, have been permitted to incur at least $1.00 of additional
         Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth
         in the first paragraph of Section 8.03; and

                  (iii) such Restricted Payment, together with the aggregate
         amount of all other Restricted Payments made by the Borrower and its
         Restricted Subsidiaries since the Closing Date (excluding Restricted
         Payments permitted by clauses (ii), (iii), (iv), (vi), (vii), (viii),
         (ix) and (x) of Section 8.02(b), is less than the sum, without
         duplication, of:

                           (A) 50% of the Consolidated Net Income for the period
                  (taken as one accounting period) from the beginning of the
                  first fiscal quarter commencing after the Closing Date to the
                  end of the Borrower's most recently ended fiscal quarter for
                  which the financial statements required to be delivered
                  pursuant to Section 7.01 are available at the time of such
                  Restricted Payment (or, if such Consolidated Net Income for
                  such period is a deficit, less 100% of such deficit);
                  provided, however, that if at any time after the Closing Date
                  the Senior Notes are rated Investment Grade, the percentage
                  will be 100%

                                       58
<PAGE>

                  of Consolidated Net Income for such period; provided, further,
                  however, that if such Restricted Payment is to be made in
                  reliance upon an additional amount permitted pursuant to the
                  immediately preceding proviso, the Senior Notes must be rated
                  Investment Grade at the time such Restricted Payment is
                  declared or, if not declared, made, plus

                           (B) 100% of the aggregate net cash proceeds received
                  by the Borrower since the Closing Date as a contribution to
                  its common equity capital or by the Borrower or any of its
                  Restricted Subsidiaries from the issue or sale of Equity
                  Interests of the Borrower (other than Disqualified Stock) or
                  from the issue or sale of convertible or exchangeable
                  Disqualified Stock or convertible or exchangeable debt
                  securities of the Borrower or any of its Restricted
                  Subsidiaries that have been converted into or exchanged for
                  such Equity Interests (other than Equity Interests (or
                  Disqualified Stock or debt securities) sold to a Subsidiary),
                  plus

                           (C) to the extent that any Restricted Investment that
                  was made after the Closing Date is sold for cash or otherwise
                  liquidated, repaid for cash or otherwise reduced, the lesser
                  of (i) the cash return of capital with respect to such
                  Restricted Investment (less the cost of disposition, if any)
                  and (ii) the initial amount of such Restricted Investment,
                  plus

                           (D) to the extent that any Unrestricted Subsidiary is
                  redesignated as a Restricted Subsidiary after the Closing
                  Date, the Fair Market Value of the Borrower's Investment in
                  such Subsidiary as of the date of such redesignation, plus

                           (E) 50% of any dividends received by a Loan Party
                  after the Closing Date from an Unrestricted Subsidiary or a
                  Joint Venture, to the extent that such dividends were not
                  otherwise included in Consolidated Net Income of the Borrower
                  for such period; provided, however, that if at any time after
                  the Closing Date the Senior Notes are rated Investment Grade,
                  the percentage will be 100% of any such dividends; provided,
                  further, however, that if such Restricted Payment is to be
                  made in reliance upon an additional amount permitted pursuant
                  to the immediately preceding proviso, the Senior Notes must be
                  rated Investment Grade at the time such Restricted Payment is
                  declared or, if not declared, made.

         (b) So long as no Default has occurred and is continuing or would be
caused thereby, Section 8.02(a) will not prohibit:

                  (i) the payment of any dividend within 60 days after the date
         of declaration of the dividend, if at the date of declaration the
         dividend payment would have complied with the provisions of this
         Agreement;

                  (ii) the making of any Restricted Payment in exchange for, or
         out of the net cash proceeds of the substantially concurrent issuance
         or sale (other than to a Subsidiary) of, Equity Interests of the
         Borrower (other than Disqualified Stock) or from the substantially
         concurrent contribution of common equity capital to the Borrower;
         provided that the amount of any such net cash proceeds that are
         utilized for any such redemption, repurchase, retirement, defeasance or
         other acquisition will be excluded from Section 8.02(a)(iii)(B);

                  (iii) the defeasance, redemption, repurchase or other
         acquisition of Indebtedness of any Loan Party that is contractually
         subordinated to the Obligations with the net cash proceeds

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         from a substantially concurrent incurrence of Permitted Refinancing
         Indebtedness;

                  (iv) the payment of any dividend (or, in the case of any
         partnership or limited liability company, any similar distribution) by
         a Restricted Subsidiary to another Consolidated Party, or the purchase,
         redemption or other acquisition or retirement of any such Equity
         Interests held by a Consolidated Party;

                  (v) the repurchase, redemption or other acquisition or
         retirement for value of any Equity Interests of the Borrower or any
         Restricted Subsidiary held by any current or former officer, director
         or employee of the Borrower or any of its Restricted Subsidiaries
         pursuant to any equity subscription agreement, stock option agreement,
         shareholders' agreement or similar plan or agreement; provided that the
         aggregate price paid for all such repurchased, redeemed, acquired or
         retired Equity Interests may not exceed $1,000,000 in any twelve-month
         period;

                  (vi) the repurchase of Equity Interests deemed to occur upon
         the exercise of stock options to the extent such Equity Interests
         represent a portion of the exercise price of those stock options;

                  (vii) the declaration and payment of dividends to holders of
         any class or series of Disqualified Stock of the Borrower or any
         Restricted Subsidiary issued on or after the Closing Date in accordance
         with the Fixed Charge Coverage Ratio set forth in the first paragraph
         of Section 8.03;

                  (viii) distributions or payments of Receivables Fees;

                  (ix) Permitted Payments to the Parent; and

                  (x) other Restricted Payments in an aggregate amount not to
         exceed $25,000,000 since the Closing Date.

         (c) The amount of all Restricted Payments (other than cash) will be the
Fair Market Value on the date of the Restricted Payment of the asset(s) or
securities proposed to be transferred or issued by the Borrower or such
Restricted Subsidiary, as the case may be, pursuant to the Restricted Payment.
The Fair Market Value of any assets or securities that are required to be valued
by this covenant will be determined by the board of directors whose resolution
with respect thereto will be delivered to the Administrative Agent. The board of
directors' determination must be based upon an opinion or appraisal issued by an
accounting, appraisal or investment banking firm of national standing if the
Fair Market Value exceeds $15,000,000.

8.03 INCURRENCE OF INDEBTEDNESS AND ISSUANCE OF PREFERRED STOCK.

         No Loan Party shall, nor shall it permit any Restricted Subsidiary to,
directly or indirectly create, incur, issue, assume, guarantee or otherwise
become directly or indirectly liable, contingently or otherwise, with respect to
(collectively, "incur") any Indebtedness (including Acquired Debt), and the
Borrower will not issue any Disqualified Stock and will not permit any of its
Restricted Subsidiaries to issue any shares of preferred stock; provided,
however, that the Borrower may incur Indebtedness (including Acquired Debt) or
issue Disqualified Stock and the Guarantors may incur Indebtedness or issue
preferred stock, if the Fixed Charge Coverage Ratio for the Borrower's most
recently ended four full fiscal quarters for which the financial statements
required to be delivered pursuant to Section 7.01 are available immediately
preceding the date on which such additional Indebtedness is incurred or such
Disqualified Stock or preferred stock is issued would have been at least 2.0 to
1.0, determined on a pro forma basis (including a pro forma application of the
net proceeds therefrom and, in the case of Acquired

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Debt, giving pro forma effect to the applicable transaction related thereto), as
if the additional Indebtedness had been incurred (and such transaction had
occurred) or the preferred stock or Disqualified Stock had been issued, as the
case may be, at the beginning of such four-quarter period.

        The first paragraph of this Section 8.03 will not prohibit the
incurrence of any of the following items of Indebtedness (collectively,
"Permitted Debt"): (a) the Loans; (b) the Existing Indebtedness; (c) (i)
Indebtedness (including letters of credit) under the Asset-Based Facility or a
Receivables Facility in an aggregate outstanding principal amount not to exceed
$200,000,000, and (ii) Indebtedness under the Senior Notes issued on the Closing
Date in an aggregate principal amount not to exceed $380,000,000 (and notes with
identical terms as the Senior Notes that are registered pursuant to the
registration rights agreement set forth in the Senior Note Indenture and issued
in exchange for the Senior Notes); (d) Capital Lease Obligations, mortgage
financings or purchase money obligations, in each case, incurred for the purpose
of financing all or any part of the purchase price or cost of design,
construction, installation or improvement of property, plant or equipment used
or usable in a Permitted Business, in an aggregate principal amount, including
all Permitted Refinancing Indebtedness incurred to refund, refinance or replace
any Indebtedness incurred pursuant to this clause (d), not to exceed $10,000,000
at any time outstanding; (e) Permitted Refinancing Indebtedness in exchange for,
or the net proceeds of which are used to extend, refund, refinance, renew,
defease or replace Indebtedness (other than intercompany Indebtedness) that was
permitted by this Agreement to be incurred under the first paragraph of this
Section 8.03 or clauses (b), (c)(i), (d), (e) or (p) of this paragraph; (f)
intercompany Indebtedness between or among the Borrower and any of its
Restricted Subsidiaries; provided, however, that (i) if a Loan Party is the
obligor on such Indebtedness and the payee is not a Loan Party, such
Indebtedness must be expressly subordinated to the prior payment in full in cash
of the Obligations and (ii) (A) any subsequent issuance or transfer of Equity
Interests that results in any such Indebtedness being held by a Person other
than the Borrower or a Restricted Subsidiary and (B) any sale or other transfer
of any such Indebtedness to a Person that is not either the Borrower or a
Restricted Subsidiary will be deemed, in each case, to constitute an incurrence
of such Indebtedness by the Borrower or such Restricted Subsidiary, as the case
may be, that was not permitted by this clause (f); (g) the issuance by any
Restricted Subsidiary to the Borrower or to any of its Restricted Subsidiaries
of shares of preferred stock; provided, however, that (i) any subsequent
issuance or transfer of Equity Interests that results in any such preferred
stock being held by a Person other than the Borrower or a Restricted Subsidiary,
and (ii) any sale or other transfer of any such preferred stock to a Person that
is not either the Borrower or a Restricted Subsidiary, will be deemed, in each
case, to constitute an issuance of such preferred stock by such Restricted
Subsidiary that was not permitted by this clause (g); (h) Hedging Obligations in
the ordinary course of business and not for speculative purposes; (i) the
guarantee by any Loan Party of Indebtedness of a Consolidated Party that was
permitted to be incurred by another provision of this Section 8.03; provided
that if the Indebtedness being guaranteed is subordinated to or pari passu with
the Obligations, then the guarantee shall be subordinated to the same extent as
the Indebtedness guaranteed; (j) Indebtedness in respect of workers'
compensation claims; self-insurance obligations; bankers' acceptances;
performance, appeal, completion, guarantee and surety bonds; or similar
requirements in the ordinary course of business; (k) Indebtedness arising from
the honoring by a bank or other financial institution of a check, draft or
similar instrument inadvertently drawn against insufficient funds, so long as
such Indebtedness is covered within five business days; (l) Indebtedness of
Foreign Subsidiaries in an aggregate principal amount at any time outstanding
pursuant to this clause (l), including all Permitted Refinancing Indebtedness
incurred to refund, refinance, defease, renew, extend or replace Indebtedness
incurred pursuant to this clause (l), not to exceed $10,000,000; (m)
Indebtedness arising from agreements of the Borrower or a Restricted Subsidiary
providing for indemnification, adjustment of purchase price or similar
obligations, in each case, incurred in connection with the disposition of any
business, assets or subsidiary, other than guarantees of Indebtedness incurred
by any Person acquiring all or any portion of such business, assets or
subsidiary for the purpose of financing such acquisition; provided that the
maximum aggregate liability in respect of all such Indebtedness shall at no time
exceed the gross proceeds actually received by the

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Borrower or such Restricted Subsidiary in connection with such disposition; (n)
Indebtedness consisting of take-or-pay obligations contained in supply
agreements entered into in the ordinary course of business; (o) Indebtedness of
the Borrower to any of its Subsidiaries incurred in connection with the purchase
of accounts receivable and related assets by the Borrower from any such
Subsidiary which assets are subsequently conveyed by the Borrower in connection
with a Receivable Facility; and (p) additional Indebtedness of the Loan Parties
in an aggregate principal amount (or accreted value, as applicable) at any time
outstanding, including all Permitted Refinancing Indebtedness incurred to
extend, refund, refinance, renew, defease or replace any Indebtedness incurred
pursuant to this clause (p), and the issuance by the Borrower of any
Disqualified Stock and by any Restricted Subsidiary of any additional preferred
stock, not to exceed $50,000,000.

         For purposes of determining compliance with this Section 8.03, in the
event that an item of proposed Indebtedness meets the criteria of more than one
of the categories of Permitted Debt described in clauses (a) through (o) of the
preceding paragraph, or is entitled to be incurred pursuant to the first
paragraph of this Section 8.03, the Borrower will be permitted to classify such
item of Indebtedness on the date of its incurrence, or later reclassify all or a
portion of such item of Indebtedness, in any manner that complies with this
covenant. The accrual of interest, the accretion or amortization of original
issue discount, the payment of interest on any Indebtedness in the form of
additional Indebtedness with the same terms, and the payment of dividends on
Disqualified Stock in the form of additional shares of the same class of
Disqualified Stock will not be deemed to be an incurrence of Indebtedness or an
issuance of Disqualified Stock for purposes of this covenant; provided, in each
such case, that the amount thereof is included in Fixed Charges of the Borrower
as accrued. Notwithstanding any other provision of this covenant, the maximum
amount of Indebtedness that the Borrower or any Restricted Subsidiary may incur
pursuant to this covenant shall not be deemed to be exceeded solely as a result
of fluctuations in exchange rates or currency values.

8.04 LIENS.

         No Loan Party shall, nor shall it permit any Restricted Subsidiary to,
directly or indirectly create, incur, assume or suffer to exist any Lien, except
Permitted Liens. No Loan Party shall, nor shall it permit any Restricted
Subsidiary to, directly or indirectly create, incur, assume or suffer to exist
any Lien on any Collateral, except Specified Permitted Liens.

8.05 DIVIDEND AND OTHER PAYMENT RESTRICTIONS AFFECTING SUBSIDIARIES.

         No Loan Party shall, nor shall it permit any Restricted Subsidiary to,
directly or indirectly create or permit to exist or become effective any
consensual encumbrance or restriction on the ability of any Restricted
Subsidiary to (a) pay dividends or make any other distributions on its Capital
Stock to the Borrower or any of its Restricted Subsidiaries, or with respect to
any other interest or participation in, or measured by, its profits, or pay any
indebtedness owed to the Borrower or any of its Restricted Subsidiaries; (b)
make loans or advances to the Borrower or any of its Restricted Subsidiaries; or
(c) transfer any of its properties or assets to the Borrower or any of its
Restricted Subsidiaries.

         However, the preceding restrictions will not apply to encumbrances or
restrictions existing under or by reason of: (i) agreements governing Existing
Indebtedness, the Senior Note Indenture and the Asset-Based Facility each as in
effect on the Closing Date and any amendments, modifications, restatements,
renewals, increases, supplements, refundings, replacements or refinancings of
those agreements; provided that the amendments, modifications, restatements,
renewals, increases, supplements, refundings, replacement or refinancings are
not materially more restrictive, taken as a whole, with respect to such dividend
and other payment restrictions than those contained in those agreements on the
Closing Date; (ii)

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the Loan Documents; (iii) applicable Law; (iv) any instrument governing
Indebtedness or Capital Stock of a Person as in effect at the time of the
acquisition by the Borrower or any of its Restricted Subsidiaries of such Person
or the properties or assets of such Person (except to the extent such
Indebtedness or Capital Stock was incurred in connection with or in
contemplation of such acquisition), which encumbrance or restriction is not
applicable to any Person, or the properties or assets of any Person, other than
the Person, or the property or assets of the Person, so acquired; provided that,
in the case of Indebtedness, such Indebtedness was permitted by the terms of
this Agreement to be incurred; (v) customary non-assignment provisions in
contracts and leases entered into in the ordinary course of business; (vi)
construction loans and purchase money obligations for property acquired in the
ordinary course of business and Capital Lease Obligations that impose
restrictions on the property constructed, purchased or leased of the nature
described in clause (c) of the preceding paragraph; (vii) any agreement for the
sale or other disposition of a Restricted Subsidiary that restricts
distributions by that Restricted Subsidiary pending the sale or other
disposition; (viii) Permitted Refinancing Indebtedness; provided that the
restrictions contained in the agreements governing such Permitted Refinancing
Indebtedness are not materially more restrictive, taken as a whole, than those
contained in the agreements governing the Indebtedness being refinanced; (ix)
Indebtedness secured by Permitted Liens that limit the right of the debtor to
dispose of the assets subject to such Liens; (x) any restriction under an
agreement governing Indebtedness of a Foreign Subsidiary permitted under Section
8.03; (xi) provisions limiting or prohibiting the disposition or distribution of
assets or property in joint venture agreements, asset sale agreements,
sale-leaseback agreements, stock sale agreements and other similar agreements
entered into with the approval of the Borrower's board of directors, which
limitation or prohibition is applicable only to the assets that are the subject
of such agreements; and (xii) restrictions on cash or other deposits or net
worth imposed by customers under contracts entered into in the ordinary course
of business.

8.06 MERGER, CONSOLIDATION OR SALE OF ASSETS.

         The Borrower shall not, directly or indirectly, consolidate or merge
with or into another Person (whether or not the Borrower is the surviving
corporation) unless (i) the Borrower is the surviving or continuing Person, (ii)
immediately after giving effect to such transaction, no Default or Event of
Default exists and (iii) the Borrower shall, on the date of such transaction
after giving pro forma effect thereto and any related financing transactions as
if the same had occurred at the beginning of the applicable four-quarter period,
be permitted to incur at least $1.00 of additional Indebtedness pursuant to the
Fixed Charge Coverage Ratio test set forth in the first paragraph Section 8.03.

         The Borrower shall not, directly or indirectly, sell, assign, transfer,
convey or otherwise dispose of all or substantially all of the properties or
assets of the Borrower and its Restricted Subsidiaries taken as a whole, in one
or more related transactions, to another Person.

         This Section 8.06 will not apply to (a) a merger or consolidation of
the Borrower with an Affiliate for the purpose of reincorporating or
reorganizing the Borrower in another jurisdiction or (b) a merger or
consolidation of the Borrower with a Wholly-Owned Subsidiary so long as the
Borrower is the surviving corporation. In addition, the Borrower may not,
directly or indirectly, lease all or substantially all of its properties or
assets, in one or more related transactions, to any other Person.

8.07 TRANSACTIONS WITH AFFILIATES.

        No Loan Party shall, nor shall it permit any Restricted Subsidiary to,
directly or indirectly make any payment to, or sell, lease, transfer or
otherwise dispose of any of its properties or assets to, or purchase any
property or assets from, or enter into or make or amend any transaction,
contract, agreement, understanding, loan, advance or guarantee with, or for the
benefit of, any Affiliate of the

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Borrower (each, an "Affiliate Transaction"), unless (a) the Affiliate
Transaction is on terms that are no less favorable to the Borrower or the
relevant Restricted Subsidiary than those that might reasonably have been
obtained in a comparable transaction by the Borrower or such Restricted
Subsidiary with an unrelated Person and (b) the Borrower delivers to the
Administrative Agent: (i) with respect to any Affiliate Transaction or series of
related Affiliate Transactions involving aggregate consideration in excess of
$5,000,000, a resolution of the board of directors set forth in an officers'
certificate certifying that such Affiliate Transaction complies with this
covenant and such Affiliate Transaction been approved by a majority of the
members of the board of directors and (ii) with respect to any Affiliate
Transaction or series of related Affiliate Transactions involving aggregate
consideration in excess of $15,000,000, an opinion as to the fairness to the
Borrower or such Restricted Subsidiary of such Affiliate Transaction from a
financial point of view issued by an accounting, appraisal or investment banking
firm of national standing.

         Notwithstanding the foregoing, the following items will not be deemed
to be Affiliate Transactions and, therefore, will not be subject to the
provisions of the prior paragraph:

                  (1) any fees, compensation and other payments paid to any
         officer or employee pursuant to any employment agreement, employee or
         director benefit plan, officer and director indemnification agreement
         or any similar arrangement entered into by the Borrower or any of its
         Restricted Subsidiaries in the ordinary course of business;

                  (2) transactions between or among the Borrower and/or its
         Restricted Subsidiaries;

                  (3) transactions with a Person (other than an Unrestricted
         Subsidiary) that is an Affiliate of the Borrower solely because the
         Borrower owns, directly or through a Restricted Subsidiary, an Equity
         Interest in, or Controls, such Person;

                  (4) payment of reasonable directors' fees to Persons who are
         not otherwise Affiliates of the Borrower;

                  (5) any issuance of Equity Interests (other than Disqualified
         Stock) of the Borrower to Affiliates of the Borrower;

                  (6) Restricted Payments not prohibited by Section 8.02;

                  (7) loans or advances to employees in the ordinary course of
         business not to exceed $2,000,000 in the aggregate at any one time
         outstanding;

                  (8) sales (including a sale in exchange for a promissory note
         of or Equity Interest in such Accounts Receivable Subsidiary) of
         accounts receivable, related assets and the provision of billing,
         collection and other services in connection therewith, in each case, to
         an Accounts Receivable Subsidiary in connection with any Receivables
         Facility;

                  (9) transactions pursuant to any contract or agreement in
         effect on the Closing Date, as the same may be amended, modified,
         extended or replaced from time to time, so long as any such contract or
         agreement as so amended, modified, extended or replaced is, taken as a
         whole, not materially less favorable to the Borrower and its Restricted
         Subsidiaries;

                  (10) any transaction or series of transactions between the
         Borrower or any Restricted Subsidiary and any of their Joint Ventures,
         provided that (a) such transaction or series of transactions is in the
         ordinary course of business between the Borrower or such Restricted
         Subsidiary and such

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<PAGE>

         Joint Venture, and (b) with respect to any such Affiliate Transaction
         involving aggregate consideration in excess of $5,000,000, such
         Affiliate Transaction complies with clause (a) of the initial paragraph
         above and such Affiliate Transaction has been approved by the board of
         directors; and

                  (11) Permitted Investments and Permitted Payments to the
         Parent.

8.08 SALE AND LEASEBACK TRANSACTIONS.

         No Loan Party shall, nor shall it permit any Restricted Subsidiary to,
directly or indirectly enter into any sale and leaseback transaction; provided
that the Borrower or any Restricted Subsidiary may enter into a sale and
leaseback transaction if (a) the Borrower or that Restricted Subsidiary, as
applicable, could have (i) incurred Indebtedness in an amount equal to the
Attributable Debt relating to such sale and leaseback transaction under the
Fixed Charge Coverage Ratio test in the first paragraph of Section 8.03 and (ii)
incurred a Lien to secure such Indebtedness pursuant to Section 8.04, (b) the
gross cash proceeds of that sale and leaseback transaction are at least equal to
the Fair Market Value, as determined in good faith by the board of directors and
set forth in an officers' certificate delivered to the Administrative Agent, of
the property that is the subject of that sale and leaseback transaction and (c)
the transfer of assets in that sale and leaseback transaction is permitted by,
and the Borrower applies the proceeds of such transaction in compliance with,
Section 8.01(b) or 8.01(c), as applicable.

8.09 ANTI-LAYERING.

         The Borrower will not incur, and will not permit any Guarantor to
incur, any Indebtedness (including Permitted Debt) that is contractually
subordinated in right of payment to any other Pari Passu Indebtedness of the
Borrower or such Guarantor unless such Indebtedness is also contractually
subordinated in right of payment to the Obligations on substantially identical
terms; provided, however, that no Indebtedness will be deemed to be
contractually subordinated in right of payment to any other Indebtedness of the
Borrower solely by virtue of being unsecured or by virtue of being secured on a
first or junior Lien basis.

8.10 ORGANIZATION DOCUMENTS; FISCAL YEAR.

         No Loan Party shall, nor shall it permit any Restricted Subsidiary to,
(a) amend, modify or change its Organization Documents in a manner materially
adverse to the Lenders or (b) change its fiscal year.

8.11 SPECIFIED FACILITIES.

         No Loan Party shall, nor shall it permit any Subsidiary to, operate its
primary petrochemical manufacturing facilities producing ethylene, styrene,
polyethylene, chlor-alkali, vinyl chloride monomer and polyvinyl chloride other
than on properties in Calcasieu Parish, Louisiana or Marshall County, Kentucky
that are subject to Mortgage Instruments.

8.12 ACCOUNTS RECEIVABLE FACILITIES.

         No Loan Party shall, nor shall it permit any Restricted Subsidiary to
sell (including a sale in exchange for a promissory note of or Equity Interest
in such Accounts Receivable Subsidiary) accounts receivable and related assets
to any Accounts Receivable Subsidiary unless the aggregate consideration
received in each such sale is at least equal to the aggregate fair market value
of the receivables sold.

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8.13 DESIGNATION OF RESTRICTED AND UNRESTRICTED SUBSIDIARIES.

         The board of directors of the Borrower shall not designate any
Restricted Subsidiary to be an Unrestricted Subsidiary. The board of directors
of the Borrower may redesignate any Unrestricted Subsidiary to be a Restricted
Subsidiary if that redesignation would not cause a Default.

8.14 COLLATERAL ACCOUNT.

         The Loan Parties shall not deposit any funds in the Collateral Account
other than Net Proceeds from Asset Sales of Collateral and Casualty Proceeds
from Involuntary Dispositions affecting the Collateral.

                                   ARTICLE IX
                         EVENTS OF DEFAULT AND REMEDIES

9.01 EVENTS OF DEFAULT.

         An Event of Default shall exist upon the occurrence of any of the
following specified events (each an "Event of Default"):

                  (a) Non-Payment. The Borrower or any other Loan Party fails to
         pay (i) when and as required to be paid herein, any amount of principal
         of any Loan, or (ii) within three days after the same becomes due, any
         interest on any Loan or any fee due hereunder or any other amount
         payable hereunder or under any other Loan Document; or

                  (b) Specific Covenants. The Borrower fails to perform or
         observe any term, covenant or agreement contained in any of (i) Section
         7.05(a), 7.10, 7.11, 7.12 or 7.13 or Article VIII; or (ii) Section
         7.01, 7.02, 7.03 and such failure continues for a period of five (5)
         Business Days; or

                  (c) Other Defaults. Any Loan Party fails to perform or observe
         any other covenant or agreement (not specified in subsection (a) or (b)
         above) contained in any Loan Document on its part to be performed or
         observed and such failure continues for 30 days; or

                  (d) Representations and Warranties. Any representation,
         warranty, certification or statement of fact made or deemed made by or
         on behalf of the Borrower or any other Loan Party herein, in any other
         Loan Document, or in any document delivered in connection herewith or
         therewith shall be incorrect or misleading when made or deemed made; or

                  (e) Other Indebtedness. Any Loan Party or any of its
         Restricted Subsidiaries shall default under any mortgage, indenture or
         instrument under which there may be issued or by which there may be
         secured or evidenced any Indebtedness for money borrowed (or the
         payment of which is guaranteed by a Loan Party or any of its Restricted
         Subsidiaries) whether such Indebtedness or guarantee now exists, or is
         created after the Closing Date, if that default (i) is caused by a
         failure to pay principal of, or interest or premium, if any, on such
         Indebtedness prior to the expiration of the grace period provided in
         such Indebtedness on the date of such default (a "Payment Default") or
         (ii) results in the acceleration of such Indebtedness prior to its
         express maturity, and, in each case, the principal amount of any such
         Indebtedness, together with the principal amount of any other such
         Indebtedness under which there has been a Payment Default or the
         maturity of which has been so accelerated, aggregates $20,000,000
         million or more and has not been discharged in full or such
         acceleration has not been rescinded or annulled within 30 days of such
         maturity or acceleration; or

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                  (f) Insolvency Proceedings, Etc. Any Loan Party or any of its
         Restricted Subsidiaries institutes or consents to the institution of
         any proceeding under any Debtor Relief Law, or makes an assignment for
         the benefit of creditors; or applies for or consents to the appointment
         of any receiver, trustee, custodian, conservator, liquidator,
         rehabilitator or similar officer for it or for all or any material part
         of its property; or any receiver, trustee, custodian, conservator,
         liquidator, rehabilitator or similar officer is appointed without the
         application or consent of such Person and the appointment continues
         undischarged or unstayed for 60 calendar days; or any proceeding under
         any Debtor Relief Law relating to any such Person or to all or any
         material part of its property is instituted without the consent of such
         Person and continues undismissed or unstayed for 60 calendar days, or
         an order for relief is entered in any such proceeding; or

                  (g) Inability to Pay Debts; Attachment. (i) The Borrower or
         any Restricted Subsidiary becomes unable or admits in writing its
         inability or fails generally to pay its debts as they become due, or
         (ii) any writ or warrant of attachment or execution or similar process
         is issued or levied against all or any material part of the property of
         any such Person and is not released, vacated or fully bonded within 30
         days after its issue or levy; or

                  (h) Judgments. There is entered against the Borrower or any
         Restricted Subsidiary (i) any one or more final judgments or orders for
         the payment of money in an aggregate amount exceeding $20,000,000 (to
         the extent not covered by independent third-party insurance as to which
         the insurer does not dispute coverage), or (ii) any one or more
         non-monetary final judgments that have, or could reasonably be expected
         to have, individually or in the aggregate, a Material Adverse Effect
         and, in either case, (A) enforcement proceedings are commenced by any
         creditor upon such judgment or order, or (B) there is a period of 60
         consecutive days during which a stay of enforcement of such judgment,
         by reason of a pending appeal or otherwise, is not in effect; or

                  (i) ERISA. (i) An ERISA Event occurs with respect to a Pension
         Plan or Multiemployer Plan which has resulted or could reasonably be
         expected to result in liability of the Borrower under Title IV of ERISA
         to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate
         amount in excess of $20,000,000, or (ii) the Borrower or any ERISA
         Affiliate fails to pay when due, after the expiration of any applicable
         grace period, any installment payment with respect to its withdrawal
         liability under Section 4201 of ERISA under a Multiemployer Plan in an
         aggregate amount in excess of $20,000,000; or

                  (j) Invalidity of Loan Documents; Guarantees. (i) Any Loan
         Document, at any time after its execution and delivery and for any
         reason other than as expressly permitted hereunder or satisfaction in
         full of all the Obligations, ceases to be in full force and effect; or
         any Person acting on behalf of a Loan Party with actual or apparent
         authority contests in any manner the validity or enforceability of any
         Loan Document; or any Person acting on behalf of a Loan Party with
         actual or apparent authority denies that it has any or further
         liability or obligation under any Loan Document, or purports to revoke,
         terminate or rescind any Loan Document; or (ii) except as the result of
         or in connection with a dissolution, merger or disposition of a
         Subsidiary not prohibited by this Agreement, the Guaranty given by any
         Guarantor hereunder or any provision thereof shall cease to be in full
         force and effect, or any Person acting by or on behalf of such
         Guarantor with actual or apparent authority shall deny or disaffirm
         such Guarantor's obligations under its Guaranty; or

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                  (k) Senior Note Indenture. There shall occur and be continuing
         any "Event of Default" (or any comparable term) under, and as defined
         in, the Senior Note Indenture; or

                  (l) Asset-Based Facility. There shall occur and be continuing
         any "Event of Default" (or any comparable term) under, and as defined
         in, the Asset-Based Facility beyond any applicable grace period set
         forth in the Asset-Based Facility; or

                  (m) Change of Control. There occurs any Change of Control.

9.02 REMEDIES UPON EVENT OF DEFAULT.

         If any Event of Default occurs and is continuing, the Administrative
Agent shall, at the request of, or may, with the consent of, the Required
Lenders, take any or all of the following actions:

                  (a) declare the commitment of each Lender to make Loans to be
         terminated, whereupon such commitments and obligation shall be
         terminated;

                  (b) declare the unpaid principal amount of all outstanding
         Loans, all interest accrued and unpaid thereon, and all other amounts
         owing or payable hereunder or under any other Loan Document to be
         immediately due and payable, without presentment, demand, protest or
         other notice of any kind, all of which are hereby expressly waived by
         the Borrower; and

                  (c) exercise on behalf of itself and the Lenders all rights
         and remedies available to it and the Lenders under the Loan Documents
         or applicable law;

         provided, however, that upon the occurrence of an actual or deemed
         entry of an order for relief with respect to the Borrower under the
         Bankruptcy Code of the United States, the obligation of each Lender to
         make Loans shall automatically terminate, the unpaid principal amount
         of all outstanding Loans and all interest and other amounts as
         aforesaid shall automatically become due and payable without further
         act of the Administrative Agent or any Lender.

9.03 APPLICATION OF FUNDS.

         After the acceleration of the Obligations as provided for in Section
9.02(b) (or after the Loans have automatically become immediately due and
payable as set forth in the proviso to Section 9.02), any amounts received on
account of the Obligations shall be applied by the Administrative Agent in the
following order:

         First, to payment of that portion of the Obligations constituting fees,
indemnities, expenses and other amounts (including Attorney Costs and amounts
payable under Article III) payable to the Administrative Agent in its capacity
as such;

         Second, to payment of that portion of the Obligations constituting
fees, indemnities and other amounts (other than principal and interest) payable
to the Lenders (including Attorney Costs and amounts payable under Article III),
ratably among them in proportion to the amounts described in this clause Second
payable to them;

         Third, to payment of that portion of the Obligations constituting
accrued and unpaid interest on the Loans, ratably among the Lenders in
proportion to the respective amounts described in this clause Third payable to
them;

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         Fourth, to payment of that portion of the Obligations constituting
unpaid principal of the Loans, ratably among the Lenders in proportion to the
respective amounts described in this clause Fourth held by them;

         Last, the balance, if any, after all of the Obligations have been
indefeasibly paid in full, to the Borrower or as otherwise required by Law.

                                    ARTICLE X
                              ADMINISTRATIVE AGENT

10.01 APPOINTMENT AND AUTHORIZATION OF ADMINISTRATIVE AGENT.

         Each Lender hereby irrevocably appoints, designates and authorizes the
Administrative Agent to take such action on its behalf under the provisions of
this Agreement and each other Loan Document and to exercise such powers and
perform such duties as are expressly delegated to it by the terms of this
Agreement or any other Loan Document, together with such powers as are
reasonably incidental thereto. Notwithstanding any provision to the contrary
contained elsewhere herein or in any other Loan Document, the Administrative
Agent shall not have any duties or responsibilities, except those expressly set
forth herein, nor shall the Administrative Agent have or be deemed to have any
fiduciary relationship with any Lender or participant, 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. Without limiting the generality of the foregoing sentence,
the use of the term "agent" herein and in the other Loan Documents with
reference to the Administrative Agent is not intended to connote any fiduciary
or other implied (or express) obligations arising under agency doctrine of any
applicable Law. Instead, such term is used merely as a matter of market custom,
and is intended to create or reflect only an administrative relationship between
independent contracting parties.

10.02 DELEGATION OF DUTIES.

         The Administrative Agent may execute any of its duties under this
Agreement or any other Loan Document by or through agents, employees or
attorneys-in-fact and shall be entitled to advice of counsel and other
consultants or experts concerning all matters pertaining to such duties. The
Administrative Agent shall not be responsible for the negligence or misconduct
of any agent or attorney-in-fact that it selects in the absence of gross
negligence or willful misconduct.

10.03 LIABILITY OF ADMINISTRATIVE AGENT.

         No Agent-Related Person shall (a) be liable for any action taken or
omitted to be taken by any of them under or in connection with this Agreement or
any other Loan Document or the transactions contemplated hereby (except for its
own gross negligence or willful misconduct in connection with its duties
expressly set forth herein), or (b) be responsible in any manner to any Lender
or participant for any recital, statement, representation or warranty made by
any Loan Party or any officer thereof, contained herein or in 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 the validity,
effectiveness, genuineness, enforceability or sufficiency of this Agreement or
any other Loan Document, or for any failure of any Loan Party or any other party
to any Loan Document to perform its obligations hereunder or thereunder. No
Agent-Related Person shall be under any obligation to any Lender or participant
to ascertain or to inquire as to the

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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 or any Affiliate thereof.

10.04 RELIANCE BY ADMINISTRATIVE AGENT.

         (a) The Administrative Agent shall be entitled to rely, and shall be
fully protected in relying, upon any writing, communication, signature,
resolution, representation, notice, consent, certificate, affidavit, letter,
telegram, facsimile, telex or telephone message, electronic mail message,
statement 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 counsel to any Loan
Party), independent accountants and other experts selected by the Administrative
Agent. The Administrative Agent shall be fully justified in failing or refusing
to take any action under any Loan Document unless it shall first receive such
advice or concurrence of the Required Lenders as it deems appropriate and, if it
so requests, it shall first be indemnified to its satisfaction by the Lenders
against any and all liability and expense which 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 or any other Loan Document in accordance with a request or
consent of the Required Lenders (or such greater number of Lenders as may be
expressly required hereby in any instance) and such request and any action taken
or failure to act pursuant thereto shall be binding upon all the Lenders.

         (b) For purposes of determining compliance with the conditions
specified in Section 5.01, each Lender that has signed this Agreement shall be
deemed to have consented to, approved or accepted or to be satisfied with, each
document or other matter required thereunder to be consented to or approved by
or acceptable or satisfactory to a Lender unless the Administrative Agent shall
have received notice from such Lender prior to the proposed Closing Date
specifying its objection thereto.

10.05 NOTICE OF DEFAULT.

         The Administrative Agent shall not be deemed to have knowledge or
notice of the occurrence of any Default, except with respect to defaults in the
payment of principal, interest and fees required to be paid to the
Administrative Agent for the account of the Lenders, unless the Administrative
Agent shall have received written notice from a Lender or the Borrower referring
to this Agreement, describing such Default and stating that such notice is a
"notice of default." The Administrative Agent will notify the Lenders of its
receipt of any such notice. The Administrative Agent shall take such action with
respect to such Default as may be directed by the Required Lenders in accordance
with Article IX; provided, however, that unless and until the Administrative
Agent has received any such direction, the Administrative Agent may (but shall
not be obligated to) take such action, or refrain from taking such action, with
respect to such Default as it shall deem advisable or in the best interest of
the Lenders.

10.06 CREDIT DECISION; DISCLOSURE OF INFORMATION BY ADMINISTRATIVE AGENT.

         Each Lender acknowledges that no Agent-Related Person has made any
representation or warranty to it, and that no act by the Administrative Agent
hereafter taken, including any consent to and acceptance of any assignment or
review of the affairs of any Loan Party or any Affiliate thereof, shall be
deemed to constitute any representation or warranty by any Agent-Related Person
to any Lender as to any matter, including whether Agent-Related Persons have
disclosed material information in their possession. Each Lender represents to
the Administrative Agent that it has, independently and without reliance upon
any Agent-Related Person and based on such documents and information as it has
deemed appropriate, made its own appraisal of and investigation into the
business, prospects, operations, property, financial

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and other condition and creditworthiness of the Loan Parties and their
respective Subsidiaries, and all applicable bank or other regulatory Laws
relating to the transactions contemplated hereby, and made its own decision to
enter into this Agreement and to extend credit to the Borrower hereunder. Each
Lender also represents that it will, independently and without reliance upon any
Agent-Related Person 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 investigations as it deems necessary
to inform itself as to the business, prospects, operations, property, financial
and other condition and creditworthiness of the Borrower and the other Loan
Parties. Except for notices, reports and other documents expressly required to
be furnished to the Lenders by the Administrative Agent herein, the
Administrative Agent shall not have any duty or responsibility to provide any
Lender with any credit or other information concerning the business, prospects,
operations, property, financial and other condition or creditworthiness of any
of the Loan Parties or any of their respective Affiliates which may come into
the possession of any Agent-Related Person.

10.07 INDEMNIFICATION OF ADMINISTRATIVE AGENT.

         Whether or not the transactions contemplated hereby are consummated,
the Lenders shall indemnify upon demand each Agent-Related Person (to the extent
not reimbursed by or on behalf of any Loan Party and without limiting the
obligation of any Loan Party to do so), pro rata, and hold harmless each
Agent-Related Person from and against any and all Indemnified Liabilities
incurred by it; provided, however, that no Lender shall be liable for the
payment to any Agent-Related Person of any portion of such Indemnified
Liabilities to the extent determined in a final, nonappealable judgment by a
court of competent jurisdiction to have resulted from such Agent-Related
Person's own gross negligence or willful misconduct; provided, however, that no
action taken in accordance with the directions of the Required Lenders shall be
deemed to constitute gross negligence or willful misconduct for purposes of this
Section. Without limitation of the foregoing, each Lender shall reimburse the
Administrative Agent upon demand for its ratable share of any costs or
out-of-pocket expenses (including Attorney Costs) incurred by the Administrative
Agent in connection with the preparation, execution, delivery, administration,
modification, amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Agreement, any other Loan Document, or any document
contemplated by or referred to herein, to the extent that the Administrative
Agent is not reimbursed for such expenses by or on behalf of the Borrower. The
undertaking in this Section shall survive termination of the payment of all
other Obligations and the resignation of the Administrative Agent.

10.08 ADMINISTRATIVE AGENT IN ITS INDIVIDUAL CAPACITY.

         Bank of America and its Affiliates may make loans to, issue letters of
credit for the account of, accept deposits from, acquire equity interests in and
generally engage in any kind of banking, trust, financial advisory, underwriting
or other business with each of the Loan Parties and their respective Affiliates
as though Bank of America were not the Administrative Agent hereunder and
without notice to or consent of the Lenders. The Lenders acknowledge that,
pursuant to such activities, Bank of America or its Affiliates may receive
information regarding any Loan Party or its Affiliates (including information
that may be subject to confidentiality obligations in favor of such Loan Party
or such Affiliate) and acknowledge that the Administrative Agent shall be under
no obligation to provide such information to them. With respect to its Loans,
Bank of America shall have the same rights and powers under this Agreement as
any other Lender and may exercise such rights and powers as though it were not
the Administrative Agent, and the terms "Lender" and "Lenders" include Bank of
America in its individual capacity.

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10.09 SUCCESSOR ADMINISTRATIVE AGENT.

         The Administrative Agent may resign as Administrative Agent upon 30
days' notice to the Lenders. If the Administrative Agent resigns under this
Agreement, the Required Lenders shall appoint from among the Lenders a successor
administrative agent for the Lenders, which successor administrative agent shall
be consented to by the Borrower at all times other than during the existence of
an Event of Default (which consent of the Borrower shall not be unreasonably
withheld or delayed). If no successor administrative agent is appointed prior to
the effective date of the resignation of the Administrative Agent, the
Administrative Agent may appoint, after consulting with the Lenders and the
Borrower, a successor administrative agent from among the Lenders. Upon the
acceptance of its appointment as successor administrative agent hereunder, the
Person acting as such successor administrative agent shall succeed to all the
rights, powers and duties of the retiring Administrative Agent and the term
"Administrative Agent" shall mean such successor administrative agent, and the
retiring Administrative Agent's appointment, powers and duties as Administrative
Agent shall be terminated without any other or further act or deed on the part
of any Lender. After any retiring Administrative Agent's resignation hereunder
as Administrative Agent, the provisions of this Article X and Sections 11.04 and
11.05 shall inure to its benefit as to any actions taken or omitted to be taken
by it while it was Administrative Agent under this Agreement. If no successor
administrative agent has accepted appointment as Administrative Agent by the
date which is 30 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 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.

10.10 ADMINISTRATIVE AGENT MAY FILE PROOFS OF CLAIM.

         In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to any Loan Party, the Administrative Agent
(irrespective of whether the principal of any Loan shall then be due and payable
as herein expressed or by declaration or otherwise and irrespective of whether
the Administrative Agent shall have made any demand on the Borrower) shall be
entitled and empowered, by intervention in such proceeding or otherwise

                  (a) to file and prove a claim for the whole amount of the
         principal and interest owing and unpaid in respect of the Loans and all
         other Obligations that are owing and unpaid and to file such other
         documents as may be necessary or advisable in order to have the claims
         of the Lenders and the Administrative Agent (including any claim for
         the reasonable compensation, expenses, disbursements and advances of
         the Lenders and the Administrative Agent and their respective agents
         and counsel and all other amounts due the Lenders and the
         Administrative Agent under Sections 2.08 and 11.04) allowed in such
         judicial proceeding; and

                  (b) to collect and receive any monies or other property
         payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Lender to make such payments to the Administrative Agent and, in the event
that the Administrative Agent shall consent to the making of such payments
directly to the Lenders, to pay to the Administrative Agent any amount due for
the reasonable compensation, expenses, disbursements and advances of the
Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 2.08 and 11.04.

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         Nothing contained herein shall be deemed to authorize the
Administrative Agent to authorize or consent to or accept or adopt on behalf of
any Lender any plan of reorganization, arrangement, adjustment or composition
affecting the Obligations or the rights of any Lender or to authorize the
Administrative Agent to vote in respect of the claim of any Lender in any such
proceeding.

10.11 COLLATERAL AND GUARANTY MATTERS.

         The Lenders irrevocably authorize the Administrative Agent, at its
option and in its discretion,

                  (a) to release any Lien on any property granted to or held by
         the Administrative Agent under any Loan Document (i) upon payment in
         full of all Obligations (other than contingent indemnification
         obligations), (ii) that is transferred or to be transferred as part of
         or in connection with any Asset Sale permitted hereunder or under any
         other Loan Document, or (iii) subject to Section 11.01, if approved,
         authorized or ratified in writing by the Required Lenders;

                  (b) to subordinate any Lien on any Property granted to or held
         by the Administrative Agent under any Loan Document to the holder of
         any Lien on such Property that is permitted by clause (e) of the
         definition of "Permitted Liens"; and

                  (c) to release any Guarantor from its obligations under the
         Guaranty if such Person ceases to be a Subsidiary as a result of a
         transaction permitted hereunder.

         Upon request by the Administrative Agent at any time, the Required
Lenders will confirm in writing the Administrative Agent's authority to release
or subordinate its interest in particular types or items of Property, or to
release any Guarantor from its obligations under the Guaranty pursuant to this
Section 10.11.

10.12 OTHER AGENTS; ARRANGERS AND MANAGERS.

         None of the Lenders or other Persons identified on the facing page or
signature pages of this Agreement as a "syndication agent," "documentation
agent," "co-agent," "book manager," "lead manager," "arranger," "lead arranger"
or "co-arranger" shall have any right, power, obligation, liability,
responsibility or duty under this Agreement other than, in the case of such
Lenders, those applicable to all Lenders as such. Without limiting the
foregoing, none of the Lenders or other Persons so identified shall have or be
deemed to have any fiduciary relationship with any Lender. Each Lender
acknowledges that it has not relied, and will not rely, on any of the Lenders or
other Persons so identified in deciding to enter into this Agreement or in
taking or not taking action hereunder.

10.13 INTERCREDITOR AGREEMENT.

         Each Lender hereby authorizes the Administrative Agent to enter into,
on behalf of the Lenders, the Intercreditor Agreement, and to take such action
as is necessary to exercise its rights and perform its obligations thereunder.

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                                   ARTICLE XI
                                  MISCELLANEOUS

11.01 AMENDMENTS, ETC.

         No amendment or waiver of any provision of this Agreement or any other
Loan Document, and no consent to any departure by the Borrower or any other Loan
Party therefrom, shall be effective unless in writing signed by the Required
Lenders and the Borrower or the applicable Loan Party, as the case may be, and
acknowledged by the Administrative Agent, and each such waiver or consent shall
be effective only in the specific instance and for the specific purpose for
which given; provided, however, that no such amendment, waiver or consent shall:

                  (a) extend or increase the Commitment of any Lender (or
         reinstate any Commitment terminated pursuant to Section 9.02) without
         the written consent of such Lender (it being understood and agreed that
         a waiver of any condition precedent set forth in Section 5.02 or of any
         Default or Event of Default or mandatory reduction in the Commitments
         shall not constitute a change in the terms of any Commitment of any
         Lender);

                  (b) postpone any date fixed by this Agreement or any other
         Loan Document for any payment (excluding mandatory prepayments) of
         principal, interest, fees or other amounts due to the Lenders (or any
         of them) hereunder or under any other Loan Document without the written
         consent of each Lender directly affected thereby;

                  (c) reduce the principal of, or the rate of interest specified
         herein on, any Loan or any fees or other amounts payable hereunder or
         under any other Loan Document without the written consent of each
         Lender directly affected thereby; provided, however, that only the
         consent of the Required Lenders shall be necessary to amend the
         definition of "Default Rate" or to waive any obligation of the Borrower
         to pay interest at the Default Rate;

                  (d) change Section 2.12 or Section 9.03 in a manner that would
         alter the pro rata sharing of payments required thereby without the
         written consent of each Lender;

                  (e) change any provision of this Section or the definition of
         "Required Lenders" or any other provision hereof specifying the number
         or percentage of Lenders required to amend, waive or otherwise modify
         any rights hereunder or make any determination or grant any consent
         hereunder, without the written consent of each Lender;

                  (f) (i) except as the result of or in connection with an Asset
         Sale not prohibited by this Agreement, release all or substantially all
         of the Collateral and (ii) except as otherwise provided in Section
         10.11, release all or substantially all of the Guarantors, in each case
         without the written consent of each Lender; and

                  (g) except as the result of or in connection with a
         dissolution, merger or disposition of a Loan Party not prohibited by
         this Agreement, release the Borrower or substantially all of the other
         Loan Parties from its or their obligations under the Loan Documents
         without the written consent of each Lender;

and, provided further, that (i) no amendment, waiver or consent shall, unless in
writing and signed by the Administrative Agent in addition to the Lenders
required above, affect the rights or duties of the Administrative Agent under
this Agreement or any other Loan Document; and (ii) the Fee Letter may be
amended, or rights or privileges thereunder waived, in a writing executed only
by the parties thereto.

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         Notwithstanding anything to the contrary herein, no Defaulting Lender
shall have any right to approve or disapprove any amendment, waiver or consent
hereunder, except that the Commitment of such Lender may not be increased or
extended without the consent of such Lender.

         Notwithstanding the fact that the consent of all the Lenders is
required in certain circumstances as set forth above, (x) each Lender is
entitled to vote as such Lender sees fit on any bankruptcy reorganization plan
that affects the Loans, and each Lender acknowledges that the provisions of
Section 1126(c) of the Bankruptcy Code supersedes the unanimous consent
provisions set forth herein and (y) the Required Lenders shall determine whether
or not to allow a Loan Party to use cash collateral in the context of a
bankruptcy or insolvency proceeding and such determination shall be binding on
all of the Lenders.

11.02 NOTICES AND OTHER COMMUNICATIONS; FACSIMILE COPIES.

         (a) General. Unless otherwise expressly provided herein, all notices
and other communications provided for hereunder shall be in writing (including
by facsimile transmission). All such written notices shall be mailed, faxed or
delivered to the applicable address, facsimile number or (subject to subsection
(c) below) electronic mail address, and all notices and other communications
expressly permitted hereunder to be given by telephone shall be made to the
applicable telephone number, as follows:

                  (i) if to the Borrower or the Administrative Agent, to the
         address, facsimile number, electronic mail address or telephone number
         specified for such Person on Schedule 11.02 or to such other address,
         facsimile number, electronic mail address or telephone number as shall
         be designated by such party in a notice to the other parties; and

                  (ii) if to any other Lender, to the address, facsimile number,
         electronic mail address or telephone number specified in its
         Administrative Questionnaire or to such other address, facsimile
         number, electronic mail address or telephone number as shall be
         designated by such party in a notice to the Borrower and the
         Administrative Agent.

         All such notices and other communications shall be deemed to be given
or made upon the earlier to occur of (i) actual receipt by the relevant party
hereto and (ii) (A) if delivered by hand or by courier, when signed for by or on
behalf of the relevant party hereto; (B) if delivered by mail, four Business
Days after deposit in the mails, postage prepaid; (C) if delivered by facsimile,
when sent and receipt has been confirmed by telephone; and (D) if delivered by
electronic mail (which form of delivery is subject to the provisions of
subsection (c) below), when delivered; provided, however, that notices and other
communications to the Administrative Agent pursuant to Article II shall not be
effective until actually received by such Person. In no event shall a voicemail
message be effective as a notice, communication or confirmation hereunder.

         (b) Effectiveness of Facsimile Documents and Signatures. Loan Documents
may be transmitted and/or signed by facsimile. The effectiveness of any such
documents and signatures shall, subject to applicable Law, have the same force
and effect as manually-signed originals and shall be binding on all Loan
Parties, the Administrative Agent and the Lenders. The Administrative Agent may
also require that any such documents and signatures be confirmed by a
manually-signed original thereof; provided, however, that the failure to request
or deliver the same shall not limit the effectiveness of any facsimile document
or signature.

         (c) Limited Use of Electronic Mail. Electronic mail and Internet and
intranet websites may be used only to distribute routine communications, such as
financial statements and other information as

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provided in Section 7.02, and to distribute Loan Documents for execution by the
parties thereto, and may not be used for any other purpose.

         (d) Reliance by Administrative Agent and Lenders. The Administrative
Agent and the Lenders shall be entitled to rely and act upon any notices
(including telephonic Loan Notices) purportedly given by or on behalf of the
Borrower even if (i) such notices were not made in a manner specified herein,
were incomplete or were not preceded or followed by any other form of notice
specified herein, or (ii) the terms thereof, as understood by the recipient,
varied from any confirmation thereof. The Borrower shall indemnify each
Agent-Related Person and each Lender from all losses, costs, expenses and
liabilities resulting from the reliance by such Person on each notice
purportedly given by or on behalf of the Borrower. All telephonic notices to and
other communications with the Administrative Agent may be recorded by the
Administrative Agent, and each of the parties hereto hereby consents to such
recording.

11.03 NO WAIVER; CUMULATIVE REMEDIES.

         No failure by any Lender or the Administrative Agent to exercise, and
no delay by any such Person in exercising, any right, remedy, power or privilege
hereunder 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.

11.04 ATTORNEY COSTS, EXPENSES AND TAXES.

         The Loan Parties jointly and severally agree (a) to pay or reimburse
the Administrative Agent for all costs and expenses incurred in connection with
the development, preparation, negotiation and execution of this Agreement and
the other Loan Documents and any amendment, waiver, consent or other
modification of the provisions hereof and thereof (whether or not the
transactions contemplated hereby or thereby are consummated), and the
consummation and administration of the transactions contemplated hereby and
thereby, including all Attorney Costs, and (b) to pay or reimburse the
Administrative Agent and each Lender for all costs and expenses incurred in
connection with the enforcement, attempted enforcement, or preservation of any
rights or remedies under this Agreement or the other Loan Documents (including
all such costs and expenses incurred during any "workout" or restructuring in
respect of the Obligations and during any legal proceeding, including any
proceeding under any Debtor Relief Law), including all Attorney Costs. The
foregoing costs and expenses shall include all search, filing, recording, title
insurance and appraisal charges and fees and taxes related thereto, and other
out-of-pocket expenses incurred by the Administrative Agent and the cost of
independent public accountants and other outside experts retained by the
Administrative Agent or any Lender. All amounts due under this Section 11.04
shall be payable within ten Business Days after demand therefor. The agreements
in this Section shall survive the repayment of all other Obligations.

11.05 INDEMNIFICATION BY THE BORROWER.

         Whether or not the transactions contemplated hereby are consummated,
the Loan Parties jointly and severally shall indemnify and hold harmless each
Agent-Related Person, each Lender and their respective Affiliates, directors,
officers, trustees, employees, counsel, agents and attorneys-in-fact
(collectively the "Indemnitees") from and against any and all liabilities,
obligations, losses, damages, penalties, claims, demands, actions, judgments,
suits, costs, expenses and disbursements (including Attorney Costs) of any kind
or nature whatsoever which may at any time be imposed on, incurred by or
asserted against any such Indemnitee in any way relating to or arising out of or
in connection with (a) the execution, delivery, enforcement, performance or
administration of any Loan Document or any other

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agreement, letter or instrument delivered in connection with the transactions
contemplated thereby or the consummation of the transactions contemplated
thereby, (b) any Commitment or Loan or the use or proposed use of the proceeds
therefrom, (c) any actual or alleged presence or release of Hazardous Materials
on or from any property currently or formerly owned or operated by the Borrower,
any Subsidiary or any other Loan Party, or any Environmental Liability related
in any way to the Borrower, any Subsidiary or any other Loan Party, or (d) any
actual or prospective claim, litigation, investigation or proceeding relating to
any of the foregoing, whether based on contract, tort or any other theory
(including any investigation of, preparation for, or defense of any pending or
threatened claim, investigation, litigation or proceeding) and regardless of
whether any Indemnitee is a party thereto (all the foregoing, collectively, the
"Indemnified Liabilities"), IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING,
IN WHOLE OR IN PART, OUT OF THE NEGLIGENCE OF THE INDEMNITEE; provided that such
indemnity shall not, as to any Indemnitee, be available to the extent that such
liabilities, obligations, losses, damages, penalties, claims, demands, actions,
judgments, suits, costs, expenses or disbursements are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted from
the gross negligence or willful misconduct of such Indemnitee. No Indemnitee
shall be liable for any damages arising from the use by others of any
information or other materials obtained through IntraLinks or other similar
information transmission systems in connection with this Agreement, nor shall
any Indemnitee have any liability for any indirect or consequential damages
relating to this Agreement or any other Loan Document or arising out of its
activities in connection herewith or therewith (whether before or after the
Closing Date). All amounts due under this Section 11.05 shall be payable within
ten Business Days after demand therefor. The agreements in this Section shall
survive the resignation of the Administrative Agent, the replacement of any
Lender and the repayment, satisfaction or discharge of all the other
Obligations.

11.06 PAYMENTS SET ASIDE.

         To the extent that any payment by or on behalf of any Loan Party is
made to the Administrative Agent or any Lender, or the Administrative Agent or
any Lender exercises its right of set-off, and such payment or the proceeds of
such set-off or any part thereof is subsequently invalidated, declared to be
fraudulent or preferential, set aside or required (including pursuant to any
settlement entered into by the Administrative Agent or such Lender in its
discretion) to be repaid to a trustee, receiver or any other party, in
connection with any proceeding under any Debtor Relief Law or otherwise, then
(a) to the extent of such recovery, the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and effect
as if such payment had not been made or such set-off had not occurred, and (b)
each Lender severally agrees to pay to the Administrative Agent upon demand its
applicable share of any amount so recovered from or repaid by the Administrative
Agent, plus interest thereon from the date of such demand to the date such
payment is made at a rate per annum equal to the Federal Funds Rate from time to
time in effect.

11.07 SUCCESSORS AND ASSIGNS.

         (a) The provisions of this Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns
permitted hereby, except that the Borrower may not assign or otherwise transfer
any of its rights or obligations hereunder without the prior written consent of
each Lender and no Lender may assign or otherwise transfer any of its rights or
obligations hereunder except (i) to an Eligible Assignee in accordance with the
provisions of subsection (b) of this Section, (ii) by way of participation in
accordance with the provisions of subsection (d) of this Section, or (iii) by
way of pledge or assignment of a security interest subject to the restrictions
of subsection (f) or (h) of this Section (and any other attempted assignment or
transfer by any party hereto shall be null and void). Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby,
Participants to the extent

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provided in subsection (d) of this Section and, to the extent expressly
contemplated hereby, the Indemnitees) any legal or equitable right, remedy or
claim under or by reason of this Agreement.

         (b) Any Lender may at any time assign to one or more Eligible Assignees
all or a portion of its rights and obligations under this Agreement (including
all or a portion of its Commitment and the Loans; provided that (i) except in
the case of an assignment of the entire remaining amount of the assigning
Lender's Commitment and the Loans at the time owing to it or in the case of an
assignment to a Lender or an Affiliate of a Lender or an Approved Fund (as
defined in subsection (g) of this Section) with respect to a Lender, the
aggregate amount of the Commitment (which for this purpose includes Loans
outstanding thereunder) subject to each such assignment, determined as of the
date the Assignment and Assumption with respect to such assignment is delivered
to the Administrative Agent or, if "Trade Date" is specified in the Assignment
and Assumption, as of the Trade Date, shall not be less than $1,000,000 unless
each of the Administrative Agent and, so long as no Event of Default has
occurred and is continuing, the Borrower otherwise consents (each such consent
not to be unreasonably withheld or delayed); (ii) each partial assignment shall
be made as an assignment of a proportionate part of all the assigning Lender's
rights and obligations under this Agreement with respect to the Loans or the
Commitment assigned; and (iii) the parties to each assignment shall execute and
deliver to the Administrative Agent an Assignment and Assumption, together with
a processing and recordation fee of $3,500. Subject to acceptance and recording
thereof by the Administrative Agent pursuant to subsection (c) of this Section,
from and after the effective date specified in each Assignment and Assumption,
the Eligible Assignee thereunder shall be a party to this Agreement and, to the
extent of the interest assigned by such Assignment and Assumption, have the
rights and obligations of a Lender under this Agreement, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Assumption, be released from its obligations under this Agreement
(and, in the case of an Assignment and Assumption covering all of the assigning
Lender's rights and obligations under this Agreement, such Lender shall cease to
be a party hereto but shall continue to be entitled to the benefits of Sections
3.01, 3.04, 3.05, 11.04 and 11.05 with respect to facts and circumstances
occurring prior to the effective date of such assignment). Any assignment or
transfer by a Lender of rights or obligations under this Agreement that does not
comply with this subsection shall be treated for purposes of this Agreement as a
sale by such Lender of a participation in such rights and obligations in
accordance with subsection (d) of this Section.

         (c) The Administrative Agent, acting solely for this purpose as an
agent of the Borrower, shall maintain at the Administrative Agent's Office a
copy of each Assignment and Assumption delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Commitments of,
and principal amounts of the Loans owing to, each Lender pursuant to the terms
hereof from time to time (the "Register"). The entries in the Register shall be
conclusive absent manifest error, and the Borrower, the Administrative Agent and
the Lenders may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary. The Register shall be
available for inspection by the Borrower and any Lender, at any reasonable time
and from time to time upon reasonable prior notice.

         (d) Any Lender may at any time, without the consent of, or notice to,
the Borrower or the Administrative Agent, sell participations to any Person
(other than a natural person or the Borrower or any of the Borrower's Affiliates
or Subsidiaries) (each, a "Participant") in all or a portion of such Lender's
rights and/or obligations under this Agreement (including all or a portion of
its Commitment and/or the Loans owing to it); provided that (i) such Lender's
obligations under this Agreement shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto for the performance of
such obligations and (iii) the Borrower, the Administrative Agent and the other
Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender's rights and obligations under this Agreement. Any
agreement or instrument pursuant to which a Lender sells such a participation
shall

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provide that such Lender shall retain the sole right to enforce this Agreement
and to approve any amendment, modification or waiver of any provision of this
Agreement; provided that such agreement or instrument may provide that such
Lender will not, without the consent of the Participant, agree to any amendment,
waiver or other modification described in the first proviso to Section 11.01
that directly affects such Participant. Subject to subsection (e) of this
Section, the Borrower agrees that each Participant shall be entitled to the
benefits of Sections 3.01, 3.04 and 3.05 to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to subsection (b) of
this Section. To the extent permitted by law, each Participant also shall be
entitled to the benefits of Section 11.09 as though it were a Lender, provided
such Participant agrees to be subject to Section 2.12 as though it were a
Lender.

         (e) A Participant shall not be entitled to receive any greater payment
under Section 3.01 or 3.04 than the applicable Lender would have been entitled
to receive with respect to the participation sold to such Participant, unless
the sale of the participation to such Participant is made with the Borrower's
prior written consent. A Participant that would be a Foreign Lender if it were a
Lender shall not be entitled to the benefits of Section 3.01 unless the Borrower
is notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Borrower, to comply with Section 11.15 as though
it were a Lender.

         (f) Any Lender may at any time pledge or assign a security interest in
all or any portion of its rights under this Agreement to secure obligations of
such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank; provided that no such pledge or assignment shall release
such Lender from any of its obligations hereunder or substitute any such pledgee
or assignee for such Lender as a party hereto.

         (g) As used herein, the following terms have the following meanings:

                  "Eligible Assignee" means (a) a Lender; (b) an Affiliate of a
         Lender; (c) an Approved Fund; and (d) any other Person (other than a
         natural person) approved by (i) the Administrative Agent, and (ii)
         unless an Event of Default has occurred and is continuing, the Borrower
         (each such approval not to be unreasonably withheld or delayed);
         provided that notwithstanding the foregoing, "Eligible Assignee" shall
         not include the Borrower or any of the Borrower's Affiliates or
         Subsidiaries.

                  "Fund" means any Person (other than a natural person) that is
         (or will be) engaged in making, purchasing, holding or otherwise
         investing in commercial loans and similar extensions of credit in the
         ordinary course of its business.

                  "Approved Fund" means any Fund that is administered or managed
         by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an
         Affiliate of an entity that administers or manages a Lender.

         (h) Notwithstanding anything to the contrary contained herein, any
Lender that is a Fund may create a security interest in all or any portion of
the Loans owing to it and the Note, if any, held by it to the trustee for
holders of obligations owed, or securities issued, by such Fund as security for
such obligations or securities, provided that unless and until such trustee
actually becomes a Lender in compliance with the other provisions of this
Section 11.07, (i) no such pledge shall release the pledging Lender from any of
its obligations under the Loan Documents and (ii) such trustee shall not be
entitled to exercise any of the rights of a Lender under the Loan Documents even
though such trustee may have acquired ownership rights with respect to the
pledged interest through foreclosure or otherwise.

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11.08 CONFIDENTIALITY.

         Each of the Administrative Agent and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its and its Affiliates' directors, officers, trustees,
employees and agents, including accountants, legal counsel and other advisors
(it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to keep
such Information confidential); (b) to the extent requested by any Governmental
Authority or representative thereof; (c) to the extent required by applicable
laws or regulations or by any subpoena or similar legal process; (d) to any
other party to this Agreement; (e) in connection with the exercise of any
remedies hereunder or any suit, action or proceeding relating to this Agreement
or the enforcement of rights hereunder; (f) subject to an agreement containing
provisions substantially the same as those of this Section, to (i) any Eligible
Assignee of or Participant in, or any prospective Eligible Assignee of or
Participant in, any of its rights or obligations under this Agreement so long as
such Eligible Assignee or Participant (prospective or otherwise) agrees to be
bound by such provisions or (ii) any direct or indirect contractual counterparty
or prospective counterparty (or such contractual counterparty's or prospective
counterparty's professional advisor) to any credit derivative transaction
relating to obligations of the Loan Parties; (g) with the consent of the
Borrower; (h) to the extent such Information (i) becomes publicly available
other than as a result of a breach of this Section or (ii) becomes available to
the Administrative Agent or any Lender on a nonconfidential basis from a source
other than the Borrower; or (i) to the National Association of Insurance
Commissioners or any other similar organization. In addition, the Administrative
Agent and the Lenders may, to the extent permitted by Law, disclose the
existence of this Agreement and information about this Agreement to market data
collectors, similar service providers to the lending industry, and service
providers to the Administrative Agent and the Lenders in connection with the
administration and management of this Agreement, the other Loan Documents, the
Commitments, and the Borrowings; provided, however, without the consent of the
Borrower (not to be unreasonably withheld), such disclosure and information
shall be limited to the matters presented in the "Summary of Indicative Terms
and Conditions" contained in the Confidential Offering Memorandum dated June,
2003, as updated from time to time. For the purposes of this Section,
"Information" means all information received from any Loan Party relating to any
Loan Party or its business, other than any such information that is available to
the Administrative Agent or any Lender on a nonconfidential basis prior to
disclosure by any Loan Party; provided that, in the case of information received
from a Loan Party after the date hereof, such information is clearly identified
in writing at the time of delivery as confidential. Any Person required to
maintain the confidentiality of Information as provided in this Section shall be
considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.
Notwithstanding anything herein to the contrary, "Information" shall not
include, and the Administrative Agent and each Lender may disclose without
limitation of any kind, any information with respect to the "tax treatment" and
"tax structure" (in each case, within the meaning of Treasury Regulation Section
1.6011-4) of the transactions contemplated hereby and all materials of any kind
(including opinions or other tax analyses) that are provided to the
Administrative Agent or such Lender relating to such tax treatment and tax
structure; provided that with respect to any document or similar item that in
either case contains information concerning the tax treatment or tax structure
of the transaction as well as other information, this sentence shall only apply
to such portions of the document or similar item that relate to the tax
treatment or tax structure of the Loans and transactions contemplated hereby.

11.09 SET-OFF.

         In addition to any rights and remedies of the Lenders provided by law,
upon the occurrence and during the continuance of any Event of Default, each
Lender is authorized at any time and from time to time, without prior notice to
the Borrower or any other Loan Party, any such notice being waived by the

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Borrower (on its own behalf and on behalf of each Loan Party) to the fullest
extent permitted by law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held by, and other
indebtedness at any time owing by, such Lender to or for the credit or the
account of the respective Loan Parties against any and all Obligations owing to
such Lender hereunder or under any other Loan Document, now or hereafter
existing, irrespective of whether or not the Administrative Agent or such Lender
shall have made demand under this Agreement or any other Loan Document and
although such Obligations may be contingent or unmatured or denominated in a
currency different from that of the applicable deposit or indebtedness. Each
Lender agrees promptly to notify the Borrower and the Administrative Agent after
any such set-off and application made by such Lender; provided, however, that
the failure to give such notice shall not affect the validity of such set-off
and application.

11.10 INTEREST RATE LIMITATION.

         Notwithstanding anything to the contrary contained in any Loan
Document, the interest paid or agreed to be paid under the Loan Documents shall
not exceed the maximum rate of non-usurious interest permitted by applicable Law
(the "Maximum Rate"). If the Administrative Agent or any Lender shall receive
interest in an amount that exceeds the Maximum Rate, the excess interest shall
be applied to the principal of the Loans or, if it exceeds such unpaid
principal, refunded to the Borrower. In determining whether the interest
contracted for, charged, or received by the Administrative Agent or a Lender
exceeds the Maximum Rate, such Person may, to the extent permitted by applicable
Law, (a) characterize any payment that is not principal as an expense, fee, or
premium rather than interest, (b) exclude voluntary prepayments and the effects
thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal
parts the total amount of interest throughout the contemplated term of the
Obligations hereunder.

11.11 COUNTERPARTS.

         This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

11.12 INTEGRATION.

         This Agreement, together with the other Loan Documents, comprises the
complete and integrated agreement of the parties on the subject matter hereof
and thereof and supersedes all prior agreements, written or oral, on such
subject matter. In the event of any conflict between the provisions of this
Agreement and those of any other Loan Document, the provisions of this Agreement
shall control; provided that the inclusion of supplemental rights or remedies in
favor of the Administrative Agent or the Lenders in any other Loan Document
shall not be deemed a conflict with this Agreement. Each Loan Document was
drafted with the joint participation of the respective parties thereto and shall
be construed neither against nor in favor of any party, but rather in accordance
with the fair meaning thereof.

11.13 SURVIVAL OF REPRESENTATIONS AND WARRANTIES.

         All representations and warranties made hereunder and in any other Loan
Document or other document delivered pursuant hereto or thereto or in connection
herewith or therewith shall survive the execution and delivery hereof and
thereof. Such representations and warranties have been or will be relied upon by
the Administrative Agent and each Lender, regardless of any investigation made
by the Administrative Agent or any Lender or on their behalf and notwithstanding
that the Administrative Agent or any Lender may have had notice or knowledge of
any Default at the time of any Borrowing, and shall continue in full force and
effect as long as any Loan or any other Obligation hereunder shall remain unpaid
or unsatisfied.

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11.14 SEVERABILITY.

         If any provision of this Agreement or the other Loan Documents is held
to be illegal, invalid or unenforceable, (a) the legality, validity and
enforceability of the remaining provisions of this Agreement and the other Loan
Documents shall not be affected or impaired thereby and (b) the parties shall
endeavor in good faith negotiations to replace the illegal, invalid or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the illegal, invalid or unenforceable
provisions. The invalidity of a provision in a particular jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction.

11.15 TAX FORMS.

                  (a) (i) Each Lender that is not a "United States person"
         within the meaning of Section 7701(a)(30) of the Code (a "Foreign
         Lender") shall deliver to the Administrative Agent, prior to receipt of
         any payment subject to withholding under the Code (or upon accepting an
         assignment of an interest herein), two duly signed completed copies of
         either IRS Form W-8BEN or any successor thereto (relating to such
         Foreign Lender and entitling it to an exemption from, or reduction of,
         withholding tax on all payments to be made to such Foreign Lender by
         the Borrower pursuant to this Agreement) or IRS Form W-8ECI or any
         successor thereto (relating to all payments to be made to such Foreign
         Lender by the Borrower pursuant to this Agreement) or such other
         evidence satisfactory to the Borrower and the Administrative Agent that
         such Foreign Lender is entitled to an exemption from, or reduction of,
         U.S. withholding tax, including any exemption pursuant to Section
         881(c) of the Code. Thereafter and from time to time, each such Foreign
         Lender shall (A) promptly submit to the Administrative Agent such
         additional duly completed and signed copies of one of such forms (or
         such successor forms as shall be adopted from time to time by the
         relevant United States taxing authorities) as may then be available
         under then current United States laws and regulations to avoid, or such
         evidence as is satisfactory to the Borrower and the Administrative
         Agent of any available exemption from or reduction of, United States
         withholding taxes in respect of all payments to be made to such Foreign
         Lender by the Borrower pursuant to this Agreement, (B) promptly notify
         the Administrative Agent of any change in circumstances which would
         modify or render invalid any claimed exemption or reduction, and (C)
         take such steps as shall not be materially disadvantageous to it, in
         the reasonable judgment of such Lender, and as may be reasonably
         necessary (including the re-designation of its Lending Office) to avoid
         any requirement of applicable Laws that the Borrower make any deduction
         or withholding for taxes from amounts payable to such Foreign Lender.

                  (ii) Each Foreign Lender, to the extent it does not act or
         ceases to act for its own account with respect to any portion of any
         sums paid or payable to such Lender under any of the Loan Documents
         (for example, in the case of a typical participation by such Lender),
         shall deliver to the Administrative Agent on the date when such Foreign
         Lender ceases to act for its own account with respect to any portion of
         any such sums paid or payable, and at such other times as may be
         necessary in the determination of the Administrative Agent (in the
         reasonable exercise of its discretion), (A) two duly signed completed
         copies of the forms or statements required to be provided by such
         Lender as set forth above, to establish the portion of any such sums
         paid or payable with respect to which such Lender acts for its own
         account that is not subject to U.S. withholding tax, and (B) two duly
         signed completed copies of IRS Form W-8IMY (or any successor thereto),
         together with any information such Lender chooses to transmit with such
         form, and any other certificate or statement of exemption required
         under the Code, to establish that such Lender is not acting for its own
         account with respect to a portion of any such sums payable to such
         Lender.

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                  (iii) The Borrower shall not be required to pay any additional
         amount to any Foreign Lender under Section 3.01 (A) with respect to any
         Taxes required to be deducted or withheld on the basis of the
         information, certificates or statements of exemption such Lender
         transmits with an IRS Form W-8IMY pursuant to this Section 11.15(a) or
         (B) if such Lender shall have failed to satisfy the foregoing
         provisions of this Section 11.15(a); provided that if such Lender shall
         have satisfied the requirement of this Section 11.15(a) on the date
         such Lender became a Lender or ceased to act for its own account with
         respect to any payment under any of the Loan Documents, nothing in this
         Section 11.15(a) shall relieve the Borrower of its obligation to pay
         any amounts pursuant to Section 3.01 in the event that, as a result of
         any change in any applicable law, treaty or governmental rule,
         regulation or order, or any change in the interpretation,
         administration or application thereof, such Lender is no longer
         properly entitled to deliver forms, certificates or other evidence at a
         subsequent date establishing the fact that such Lender or other Person
         for the account of which such Lender receives any sums payable under
         any of the Loan Documents is not subject to withholding or is subject
         to withholding at a reduced rate.

                  (iv) The Administrative Agent may, without reduction, withhold
         any Taxes required to be deducted and withheld from any payment under
         any of the Loan Documents with respect to which the Borrower is not
         required to pay additional amounts under this Section 11.15(a).

         (b) Upon the request of the Administrative Agent, each Lender that is a
"United States person" within the meaning of Section 7701(a)(30) of the Code
shall deliver to the Administrative Agent two duly signed completed copies of
IRS Form W-9. If such Lender fails to deliver such forms, then the
Administrative Agent may withhold from any interest payment to such Lender an
amount equivalent to the applicable back-up withholding tax imposed by the Code,
without reduction.

         (c) If any Governmental Authority asserts that the Administrative Agent
did not properly withhold or backup withhold, as the case may be, any tax or
other amount from payments made to or for the account of any Lender, such Lender
shall indemnify the Administrative Agent therefor, including all penalties and
interest, any taxes imposed by any jurisdiction on the amounts payable to the
Administrative Agent under this Section, and costs and expenses (including
Attorney Costs) of the Administrative Agent. The obligation of the Lenders under
this Section shall survive the repayment of all other Obligations hereunder and
the resignation of the Administrative Agent.

11.16 REPLACEMENT OF LENDERS.

         Under any circumstances set forth herein providing that the Borrower
shall have the right to replace a Lender as a party to this Agreement, the
Borrower may, upon notice to such Lender and the Administrative Agent, replace
such Lender by causing such Lender to assign its Commitment and outstanding
Loans (with the assignment fee to be paid by the Borrower in such instance)
pursuant to Section 11.07(b) to one or more other Lenders or Eligible Assignees
procured by the Borrower. The Borrower shall (x) pay in full all principal,
interest, fees and other amounts owing to such Lender through the date of
replacement (including any amounts payable pursuant to Section 3.05) and (y)
release such Lender from its obligations under the Loan Documents. Any Lender
being replaced shall execute and deliver an Assignment and Assumption with
respect to such Lender's Commitment and outstanding Loans.

11.17 GOVERNING LAW.

         (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO

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AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED THAT
THE ADMINISTRATIVE AGENT AND EACH LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER
FEDERAL LAW.

         (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR
ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK
SITTING IN NEW YORK, NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT
OF SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE LOAN
PARTIES, THE ADMINISTRATIVE AGENT AND EACH LENDER CONSENTS, FOR ITSELF AND IN
RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH
OF THE LOAN PARTIES, THE ADMINISTRATIVE AGENT AND EACH LENDER IRREVOCABLY WAIVES
ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE
GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF ANY LOAN
DOCUMENT OR OTHER DOCUMENT RELATED THERETO. EACH OF THE LOAN PARTIES, THE
ADMINISTRATIVE AGENT AND EACH LENDER WAIVES PERSONAL SERVICE OF ANY SUMMONS,
COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY
THE LAW OF SUCH STATE.

11.18 WAIVER OF RIGHT TO TRIAL BY JURY.

         EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL
BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN
DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS
OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR THE
TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY
HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF
ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO
THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH
ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE
WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

11.19 ENTIRE AGREEMENT.

         THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL
AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

                                       84
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date first above written.

BORROWER:                WESTLAKE CHEMICAL CORPORATION

                         By: /s/ A. Chao
                             ------------------------------------------------
                             Albert Chao
                             President

GUARANTORS:              GEISMAR VINYLS COMPANY LP

                         By: GEISMAR HOLDINGS, INC., its general partner

                         WESTLAKE PETROCHEMICALS LP

                         By: WESTLAKE CHEMICAL INVESTMENTS, INC., its general
                             partner

                         WESTLAKE POLYMERS LP

                         By: WESTLAKE CHEMICAL INVESTMENTS, INC., its general
                             partner

                         WESTLAKE STYRENE LP

                         By: WESTLAKE CHEMICAL HOLDINGS, INC., its general
                             partner

                         WPT LP

                         By: WESTLAKE CHEMICAL HOLDINGS, INC., its general
                             partner

                             By: /s/ Tai-Li Keng
                                 -----------------------------------
                                 Tai-Li Keng
                                 Vice-President

<PAGE>

                          GEISMAR HOLDINGS, INC.

                          GRAMERCY CHLOR-ALKALI CORPORATION

                          GVGP, INC.

                          NORTH AMERICAN PIPE CORPORATION

                          NORTH AMERICAN PROFILES, INC.

                          VAN BUREN PIPE CORPORATION

                          WESTECH BUILDING PRODUCTS, INC.

                          WESTLAKE CHEMICAL HOLDINGS, INC.

                          WESTLAKE CHEMICAL INVESTMENTS, INC.

                          WESTLAKE CHEMICAL MANUFACTURING, INC.

                          WESTLAKE CHEMICAL PRODUCTS, INC.

                          WESTLAKE DEVELOPMENT CORPORATION

                          WESTLAKE MANAGEMENT SERVICES, INC.

                          WESTLAKE OLEFINS CORPORATION

                          WESTLAKE OVERSEAS CORPORATION

                          WESTLAKE PVC CORPORATION

                          WESTLAKE RESOURCES CORPORATION

                          WESTLAKE VINYL CORPORATION

                          WESTLAKE VINYLS, INC.

                          By: /s/ Tai-Li Keng
                              --------------------------------------------
                              Tai-Li Keng
                              Vice-President

<PAGE>

ADMINISTRATIVE AGENT:        BANK OF AMERICA, N.A., as
                             Administrative Agent

                             By:    /s/ Mary F. Edwards
                                    -------------------------------------------
                             Name:  Mary F. Edwards
                             Title: Agency Officer

LENDERS:                     BANK OF AMERICA, N.A., as a Lender

                             By:    /s/ Edward Hamilton
                                    -------------------------------------------
                             Name:  Edward Hamilton
                             Title: Senior Vice President

<PAGE>

                                  Exhibit 1.01

                           FORM OF SECURITY AGREEMENT

<PAGE>

                               SECURITY AGREEMENT

         THIS SECURITY AGREEMENT (this "Security Agreement") dated as of July
31, 2003 is by and among the parties identified as "Grantors" on the signature
pages hereto and such other parties as may become Grantors hereunder after the
date hereof (individually a "Grantor", and collectively the "Grantors") and BANK
OF AMERICA, N.A., as administrative agent (in such capacity, the "Administrative
Agent") for the holders of the Secured Obligations referenced below.

                                   WITNESSETH

         WHEREAS, a $120 million credit facility has been established in favor
of Westlake Chemical Corporation, a Delaware corporation (the "Borrower"),
pursuant to the terms of that Credit Agreement (as amended, modified,
supplemented and extended from time to time, the "Credit Agreement") dated as of
the date hereof among the Borrower, the Guarantors identified therein, the
Lenders identified therein and Bank of America, N.A., as Administrative Agent;
and

         WHEREAS, this Security Agreement is required under the terms of the
Credit Agreement.

         NOW, THEREFORE, in consideration of these premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

         1. Definitions.

         (a) Capitalized terms used and not otherwise defined herein shall have
the meanings provided in the Credit Agreement.

         (b) The following terms shall have the meanings assigned thereto in the
Uniform Commercial Code in effect in the State of New York on the date hereof:
Accession, Account, As-Extracted Collateral, Chattel Paper, Commercial Tort
Claim, Consumer Goods, Deposit Account, Documents, Equipment, Farm Products,
Fixtures, General Intangibles, Instrument, Inventory, Letter-of-Credit Rights,
Manufactured Home, Proceeds, Software, Standing Timber and Supporting
Obligation.

         (c) As used herein, the following terms shall have the meanings set
forth below:

                  "Collateral" has the meaning provided in Section 2 hereof.

                  "Collateral Account" means the deposit account maintained by
         the Borrower with the Administrative Agent (and subject to the security
         interest of the Administrative Agent) into which Net Proceeds from
         Asset Sales of Collateral and Casualty Proceeds from Involuntary
         Dispositions affecting Collateral shall be deposited pending final
         application of such proceeds in accordance with the terms of the Credit
         Agreement.

                  "Copyright License" means any agreement, written or oral,
         providing for the grant by or to a Grantor of any right to use any
         Copyright, including, without limitation, any thereof referred to in
         Schedule 6.17 to the Credit Agreement.

                  "Copyrights" means (a) all registered United States copyrights
         in all Works, now existing or hereafter created or acquired, all
         registrations and recordings thereof, and all applications in
         connection therewith, including, without limitation, registrations,
         recordings and applications in the United States Copyright Office
         including, without limitation, any thereof referred to in Schedule 6.17
         to the Credit Agreement, and (b) all renewals thereof including,
         without limitation, any thereof referred to in Schedule 6.17 to the
         Credit Agreement.

<PAGE>

                  "Patent License" means any agreement, whether written or oral,
         providing for the grant by or to a Grantor of any right to manufacture,
         use or sell any invention covered by a Patent, including, without
         limitation, any thereof referred to in Schedule 6.17 to the Credit
         Agreement.

                  "Patents" means (a) all letters patent of the United States or
         any other country and all reissues and extensions thereof, including,
         without limitation, any letters patent referred to in Schedule 6.17 to
         the Credit Agreement, and (b) all applications for letters patent of
         the United States or any other country and all divisions, continuations
         and continuations-in-part thereof, including, without limitation, any
         thereof referred to in Schedule 6.17 to the Credit Agreement.

                  "Secured Obligations" means, without duplication, (i) all of
         the obligations of the Loan Parties to the Lenders and the
         Administrative Agent, under the Credit Agreement or any other Loan
         Document (including, but not limited to, any interest accruing after
         the commencement of a proceeding by or against any Loan Party under any
         Debtor Relief Laws, regardless of whether such interest is an allowed
         claim under such proceeding), whether now existing or hereafter
         arising, due or to become due, direct or indirect, absolute or
         contingent, howsoever evidenced, created, held or acquired, whether
         primary, secondary, direct, contingent, or joint and several, as such
         obligations may be amended, modified, increased, extended, renewed or
         replaced from time to time, and (ii) all costs and expenses incurred in
         connection with enforcement and collection of the obligations described
         in the foregoing clause (i), including reasonable attorneys' fees.

                  "Specified Facilities" means, with respect to the Grantors,
         (a) the Calcasieu Parish, Louisiana ethylene, styrene, and polyethylene
         facilities, and (b) the Marshall County, Kentucky chlor-alkali, vinyl
         chloride monomer and polyvinyl chloride complexes (each, individually,
         a "Specified Facility").

                  "Trademark License" means any agreement, written or oral,
         providing for the grant by or to a Grantor of any right to use any
         Trademark, including, without limitation, any thereof referred to in
         Schedule 6.17 to the Credit Agreement.

                  "Trademarks" means (a) all trademarks, trade names, corporate
         names, company names, business names, fictitious business names, trade
         styles, service marks, logos and other source or business identifiers,
         and the goodwill associated therewith, now existing or hereafter
         adopted or acquired, all registrations and recordings thereof, and all
         applications in connection therewith, whether in the United States
         Patent and Trademark Office or in any similar office or agency of the
         United States, any state thereof or any other country or any political
         subdivision thereof, or otherwise, including, without limitation, any
         thereof referred to in Schedule 6.17 to the Credit Agreement, and (b)
         all renewals thereof.

                  "UCC" means the Uniform Commercial Code.

                  "Work" means any work that is subject to copyright protection
         pursuant to Title 17 of the United States Code.

         2. Grant of Security Interest in the Collateral. To secure the prompt
payment and performance in full when due, whether by lapse of time,
acceleration, mandatory prepayment or otherwise, of the Secured Obligations,
each Grantor hereby grants to the Administrative Agent, for the benefit of the
holders of the Secured Obligations, a continuing security interest in, and a
right to set off against, any and all right, title and interest of such Grantor
in all of the following property that is (i) located on, contiguous to,
connected with or in reasonable proximity to any Specified Facility or (ii)
arising from, necessary or used in connection with,

                                       2
<PAGE>

or in any respect related, incidental or ancillary to, the ownership, expansion,
operation, use, maintenance or sale or other disposition of any Specified
Facility, whether now owned or existing or owned, acquired, or arising hereafter
(collectively, the "Collateral"):

                  (a) the Collateral Account;

                  (b) those Commercial Tort Claims identified on Schedule 2(d)
         attached hereto and other causes of action;

                  (c) all Documents;

                  (d) all Equipment;

                  (e) all Fixtures;

                  (f) all General Intangibles; Patents; Patent Licenses;
         Trademarks; Trademark Licenses; Copyrights; Copyright Licenses; trade
         secrets; goodwill; other intellectual property (whether owned or
         licensed); drawings; blueprints; specifications; plans; books and
         records; employment, consulting, operating, maintenance or services
         agreements; utility contracts; other contractual rights; public and
         private licenses, permits, franchises, certificates, registrations,
         privileges, entitlements, powers, authorities, pollution and
         environmental credits and allowances; loan commitments and financing
         arrangements incurred or obtained to finance additions, repairs or
         improvements to a Specified Facility, Fixtures or Equipment; bonds;
         leases; rights to indemnification; any award, remuneration, settlement,
         or compensation heretofore made or hereafter to be made by any
         Governmental Authority to any Grantor); surety bonds; and insurance
         policies and the proceeds therefrom payable or to be payable
         thereunder;

                  (g) all Instruments;

                  (h) Letter-of-Credit Rights;

                  (i) all Software;

                  (j) all Supporting Obligations; and

                  (k) to the extent not otherwise included, all Accessions and
         all Proceeds of any and all of the foregoing.

         The Grantors and the Administrative Agent, on behalf of the holders of
the Secured Obligations, hereby acknowledge and agree that the security interest
created hereby in the Collateral (i) constitutes continuing collateral security
for all of the Secured Obligations, whether now existing or hereafter arising
and (ii) is not to be construed as an assignment of any Copyrights, Copyright
Licenses, Patents, Patent Licenses, Trademarks or Trademark Licenses.

         Notwithstanding the forgoing, the Collateral shall in no event include
Inventory, Accounts, Deposit Accounts (other than the Collateral Account),
Chattel Paper or contracts to supply Inventory or services to customers of the
Grantors.

         3. [Reserved]

                                       3
<PAGE>

         4. Representations and Warranties. Each Grantor hereby represents and
warrants to the Administrative Agent, for the benefit of the holders of the
Secured Obligations, that so long as any of the Secured Obligations remains
outstanding and until all of the commitments relating thereto have been
terminated:

                  (a) Legal Name; Chief Executive Office; Etc.. As of the date
                  hereof:

                           (i) Each Grantor's exact legal name, taxpayer
                  identification number, organization identification number, and
                  state of formation are (and for the prior five years have
                  been) as set forth on Schedule 6.20(c) to the Credit
                  Agreement.

                           (ii) Each Grantor's chief executive office is located
                  (and for the prior five years has been) at the location set
                  forth on Schedule 6.20(c) to the Credit Agreement attached
                  hereto.

                           (iii) Other than as set forth on Schedule 4(a)
                  attached hereto, no Grantor has been party to a merger,
                  consolidation or other change in structure or used any
                  tradename in the prior five years.

                  (b) Ownership. Each Grantor is the legal and beneficial owner,
         lessee or licensee of its Collateral and has the right to pledge, sell,
         assign or transfer the same.

                  (c) Security Interest/Priority. This Security Agreement
         creates a valid security interest in favor of the Administrative Agent,
         for the benefit of the holders of the Secured Obligations, in the
         Collateral of such Grantor and, when properly perfected by filing,
         shall constitute a valid perfected security interest in such
         Collateral, to the extent such security interest can be perfected by
         filing under the UCC, free and clear of all Liens except for Permitted
         Liens.

                  (d) Types of Collateral. None of the Collateral consists of,
         or is the Accessions or the Proceeds of, As-Extracted Collateral,
         Consumer Goods, Farm Products, Manufactured Homes, or Standing Timber.

                  (e) Copyrights, Patents and Trademarks.

                           (i) Schedule 6.17 to the Credit Agreement includes
                  all Copyrights, Copyright Licenses, Patents, Patent Licenses,
                  Trademarks and Trademark Licenses owned by any Grantor in its
                  own name, or to which any Grantor is a party, as of the date
                  hereof.

                           (ii) Each Copyright, Patent and Trademark of such
                  Grantor is valid (to the Grantor's knowledge), subsisting,
                  unexpired, enforceable (to the Grantor's knowledge) and has
                  not been abandoned.

                           (iii) Except as set forth in Schedule 6.17 to the
                  Credit Agreement, none of the Copyrights, Patents and
                  Trademarks of any Grantor is the subject of any licensing or
                  franchise agreement.

                           (iv) No holding, decision or judgment has been
                  rendered by any Governmental Authority that would limit,
                  cancel or question the validity of any Copyright, Patent or
                  Trademark of any Grantor.

                           (v) No action or proceeding is pending seeking to
                  limit, cancel or question the validity of any Copyright,
                  Patent or Trademark of any Grantor, or that, if adversely

                                       4
<PAGE>

                  determined, could reasonably be expected to have a material
                  adverse effect on the value of any Copyright, Patent or
                  Trademark of any Grantor.

                           (vi) All applications pertaining to the Copyrights,
                  Patents and Trademarks of each Grantor have been duly and
                  properly filed, and all registrations or letters pertaining to
                  such Copyrights, Patents and Trademarks have been duly and
                  properly filed and issued, and all of such Copyrights, Patents
                  and Trademarks are , to the Grantor's knowledge, valid and
                  enforceable.

                           (vii) No Grantor has made any assignment or agreement
                  in conflict with the security interest in the Copyrights,
                  Patents or Trademarks of any Grantor hereunder.

         5. Covenants. Each Grantor covenants that, so long as any of the
Secured Obligations remains outstanding and until all of the commitments
relating thereto have been terminated, such Grantor shall:

                  (a) Other Liens. Defend the Collateral against the claims and
         demands of all other parties claiming an interest therein other than
         Permitted Liens.

                  (b) Instruments; Documents. If any amount payable under or in
         connection with any of the Collateral shall be or become evidenced by
         any Instrument, or if any property constituting Collateral shall be
         stored or shipped subject to a Document, ensure that such Instrument or
         Document is either in the possession of such Grantor at all times or,
         if requested by the Administrative Agent, is immediately delivered to
         the Administrative Agent, and duly endorsed in a manner satisfactory to
         the Administrative Agent. For purposes of clarification, amounts
         payable in connection with a Grantor's inventory shall not be subject
         to this clause (b).

                  (c) Change in Structure, Location or Type. Not, without
         providing ten days prior written notice to the Administrative Agent (i)
         change its name or state of formation, (ii) be party to a merger,
         consolidation or other change in structure or (iii) use any tradename
         other than as set forth on Schedule 4(a) attached hereto.

                  (d) Perfection of Security Interest. Execute and deliver to
         the Administrative Agent such agreements, assignments or instruments
         (including affidavits, notices, reaffirmations and amendments and
         restatements of existing documents, as the Administrative Agent may
         reasonably request) and do all such other things as the Administrative
         Agent may reasonably deem necessary, appropriate or convenient (i) to
         assure to the Administrative Agent the effectiveness and priority of
         its security interests hereunder, including (A) such instruments as the
         Administrative Agent may from time to time reasonably request in order
         to perfect and maintain the security interests granted hereunder in
         accordance with the UCC, (B) with regard to Copyrights, a Notice of
         Grant of Security Interest in Copyrights for filing with the United
         States Copyright Office in the form of Schedule 5(d)(i) attached
         hereto, (C) with regard to Patents, a Notice of Grant of Security
         Interest in Patents for filing with the United States Patent and
         Trademark Office in the form of Schedule 5(d)(ii) attached hereto and
         (D) with regard to Trademarks, a Notice of Grant of Security Interest
         in Trademarks for filing with the United States Patent and Trademark
         Office in the form of Schedule 5(d)(iii) attached hereto, (ii) to
         consummate the transactions contemplated hereby and (iii) to otherwise
         protect and assure the Administrative Agent of its rights and interests
         hereunder. To that end, each Grantor authorizes the Administrative
         Agent to file one or more financing statements (with collateral
         descriptions broader and/or less specific than the description of the
         Collateral contained herein) disclosing the Administrative Agent's
         security interest in any or all of the Collateral of such Grantor
         without such Grantor's signature thereon, and further each Grantor also
         hereby irrevocably makes, constitutes and appoints the Administrative
         Agent, its nominee or any other Person whom the Administrative Agent
         may designate, as such Grantor's attorney-in-fact with full power and
         for the

                                       5
<PAGE>

         limited purpose to sign in the name of such Grantor any such financing
         statements (including renewal statements), amendments and supplements,
         notices or any similar documents that in the Administrative Agent's
         reasonable discretion would be necessary, appropriate or convenient in
         order to perfect and maintain perfection of the security interests
         granted hereunder, such power, being coupled with an interest, being
         and remaining irrevocable so long as the Secured Obligations remain
         unpaid and until the commitments relating thereto shall have been
         terminated. Each Grantor hereby agrees that a carbon, photographic or
         other reproduction of this Security Agreement or any such financing
         statement is sufficient for filing as a financing statement by the
         Administrative Agent without notice thereof to such Grantor wherever
         the Administrative Agent may in its sole discretion desire to file the
         same. In the event for any reason the law of any jurisdiction other
         than New York becomes or is applicable to the Collateral of any Grantor
         or any part thereof, or to any of the Secured Obligations, such Grantor
         agrees to execute and deliver all such instruments and to do all such
         other things as the Administrative Agent in its sole discretion
         reasonably deems necessary, appropriate or convenient to preserve,
         protect and enforce the security interests of the Administrative Agent
         under the law of such other jurisdiction (and, if a Grantor shall fail
         to do so promptly upon the request of the Administrative Agent, then
         the Administrative Agent may execute any and all such requested
         documents on behalf of such Grantor pursuant to the power of attorney
         granted hereinabove). If any Collateral is in the possession or control
         of a Grantor's agents and the Administrative Agent so requests, such
         Grantor agrees to notify such agents in writing of the Administrative
         Agent's security interest therein and, upon the Administrative Agent's
         request, instruct them to hold all such Collateral for the account of
         the holders of the Secured Obligations and subject to the
         Administrative Agent's instructions. Each Grantor agrees to mark its
         books and records to reflect the security interest of the
         Administrative Agent in the Collateral.

                  (e) Control. Execute and deliver all agreements, assignments,
         instruments or other documents as the Administrative Agent shall
         reasonably request (including, without limitation, a "Control
         Agreement" substantially in the form of Schedule 5(e) or in such other
         form as may be agreed by the Borrower and the Administrative Agent) for
         the purpose of obtaining and maintaining control within the meaning of
         the UCC with respect to the Collateral Account or any Letter-of-Credit
         Rights constitution Collateral.

                  (d) Collateral held by Warehouseman, Bailee, etc. If any
         Collateral is at any time in the possession or control of a
         warehouseman, bailee, agent or processor of such Grantor, (i) notify
         the Administrative Agent of such possession or control, (ii) notify
         such Person of the Administrative Agent's security interest in such
         Collateral, (iii) instruct such Person to hold all such Collateral for
         the Administrative Agent's account and subject to the Administrative
         Agent's instructions and (iv) use its best efforts to obtain an
         acknowledgment from such Person that it is holding such Collateral for
         the benefit of the Administrative Agent. For purposes of clarification,
         no Grantor's inventory nor amounts payable in connection with such
         inventory shall be subject to this clause (d).

                  (e) Covenants Relating to Copyrights.

                           (i) Not do any act or knowingly omit to do any act
                  whereby any material Copyright may become invalidated and (A)
                  not do any act, or knowingly omit to do any act, whereby any
                  material Copyright may become injected into the public domain;
                  (B) notify the Administrative Agent immediately if it knows
                  that any material Copyright may become injected into the
                  public domain or of any adverse determination or development
                  (including, without limitation, the institution of, or any
                  such determination or development in, any court or tribunal in
                  the United States or any other country) regarding a Grantor's
                  ownership of any such Copyright or its validity; (C) take all
                  necessary steps as it shall deem appropriate under the
                  circumstances, to maintain and pursue each application (and to
                  obtain the relevant registration) and to maintain each
                  registration of each material Copyright owned by a

                                       6
<PAGE>

                  Grantor including, without limitation, filing of applications
                  for renewal where necessary; and (D) promptly notify the
                  Administrative Agent of any material infringement of any
                  material Copyright of a Grantor of which it becomes aware and
                  take such actions as it shall reasonably deem appropriate
                  under the circumstances to protect such Copyright, including,
                  where appropriate, the bringing of suit for infringement,
                  seeking injunctive relief and seeking to recover any and all
                  damages for such infringement.

                           (ii) Not make any assignment or agreement in conflict
                  with the security interest in the Copyrights of each Grantor
                  hereunder.

                  (f) Covenants Relating to Patents and Trademarks.

                           (i) (A) Continue to use each Trademark on each and
                  every trademark class of goods applicable to its current line
                  as reflected in its current catalogs, brochures and price
                  lists in order to maintain such Trademark in full force free
                  from any claim of abandonment for non-use unless it determines
                  in its reasonable business judgement to cease any such use,
                  (B) maintain as in the past the quality of products and
                  services offered under such Trademark, (C) employ such
                  Trademark with the appropriate notice of registration, (D) not
                  adopt or use any mark that is confusingly similar or a
                  colorable imitation of such Trademark unless the
                  Administrative Agent, for the ratable benefit of the holders
                  of the Secured Obligations, shall obtain a perfected security
                  interest in such mark pursuant to this Security Agreement, and
                  (E) not (and not permit any licensee or sublicensee thereof
                  to) do any act or knowingly omit to do any act whereby any
                  Trademark may become invalidated.

                           (ii) Not do any act, or omit to do any act, whereby
                  any Patent may become abandoned or dedicated.

                           (iii) Notify the Administrative Agent promptly if it
                  knows that any application or registration relating to any
                  Patent or Trademark may become abandoned or dedicated, or of
                  any adverse determination or development (including, without
                  limitation, the institution of, or any such determination or
                  development in, any proceeding in the United States Patent and
                  Trademark Office or any court or tribunal in any country)
                  regarding a Grantor's ownership of any Patent or Trademark or
                  its right to register the same or to keep and maintain the
                  same.

                           (iv) Whenever a Grantor, either by itself or through
                  an agent, employee, licensee or designee, shall file an
                  application for the registration of any Patent or Trademark
                  with the United States Patent and Trademark Office or any
                  similar office or agency in any other country or any political
                  subdivision thereof, the Grantor shall report such filing to
                  the Administrative Agent and the holders of the Secured
                  Obligations within five Business Days after the last day of
                  the fiscal quarter in which such filing occurs. Upon request
                  of the Administrative Agent, a Grantor shall execute and
                  deliver any and all agreements, instruments, documents and
                  papers as the Administrative Agent may reasonably request to
                  evidence the security interest of the Administrative Agent and
                  the holders of the Secured Obligations in any Patent or
                  Trademark and the goodwill and general intangibles of a
                  Grantor relating thereto or represented thereby.

                           (v) Take all reasonable and necessary steps,
                  including, without limitation, in any proceeding before the
                  United States Patent and Trademark Office, or any similar
                  office or agency in any other country or any political
                  subdivision thereof, to maintain and pursue each application
                  (and to obtain the relevant registration) and to maintain each
                  registration of the Patents and Trademarks, including, without
                  limitation, filing of applications for renewal,

                                       7
<PAGE>

                  affidavits of use and affidavits of incontestability, unless
                  it determines in its reasonable business judgement not to
                  maintain or pursue the application or registration.

                           (vi) Promptly notify the Administrative Agent and the
                  holders of the Secured Obligations after it learns that any
                  Patent or Trademark included in the Collateral is infringed,
                  misappropriated or diluted by a third party and promptly sue
                  for infringement, misappropriation or dilution, to seek
                  injunctive relief where appropriate and to recover any and all
                  damages for such infringement, misappropriation or dilution,
                  or to take such other actions as it shall reasonably deem
                  appropriate under the circumstances to protect such Patent or
                  Trademark.

                           (vii) Not make any assignment or agreement in
                  conflict with the security interest in the Patents or
                  Trademarks of each Grantor hereunder.

                  (g) Insurance. Insure, repair and replace the Collateral of
         such Grantor as set forth in the Credit Agreement. All insurance
         proceeds shall be subject to the security interest of the
         Administrative Agent hereunder.

                  (h) Commercial Tort Claims.

                           (i) Promptly notify the Administrative Agent in
                  writing of the initiation of any Commercial Tort Claim before
                  any Governmental Authority by or in favor of such Grantor or
                  any of its Subsidiaries.

                           (ii) Execute and deliver such statements, documents
                  and notices and do and cause to be done all such things as the
                  Administrative Agent may reasonably deem necessary,
                  appropriate or convenient, or as are required by law, to
                  create, perfect and maintain the Administrative Agent's
                  security interest in any Commercial Tort Claim.

         6. Advances by Administrative Agent. On failure of any Grantor to
perform any of the covenants and agreements contained herein, the Administrative
Agent may, at its sole option and in its sole discretion, perform the same and
in so doing may expend such sums as the Administrative Agent may reasonably deem
advisable in the performance thereof, including, without limitation, the payment
of any insurance premiums, the payment of any taxes, a payment to obtain a
release of a Lien or potential Lien, expenditures made in defending against any
adverse claim and all other expenditures that the Administrative Agent may make
for the protection of the security hereof or that may be compelled to make by
operation of law. All such sums and amounts so expended shall be repayable by
the Grantors on a joint and several basis (subject to Section 22 hereof)
promptly upon timely notice thereof and demand therefor, shall constitute
additional Secured Obligations and shall bear interest from the date said
amounts are expended at the Default Rate. No such performance of any covenant or
agreement by the Administrative Agent on behalf of any Grantor, and no such
advance or expenditure therefor, shall relieve the Grantors of any default under
the terms of this Security Agreement, the other Loan Documents or any other
documents relating to the Secured Obligations. The Administrative Agent may make
any payment hereby authorized in accordance with any bill, statement or estimate
procured from the appropriate public office or holder of the claim to be
discharged without inquiry into the accuracy of such bill, statement or estimate
or into the validity of any tax assessment, sale, forfeiture, tax lien, title or
claim except to the extent such payment is being contested in good faith by a
Grantor in appropriate proceedings and against which adequate reserves are being
maintained in accordance with GAAP.

                                       8
<PAGE>

         7. Remedies.

         (a) General Remedies. Upon the occurrence of an Event of Default and
during the continuation thereof, the Administrative Agent shall have, in
addition to the rights and remedies provided herein, in the Loan Documents, in
any other documents relating to the Secured Obligations, or by law (including,
without limitation, levy of attachment and garnishment), the rights and remedies
of a secured party under the UCC of the jurisdiction applicable to the affected
Collateral and, further, the Administrative Agent may, with or without judicial
process or the aid and assistance of others, (i) enter on any premises on which
any of the Collateral may be located and, without resistance or interference by
the Grantors, take possession of the Collateral, (ii) dispose of any Collateral
on any such premises, (iii) require the Grantors to assemble and make available
to the Administrative Agent at the expense of the Grantors any Collateral at any
place and time designated by the Administrative Agent that is reasonably
convenient to both parties, (iv) remove any Collateral from any such premises
for the purpose of effecting sale or other disposition thereof, and/or (v)
without demand and without advertisement, notice, hearing or process of law, all
of which each of the Grantors hereby waives to the fullest extent permitted by
law, at any place and time or times, sell and deliver any or all Collateral held
by or for it at public or private sale, by one or more contracts, in one or more
parcels, for cash, upon credit or otherwise, at such prices and upon such terms
as the Administrative Agent deems advisable, in its sole discretion (subject to
any and all mandatory legal requirements). Each of the Grantors acknowledges
that any private sale referenced above may be at prices and on terms less
favorable to the seller than the prices and terms that might have been obtained
at a public sale and agrees that such private sale shall be deemed to have been
made in a commercially reasonable manner. Neither the Administrative Agent's
compliance with applicable law nor its disclaimer of warranties relating to the
Collateral shall be considered to adversely affect the commercial reasonableness
of any sale. In addition to all other sums due the Administrative Agent and the
holders of the Secured Obligations with respect to the Secured Obligations, the
Grantors shall pay the Administrative Agent and each of the holders of the
Secured Obligations all reasonable documented costs and expenses incurred by the
Administrative Agent or any such holder of the Secured Obligations, including,
but not limited to, reasonable attorneys' fees, and court costs, in obtaining or
liquidating the Collateral, in enforcing payment of the Secured Obligations, or
in the prosecution or defense of any action or proceeding by or against the
Administrative Agent or the holders of the Secured Obligations or the Grantors
concerning any matter arising out of or connected with this Security Agreement,
any Collateral or the Secured Obligations, including, without limitation, any of
the foregoing arising in, arising under or related to a case under the
Bankruptcy Code. To the extent the rights of notice cannot be legally waived
hereunder, each Grantor agrees that any requirement of reasonable notice shall
be met if such notice is personally served on or mailed, postage prepaid, to the
Borrower in accordance with the notice provisions of Section 11.02 of the Credit
Agreement at least ten Business Days before the time of sale or other event
giving rise to the requirement of such notice. The Administrative Agent shall
not be obligated to make any sale or other disposition of the Collateral
regardless of notice having been given. To the extent permitted by law, any
holder of the Secured Obligations may be a purchaser at any such sale. To the
extent permitted by applicable law, each of the Grantors hereby waives all of
its rights of redemption with respect to any such sale. Subject to the
provisions of applicable law, the Administrative Agent and the holders of the
Secured Obligations may postpone or cause the postponement of the sale of all or
any portion of the Collateral by announcement at the time and place of such
sale, and such sale may, without further notice, to the extent permitted by law,
be made at the time and place to which the sale was postponed, or the
Administrative Agent may further postpone such sale by announcement made at such
time and place.

         (b) Access. In addition to the rights and remedies hereunder, upon the
occurrence of an Event of Default and during the continuation thereof, the
Administrative Agent shall have the right to enter and remain upon the various
premises of the Grantors without cost or charge to the Administrative Agent, and
use the same, together with materials, supplies, books and records of the
Grantors for the purpose of collecting and liquidating the Collateral, or for
preparing for sale and conducting the sale of the Collateral, whether by
foreclosure, auction or otherwise. In addition, the Administrative Agent may
remove Collateral, or any part

                                       9
<PAGE>

thereof, from such premises and/or any records with respect thereto, in order to
effectively collect or liquidate such Collateral.

         (c) Nonexclusive Nature of Remedies. Failure by the Administrative
Agent or the holders of the Secured Obligations to exercise any right, remedy or
option under this Security Agreement, any other Loan Document, any other
documents relating to the Secured Obligations, or as provided by law, or any
delay by the Administrative Agent or the holders of the Secured Obligations in
exercising the same, shall not operate as a waiver of any such right, remedy or
option. No waiver hereunder shall be effective unless it is in writing, signed
by the party against whom such waiver is sought to be enforced and then only to
the extent specifically stated, which in the case of the Administrative Agent or
the holders of the Secured Obligations shall only be granted as provided herein.
To the extent permitted by law, neither the Administrative Agent, the holders of
the Secured Obligations, nor any party acting as attorney for the Administrative
Agent or the holders of the Secured Obligations, shall be liable hereunder for
any acts or omissions or for any error of judgment or mistake of fact or law
other than their gross negligence or willful misconduct hereunder. The rights
and remedies of the Administrative Agent and the holders of the Secured
Obligations under this Security Agreement shall be cumulative and not exclusive
of any other right or remedy that the Administrative Agent or the holders of the
Secured Obligations may have.

         (d) Retention of Collateral. To the extent permitted under applicable
law, in addition to the rights and remedies hereunder, upon the occurrence of an
Event of Default, the Administrative Agent may, after providing the notices
required by Sections 9-620 and 9-621 of the UCC or otherwise complying with the
requirements of applicable law of the relevant jurisdiction, accept or retain
all or any portion of the Collateral in satisfaction of the Secured Obligations.
Unless and until the Administrative Agent shall have provided such notices,
however, the Administrative Agent shall not be deemed to have accepted or
retained any Collateral in satisfaction of any Secured Obligations for any
reason.

         (e) Deficiency. In the event that the proceeds of any sale, collection
or realization are insufficient to pay all amounts to which the Administrative
Agent or the holders of the Secured Obligations are legally entitled, the
Grantors shall be jointly and severally liable for the deficiency (subject to
Section 22 hereof), together with interest thereon at the Default Rate, together
with the costs of collection and reasonable attorneys' fees. Any surplus
remaining after the full payment and satisfaction of the Secured Obligations
shall be returned to the Grantors or to whomsoever a court of competent
jurisdiction shall determine to be entitled thereto.

         8. Rights of the Administrative Agent.

         (a) Power of Attorney. In addition to other powers of attorney
contained herein, each Grantor hereby designates and appoints the Administrative
Agent, on behalf of the holders of the Secured Obligations, and each of its
designees or agents, as attorney-in-fact of such Grantor, irrevocably and with
power of substitution, with authority to take any or all of the following
actions upon the occurrence and during the continuation of an Event of Default:

                  (i) to demand, collect, settle, compromise and adjust, and
         give discharges and releases concerning the Collateral, all as the
         Administrative Agent may reasonably deem appropriate;

                  (ii) to commence and prosecute any actions at any court for
         the purposes of collecting any of the Collateral and enforcing any
         other right in respect thereof;

                  (iii) to defend, settle or compromise any action brought and,
         in connection therewith, give such discharge or release as the
         Administrative Agent may reasonably deem appropriate;

                                       10
<PAGE>

                  (iv) to receive, open and dispose of mail addressed to a
         Grantor and endorse checks, notes, drafts, acceptances, money orders,
         bills of lading, warehouse receipts or other instruments or documents
         evidencing payment, shipment or storage of the goods giving rise to the
         Collateral on behalf of and in the name of such Grantor, or securing,
         or relating to such Collateral;

                  (v) to pay or discharge taxes, liens, security interests or
         other encumbrances levied or placed on or threatened against the
         Collateral;

                  (vi) to direct any parties liable for any payment in
         connection with any of the Collateral to make payment of any and all
         monies due and to become due thereunder directly to the Administrative
         Agent or as the Administrative Agent shall direct;

                  (vii) to receive payment of and receipt for any and all
         monies, claims, and other amounts due and to become due at any time in
         respect of or arising out of any Collateral;

                  (viii) to sell, assign, transfer, make any agreement in
         respect of, or otherwise deal with or exercise rights in respect of,
         any Collateral or the goods or services that have given rise thereto,
         as fully and completely as though the Administrative Agent were the
         absolute owner thereof for all purposes;

                  (ix) to adjust and settle claims under any insurance policy
         relating thereto;

                  (x) to execute and deliver all assignments, conveyances,
         statements, financing statements, renewal financing statements,
         security and pledge agreements, affidavits, notices and other
         agreements, instruments and documents that the Administrative Agent may
         reasonably deem appropriate in order to perfect and maintain the
         security interests and liens granted in this Security Agreement and in
         order to fully consummate all of the transactions contemplated therein;

                  (xi) to institute any foreclosure proceedings that the
         Administrative Agent may reasonably deem appropriate; and

                  (xii) to do and perform all such other acts and things as the
         Administrative Agent may reasonably deem appropriate or convenient in
         connection with the Collateral.

         This power of attorney is a power coupled with an interest and shall be
irrevocable for so long as any of the Secured Obligations shall remain
outstanding and until all of the commitments relating thereto shall have been
terminated. The Administrative Agent shall be under no duty to exercise or
withhold the exercise of any of the rights, powers, privileges and options
expressly or implicitly granted to the Administrative Agent in this Security
Agreement, and shall not be liable for any failure to do so or any delay in
doing so. The Administrative Agent shall not be liable for any act or omission
or for any error of judgment or any mistake of fact or law in its individual
capacity or its capacity as attorney-in-fact except acts or omissions resulting
from its gross negligence or willful misconduct. This power of attorney is
conferred on the Administrative Agent solely to protect, preserve and realize
upon its security interest in the Collateral.

         (b) Performance by the Administrative Agent of Obligations. If any
Grantor fails to perform any agreement or obligation contained herein, the
Administrative Agent itself may perform, or cause performance of, such agreement
or obligation, and the expenses of the Administrative Agent incurred in
connection therewith shall be payable by the Grantors on a joint and several
basis (subject to Section 22 hereof).

                                       11
<PAGE>

         (c) The Administrative Agent's Duty of Care. Other than the exercise of
reasonable care to assure the safe custody of the Collateral while being held by
the Administrative Agent hereunder, the Administrative Agent shall have no duty
or liability to preserve rights pertaining thereto, it being understood and
agreed that the Grantors shall be responsible for preservation of all rights in
the Collateral, and the Administrative Agent shall be relieved of all
responsibility for the Collateral upon surrendering it or tendering the
surrender of it to the Grantors. The Administrative Agent shall be deemed to
have exercised reasonable care in the custody and preservation of the Collateral
in its possession if such Collateral is accorded treatment substantially equal
to that which the Administrative Agent accords its own property, which shall be
no less than the treatment employed by a reasonable and prudent agent in the
industry, it being understood that the Administrative Agent shall not have
responsibility for taking any necessary steps to preserve rights against any
parties with respect to any of the Collateral. In the event of a public or
private sale of Collateral pursuant to Section 7 hereof, the Administrative
Agent shall have no obligation to clean, repair or otherwise prepare the
Collateral for sale.

         9. Rights of Required Lenders. All rights of the Administrative Agent
hereunder, if not exercised by the Administrative Agent, may be exercised by the
Required Lenders.

         10. Application of Proceeds. Upon the occurrence and during the
continuation of an Event of Default, any payments in respect of the Secured
Obligations and any proceeds of the Collateral, when received by the
Administrative Agent or any of the holders of the Secured Obligations in cash or
its equivalent, will be applied in reduction of the Secured Obligations in the
order set forth in the Credit Agreement or other document relating to the
Secured Obligations, and each Grantor irrevocably waives the right to direct the
application of such payments and proceeds and acknowledges and agrees that the
Administrative Agent shall have the continuing and exclusive right to apply and
reapply any and all such payments and proceeds in the Administrative Agent's
sole discretion, notwithstanding any entry to the contrary upon any of its books
and records.

         11. Continuing Agreement.

         (a) This Security Agreement shall be a continuing agreement in every
respect and shall remain in full force and effect so long as any of the Secured
Obligations remains outstanding and until all of the commitments relating
thereto have been terminated (other than any obligations with respect to the
indemnities and the representations and warranties set forth in the Loan
Documents). Upon such payment and termination, this Security Agreement and the
liens and security interests of the Administrative Agent hereunder shall be
automatically terminated and the Administrative Agent shall, upon the request
and at the expense of the Grantors, execute and deliver all UCC termination
statements and/or other documents reasonably requested by the Grantors
evidencing such termination. Notwithstanding the foregoing, all releases and
indemnities provided hereunder (in all cases, whether or not caused by or
arising, in whole or in part, out of the negligence of the indemnified party)
shall survive termination of this Security Agreement.

         (b) This Security Agreement shall continue to be effective or be
automatically reinstated, as the case may be, if at any time payment, in whole
or in part, of any of the Secured Obligations is rescinded or must otherwise be
restored or returned by the Administrative Agent or any holder of the Secured
Obligations as a preference, fraudulent conveyance or otherwise under any
bankruptcy, insolvency or similar law, all as though such payment had not been
made; provided that in the event payment of all or any part of the Secured
Obligations is rescinded or must be restored or returned, all reasonable costs
and expenses (including, without limitation, attorneys' fees, the allocated cost
of internal counsel and disbursements) incurred by the Administrative Agent or
any holder of the Secured Obligations in defending and enforcing such
reinstatement shall be deemed to be included as a part of the Secured
Obligations.

                                       12
<PAGE>

         12. Amendments and Waivers. This Security Agreement and the provisions
hereof may not be amended, waived, modified, changed, discharged or terminated
except as set forth in Section 11.01 of the Credit Agreement.

         13. Successors in Interest. This Security Agreement shall create a
continuing security interest in the Collateral and shall be binding upon each
Grantor, its successors and assigns, and shall inure, together with the rights
and remedies of the Administrative Agent and the holders of the Secured
Obligations hereunder, to the benefit of the Administrative Agent and the
holders of the Secured Obligations and their successors and permitted assigns;
provided, however, that none of the Grantors may assign its rights or delegate
its duties hereunder without the prior written consent of the requisite Lenders
under the Credit Agreement. To the fullest extent permitted by law, each Grantor
hereby releases the Administrative Agent and each holder of the Secured
Obligations, their respective successors and assigns and their respective
officers, attorneys, employees and agents, from any liability for any act or
omission or any error of judgment or mistake of fact or of law relating to this
Security Agreement or the Collateral, except for any liability arising from the
gross negligence or willful misconduct of the Administrative Agent or such
holder, or their respective officers, attorneys, employees or agents.

         14. Notices. All notices required or permitted to be given under this
Security Agreement shall be given as provided in Section 11.02 of the Credit
Agreement.

         15. Counterparts. This Security Agreement may be executed in any number
of counterparts, each of which where so executed and delivered shall be an
original, but all of which shall constitute one and the same instrument. It
shall not be necessary in making proof of this Security Agreement to produce or
account for more than one such counterpart.

         16. Headings. The headings of the sections and subsections hereof are
provided for convenience only and shall not in any way affect the meaning or
construction of any provision of this Security Agreement.

         17. Governing Law; Submission to Jurisdiction; Venue.

         (a) THIS SECURITY AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, the LAW OF THE STATE OF NEW YORK applicable to agreements made
and to be performed entirely within such State; PROVIDED THAT THE ADMINISTRATIVE
Agent AND EACH LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

         (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS SECURITY
AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE
OF NEW YORK SITTING IN NEW YORK, NEW YORK OR OF THE UNITED STATES FOR THE
SOUTHERN DISTRICT OF SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS SECURITY
AGREEMENT, EACH PARTY TO THIS SECURITY AGREEMENT CONSENTS, FOR ITSELF AND IN
RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH
PARTY TO THIS SECURITY AGREEMENT IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY
OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON
CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR
PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS SECURITY AGREEMENT OR ANY
OTHER LOAN DOCUMENT OR OTHER DOCUMENT RELATED THERETO. EACH PARTY TO THIS
SECURITY AGREEMENT WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER
PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF SUCH
STATE.

                                       13
<PAGE>

         18. Waiver of Right to Trial by Jury.

         EACH PARTY TO THIS SECURITY AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT
TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER
THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH
OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM
WITH RESPECT TO THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR THE
TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY
HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF
ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO
THIS SECURITY AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS
SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES
HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

         19. Severability. If any provision of this Security Agreement is
determined to be illegal, invalid or unenforceable, such provision shall be
fully severable and the remaining provisions shall remain in full force and
effect and shall be construed without giving effect to the illegal, invalid or
unenforceable provisions.

         20. Survival. All representations and warranties of the Grantors
hereunder shall survive the execution and delivery of this Security Agreement,
the other Loan Documents and the other documents relating to the Secured
Obligations, the delivery of the Notes and the extension of credit thereunder or
in connection therewith.

         21. Other Security. To the extent that any of the Secured Obligations
are now or hereafter secured by property other than the Collateral (including,
without limitation, real property and securities owned by a Grantor), or by a
guarantee, endorsement or property of any other Person, then the Administrative
Agent shall have the right to proceed against such other property, guarantee or
endorsement upon the occurrence of any Event of Default, and the Administrative
Agent shall have the right, in its sole discretion, to determine which rights,
security, liens, security interests or remedies the Administrative Agent shall
at any time pursue, relinquish, subordinate, modify or take with respect
thereto, without in any way modifying or affecting any of them or the Secured
Obligations or any of the rights of the Administrative Agent or the holders of
the Secured Obligations under this Security Agreement, under any of the other
Loan Documents or under any other document relating to the Secured Obligations.

         22. Joint and Several Obligations of Grantors.

         (a) Subject to subsection (c) of this Section 22, each of the Grantors
is accepting joint and several liability hereunder in consideration of the
financial accommodation to be provided by the holders of the Secured
Obligations, for the mutual benefit, directly and indirectly, of each of the
Grantors and in consideration of the undertakings of each of the Grantors to
accept joint and several liability for the obligations of each of them.

         (b) Subject to subsection (c) of this Section 22, each of the Grantors
jointly and severally hereby irrevocably and unconditionally accepts, not merely
as a surety but also as a co-debtor, joint and several liability with the other
Grantors with respect to the payment and performance of all of the Secured
Obligations arising under this Security Agreement, the other Loan Documents and
any other documents relating to the Secured Obligations, it being the intention
of the parties hereto that all the Secured Obligations shall be the joint and
several obligations of each of the Grantors without preferences or distinction
among them.

                                       14
<PAGE>

         (c) Notwithstanding any provision to the contrary contained herein, in
any other of the Loan Documents or in any other documents relating to the
Secured Obligations, the obligations of each Guarantor under the Credit
Agreement and the other Loan Documents shall be limited to an aggregate amount
equal to the largest amount that would not render such obligations subject to
avoidance under Section 548 of the Bankruptcy Code or any comparable provisions
of any applicable state law.

         23. Entire Agreement

         This SECURITY AGREEMENT and the other Loan Documents represent the
final agreement AMONG the parties and may not be contradicted by evidence of
prior, contemporaneous, or subsequent oral agreements of the parties. There are
no unwritten oral agreements AMONG the parties.

                            [Signature Pages Follow]

                                       15
<PAGE>

         Each of the parties hereto has caused a counterpart of this Security
Agreement to be duly executed and delivered as of the date first above written.

GRANTORS:                        WESTLAKE CHEMICAL CORPORATION

                                 By:
                                        ----------------------------------------
                                 Name:
                                        ----------------------------------------
                                 Title:
                                        ----------------------------------------

                                 GEISMAR HOLDINGS, INC.

                                 By:
                                        ----------------------------------------
                                 Name:
                                        ----------------------------------------
                                 Title:
                                        ----------------------------------------

                                 GEISMAR VINYLS COMPANY LP

                                 By:
                                        ----------------------------------------
                                 Name:
                                        ----------------------------------------
                                 Title:
                                        ----------------------------------------

                                 GRAMERCY CHLOR-ALKALI CORPORATION

                                 By:
                                        ----------------------------------------
                                 Name:
                                        ----------------------------------------
                                 Title:
                                        ----------------------------------------

                                 GVGP, INC.

                                 By:
                                        ----------------------------------------
                                 Name:
                                        ----------------------------------------
                                 Title:
                                        ----------------------------------------

                                 NORTH AMERICAN PIPE CORPORATION

                                 By:
                                        ----------------------------------------
                                 Name:
                                        ----------------------------------------
                                 Title:
                                        ----------------------------------------

                                 NORTH AMERICAN PROFILES, INC.

                                 By:
                                        ----------------------------------------
                                 Name:
                                        ----------------------------------------
                                 Title:
                                        ----------------------------------------

                                 VAN BUREN PIPE CORPORATION

                                 By:
                                        ----------------------------------------
                                 Name:
                                        ----------------------------------------
                                 Title:
                                        ----------------------------------------

                                       16
<PAGE>

                                 WESTECH BUILDING PRODUCTS, INC.

                                 By:
                                        ----------------------------------------
                                 Name:
                                        ----------------------------------------
                                 Title:
                                        ----------------------------------------

                                 WESTLAKE CHEMICAL HOLDINGS, INC.

                                 By:
                                        ----------------------------------------
                                 Name:
                                        ----------------------------------------
                                 Title:
                                        ----------------------------------------

                                 WESTLAKE CHEMICAL INVESTMENTS, INC.

                                 By:
                                        ----------------------------------------
                                 Name:
                                        ----------------------------------------
                                 Title:
                                        ----------------------------------------

                                 WESTLAKE CHEMICAL MANUFACTURING, INC.

                                 By:
                                        ----------------------------------------
                                 Name:
                                        ----------------------------------------
                                 Title:
                                        ----------------------------------------

                                 WESTLAKE CHEMICAL PRODUCTS, INC.

                                 By:
                                        ----------------------------------------
                                 Name:
                                        ----------------------------------------
                                 Title:
                                        ----------------------------------------

                                 WESTLAKE DEVELOPMENT CORPORATION

                                 By:
                                        ----------------------------------------
                                 Name:
                                        ----------------------------------------
                                 Title:
                                        ----------------------------------------

                                 WESTLAKE MANAGEMENT SERVICES, INC.

                                 By:
                                        ----------------------------------------
                                 Name:
                                        ----------------------------------------
                                 Title:
                                        ----------------------------------------

                                 WESTLAKE OLEFINS CORPORATION

                                 By:
                                        ----------------------------------------
                                 Name:
                                        ----------------------------------------
                                 Title:
                                        ----------------------------------------

                                       17
<PAGE>

                                 WESTLAKE OVERSEAS CORPORATION

                                 By:
                                        ----------------------------------------
                                 Name:
                                        ----------------------------------------
                                 Title:
                                        ----------------------------------------

                                 WESTLAKE PETROCHEMICALS LP

                                 By:
                                      ------------------------------------------
                                 Name:
                                        ----------------------------------------
                                 Title:
                                       -----------------------------------------

                                 WESTLAKE POLYMERS LP

                                 By:
                                      ------------------------------------------
                                 Name:
                                        ----------------------------------------
                                 Title:
                                       -----------------------------------------

                                 WESTLAKE PVC CORPORATION

                                 By:
                                      ------------------------------------------
                                 Name:
                                        ----------------------------------------
                                 Title:
                                       -----------------------------------------

                                 WESTLAKE RESOURCES CORPORATION

                                 By:
                                      ------------------------------------------
                                 Name:
                                        ----------------------------------------
                                 Title:
                                       -----------------------------------------

                                 WESTLAKE STYRENE LP

                                 By:
                                      ------------------------------------------
                                 Name:
                                        ----------------------------------------
                                 Title:
                                       -----------------------------------------

                                 WESTLAKE VINYL CORPORATION

                                 By:
                                      ------------------------------------------
                                 Name:
                                        ----------------------------------------
                                 Title:
                                       -----------------------------------------

                                 WESTLAKE VINYLS, INC.

                                 By:
                                      ------------------------------------------
                                 Name:
                                        ----------------------------------------
                                 Title:
                                       -----------------------------------------

                                       18
<PAGE>

                                 WPT LP

                                 By:
                                        ----------------------------------------
                                 Name:
                                        ----------------------------------------
                                 Title:
                                        ----------------------------------------

Accepted and agreed to as of the date first above written.

BANK OF AMERICA, N.A..,
as Administrative Agent

By:
   ----------------------------------
Name:
Title:

                                       19
<PAGE>

                                SCHEDULE 5(d)(i)

                           GRANT OF SECURITY INTEREST

                                       IN

                                   COPYRIGHTS

United States Copyright Office

Ladies and Gentlemen:

         Please be advised that the undersigned Grantor hereby grants a
continuing security interest in and continuing lien upon, the copyrights and
copyright applications on Schedule 1 attached hereto to the Administrative Agent
for the ratable benefit of the holders of the Secured Obligations, pursuant to
and as more fully set forth in the Security Agreement dated as of July 31, 2003
(the "Security Agreement") by and among the Grantors party thereto (each an
"Grantor" and collectively, the "Grantors") and Bank of America, N.A., as
Administrative Agent (the "Administrative Agent") for the holders of the Secured
Obligations referenced therein, which Security Agreement is hereby made a part
hereof by reference as though set forth in its entirety. Capitalized terms used
herein and not otherwise defined shall have the meaning assigned thereto in the
Security Agreement.

         The undersigned Grantor and the Administrative Agent, on behalf of the
holders of the Secured Obligations, hereby acknowledge and agree that the
security interest in the copyrights and copyright applications set forth on
Schedule 1 attached hereto (i) may only be terminated in accordance with the
terms of the Security Agreement and (ii) is not to be construed as an assignment
of any copyright or copyright application.

                                   Very truly yours,

                                   ----------------------------------
                                   [Grantor]

                                   By:
                                      -----------------------------------------
                                   Name:
                                   Title:

Acknowledged and Accepted:

BANK OF AMERICA, N.A., as Administrative Agent

By:
   -----------------------------------------
Name:
Title:

<PAGE>

                                SCHEDULE 5(d)(ii)

                           GRANT OF SECURITY INTEREST

                                       IN

                                     PATENTS

United States Patent and Trademark Office

Ladies and Gentlemen:

         Please be advised that the undersigned Grantor hereby grants a
continuing security interest in and continuing lien upon, the patents and patent
applications set forth on Schedule 1 attached hereto to the Administrative Agent
for the ratable benefit of the holders of the Secured Obligations, pursuant to
and as more fully set forth in the Security Agreement dated as of July 31, 2003
(the "Security Agreement") by and among the Grantors party thereto (each an
"Grantor" and collectively, the "Grantors") and Bank of America, N.A., as
Administrative Agent (the "Administrative Agent") for the holders of the Secured
Obligations referenced therein, which Security Agreement is hereby made a part
hereof by reference as though set forth in its entirety. Capitalized terms used
herein and not otherwise defined shall have the meaning assigned thereto in the
Security Agreement.

         The undersigned Grantor and the Administrative Agent, on behalf of the
holders of the Secured Obligations, hereby acknowledge and agree that the
security interest in the patents and patent applications set forth on Schedule 1
attached hereto (i) may only be terminated in accordance with the terms of the
Security Agreement and (ii) is not to be construed as an assignment of any
patent or patent application.

                                         Very truly yours,

                                         ----------------------------------
                                         [Grantor]

                                         By:
                                            -------------------------------
                                         Name:
                                         Title:

Acknowledged and Accepted:

BANK OF AMERICA, N.A., as Administrative Agent

By:
   -----------------------------------------
Name:
Title:

                                       21
<PAGE>

                               SCHEDULE 5(d)(iii)

                           GRANT OF SECURITY INTEREST

                                       IN

                                   TRADEMARKS

United States Patent and Trademark Office

Ladies and Gentlemen:

         Please be advised that the undersigned Grantor hereby grants a
continuing security interest in and continuing lien upon, the trademarks and
trademark applications set forth on Schedule 1 attached hereto to the
Administrative Agent for the ratable benefit of the holders of the Secured
Obligations, pursuant to and as more fully set forth in the Security Agreement
dated as of July 31, 2003 (the "Security Agreement") by and among the Grantors
party thereto (each an "Grantor" and collectively, the "Grantors") and Bank of
America, N.A., as Administrative Agent (the "Administrative Agent") for the
holders of the Secured Obligations referenced therein, which Security Agreement
is hereby made a part hereof by reference as though set forth in its entirety.
Capitalized terms used herein and not otherwise defined shall have the meaning
assigned thereto in the Security Agreement.

         The undersigned Grantor and the Administrative Agent, on behalf of the
holders of the Secured Obligations, hereby acknowledge and agree that the
security interest in the trademarks and trademark applications set forth on
Schedule 1 attached hereto (i) may only be terminated in accordance with the
terms of the Security Agreement and (ii) is not to be construed as an assignment
of any trademark or trademark application.

                                         Very truly yours,

                                         ----------------------------------
                                         [Grantor]

                                         By:
                                            -------------------------------
                                         Name:
                                         Title:

Acknowledged and Accepted:

BANK OF AMERICA, N.A., as Administrative Agent

By:
   -----------------------------------------
Name:
Title:

                                       22
<PAGE>

                                  SCHEDULE 5(e)

                       [FORM OF ACCOUNT CONTROL AGREEMENT]

         THIS DEPOSIT ACCOUNT CONTROL AGREEMENT (this "Agreement") is entered
into as of ____________ ___, 20___, among Westlake Chemical Corporation (the
"Company"), Bank of America, N.A. (the "Bank"), and Bank of America, N.A, in its
capacity as administrative agent (in such capacity, the "Agent") for the Lenders
under that certain Credit Agreement (the "Credit Agreement") dated as of July
31, 2003 among the Company, the Guarantors identified therein, the Lenders
identified therein and Agent. Capitalized terms used and not otherwise defined
herein shall have the meanings provided in the Credit Agreement.

                              W I T N E S S E T H

         WHEREAS, a $120 million credit facility has been established in favor
of the Company pursuant to the terms of the Credit Agreement.

         WHEREAS, this Agreement is required under the terms of the Credit
Agreement and the Security Agreement.

         NOW, THEREFORE, in consideration of these premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

                  A. Bank has agreed to establish and maintain for Company
deposit account number _______________ (the "Collateral Account").

                  B. Company has assigned to Agent a security interest in the
Collateral Account.

                  C. Company, Agent and Bank are entering into this Agreement to
evidence Agent's security interest in the Collateral Account and to provide for
the disposition of amounts deposited in the Collateral Account.

Accordingly, Company, Agent and Bank agree as follows:

1.       (a) This Agreement evidences Agent's control over the Collateral
Account. Notwithstanding anything to the contrary in the agreement between Bank
and Company governing the Collateral Account, Bank will comply with instructions
originated by Agent as set forth herein directing the disposition of funds in
the Collateral Account without further consent of the Company or any other
Person.

         (b) Company represents and warrants to Agent and Bank that it has not
assigned or granted a security interest in the Collateral Account, except to
Agent.

         (c) Company will not permit the Collateral Account to become subject to
any other pledge, assignment, lien, charge or encumbrance of any kind, other
than Agent's security interest referred to herein.

2. Bank shall prevent Company from making any withdrawals from the Collateral
Account without the prior consent of the Agent. Company covenants to Agent it
will not close the Collateral Account. Bank shall have no liability in the event
Company breaches this covenant to Agent. Funds are not available if, in the
reasonable determination of Bank, they are subject to a hold, dispute or legal
process preventing their withdrawal.

3. Bank agrees it shall not offset, charge, deduct or otherwise withdraw funds
from the Collateral Account, except as permitted by Section 4, until it has been
advised in writing by Agent that all of

                                       23
<PAGE>

Company's obligations that are secured by the Collateral Account are paid in
full. Agent shall notify Bank promptly in writing upon payment in full of
Company's obligations.

4. Bank is permitted to charge the Collateral Account:

                  (a) for its fees and charges relating to the Collateral
Account and other fees associated with this Agreement; and

                  (b) in the event any check deposited into the Collateral
Account is returned unpaid for any reason or for any breach of warranty claim.

5.                (a) If the balances in the Collateral Account are not
sufficient to compensate Bank for any fees or charges due Bank in connection
with the Collateral Account or this Agreement, Company agrees to pay Bank on
demand the amount due Bank. Company will have breached this Agreement if it has
not paid Bank, within five days after such demand, the amount due Bank.

                  (b) If the balances in the Collateral Account are not
sufficient to compensate Bank for any returned check, Company agrees to pay Bank
on demand the amount due Bank. If Company fails to so pay Bank immediately upon
demand, Agent agrees to pay Bank within five days after Bank's demand to Agent
to pay any amount received by Agent with respect to such returned check. The
failure to so pay Bank shall constitute a breach of this Agreement.

6.                (a) Bank will not be liable to Company or Agent for any
expense, claim, loss, damage or cost ("Damages") arising out of or relating to
its performance under this Agreement other than those Damages which result
directly from its acts or omissions constituting gross negligence or intentional
misconduct.

                  (b) In no event will Bank be liable for any special, indirect,
exemplary or consequential damages, including but not limited to lost profits.

                  (c) Bank will be excused from failing to act or delay in
acting, and no such failure or delay shall constitute a breach of this Agreement
or otherwise give rise to any liability of Bank, if (i) such failure or delay is
caused by circumstances beyond Bank's reasonable control, including but not
limited to legal constraint, emergency conditions, action or inaction of
governmental, civil or military authority, fire, strike, lockout or other labor
dispute, war, riot, theft, flood, earthquake or other natural disaster,
breakdown of public or private or common carrier communications or transmission
facilities, equipment failure, or negligence or default of Company or Agent or
(ii) such failure or delay resulted from Bank's reasonable belief that the
action would have violated any guideline, rule or regulation of any governmental
authority.

                  (d) Bank shall have no duty to inquire or determine whether
Company's obligations to Agent are in default or whether Agent is entitled to
provide the Notice to Bank. Bank may rely on notices and communications it
believes in good faith to be genuine and given by the appropriate party.

                  (e) Notwithstanding any of the other provisions in this
Agreement, in the event of the commencement of a case pursuant to Title 11,
United States Code, filed by or against Company, or in the event of the
commencement of any similar case under then applicable federal or state law
providing for the relief of debtors or the protection of creditors by or against
Company, Bank may act as Bank deems necessary to comply with all applicable
provisions of governing statutes and shall not be in violation of this Agreement
as a result.

                  (f) Bank shall be permitted to comply with any writ, levy
order or other similar judicial or regulatory order or process concerning the
Collateral Account and shall not be in violation of this Agreement for so doing.

                                       24
<PAGE>

7. Company and Agent shall jointly and severally indemnify Bank against, and
hold it harmless from, any and all liabilities, claims, costs, expenses and
damages of any nature (including but not limited to allocated costs of staff
counsel, other reasonable attorney's fees and any fees and expenses) in any way
arising out of or relating to disputes or legal actions concerning Bank's
provision of the services described in this Agreement. This section does not
apply to any cost or damage attributable to the gross negligence or intentional
misconduct of Bank. Company's and Agent's obligations under this section shall
survive termination of this Agreement.

8. Company and Agent shall jointly and severally pay to Bank, upon receipt of
Bank's invoice, all costs, expenses and attorneys' fees (including allocated
costs for in-house legal services) incurred by Bank in connection with the
enforcement of this Agreement and any instrument or agreement required
hereunder, including but not limited to any such costs, expenses and fees
arising out of the resolution of any conflict, dispute, motion regarding
entitlement to rights or rights of action, or other action to enforce Bank's
rights in a case arising under Title 11, United States Code. Company agrees to
pay Bank, upon receipt of Bank's invoice, all costs, expenses and attorneys'
fees (including allocated costs for in-house legal services) incurred by Bank in
the preparation and administration of this Agreement (including any amendments
hereto or instruments or agreements required hereunder).

9. Termination and Assignment of this Agreement shall be as follows:

                  (a) Agent may terminate this Agreement by providing notice to
Company and Bank that all of Company's obligations which are secured by the
Collateral Account are paid in full. Agent may also terminate or it may assign
this Agreement upon 30 days' prior written notice to Company and Bank. Bank may
terminate this Agreement upon 30 days' prior written notice to Company and
Agent. Company may not terminate this Agreement except with the written consent
of Agent and upon prior written notice to Bank.

                  (b) Notwithstanding subsection 9(a), Bank may terminate this
Agreement at any time by written notice to Company and Agent if either Company
or Agent breaches any of the terms of this Agreement, or any other agreement
with Bank. Furthermore, as such time as the Obligations under the Credit
Agreement have been Fully Satisfied, any remaining balances in the Collateral
Account shall be distributed to the Company.

10.               (a) Each party represents and warrants to the other parties
that (i) this Agreement constitutes its duly authorized, legal, valid, binding
and enforceable obligation; (ii) the performance of its obligations under this
Agreement and the consummation of the transactions contemplated hereunder will
not (A) constitute or result in a breach of its certificate or articles of
incorporation, by-laws or partnership agreement, as applicable, or the
provisions of any material contract to which it is a party or by which it is
bound or (B) result in the violation of any law, regulation, judgment, decree or
governmental order applicable to it; and (iii) all approvals and authorizations
required to permit the execution, delivery, performance and consummation of this
Agreement and the transactions contemplated hereunder have been obtained.

                  (b) The parties each agree that it shall be deemed to make and
renew each representation and warranty in subsection 10(a) on and as of each day
on which Company uses the services set forth in this Agreement.

11.               (a) This Agreement may be amended only by a writing signed by
Company, Agent and Bank; except that Bank's charges are subject to change by
Bank upon 30 days' prior written notice to Company.

                  (b) This Agreement may be executed in counterparts; all such
counterparts shall constitute but one and the same agreement.

                                       25
<PAGE>

                  (c) This Agreement controls in the event of any conflict
between this Agreement and any other document or written or oral statement. This
Agreement supersedes all prior understandings, writings, proposals,
representations and communications, oral or written, of any party relating to
the subject matter hereof.

                  (d) This Agreement shall be interpreted in accordance with
North Carolina law without reference to that state's principles of conflicts of
law.

12. Any written notice or other written communication to be given under this
Agreement shall be addressed to each party at its address set forth on the
signature page of this Agreement or to such other address as a party may specify
in writing. Except as otherwise expressly provided herein, any such notice shall
be effective upon receipt.

14. Nothing contained in the Agreement shall create any agency, fiduciary, joint
venture or partnership relationship between Bank and Company or Agent.

                                       26
<PAGE>

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

Company: WESTLAKE CHEMICAL                     Address for notices:
CORPORATION

By:
     -------------------------------
Name:
Title:

Agent: Bank of America, N.A.                   Address for notices:

By:
     -------------------------------
Name:
Title:

Bank: Bank of America, N.A.                    Address for notices:

By:
     -------------------------------
Name:
Title:

<PAGE>

                                  Exhibit 2.01

                        FORM OF NEW COMMITMENT AGREEMENT

         Reference is made to the Credit Agreement dated as of July 31, 2003
among Westlake Chemical Corporation, a Delaware corporation (the "Borrower"),
certain Subsidiaries of the Borrower as Guarantors, the Lenders identified
therein and Bank of America, N.A., as Administrative Agent (as the same may be
amended, modified, extended or restated from time to time, the "Credit
Agreement"). All of the defined terms in the Credit Agreement are incorporated
herein by reference.

         1. Effective as of the Effective Date set forth below, the undersigned
Lender hereby confirms its Additional Commitment, in an aggregate principal
amount of up to the amount (and the Pro Rata Share) specified below to make
Tranche B Term Loans in accordance with the provisions of Section 2.01 of the
Credit Agreement. If the undersigned Lender is already a Lender under the Credit
Agreement, such Lender acknowledges and agrees that such Additional Commitment
is in addition to any existing Tranche B Term Loan Commitment of such Lender
under the Credit Agreement. If the undersigned Lender is not already a Lender
under the Credit Agreement, such Lender hereby (a) represents and warrants that
it has full power and authority, and has taken all action necessary, to execute
and deliver this New Commitment Agreement and to consummate the transactions
contemplated hereby and to become a Lender under the Credit Agreement, (b)
acknowledges, agrees and confirms that, by its execution of this New Commitment
Agreement, such Lender will, as of the Effective Date, be a party to the Credit
Agreement and the Intercreditor Agreement and be bound by the provisions of the
Credit Agreement and, to the extent of its Commitment, have the rights and
obligations of a Lender under the Credit Agreement and of a Bank under the
Intercreditor Agreement and (c) attaches all documentation required to be
delivered pursuant to Section 11.15 of the Credit Agreement.

         2. This New Commitment Agreement shall be governed by and construed in
accordance with the laws of the State of New York.

         Amount of Additional Commitment                       $
                                                                ---------------

         Tranche B Term Loan Commitment (after giving
         effect to the Additional Commitment)                  $
                                                                ---------------

         Pro Rata Share (after giving effect to
         the Additional Commitment)                                            %
                                                                ---------------

         Effective Date of Additional Commitment                         , 20
                                                                ---------    --

The terms set forth above are hereby agreed to:

[LENDER]                                      Address for Notices:

                                              -----------------------------
By:                                           -----------------------------
   ----------------------------               -----------------------------
Title:                                        Ph:
                                                 --------------------------
                                              Fx:
                                                 --------------------------

<PAGE>

CONSENTED TO:

BANK OF AMERICA, N.A.,
as Administrative Agent                     WESTLAKE CHEMICAL CORPORATION

By:                                         By:
   ------------------------------               -------------------------------
Title:                                      Title:

                                       29
<PAGE>

                                  Exhibit 2.02

                               FORM OF LOAN NOTICE

Date:
     ----------

To:      Bank of America, N.A., as Administrative Agent

Re:      Credit Agreement (as amended, modified, supplemented and extended from
         time to time, the "Credit Agreement") dated as of July 31, 2003 among
         Westlake Chemical Corporation, a Delaware corporation (the "Borrower"),
         the Guarantors identified therein, the Lenders identified therein, and
         Bank of America, N.A., as Administrative Agent. Capitalized terms used
         but not otherwise defined herein have the meanings provided in the
         Credit Agreement.

Ladies and Gentlemen:

The undersigned hereby requests a Loan in the form of [a Borrowing][a
conversion][a continuation of Eurodollar Rate Loans]:

1. On ______________ (a Business Day).

2. In the amount of $[___________], comprised of [Base Rate Loans][Eurodollar
Rate Loans with an Interest Period of [______] months.

With respect to the Borrowing of this Loan, the Borrower hereby represents and
warrants that the conditions set forth in Section 5.02 of the Credit Agreement
have been satisfied on and as of the date of such Borrowing.

                                       WESTLAKE CHEMICAL CORPORATION,
                                       a Delaware corporation

                                       By:
                                          ------------------------------------
                                       Name:
                                       Title:

<PAGE>

                                  Exhibit 7.13

                            FORM OF JOINDER AGREEMENT

                  THIS JOINDER AGREEMENT (the "Agreement"), dated as of
_____________, 20__, is by and between _____________________, a
___________________ (the "Subsidiary"), and BANK OF AMERICA, N.A., in its
capacity as Administrative Agent under that certain Credit Agreement (as it may
be amended, modified, restated or supplemented from time to time, the "Credit
Agreement"), dated as of July 31, 2003, by and among Westlake Chemical
Corporation, a Delaware corporation (the "Borrower"), the Guarantors, the
Lenders and Bank of America, N.A., as Administrative Agent. All of the defined
terms in the Credit Agreement are incorporated herein by reference.

                  The Loan Parties are required by Section 7.12 of the Credit
Agreement to cause the Subsidiary to become a "Guarantor".

                  Accordingly, the Subsidiary hereby agrees as follows with the
Agent, for the benefit of the Lenders:

                  1. The Subsidiary hereby acknowledges, agrees and confirms
that, by its execution of this Agreement, the Subsidiary will be deemed to be a
party to the Credit Agreement and a "Guarantor" for all purposes of the Credit
Agreement, and shall have all of the obligations of a Guarantor thereunder as if
it had executed the Credit Agreement. The Subsidiary hereby ratifies, as of the
date hereof, and agrees to be bound by, all of the terms, provisions and
conditions applicable to the Guarantors contained in the Credit Agreement.
Without limiting the generality of the foregoing terms of this paragraph 1, the
Subsidiary hereby jointly and severally together with the other Guarantors,
guarantees to each Lender and the Agent, as provided in Article IV of the Credit
Agreement, the prompt payment and performance of the Obligations in full when
due (whether at stated maturity, as a mandatory prepayment, by acceleration or
otherwise) strictly in accordance with the terms thereof.

                  2. The Subsidiary hereby acknowledges, agrees and confirms
that, by its execution of this Agreement, the Subsidiary will be deemed to be a
party to the Security Agreement, and shall have all the obligations of a
"Grantor" (as such term is defined in the Security Agreement) thereunder as if
it had executed the Security Agreement. The Subsidiary hereby ratifies, as of
the date hereof, and agrees to be bound by, all of the terms, provisions and
conditions contained in the Security Agreement. Without limiting generality of
the foregoing terms of this paragraph 2, the Subsidiary hereby grants to the
Agent, for the benefit of the Lenders, a continuing security interest in, and a
right of set off against any and all right, title and interest of the Subsidiary
in and to the Collateral (as such term is defined in Section 2 of the Security
Agreement) of the Subsidiary. The Subsidiary hereby represents and warrants to
the Agent that:

                  (i) The Subsidiary's chief executive office, tax payer
         identification number, organization identification number, and chief
         place of business are (and for the prior four months have been) located
         at the locations set forth on Schedule 1 attached hereto and the
         Subsidiary keeps its books and records at such locations.

                  (ii) The type of Collateral owned by the Subsidiary and the
         location of all Collateral owned by the Subsidiary is as shown on
         Schedule 2 attached hereto.

                  (iii) The Subsidiary's legal name and jurisdiction of
         incorporation is as shown in this Agreement and the Subsidiary has not
         in the past four months changed its name, been party to a

<PAGE>

         merger, consolidation or other change in structure or used any
         tradename except as set forth in Schedule 3 attached hereto.

                  (iv) The patents, copyrights, and trademarks listed on
         Schedule 4 attached hereto constitute all of the registrations and
         applications for the patents and trademarks owned by the Subsidiary.

                  3. The address of the Subsidiary for purposes of all notices
and other communications is ____________________, ____________________________,
Attention of ______________ (Facsimile No. ____________).

                  4. The Subsidiary hereby waives acceptance by the Agent and
the Lenders of the guaranty by the Subsidiary under Section 4 of the Credit
Agreement upon the execution of this Agreement by the Subsidiary.

                  5. This Agreement may be executed in two or more counterparts,
each of which shall constitute an original but all of which when taken together
shall constitute one contract.

                  6. This Agreement shall be governed by and construed and
interpreted in accordance with the laws of the State of New York.

                  IN WITNESS WHEREOF, the Subsidiary has caused this Joinder
Agreement to be duly executed by its authorized officers, and the Agent, for the
benefit of the Lenders, has caused the same to be accepted by its authorized
officer, as of the day and year first above written.

                                            [SUBSIDIARY]

                                            By:
                                            Name:
                                            Title:

                                            Acknowledged and accepted:

                                            BANK OF AMERICA, N.A.,
                                            as Administrative Agent

                                            By:
                                            Name:
                                            Title:

                                       32
<PAGE>

                                   Schedule 1
                          TO FORM OF JOINDER AGREEMENT

[Chief Executive Office, Tax Identification Number, Organization Identification
                Number and Chief Place of Business of Subsidiary]

                                       33

<PAGE>

                                   Schedule 2
                          TO FORM OF JOINDER AGREEMENT

                       [Types and Locations of Collateral]

                                       34
<PAGE>

                                   Schedule 3
                          TO FORM OF JOINDER AGREEMENT

                                  [Tradenames]

                                       35
<PAGE>

                                   Schedule 4
                          TO FORM OF JOINDER AGREEMENT

                      [Patents, Copyrights, and Trademarks]

                                       36
<PAGE>

                                 Exhibit 11.07

                        FORM OF ASSIGNMENT AND ASSUMPTION

         This Assignment and Assumption (this "Assignment and Assumption") is
dated as of the Effective Date set forth below and is entered into by and
between ____________________ (the "Assignor") and _______________________ (the
"Assignee"). Capitalized terms used but not defined herein shall have the
meanings given to them in the Credit Agreement identified below (the "Credit
Agreement"), receipt of a copy of which is hereby acknowledged by the Assignee.
The Standard Terms and Conditions set forth in Annex 1 attached hereto are
hereby agreed to and incorporated herein by reference and made a part of this
Assignment and Assumption as if set forth herein in full.

                  For an agreed consideration, the Assignor hereby irrevocably
sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases
and assumes from the Assignor, subject to and in accordance with the Standard
Terms and Conditions and the Credit Agreement, as of the Effective Date inserted
by the Administrative Agent as contemplated below (i) all of the Assignor's
rights and obligations as a Lender under the Credit Agreement and any other
documents or instruments delivered pursuant thereto to the extent related to the
amount and percentage interest identified below of all of such outstanding
rights and obligations of the Assignor under the respective facilities
identified below and (ii) to the extent permitted to be assigned under
applicable law, all claims, suits, causes of action and any other right of the
Assignor (in its capacity as a Lender) against any Person, whether known or
unknown, arising under or in connection with the Credit Agreement, any other
documents or instruments delivered pursuant thereto or the loan transactions
governed thereby or in any way based on or related to any of the foregoing,
including, but not limited to, contract claims, tort claims, malpractice claims,
statutory claims and all other claims at law or in equity related to the rights
and obligations sold and assigned pursuant to clause (i) above (the rights and
obligations sold and assigned pursuant to clauses (i) and (ii) above being
referred to herein collectively as, the "Assigned Interest"). Such sale and
assignment is without recourse to the Assignor and, except as expressly provided
in this Assignment and Assumption, without representation or warranty by the
Assignor.

1.       Assignor:
                              ------------------------------

2.       Assignee:
                              ------------------------------

3.       Borrower:
                              ------------------------------

4.       Agent:               Bank of America, N.A., as the administrative agent
                              under the Credit Agreement

5.       Credit Agreement:    The $120,000,000 Credit Agreement dated as of July
                              31, 2003 among Westlake Chemical Corporation, a
                              Delaware corporation, the Guarantors party
                              thereto, the Lenders parties thereto and Bank of
                              America, N.A., as Agent.

6.        Assigned Interest:

<Table>
<Caption>

                                    Aggregate Amount of            Amount of
                                   Commitment/Loans for        Commitment/Loans        Percentage Assigned of
      Facility Assigned                all Lenders                  Assigned              Commitment/Loans
      -----------------            --------------------        ----------------        ----------------------
<S>                                <C>                         <C>                     <C>

     Tranche B Term Loan           $                           $                                           %

                                   $                           $                                           %

                                   $                           $                                           %
</Table>

<PAGE>

[7.      Trade Date:                      ]
                        -----------------

Effective Date: _____________ ___, 20___ [TO BE INSERTED BY AGENT AND WHICH
SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER
THEREFOR.]

The terms set forth in this Assignment and Assumption are hereby agreed to:

                                          ASSIGNOR
                                          [NAME OF ASSIGNOR]

                                          By:
                                             --------------------------------
                                             Title:

                                          ASSIGNEE
                                          [NAME OF ASSIGNEE]

                                          By:
                                             --------------------------------
                                             Title:

[Consented to and](1) Accepted:

BANK OF AMERICA, N.A. as
  Agent

By
   -----------------------------
   Title:

----------

(1) To be added only if the consent of the Agent is required by the terms of the
Credit Agreement.

                                       2
<PAGE>

                                                                         ANNEX 1

                        STANDARD TERMS AND CONDITIONS FOR
                            ASSIGNMENT AND ASSUMPTION

                  1. Representations and Warranties.

                  1.1. Assignor. The Assignor (a) represents and warrants that
(i) it is the legal and beneficial owner of the Assigned Interest, (ii) the
Assigned Interest is free and clear of any lien, encumbrance or other adverse
claim and (iii) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment and Assumption and to
consummate the transactions contemplated hereby; and (b) assumes no
responsibility with respect to (i) any statements, warranties or representations
made in or in connection with the Credit Agreement or any other Loan Document,
(ii) the execution, legality, validity, enforceability, genuineness, sufficiency
or value of the Loan Documents or any collateral thereunder, (iii) the financial
condition of the Borrower, any of its Subsidiaries or Affiliates or any other
Person obligated in respect of any Loan Document or (iv) the performance or
observance by the Borrower, any of its Subsidiaries or Affiliates or any other
Person of any of their respective obligations under any Loan Document.

                  1.2. Assignee. The Assignee (a) represents and warrants that
(i) it has full power and authority, and has taken all action necessary, to
execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby and to become a Lender under the Credit
Agreement, (ii) it meets all requirements of an Eligible Assignee under the
Credit Agreement (subject to receipt of such consents as may be required under
the Credit Agreement), (iii) from and after the Effective Date, it shall be
bound by the provisions of the Credit Agreement as a Lender thereunder and, to
the extent of the Assigned Interest, shall have the obligations of a Lender
thereunder, (iv) it has received a copy of the Credit Agreement, together with
copies of the most recent financial statements delivered pursuant to Section 7.1
thereof, as applicable, and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
this Assignment and Assumption and to purchase the Assigned Interest on the
basis of which it has made such analysis and decision independently and without
reliance on the Agent or any other Lender, (v) if it is a not a United States
person under Section 7701(a)(30) of the Code, attached to the Assignment and
Assumption is any documentation required to be delivered by it pursuant to the
terms of the Credit Agreement, duly completed and executed by the Assignee and
(vi) Assignee is an "accredited investor" within the meaning of Rule 501(a)(1),
(2), (3) or (7) under the Securities Act of 1933, as amended; and (b) agrees
that (i) it will, independently and without reliance on the Agent, the Assignor
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 decisions in
taking or not taking action under the Loan Documents, and (ii) it will perform
in accordance with their terms all of the obligations which by the terms of the
Loan Documents are required to be performed by it as a Lender.

                  2. Payments. From and after the Effective Date, the Agent
shall make all payments in respect of the Assigned Interest (including payments
of principal, interest, fees and other amounts) to the Assignor for amounts
which have accrued to but excluding the Effective Date and to the Assignee for
amounts which have accrued from and after the Effective Date.

                  3. General Provisions. This Assignment and Assumption shall be
binding upon, and inure to the benefit of, the parties hereto and their
respective successors and assigns. This Assignment and Assumption may be
executed in any number of counterparts, which together shall constitute one
instrument. Delivery of an executed counterpart of a signature page of this
Assignment and Assumption by telecopy shall be effective as delivery of a
manually executed counterpart of this Assignment and Assumption. This Assignment
and Assumption shall be governed by, and construed in accordance with, the law
of the State of New York.

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