Document:

<PAGE>

                                                                    EXHIBIT 10.7

                          FIRST SUPPLEMENTAL INDENTURE

      This FIRST SUPPLEMENTAL INDENTURE (this "First Supplemental Indenture"),
dated as of June 29, 2004, is entered into by and between Viskase Companies,
Inc., a Delaware corporation (the "Company"), and Wells Fargo Bank N.A.
(successor by merger to Wells Fargo Bank Minnesota, N.A.), as trustee (the
"Trustee"). Capitalized terms used but not otherwise defined herein shall have
the meaning given to such terms in the Indenture.

                              W I T N E S S E T H:

      WHEREAS, the Company and the Trustee are parties to that certain
Indenture, dated as of April 3, 2003 (the "Indenture"), relating to the
Company's 8% Senior Subordinated Secured Notes due 2008 (the "2008 Notes").

      WHEREAS, Section 8.02 of the Indenture provides that the Company, when
authorized by a resolution of its Board of Directors, and the Trustee may, with
the written consent of the holders of at least a majority in aggregate principal
amount of the 2008 Notes outstanding, amend or supplement the Indenture, subject
to certain exceptions;

      WHEREAS, Section 11.03(g)(i) of the Indenture provides that the Company,
when authorized by a resolution of its Board of Directors, may request the
release of all of the Collateral from the Liens of the Security Agreement or any
other Liens created under the Indenture or related documents, with the written
consent of the holders of 66 2/3% in aggregate principal amount of the 2008
Notes outstanding;

      WHEREAS, Section 8.02(7) of the Indenture provides that the Company, when
authorized by a resolution of its Board of Directors, and the Trustee may, with
the written consent of the holders of 66 2/3% in aggregate principal amount of
the 2008 Notes outstanding, amend or waive the provisions of clause (g)(i) of
Section 11.03 of the Indenture;

      WHEREAS, the Company has solicited and obtained consents from holders of
approximately 79% of the outstanding 2008 Notes (the "Consents") with respect to
certain amendments to the Indenture and the release of all Collateral under the
Indenture and the Security Agreement (the "Proposed Amendments") pursuant to the
terms and conditions of eleven certain letter agreements (the "Letter
Agreements") (copies of which have been delivered to the Trustee) and as
contemplated hereby;

      WHEREAS, each Letter Agreement provides that the respective Consent to the
Proposed Amendments becomes operative upon payment by the Company of an amount
sufficient to pay the purchase price for the subject 2008 Notes; and

      WHEREAS, the Company has been authorized by a resolution of its Board of
Directors to enter into this First Supplemental Indenture and implement the
Proposed Amendments.

<PAGE>

      NOW, THEREFORE, in consideration of the premises and the mutual agreements
contained herein and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereto agree as follows
for the benefit of each other party and for the equal and ratable benefit of the
Holders of the 2008 Notes, the Company and the Trustee hereby agree as follows:

                                    ARTICLE 1

                                   AMENDMENTS

      Section 1.01. Amendments to Covenants. Upon delivery of a notice in the
form of Exhibit A hereto (the "Notice") by the Company to the Trustee that all
the Consents are operative (the "Notification Time"), the Indenture shall
thereupon automatically be amended as set forth below. The Notice may be
delivered via facsimile or email. Upon the Notification Time, the Indenture
shall automatically be amended to delete the following Articles and Sections in
their entirety (unless otherwise noted) and any and all references to such
Articles and Sections and any and all obligations thereunder shall be deleted
throughout the Indenture, and such references, Articles and Sections shall
thereafter be of no further force or effect:

      (a)   Section 3.03;

      (b)   Section 3.04;

      (c)   Section 3.05;

      (d)   Section 3.06;

      (e)   The first and third paragraphs of Section 3.07;

      (f)   Section 4.01; and

      (g)   Article 11.

      Section 1.02. Amendments to Events of Default. Upon the Notification Time,
the Indenture shall thereupon automatically be amended to delete the following
Sections in their entirety and any and all references to such Sections and any
and all obligations thereunder shall be deleted throughout the Indenture, and
such references and Sections shall thereafter be of no further force or effect:

      (a)   Section 5.01(a) (3);

      (b)   Section 5.01(a) (4);

      (c)   Section 5.01(a) (7); and

      (d)   Section 5.01(a) (8).

                                                                               2

<PAGE>

      Section 1.03. Release of all Liens on the Collateral. Upon the
Notification Time, the Indenture shall thereupon automatically be amended to
release the Collateral from the Liens of the Security Agreement and any other
Liens created under the Indenture and any related documents, including, without
limitation, termination of the Security Agreement and release of the Company
from all obligations thereunder. Exhibit B, the Security Agreement, shall be
deleted in its entirety.

      Section 1.04. Definition of Senior Debt. Upon the Notification Time, the
term "Senior Debt" as defined in the Indenture shall be amended to be defined as
follows:

      "Senior Debt" means all present and future Obligations of the Company for
borrowed money or evidenced by notes, debentures, bonds or other similar
instruments and Obligations of the Company under and in connection with one or
more working capital loan facilities now or hereafter in existence, including
without limitation principal, interest (including without limitation interest
accruing after the commencement of a case under the Bankruptcy Code, regardless
of whether such interest is paid), fees, costs and expenses (including without
limitation fees, costs and expenses incurred in enforcing the rights of the
holders thereof) and all other amounts payable in connection therewith, so long
as such indebtedness does not explicitly provide that it is on a parity with or
subordinated in right of payment to the Subordinated Debt, and any refinancing,
refunding, renewal, replacement or recreation thereof.

      Section 1.05 Default on Senior Debt. Upon the Notification Time, Section
10.03(a) of the Indenture shall be amended as follows:

      "The Company may not directly or indirectly make any payment or
distribution to the Trustee or any Holder in respect of any Obligations with
respect to the Subordinated Debt and may not directly or indirectly acquire from
the Trustee or any Holder any Subordinated Debt for cash or property (other than
(A) Permitted Junior Securities and (B) payments and other distributions made
from any discharge of this Indenture pursuant to Article 7 hereof) until all
Principal and other Obligations with respect to, and included in, the Senior
Debt have been paid in full in cash or cash equivalents if:

            (i)  any default with respect to the Senior Debt (including any
      default in the payment of any principal or other Obligations with respect
      to, and included in, Senior Debt) occurs and is continuing;

            (ii) a default, other than a payment default, on Senior Debts occurs
      and is continuing that then permits holders of the Senior Debt to
      accelerate its maturity and the Trustee receives a notice of the default
      (a "Payment Blockage Notice") from a Person who may give it pursuant to
      Section 10.11 hereof. If the Trustee receives any such Payment Blockage
      Notice, no subsequent Payment Blockage Notice shall be effective for
      purposes of this Section unless and until at least 360 days shall have
      elapsed since the first date upon which the immediately prior Payment
      Blockage Notice was effective. No nonpayment default that existed or was
      continuing on the date of delivery of any Payment Blockage Notice to the

                                                                               3

<PAGE>

      Trustee shall be, or be made, the basis for a subsequent Payment Blockage
      Notice unless such default shall have been waived for a period of not less
      than 60 days."

      Section 1.06 Removal of Certain Definitions. Upon the Notification Time,
the following defined terms shall be deleted in their entirety and any and all
references to such defined terms shall be deleted throughout the Indenture:

            i.    Lien;

            ii.   Offer to Purchase (Section 11.03);

            iii.  Purchase Amount (Section 11.03); and

            iv.   Security Agreement (Exhibit B).

                                    ARTICLE 2

                          EFFECTIVENESS; OPERATIVENESS

      This First Supplemental Indenture will become operative upon but only upon
the Notification Time. Upon the Notification Time, the Indenture shall be
modified and amended in accordance with this First Supplemental Indenture, and
all the terms and conditions of both shall be read together as though they
constitute one instrument, except that, in case of conflict, the provisions of
this First Supplemental Indenture will control. The Indenture, as modified and
amended by this First Supplemental Indenture, is hereby ratified and confirmed
in all respects and shall bind every holder of 2008 Notes. In case of conflict
between the terms and conditions contained in the 2008 Notes and those contained
in the Indenture, as modified and amended by this First Supplemental Indenture,
the provisions of the Indenture, as modified and amended by this First
Supplemental Indenture, shall control.

                                    ARTICLE 3

                      CONFLICT WITH THE TRUST INDENTURE ACT

      If any provision of this First Supplemental Indenture limits, qualifies or
conflicts with any provision of the Trust Indenture Act of 1939 (the "TIA") that
is required under the TIA to be part of and govern any provision of this First
Supplemental Indenture, the provision of the TIA shall control. If any provision
of this First Supplemental Indenture modifies or excludes any provision of the
TIA that may be so modified or excluded, the provision of the TIA shall be
deemed to apply to the Indenture as so modified or to be excluded by this First
Supplemental Indenture.

                                                                               4

<PAGE>

                                    ARTICLE 4

                                  SEVERABILITY

      In case any provision in this First Supplemental Indenture shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

                                    ARTICLE 5

                                    HEADINGS

      The Article and Section headings of this First Supplemental Indenture have
been inserted for convenience of reference only, are not to be considered a part
of this First Supplemental Indenture and shall in no way modify or restrict any
of the terms or provisions hereof.

                                    ARTICLE 6

                 BENEFITS UNDER THE FIRST SUPPLEMENTAL INDENTURE

      Nothing in this First Supplemental Indenture or the 2008 Notes, express or
implied, shall give to any Person, other than the parties hereto and thereto and
their successors hereunder and thereunder and the holders of the 2008 Notes, any
benefit of any legal or equitable right, remedy or claim under the Indenture,
this First Supplemental Indenture or the 2008 Notes.

                                    ARTICLE 7

                                   SUCCESSORS

      All agreements of the Company and the Trustee in this First Supplemental
Indenture shall bind their respective successors.

                                    ARTICLE 8

                                   THE TRUSTEE

      The Trustee shall not be responsible in any manner whatsoever for or in
respect of the validity or sufficiency of this First Supplemental Indenture or
for or in respect of the recitals contained herein, all of which are made solely
by the Company.

                                    ARTICLE 9

               CERTAIN DUTIES AND RESPONSIBILITIES OF THE TRUSTEE

      In entering into this First Supplemental Indenture, the Trustee shall be
entitled to the benefit of every provision of the Indenture relating to the
conduct or affecting the

                                                                               5

<PAGE>

liability or affording protection to the Trustee, whether or not elsewhere
herein so provided.

                                   ARTICLE 10

                                  GOVERNING LAW

      THIS FIRST SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK AS APPLIED TO CONTRACTS MADE
AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAW. Each of the parties hereto agrees to submit to the
jurisdiction of the courts of the State of New York in any action or proceeding
arising out of or relating to this First Supplemental Indenture.

                                   ARTICLE 11

                              COUNTERPART ORIGINALS

      The parties may sign any number of copies of this First Supplemental
Indenture. Each signed copy shall be an original, but all of them together
represent one and the same agreement.

                                     * * * *

                                                                               6

<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental
Indenture to be duly executed, all as of the date first above written.

                             VISKASE COMPANIES, INC.

                                 /s/ Gordon S. Donovan
                             ---------------------------------------------------

                             Name: Gordon S. Donovan

                             Title: Vice President and Chief Financial Officer

WELLS FARGO BANK, N.A., as Trustee.

   /s/ Jane Y. Schweiger
-----------------------------

Name: Jane Y. Schweiger

Title: Vice President

                                                                               7
<PAGE>

                                    EXHIBIT A

                             VISKASE COMPANIES, INC.
                         625 WILLOWBROOK CENTRE PARKWAY
                           WILLOWBROOK, ILLINOIS 60527

June 29, 2004

Wells Fargo Bank, N.A.
Corporate Trust Services
Sixth and Marquette
Minneapolis, MN 55479

Ladies and Gentlemen:

Reference is made to that certain Indenture dated as of April 3, 2003 (the
"Indenture") between Viskase Companies, Inc., a Delaware corporation (the
"Company"), and Wells Fargo Bank, N.A. (successor by merger to Wells Fargo Bank
Minnesota, N.A.) as trustee (the "Trustee"), as amended by that certain First
Supplemental Indenture, dated as of June 29, 2004 (the "First Supplemental
Indenture"), between the Company and the Trustee. Capitalized terms not herein
defined shall have the meaning given in the First Supplemental Indenture. The
Company has solicited and obtained consents from outstanding holders of
approximately 79% of the 2008 Notes (the "Consents") with respect to certain
amendments to the Indenture and the release of all Collateral under the
Indenture and the Security Agreement (the "Proposed Amendments") pursuant to the
terms and conditions of certain letter agreements, (the "Letter Agreements").

On the date hereof (the "Payoff Date"), the Company is obtaining new financing
from Wells Fargo Foothill, Inc. ("Lender") and pursuant to the issuance of
certain 11.5 % Senior Secured Notes due 2011 ("Notes"), which sources are being
used to pay the respective purchase prices for the 2008 Notes for those holders
that have executed a Letter Agreement. This letter is intended to serve as
notice to the Trustee ("Notice") of deposit of funds by the Company with Chicago
Title Insurance Company in an amount sufficient to pay the respective purchase
prices for the 2008 Notes for those holders that have executed a Consent. The
Consents are now operative. Pursuant to the terms of the First Supplemental
Indenture, the First Supplemental Indenture is now effective and the Indenture
is automatically amended in accordance with the terms of the First Supplemental
Indenture.

<PAGE>

                             Very truly yours,

                             Viskase Companies, Inc.

                             By:  /s/ Gordon S. Donovan
                                  ----------------------------------------------
                             Name:  Gordon S. Donovan
                             Title:  Vice President and Chief Financial Officer<PAGE>

                                                                    EXHIBIT 10.9

                             VISKASE COMPANIES, INC.

                 Management Incentive Plan for Fiscal Year 2004

I.    PURPOSE

      The Viskase Companies, Inc. Management Incentive Plan has been established
      for Fiscal Year 2004 for those Participants defined under Section III
      below.

      The purpose of this Plan is to provide additional compensation to
      Participants for their contribution to the achievement of the objectives
      of the Company, encouraging and stimulating superior performance by such
      personnel, and assisting in attracting and retaining highly qualified key
      employees.

II.   DEFINITIONS

      A. Base Salary equals the salary earnings for the portion of the Fiscal
      Year during which the Participant was an active employee at the level of
      management for which the computation is made. Salary earnings do not
      include Plan awards, long-term incentive awards, and imputed income from
      such programs as executive life insurance, auto allowance, or
      non-recurring earnings such as moving expenses. Salary earnings are
      determined before reductions for contributions under Section 401(K) of the
      Internal Revenue Code of 1986 as amended.

      B. Company means Viskase Companies, Inc. and its subsidiaries and its
      successors and assigns.

      C. Fiscal Year means the Company's Fiscal Year beginning January 1 and
      ending the last day of December.

      D. Plan means the Viskase Companies, Inc. Management Incentive Plan, as
      from time to time amended.

      E. Chief Executive Officer means the Chief Executive Officer of Viskase
      Companies, Inc.

      F. Financial Targets are the financial goal(s) of the Company for the
      Fiscal Year identified in Exhibit B as applied to Participants in Exhibit
      C.

      G. Personal Goals refer to the personal goals and objectives set by each
      Participant and his/her supervisor at the beginning of each Fiscal Year
      against which performance is measured under Section V below.

III.  EMPLOYEES COVERED BY THIS PLAN

      Those employees listed on Exhibit C (each a "Participant") shall be
      eligible to participate in this Plan.

<PAGE>

IV.   FINANCIAL AWARD

      A Participant in the Plan shall be entitled to a Financial Award computed
      as the product of:

<TABLE>
<S>                    <C>  <C>             <C>  <C>               <C>   <C>             <C> <C>
                                                    Company              Individual
Participant's Base          Bonus as a %         Performance as          Performance          Participant's
      Salary           X      of Salary     X    a % of Target     X       Rating        =   Financial Award
</TABLE>

      A. "Participant's Base Salary" shall be the salary as defined in Section
      II A in effect during applicable period.

      B. "Bonus as % of Salary" shall be as set forth in Exhibit A, Table I
      based upon Management Level of each Participant.

      C. "Company Performance as a % of Target" shall be determined in
      accordance with the schedule set forth in Exhibit A, Table II based on the
      attainment of the Company's financial target for the applicable period.

      D. "Individual Performance Rating" shall be based on an individual
      performance evaluation in accordance with Section V below

      If a Participant was in more than one management level during a Fiscal
      Year, a separate computation shall be made for each level applicable to
      the Participant during such Fiscal Year; the sum of the separate
      computations shall be the Participant's Financial Award.

V.    PERSONAL PERFORMANCE RATING

      Personal goals for each Participant are to be developed jointly by the
      Participant and his/her supervisor for the Fiscal Year. Attainment of such
      goals and other performance criteria, both quantifiable and
      non-quantifiable, may be used to arrive at an overall individual
      performance rating. Such criteria shall be applied consistently to
      Participants with similar duties pursuant to an evaluation process to be
      reviewed and approved by the Vice President, Administration. Criteria that
      may be weighed in arriving at an individual performance rating include,
      without limitation:

      -     Achievement of income goals

      -     Development of subordinates

      -     Successful completion or progress toward completion of projects

      -     Successful development of new accounts/products

      -     Improvement in product programs

      -     Attainment of self development objectives

      -     Control or reduction of operating expenses

                                       2
<PAGE>

      The supervisor will assign a Personal Performance Rating, reflecting the
      Participant's performance during such Fiscal Year. The Personal
      Performance Rating recommendation of the supervisor shall be reviewed by
      the appropriate member of the Management Committee, who shall recommend an
      appropriate Personal Performance Rating to the Chief Executive Officer who
      shall approve the final Personal Performance Rating for each Participant.
      The Chief Executive Officer reserves the right, in his sole discretion, to
      accept the Personal Performance Rating recommendation for each Participant
      or to modify any Personal Performance Rating for any Participant to
      achieve such dispersion of performance ratings as the Chief Executive
      Officer deems appropriate.

VI.   PERFORMANCE MEASURES, TARGETS AND PAYOUT RANGES

      The financial performance measures, targets and payout ranges used for
      incentive purposes shall be established by the Board of Directors based on
      the annual business plan. Those measures, targets and payout ranges, as
      appropriate, shall be approved by the Chief Executive Officer and the
      Board of Directors. The performance measures, targets and payout ranges
      are defined in Exhibit B.

VII.  PARTICIPANT BONUS COMPOSITION

      The composition of the bonuses are established by Management Level and
      communicated individually to each Participant.

VIII. COMPUTATION AND DISBURSEMENT OF FUNDS

      As soon as practicable after the close of the Fiscal Year, the members of
      the Management Committee will recommend a Personal Performance Rating for
      each Participant in his department to the Chief Executive Officer and the
      Board of Directors. The Chief Financial Officer of the Company shall
      calculate the financial performance measure. A Personal Performance
      Percentage (%) shall be determined by the Chief Executive Officer, which
      will be applied uniformly to each Personal Performance Rating. The
      proposed payout shall be presented to the Board of Directors for final
      approval. Once approved, payment of the Financial Awards shall be made as
      soon as practicable after the completion of the annual audit.

      If the Participant dies before receiving his/her award, the amount due
      will be paid to the designated beneficiaries on file with the Company and,
      in the absence of such designation, to the Participant's estate.

      All payment awards shall be reduced by amounts required to be withheld for
      taxes at the time payments are made.

IX.   CHANGES TO TARGET

      The Chairman of the Board of Directors, at any time prior to the final
      determination of awards and in consultation with the Board of Directors,
      may consider changes to the performance measures, targets, and payout
      ranges used for incentive purposes, such that if, in the judgment of the
      Chairman of the Board of Directors, such change(s) is/are desirable

                                       3
<PAGE>

      in the interests of equitable treatment of the Participants and the
      Company as a result of extraordinary or non-recurring events, changes in
      applicable accounting rules or principles, changes in the Company's
      methods of accounting, changes in applicable law, changes due to
      consolidation, acquisitions, or reorganization. The Chief Executive
      Officer shall implement such change(s) for immediate incorporation into
      the Plan.

X.    PARTIAL AWARDS

      A Participant shall be entitled to payment of a partial Financial Award
      if, prior to the end of such Fiscal Year, a Participant:

      -     Dies;

      -     Retires (is eligible to immediately receive retirement benefits
            under a Company sponsored retirement plan);

      -     Becomes permanently disabled;

      -     Transfers to a position with a salary grade not eligible for
            participation in the Plan;

      -     Enters military service;

      -     Takes an approved leave of absence;

      -     Is appointed or elected to public office; or

      -     Is terminated due to position elimination.

      provided that the Participant was an active employee for a minimum of 30
      consecutive calendar days during such Fiscal Year. Such partial awards
      shall be paid at the time when payments of awards for such Fiscal Year are
      made to active Participants.

      Participants hired, or who otherwise become eligible to participate
      hereunder, during the course of a Fiscal Year and who are employed through
      the end of such Fiscal Year shall be eligible for a pro-rated award based
      on their Base Salary during such Fiscal Year and length of eligible
      service prior to the end of the Fiscal Year.

XI.   FORFEITURE OF BONUS

      Except as provided in Section X, no Participant who ceases to be an
      employee of the Company prior to the end of a Fiscal Year shall be
      entitled to any Financial Award under this Plan for such Fiscal Year
      unless the Chief Executive Officer determines otherwise.

      Except as provided in Section X, Participants who cease to be an employee
      of the Company between the end of a prior Fiscal Year and the payment date
      of awards for such prior Fiscal Year shall not be entitled to awards
      earned during such prior Fiscal Year unless the Chief Executive Officer
      determines otherwise.

                                       4
<PAGE>

XII.  ADMINISTRATION

      This Plan shall be administered by the Vice President, Administration of
      Viskase Companies, Inc., subject to the control and supervision of the
      Chief Executive Officer and the Board of Directors of Viskase Companies,
      Inc.

      In the event of a claim or dispute brought forth by a Participant, the
      decision of the Chief Executive Officer as to the facts in the case and
      the meaning and intent of any provision of the Plan, or its application,
      shall be final and conclusive.

XIII. NO EMPLOYMENT CONTRACT; FUTURE PLANS

      Participation in this Plan shall not confer upon any Participant any right
      to continue in the employ of the Company nor interfere in any way with the
      right of the Company to terminate any Participant's employment at any
      time. The Company is under no obligation to continue the Plan in future
      Fiscal Years.

XIV.  AMENDMENT OR TERMINATION

      The Board of Directors of the Company may at any time, or from time to
      time, (a) amend, alter or modify the provisions of this Plan, (b)
      terminate this Plan, or (c) terminate the participation of an employee or
      group of employees in this Plan; provided, however, that in the event of
      the termination of this Plan or a termination of participation, the
      Company shall provide the partial awards to the affected Participant(s)
      for the portion of the Fiscal Year during which such employee(s) were
      Participants in this Plan, in a manner in which the Company, in its sole
      judgment, determines to be equitable to such Participants and the Board of
      Directors of the Company.

XV.   GENERAL PROVISIONS

      A. No right under the Plan shall be assignable, either voluntarily or
      involuntarily by way of encumbrance, pledge, attachment, level or charge
      of any nature (except as may be required by state or federal law).

      B. Nothing in the Plan shall require the Company to segregate or set aside
      any funds or other property for the purpose of paying any portion of an
      award. No Participant, beneficiary or other person shall have any right,
      title or interest in any amount awarded under the Plan prior to the close
      of the Fiscal Year, or in any property of the Company or its subsidiaries.

   ________________________________         ____________________________________
      Final Approval Date                         Chief  Executive Officer

                                       5
<PAGE>

                                                                    EXHIBIT 10.9

                                                                       EXHIBIT A
                                                                     PAGE 1 OF 2

                             VISKASE COMPANIES, INC.
                         2004 Management Incentive Plan

                           Computation of MIP Amounts

The management level shall determine the potential target bonus. Table I below
provides the target bonus potential award for each management level.

      TABLE I

<TABLE>
<CAPTION>
                               Bonus as a % of
                                Salary Target
<S>                            <C>
Management Level IP                45.00%
Management Level I                 40.00%
Management Level II                24.00%
Management Level III               18.00%
Management Level IV                12.00%
</TABLE>

      Payout Ranges for Company Performance Awards

      A payout range has been established for the payment of the company
financial performance awards. (See Table II).

      -     Below the 95% of the target point in the payout range, no company
            financial award is earned.

      -     At or above the target point, the target financial award is earned
            as a percentage of the target up to a maximum of 150% of target.

      -     Target value in the payout range is attained when the company meets
            its objective for each financial measure as stated in Exhibit B.

<PAGE>

                                                                       EXHIBIT A
                                                                     PAGE 2 OF 2

C. TABLE II

<TABLE>
<CAPTION>
                                        % of Financial Targets Achieved
          --------------------------------------------------------------------------------------------------
                                        Company                                                    Company
                                      Performance                                                Performance
          EBITDA                         Award                        EBITDA                        Award
          Target                        Earned                        Target                       Earned
          ------                        ------                        ------                       ------
<S>       <C>                         <C>                             <C>                        <C>
Target      95%                           50%                          123%                         123%
            96%                           60%                          124%                         124%
            97%                           70%                          125%                         125%
            98%                           80%                          126%                         126%
            99%                           90%                          127%                         127%
           100%                          100%                          128%                         128%
           101%                          101%                          129%                         129%
           102%                          102%                          130%                         130%
           103%                          103%                          131%                         131%
           104%                          104%                          132%                         132%
           105%                          105%                          133%                         133%
           106%                          106%                          134%                         134%
           107%                          107%                          135%                         135%
           108%                          108%                          136%                         136%
           109%                          109%                          137%                         137%
           110%                          110%                          138%                         138%
           111%                          111%                          139%                         139%
           112%                          112%                          140%                         140%
           113%                          113%                          141%                         141%
           114%                          114%                          142%                         142%
           115%                          115%                          143%                         143%
           116%                          116%                          144%                         144%
           117%                          117%                          145%                         145%
           118%                          118%                          146%                         146%
           119%                          119%                          147%                         147%
           120%                          120%                          148%                         148%
           121%                          121%                          149%                         149%
           122%                          122%                      150% or more                     150%
</TABLE>

<PAGE>

                                                                       EXHIBIT B
                                                                     PAGE 1 OF 1

                             VISKASE COMPANIES, INC.
                         2004 Management Incentive Plan

      The financial target for 2004 shall be attainment of EBITDA of $22.2
      million.

      EBITDA = Operating income before interest, taxes, depreciation and
      amortization excluding restructuring charges.

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