Document:

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                                                                     EXHIBIT 4.2

                           ---------------------------
                            STERLING CHEMICALS, INC.

                                     TRUSTOR

                                       TO

                       THOMAS S. HENDERSON, AN INDIVIDUAL

                                     TRUSTEE

                               FOR THE BENEFIT OF

             NATIONAL CITY BANK, IN ITS CAPACITY AS DESCRIBED HEREIN

                                   BENEFICIARY

                  --------------------------------------------
                       DEED OF TRUST, ASSIGNMENT OF LEASES
                                   AND RENTS,
                      SECURITY AGREEMENT AND FIXTURE FILING

                  ---------------------------------------------

                             DATED DECEMBER 19, 2002

           THIS INSTRUMENT AFFECTS CERTAIN REAL AND PERSONAL PROPERTY
                          LOCATED IN GALVESTON COUNTY,
                                 STATE OF TEXAS
                 ----------------------------------------------

                             RECORDED AND RETURN TO:

                       KRAMER LEVIN NAFTALIS & FRANKEL LLP
                                919 THIRD AVENUE
                            NEW YORK, NEW YORK 10022
                         ATTENTION: NEIL R. TUCKER, ESQ.

            THIS INSTRUMENT WAS PREPARED BY THE ABOVE-NAMED ATTORNEY.

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                 DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS,
                      SECURITY AGREEMENT AND FIXTURE FILING

         THIS DEED OF TRUST, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT
AND FIXTURE FILING, dated December 19, 2002 (this "Deed of Trust"), made by
STERLING CHEMICALS, INC., a Delaware corporation (the "Trustor"), having an
address at 1200 Smith St., Suite 1900, Houston, Harris County, Texas 77002-4312
to THOMAS S. HENDERSON, an individual, having an address at c/o Floyd, Isgur,
Rios and Wahrlich, P.C. 700 Louisiana, Suite 4600, Houston, Texas 77002, as
trustee (the "Trustee") for the benefit of NATIONAL CITY BANK, a national
banking association, having an address at 101 W. Washington Street, Suite 655S,
Indianapolis, IN 46255, as indenture trustee (the "Indenture Trustee") for the
benefit of the Holders (the "Holders") of the Senior Secured Notes due 2007 of
the Trustor (the "Beneficiary").

                          W I T N E S S E T H  T H A T:

         WHEREAS, the Trustor is on the date of the delivery hereof the owner of
fee title (or easement or leasehold title if otherwise indicated on Exhibit A
hereto) to the parcels of land described in Exhibit A hereto (the "Land") and of
the Improvements (hereinafter defined);

         WHEREAS, pursuant to the terms, conditions and provisions of the
Indenture, dated as of the date hereof (as amended, restated, supplemented or
otherwise modified from time to time, the "Indenture"), among Trustor, as
issuer, Sterling Chemicals Energy, Inc., as guarantor, and the Indenture
Trustee, as trustee, Trustor issued Senior Secured Notes due 2007 in the
aggregate principal amount of NINETY FOUR MILLION TWO HUNDRED SEVENTY FIVE
THOUSAND AND 00/100 DOLLARS ($94,275,000.00) (together with any Additional Notes
(as defined in the Indenture) issued pursuant to such Indenture in lieu of
payment of interest in cash and any Senior Secured Notes issued pursuant to such
Indenture in replacement thereof or substitution therefor, the "Senior Notes");

         WHEREAS, pursuant to that certain Order (the "Confirmation Order")
Confirming Joint Plan of Reorganization Under Chapter 11, Title 11, United
States Code of Sterling Chemicals Holdings, Inc., et al., Debtors, as modified
(the "Reorganization Plan") entered by the Bankruptcy Court of the Southern
District of Texas, Houston Division on November 20, 2002, each of Sterling
Chemicals, Inc. and the Trustor are authorized to enter into, execute and
deliver the Deed of Trust;

         WHEREAS, pursuant to the Confirmation Order and the Reorganization
Plan, the Trustor possesses all of the rights, interests, privileges and
property of Sterling Chemicals, Inc. and is responsible and liable for all
liabilities and obligations of Sterling Chemicals, Inc.; and

         WHEREAS, the Trustor has duly authorized the execution, delivery and
performance of this Deed of Trust.

                                     GRANT:

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         NOW, THEREFORE, for and in consideration of the premises, and of the
mutual covenants herein contained, and in order to secure the full, timely and
proper payment and performance of and compliance with each and every one of the
Secured Obligations (as hereinafter defined), the Trustor hereby irrevocably
grants, bargains, sells, mortgages, warrants, aliens, demises, releases,
hypothecates, pledges, assigns, transfers and conveys to the Trustee, IN TRUST,
WITH POWER OF SALE, for the benefit of Beneficiary and its successors and
assigns, forever, all of the following (collectively, the "Trust Premises"):

                  (a)      Real Estate. All of Trustor's right, title and
         interest in, and to all of the Land and all additional lands and
         estates therein now owned by the Trustor for use or development with
         the Land or any portion thereof, together with all and singular the
         tenements, rights, easements, hereditaments, rights of way, privileges,
         liberties, appendages and appurtenances now belonging or in any way
         pertaining to the Land and such additional lands and estates therein
         (including, without limitation, all rights relating to storm and
         sanitary sewer, water, gas, electric, railway and telephone services);
         all development rights, air rights, riparian rights, water, water
         rights, water stock, all rights in, to and with respect to any and all
         oil, gas, coal, minerals and other substances of any kind or character
         underlying or relating to the Land and such additional lands and
         estates therein and any interest therein; all estate, claim, demand,
         rights, title or interest of the Trustor in and to any street, road,
         highway or alley, vacated or other, adjoining the Land or any part
         thereof and such additional lands and estates therein; all strips and
         gores belonging, adjacent or pertaining to the Land or such additional
         lands and estates (herein collectively referred to as the "Real
         Estate");

                  (b)      Improvements. All of Trustor's right, title and
         interest in and to all buildings, structures and other improvements now
         existing on the Land and any additions and alterations thereto or
         replacements thereof, now or hereafter built, constructed or located
         upon the Real Estate; and, to the extent that any of the following
         items of property constitutes fixtures under applicable laws, all
         furnishings, fixtures, fittings, appliances, apparatus, equipment,
         machinery, building and construction materials, and other articles of
         every kind and nature whatsoever and all replacements thereof, now or
         hereafter affixed or attached to, placed upon or used in any way in
         connection with the Real Estate and the complete and comfortable use,
         enjoyment, occupation, operation, development and/or maintenance of the
         Real Estate or such buildings, structures, and other improvements,
         including, but not limited to, partitions, furnaces, boilers, oil
         burners, radiators and piping, plumbing and bathroom fixtures,
         refrigeration, heating, ventilating, air conditioning and sprinkler
         systems, other fire prevention and extinguishing apparatus and
         materials, vacuum cleaning systems, gas and electric fixtures,
         incinerators, compactors, elevators, engines, motors, generators and
         all other articles of property which are considered fixtures under
         applicable law (such buildings, structures and other improvements and
         such other property constituting fixtures under applicable law are
         herein collectively referred to as the "Improvements"; the Real Estate
         and the Improvements are herein collectively referred to as the
         "Property");

                  (c)      Goods. All of Trustor's right, title and interests in
         and to all building materials, construction materials, appliances
         (including, without limitation, stoves,

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         ranges, ovens, disposals, refrigerators, water fountains and coolers,
         fans, heaters, dishwashers, clothes washers and dryers, water heaters,
         hood and fan combinations, kitchen equipment, laundry equipment,
         kitchen cabinets and other similar equipment), stocks, supplies,
         blinds, window shades, drapes, carpets, floor coverings, manufacturing
         equipment and machinery, office equipment, growing plants and
         shrubberies, control devices, equipment (including window cleaning,
         building cleaning, swimming pool, recreational, monitoring, garbage,
         pest control and other equipment), motor vehicles, tools, furnishings,
         furniture, lighting, non-structural additions to the Real Estate and
         Improvements and all other tangible property of any kind or character,
         together with all replacements thereof, now or hereafter located on or
         in or used or useful in connection with the complete and comfortable
         use, enjoyment, occupation, operation, development and/or maintenance
         of the Property, regardless of whether or not located on or in the
         Property or located elsewhere for purposes of storage, fabrication or
         otherwise but excluding any and all "inventory" as defined in the State
         Uniform Commercial Code and any other "goods" as defined in the State
         Uniform Commercial Code which are not necessary for the operation of
         the plants located on the Land (herein collectively referred to as the
         "Goods");

                  (d)      Leases. All rights of the Trustor in, to and under
         all leases, licenses, occupancy agreements, concessions and other
         arrangements, oral or written, now existing or replacements thereof
         hereafter entered into, whereby any Person agrees to pay money or any
         other consideration for the use, possession or occupancy of, or any
         estate in, the Property or any portion thereof or interest therein
         (herein collectively referred to as the "Leases"), and the right,
         subject to applicable law, upon the occurrence of any Event of Default
         hereunder, to receive and collect the Rents (as hereinafter defined)
         paid or payable thereunder;

                  (e)      Plans. All rights of the Trustor in and to all plans
         and specifications, designs, drawings and other information, materials,
         and matters heretofore or hereafter prepared relating to the
         Improvements or any construction on the Real Estate (herein
         collectively referred to as, the "Plans");

                  (f)      Permits. All rights of the Trustor, to the extent
         assignable, in, to and under all permits, franchises, licenses,
         approvals and other authorizations respecting the use, occupation and
         operation of the Property and every part thereof and respecting any
         business or other activity conducted on or from the Property, and any
         product or proceed thereof or therefrom, including, without limitation,
         all building permits, certificates of occupancy and other licenses,
         permits and approvals issued by governmental authorities having
         jurisdiction (collectively, the "Permits");

                  (g)      Contracts. All right, title and interest of the
         Trustor, to the extent assignable, in and to all certificates,
         warranties, appraisals, engineering, environmental, soils, insurance
         and other reports and studies, books, records, correspondence, files
         and advertising materials, now or hereafter obtained or entered into,
         as the case may be, pertaining to the construction, use, occupancy,
         possession, operation, management, leasing, maintenance and/or
         ownership of the Property (but only to the extent necessary

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         or appropriate for the continued operation of the plants located on the
         Land and excluding in any event any such items constituting or in any
         way relating to "accounts" or "inventory" as those terms are defined in
         the State Uniform Commercial Code) and all right, title and interest of
         the Trustor therein (collectively, the "Contracts");

                  (h)      Leases of Furniture, Furnishings and Equipment. All
         right, title and interest of the Trustor as lessee in, to and under any
         leases of furniture, furnishings, equipment and any other Goods now or
         hereafter installed in or at any time used in connection with the
         Property;

                  (i)      Rents. All rents, issues, profits, royalties, avails,
         income and other benefits other than accounts receivable derived or
         owned, directly or indirectly, by the Trustor from the Property,
         including, without limitation, all rents and other consideration
         payable by tenants, claims against guarantors, and any cash or other
         securities deposited to secure performance by tenants, under the Leases
         (herein collectively referred to as the "Rents"); and

                  (j)      Proceeds. All proceeds of the conversion, voluntary
         or involuntary of any of the foregoing Trust Premises into cash or
         liquidated claims, including, without limitation, proceeds of insurance
         and condemnation awards (herein, collectively referred to as the
         "Proceeds");

         PROVIDED, HOWEVER, the Trust Premises shall not include any rights
arising under any contracts, instruments, licenses or other documents as to
which the grant of a lien and/or security interest would constitute a violation
of a valid and enforceable restriction in favor of a third party on such grant,
unless and until any required consents shall have been obtained;

         AND, without limiting any of the other provisions of this Deed of
Trust, the Trustor expressly grants to the Beneficiary, as secured party, a
security interest in all of those portions of the Trust Premises which are or
may be subject to the State Uniform Commercial Code provisions applicable to
secured transactions subject only to the Permitted Encumbrances;

         TO HAVE AND TO HOLD the Trust Premises unto the Trustee and the
successors, successors in trust and assigns of the Trustee for the benefit of
the Beneficiary, its successors and assigns, forever, subject only to the
Permitted Encumbrances;

         FURTHER to secure the full, timely and proper payment and performance
of the Secured Obligations, the Trustor hereby covenants and agrees with and
warrants to the Trustee and the Beneficiary as follows:

                                   ARTICLE I

                     COVENANTS AND AGREEMENTS OF THE TRUSTOR

                  SECTION 1.1 Payment of Secured Obligations. (i) The Trustor
agrees that:

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                  (a)      it will duly and punctually pay and perform or cause
to be paid and performed each of the Secured Obligations at the time and in
accordance with the terms of the Indenture and the Senior Notes; and

                  (b)      when and as due and payable from time to time in
accordance with the terms hereof or of any other Security Document, pay and
perform, or cause to be paid and performed, all other Secured Obligations.

                  SECTION 1.2 Title to Trust Premises, etc. The Trustor
represents and warrants to and covenants with the Trustee and the Beneficiary
that:

                  (a)      except as otherwise permitted by the terms of the
Indenture, as of the date hereof and at all times hereafter while this Deed of
Trust is outstanding, the Trustor (i) is and shall be the absolute owner of the
legal and beneficial title to the applicable interest in the Property and to all
other property included in the Trust Premises, and (2) has and shall have good
and indefeasible title in fee simple absolute, or good and sufficient easement
or leasehold title, as currently represented in the granting clause as of the
date hereof, to the Property; provided, however, that the portion of the Land
described on Part III of Exhibit A is hereby excluded from these covenants,
subject in each case only to this Deed of Trust, the Permitted Liens (as defined
in the Indenture) and the encumbrances set forth in Exhibit B hereto
(collectively, the "Permitted Encumbrances");

                  (b)      the Trustor has good and lawful right, power and
authority to execute this Deed of Trust and to convey, transfer, assign,
mortgage and grant a security interest in the Trust Premises, all as provided
herein;

                  (c)      this Deed of Trust has been duly executed,
acknowledged and delivered on behalf of the Trustor, all consents and other
actions required to be taken by the officers, directors, shareholders and
partners, as the case may be, of the Trustor have been duly and fully given and
performed, all governmental and court approvals required have been obtained by
Trustor, and this Deed of Trust constitutes the legal, valid and binding
obligation of the Trustor, enforceable against the Trustor in accordance with
its terms; and

                  (d)      the Trustor, at its expense, will warrant and defend
the Trustee and the Beneficiary and any purchaser under the power of sale herein
or at any foreclosure sale such title to the Trust Premises and the first deed
of trust lien and first perfected security interest of this Deed of Trust
thereon and therein against all claims and demands and will maintain, preserve
and protect such lien and security interest and will keep this Deed of Trust a
valid, direct, first deed of trust lien of record on the Property and a first
perfected security interest in the Trust Premises other than the Property,
subject only to the Permitted Encumbrances.

                  SECTION 1.3 Title Insurance.

                  SECTION 1.3.1 Title Insurance Policy. Concurrently with the
execution and delivery of this Deed of Trust, the Trustor has obtained and
delivered to the Beneficiary a loan policy or policies of title insurance in an
amount, and in form and substance, reasonably satisfactory to the Beneficiary
naming the Beneficiary as the insured, insuring the title to and the

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first deed of trust lien of this Deed of Trust on the portion of the Land
described on Exhibit A with endorsements reasonably requested by the
Beneficiary. The premiums and other charges due in connection with the issuance
of such policy or policies of title insurance shall be shared equally by Trustor
and Beneficiary.

                  SECTION 1.3.2 Title Insurance Proceeds. All proceeds received
by and payable to the Beneficiary for any loss under the loan policy or policies
of title insurance delivered to the Beneficiary pursuant to Section 1.3.1, or
under any policy or policies of title insurance delivered to the Beneficiary in
substitution therefor or replacement thereof, shall be the property of the
Beneficiary and shall be applied by the Beneficiary in accordance with the
provisions of Section 2.3.

                  SECTION 1.4 Recordation. The Trustor, at its expense, will at
all times cause this Deed of Trust and any instruments amendatory hereof or
supplemental hereto and any instruments of assignment hereof or thereof (and any
appropriate financing statements or other instruments and continuations
thereof), and each other instrument delivered in connection with the Indenture,
the Senior Notes or any Security Documents and intended thereunder to be
recorded, registered and filed, to be kept recorded, registered and filed, in
such manner and in such places, and will pay all such recording, registration,
filing fees, taxes and other charges, and will comply with all such statutes and
regulations as may be required by law in order to establish, preserve, perfect
and protect the lien and security interest of this Deed of Trust as a valid,
direct, first deed of trust lien on the Property and first perfected security
interest in the Trust Premises other than the Property, subject only to the
Permitted Encumbrances. The Trustor will pay or cause to be paid, and will
indemnify the Trustee and the Beneficiary in respect of, all taxes (including
interest and penalties) at any time payable in connection with the filing and
recording of this Deed of Trust and any and all supplements and amendments
hereto.

                  SECTION 1.5 Payment of Impositions, etc. Subject to Section
1.8 (relating to permitted contests), the Trustor will pay or cause to be paid
before the same would become delinquent and before any fine, penalty, interest
or cost may be added for non-payment, all taxes, assessments, water and sewer
rates, charges, license fees, inspection fees and other governmental levies or
payments, of every kind and nature whatsoever, general and special, ordinary and
extraordinary, unforeseen as well as foreseen, which at any time may be
assessed, levied, confirmed, imposed or which may become a lien upon the Trust
Premises, or any portion thereof, or which are payable with respect thereto, or
upon the rents, issues, income or profits thereof, or on the occupancy,
operation, use, possession or activities thereof, whether any or all of the same
be levied directly or indirectly or as excise taxes or as income taxes, and all
taxes, assessments or charges which may be levied on the Secured Obligations, or
the interest thereon (collectively, the "Impositions"). The Trustor will deliver
to the Beneficiary, upon request, copies of official receipts or other
satisfactory proof evidencing such payments.

                  SECTION 1.6 Insurance and Legal Requirements. Subject to
Section 1.8 (relating to permitted contests), the Trustor, at its expense, will
comply in all material respects, or cause compliance in all material respects
with

                  (a)      all provisions of any insurance policy covering or
applicable to the Trust Premises or any part thereof, all requirements of the
issuer of any policy, and all orders, rules,

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regulations and other requirements of the National Board of Fire Underwriters
(or any other body exercising similar functions) applicable to or affecting the
Trust Premises or any part thereof or any use or condition of the Trust Premises
or any part thereof (collectively, the "Insurance Requirements"); and

                  (b)      all laws, including Environmental Laws, statutes,
codes, acts, ordinances, orders, judgments, decrees, injunctions, rules,
regulations, permits, licenses, authorizations, directions and requirements of
all governments, departments, commissions, boards, courts, authorities,
agencies, officials and officers, foreseen or unforeseen, ordinary or
extraordinary, which now or at any time hereafter may be applicable to the Trust
Premises or any part thereof, or any of the adjoining sidewalks, curbs, vaults
and vault space, if any, streets or ways, or any use or condition of the Trust
Premises or any part thereof (collectively, the "Legal Requirements");

noncompliance of which could reasonably be expected to cause a Material
Adverse Effect.

                  SECTION 1.7 Security Interests, etc. The Trustor will not
directly or indirectly create or permit or suffer to be created or to remain,
and will promptly discharge or cause to be discharged, any deed of trust,
mortgage, encumbrance or charge on, pledge of, security interest in or
conditional sale or other title retention agreement with respect to or any other
lien on or in the Trust Premises or any part thereof or the interest of the
Trustor or the Beneficiary therein, or any Proceeds thereof or Rents or other
sums arising therefrom, other than (a) Permitted Encumbrances, and (b) liens of
mechanics, materialmen, suppliers or vendors or rights thereto incurred in the
ordinary course of the business of the Trustor for sums not yet due or any such
liens or rights thereto which are at the time being contested as permitted by
Section 1.8. The Trustor will not postpone the payment of any sums for which
liens of mechanics, materialmen, suppliers or vendors or rights thereto have
been incurred (unless such liens or rights thereto are at the time being
contested as permitted by Section 1.8), for more than 60 days after the
completion of the action giving rise to such liens or rights thereto.

                  SECTION 1.8 Permitted Contests. The Trustor at its expense
may contest, or cause to be contested, by appropriate legal proceedings
conducted in good faith and with due diligence, the amount or validity or
application, in whole or in part, of any Imposition, Legal Requirement, or
Insurance Requirement or lien of a mechanic, materialman, supplier or vendor,
provided that, (a) in the case of an unpaid Imposition, lien, encumbrance or
charge, such proceedings shall suspend the collection thereof from the Trustor,
the Beneficiary, and the Trust Premises (including any rent or other income
therefrom) and shall not materially interfere with the payment of any such rent
or income, (b) neither the Trust Premises nor any rent or other income therefrom
nor any part thereof or interest therein would be in any material danger of
being sold, forfeited, lost, impaired or interfered with, (c) in the case of a
Legal Requirement, neither the Trustor nor the Beneficiary would be in material
danger of any material civil or any criminal liability for failure to comply
therewith, (d) the Trustor shall have furnished such security, if any, as may be
required in the proceedings or as may be reasonably requested by Beneficiary,
(e) the non-payment of the whole or any part of any Imposition will not result
in the delivery of a tax deed to the Trust Premises or any part thereof because
of such non-payment, (f) the payment of any sums required to be paid with
respect to the Senior Notes or under this Deed

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of Trust (other than any unpaid Imposition, lien, encumbrance or charge at the
time being contested in accordance with this Section 1.8) shall not be
interfered with or otherwise affected, and (g) in the case of any Insurance
Requirement, the failure of the Trustor to comply therewith shall not affect the
validity of any such insurance required to be maintained by the Trustor under
Section 2.1 and (h) that adequate reserves, determined in accordance with GAAP,
shall have been set aside on the Trustor's books.

                  SECTION 1.9 Leases. The Trustor represents and warrants to
the Trustee and the Beneficiary that, as of the date hereof, there are no
written or oral leases or other agreements of any kind or nature, other than the
Permitted Encumbrances, relating to the occupancy or use of any portion of the
Trust Premises by any Person other than the Trustor. Except as is permitted by
the Indenture, the Senior Notes or any of the Security Documents, the Trustor
will not enter into any such written or oral lease or other agreement with
respect to any portion of the Property without first obtaining the written
consent of the Beneficiary.

                  SECTION 1.10 Compliance with Instruments. The Trustor at its
expense will promptly comply in all material respects with all rights of way or
use, privileges, franchises, servitudes, licenses, easements, tenements,
hereditaments and appurtenances forming a part of the Property and all
instruments creating or evidencing the same, in each case, to the extent
compliance therewith is required of the Trustor under the terms thereof. The
Trustor will not take any action which may result in a forfeiture or termination
of the rights afforded to the Trustor under any such instruments, and will not,
without the prior written consent of the Beneficiary, amend any such instruments
in any manner adverse to the Beneficiary and the Holders in any material
respect, except as is permitted by the Indenture, the Senior Notes or any
Security Document.

                  SECTION 1.11 Maintenance and Repair, etc. Subject to the
provisions of Section 1.12, the Trustor will keep or cause to be kept all
presently and subsequently erected or acquired Improvements and the sidewalks,
curbs, vaults and vault space, if any, located on or adjoining the same, and the
streets and the ways adjoining the same, in good and substantial order and
repair and in such a fashion that neither the value nor utility of the Trust
Premises will be materially diminished, and, at its sole cost and expense, will
promptly make or cause to be made all necessary and appropriate repairs,
replacements and renewals thereof, whether interior or exterior, structural or
nonstructural, ordinary or extraordinary, foreseen or unforeseen, so that its
business carried on in connection therewith may be properly conducted at all
times. The Trustor at its expense will do or cause to be done all shoring of
foundations and walls of any building or other Improvements on the Property and
(to the extent permitted by law) of the ground adjacent thereto, and every other
act necessary and appropriate for the preservation and safety of the Property by
reason of or in connection with any excavation or other building operation upon
the Property and upon any adjoining property.

                  SECTION 1.12 Alterations, Additions, etc. So long as no Event
of Default shall have occurred and be continuing, the Trustor shall have the
right at any time and from time to time to make or cause to be made alterations
of and additions to the Property or any part thereof, provided that any
alteration or addition: (a) shall not materially change the general character or
the use of the Property or materially reduce the fair market value thereof below
its value

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immediately before such alteration or addition, or materially impair the
usefulness of the Property; (b) is effected with due diligence, in a good and
workmanlike manner and in compliance in all material respects with all Legal
Requirements and Insurance Requirements; (c) subject to Section 1.8 is promptly
and fully paid for , or caused to be paid for, by the Trustor; and (d) is made,
in case the estimated cost of such alteration or addition exceeds U.S.
$1,000,000, under the supervision of a qualified architect or engineer or
another professional.

                  SECTION 1.13 Acquired Property Subject to Lien. Subject to
the Permitted Encumbrances and except as otherwise permitted by the Indenture,
all property at any time acquired by the Trustor and provided or required by
this Deed of Trust to be or become subject to the lien and security interest
hereof, whether such property is acquired by exchange, purchase, construction or
otherwise, shall forthwith become subject to the lien and security interest of
this Deed of Trust without further action on the part of the Trustor or the
Beneficiary. Upon written request of Beneficiary, the Trustor, at its expense,
will execute and deliver to the Beneficiary (and will record and file as
provided in Section 1.4) an instrument supplemental to this Deed of Trust
reasonably satisfactory in substance and form to the Beneficiary, whenever such
an instrument is necessary under applicable law to subject to the lien and
security interest of this Deed of Trust all right, title and interest of the
Trustor in and to all property provided or required by this Deed of Trust to be
subject to the lien and security interest hereof.

                  SECTION 1.14 Assignment of Rents. The assignment, grant and
conveyance of the Leases and Rents, Proceeds and other rents, income proceeds
and benefits of the Trust Premises contained in the Granting Clause of this Deed
of Trust shall constitute an absolute, present and irrevocable assignment, grant
and conveyance, provided, however, that permission is hereby given to the
Trustor, so long as no sale, foreclosure or other proceeding pursuant to Article
III hereof to convey any interest in the Trust Premises has been commenced (each
of the foregoing, a "Triggering Event"), to: (i) collect, receive and apply such
Rents, Proceeds and other rents, income, proceeds and benefits from the Trust
Premises as they become due and payable, but not further in advance thereof than
is customary, and in accordance with all of the other terms, conditions and
provisions hereof, of the Indenture, the Security Documents, Leases, Contracts
and any other agreements and/or instruments with respect to which such payments
are made or such other benefits are conferred; or (ii) pledge to the
Administrative Agent the right to collect, receive and apply such Rents,
Proceeds and other rents, income, proceeds and benefits to the extent same
constitute Proceeds of Indenture Collateral that are Credit Agreement Collateral
(as each such phrase is defined in the Senior Debt Intercreditor Agreement).
Upon the occurrence and continuance of a Triggering Event, such permission under
subsection (i) above shall terminate immediately and automatically, without
notice to the Trustor or any other Person except as required by law, and shall
not be reinstated without the express written consent of the Beneficiary and
upon the occurrence of a Disposition such permission under subsection (ii) above
shall terminate immediately and automatically with respect to any Rents,
Proceeds and other rents, income, proceeds and benefits from Trust Premises that
are the subject of a Disposition, without notice to the Trustor or any other
Person except as required by law. Such assignment shall be fully effective
without any further action on the part of the Trustor, the Trustee, or the
Beneficiary, and the Beneficiary shall be entitled, at its option, upon the
occurrence of a Triggering Event, to collect, receive and apply all Rents,
Proceeds and all other rents, income, proceeds and benefits from the Trust
Premises, including all right, title and

                                       9

<PAGE>

interest of the Trustor in any escrowed sums or deposits or any portion thereof
or interest therein, whether or not the Trustee or the Beneficiary takes
possession of the Trust Premises or any part thereof. The Trustor further grants
to the Beneficiary the right, at the Beneficiary's option, upon the occurrence
and continuance of a Triggering Event hereunder, to:

                  (a)      enter upon and take possession of the Property for
the purpose of collecting Rents, Proceeds and said rents, income, proceeds and
other benefits;

                  (b)      dispossess by the customary summary proceedings any
tenant, purchaser or other Person that is not a party to a Permitted Lease (as
defined in Section 1.22 below);

                  (c)      let or convey the Trust Premises or any portion
thereof or any interest therein; and

                  (d)      apply Rents, Proceeds and such other rents, income,
proceeds and other benefits of the Trust Premises, after the payment of all
necessary fees, charges and expenses, on account of the Secured Obligations in
accordance with Section 3.11.

Notwithstanding the foregoing, if Trustor has pledged to the Administrative
Agent the right to collect, receive and apply such Rents, Proceeds and other
rents, income, proceeds and benefits to the extent same constitute Proceeds of
Indenture Collateral that are Credit Agreement Collateral, then permission is
given to Administrative Agent to continue to collect, receive and apply same
until a Disposition occurs affecting the Trust Premises from which such Rents,
Proceeds and other rents, income, proceeds and benefits are generated. Nothing
in this Section 1.14 shall be deemed to modify any of the provisions of the
Senior Debt Intercreditor Agreement.

                  SECTION 1.15 No Claims Against the Trustee or the
Beneficiary. Nothing contained in this Deed of Trust shall constitute any
consent or request by the Trustee or the Beneficiary, express or implied, for
the performance of any labor or the furnishing of any materials or other
property in respect of the Property or any part thereof, or be construed to
permit the making of any claim against the Trustee or the Beneficiary in respect
of labor or services or the furnishing of any materials or other property or any
claim that any lien based on the performance of such labor or the furnishing of
any such materials or other property is prior to the lien and security interest
of this Deed of Trust. ALL CONTRACTORS, SUBCONTRACTORS, VENDORS AND OTHER
PERSONS DEALING WITH THE PROPERTY, OR WITH ANY PERSONS INTERESTED THEREIN, ARE
HEREBY ADVISED TO TAKE NOTICE OF THE PROVISIONS OF THIS SECTION.

                  SECTION 1.16 Indemnification. The Trustor will protect,
indemnify, save harmless and defend the Trustee and the Beneficiary, the Holders
and each of their respective officers, directors, shareholders, employees,
representatives and agents (collectively, the "Indemnified Parties" and
individually, an "Indemnified Party"), from and against any and all liabilities,
obligations, claims, damages, penalties, causes of action, costs and expenses
(including, without limitation, reasonable attorneys' fees and expenses) imposed
upon or incurred by or asserted against any Indemnified Party by reason of (a)
ownership of an interest in this Deed of Trust, the Indenture, the Senior Notes
or any of the Security Documents, (b) any accident, injury to or death of
persons or loss of or damage to or loss of the use of property occurring on or
about the Property or any part thereof or the adjoining sidewalks, curbs, vaults

                                      10

<PAGE>

and vault spaces, if any, streets, alleys or ways, (c) any use, non-use or
condition of the Trust Premises or any part thereof or the sidewalks, curbs,
vaults and vault spaces, if any, streets, alleys or ways adjoining the Property,
(d) any failure on the part of the Trustor to perform or comply with any of the
terms of this Deed of Trust the Indenture, the Senior Notes or any of the other
Security Documents, (e) performance of any labor or services or the furnishing
of any materials or other property in respect of the Trust Premises or any part
thereof made or suffered to be made by or on behalf of the Trustor, (f) any
negligence or tortious act on the part of Trustor or any of its agents,
contractors, lessees, licensees or invitees, (g) any work in connection with any
alterations, changes, new construction or demolition of or additions to the
Trust Premises, or (h)(i) any Hazardous Material on, in, under or affecting all
or any portion of the Property, the groundwater, or any surrounding areas, (ii)
any misrepresentation, inaccuracy or breach of any warranty, covenant or
agreement contained or referred to in Sections 1.20 and 1.21, (iii) any
violation or claim of violation by the Trustor of any Environmental Laws, or
(iv) the imposition of any lien for damages caused by or the recovery of any
costs for the cleanup, release or threatened release of any Hazardous Material,
except to the extent that any of the matters described in subsections (a)-(h)
arise out of the gross negligence, unlawful acts or willful misconduct of any
Indemnified Party. THE TRUSTEE SHALL NOT BE LIABLE FOR ANY ACT OR OMISSION OR
ERROR OF JUDGMENT IN CONNECTION WITH THIS DEED OF TRUST, IT BEING THE INTENT OF
THE PARTIES HERETO THAT THE TRUSTEE SHALL NOT BE LIABLE FOR THE TRUSTEE'S SOLE
OR CONTRIBUTORY NEGLIGENCE. If any action or proceeding be commenced, to which
action or proceeding any Indemnified Party is made a party by reason of the
execution of this Deed of Trust, the Indenture, the Senior Notes, or any of the
other Security Documents, or in which it becomes necessary to defend or uphold
the lien of this Deed of Trust, all sums paid by the Indemnified Parties, for
the expense of any litigation to prosecute or defend the rights and lien created
hereby or otherwise, shall be paid by the Trustor to such Indemnified Parties,
as the case may be, as hereinafter provided. The Trustor will pay and save the
Indemnified Parties harmless against any and all liability with respect to any
intangible personal property tax or similar imposition of the State or any
subdivision or authority thereof now or hereafter in effect, to the extent that
the same may be payable by the Indemnified Parties in respect of this Deed of
Trust, the Indenture, the Senior Notes or any other Secured Obligation. All
amounts payable to the Indemnified Parties under this Section 1.16 shall be
deemed indebtedness secured by this Deed of Trust any such amounts which are not
paid within ten (10) days after written demand therefor by any Indemnified Party
shall bear interest at the rate provided for in the Indenture and the Senior
Notes from the date of such demand. In case any action, suit or proceeding is
brought against any Indemnified Party by reason of any such occurrence, the
Trustor, upon request of such Indemnified Party, will, at the Trustor's expense,
resist and defend such action, suit or proceeding or cause the same to be
resisted or defended by counsel designated by the Trustor and approved by such
Indemnified Party. The obligations of the Trustor under this Section 1.16 shall
survive any discharge or reconveyance of this Deed of Trust and payment in full
of the Secured Obligations.

                  SECTION 1.17 No Credit for Payment of Taxes. The Trustor
shall not be entitled to any credit against the Secured Obligations by reason of
the payment of any tax on the Trust Premises or any part thereof or by reason of
the payment of any other Imposition, and shall

                                      11

<PAGE>

not apply for or claim any deduction from the taxable value of the Trust
Premises or any part thereof by reason of this Deed of Trust.

                  SECTION 1.18 No Transfer of the Trust Premises. Except as is
provided in the Indenture, the Senior Notes or the Security Documents, and
except for the Permitted Encumbrances, the Trustor shall not, without the prior
written consent of the Beneficiary, which consent shall not be unreasonably
withheld, conditioned or delayed, (i) sell, convey, assign or otherwise transfer
the Trust Premises or any portion of the Trustor's interest therein or (ii)
further encumber the Trust Premises or permit the Trust Premises to become
encumbered by any lien, claim, security interest or other indebtedness of any
kind or nature other than the Permitted Encumbrances.

                  SECTION 1.19 Security Agreement. With respect to the items of
personal property and fixtures referred to and described in the Granting Clause
of this Deed of Trust and included as part of the Trust Premises, this Deed of
Trust is hereby made and declared to be a security agreement encumbering each
and every item of such personal property and fixtures included as part of the
Trust Premises now or hereafter owned by Trustor, in compliance with the
provisions of the Uniform Commercial Code as enacted in the State. In this
respect (and notwithstanding the conveyance to the Trustee rather than directly
to the Beneficiary as provided in this Deed of Trust), Trustor, as "Debtor",
expressly grants to Beneficiary, as "Secured Party", a security interest in and
to all of the property now or hereafter owned by Trustor which constitutes the
personal property and fixtures included as part of the Trust Premises
hereinabove referred to and described in this Deed of Trust, including all
extensions, accessions, additions, improvements, betterments, renewals,
replacements and substitutions thereof or thereto, and all proceeds from the
sale or other disposition thereof. Trustor agrees that Beneficiary may file this
Deed of Trust, or a reproduction thereof, in the real estate records or other
appropriate index, as, and this Deed of Trust shall be deemed to be, a financing
statement filed as a fixture filing in accordance with the laws of the State.
Any reproduction of this Deed of Trust or of any other security agreement or
financing statement executed by Trustor shall be sufficient as a financing
statement. In addition, Trustor agrees to execute and deliver to Beneficiary,
upon Beneficiary's request, financing statements, as well as extensions,
renewals, and amendments thereof, and reproductions of this Deed of Trust, in
such form as Beneficiary may reasonably require to perfect a security interest
with respect to said items. Trustor shall pay all costs of filing such financing
statements and any extensions, renewals, amendments and releases thereof, and
shall pay all reasonable costs and expenses of any record searches for financing
statements Beneficiary may reasonably require. Except as is provided in the
Indenture, the Senior Notes or the Security Documents, and except for the
Permitted Encumbrances, without the prior written consent of Beneficiary,
Trustor shall not create or suffer to be created pursuant to the Uniform
Commercial Code any other security interest in the above-described personal
property and fixtures, including any replacements and additions thereto. Upon
the occurrence and continuance of an Event of Default under this Deed of Trust,
the Beneficiary shall have and shall be entitled to exercise any and all of the
rights and remedies (i) as prescribed in this Deed of Trust, or (ii) as
prescribed by general law, or (iii) as prescribed by the specific statutory
provisions now or hereafter enacted and specified in said Uniform Commercial
Code, all at Beneficiary's sole election. Trustor and Beneficiary agree that the
filing of any financing statements in the records normally having to do with
personal property shall not in any way

                                      12

<PAGE>

affect the agreement of Trustor and Beneficiary that everything located in, on
or about, or used or intended to be used with or in connection with the use,
operation or enjoyment of, the Trust Premises, which is described or reflected
as a fixture in this Deed of Trust, is, and at all times and for all purposes
and in all proceedings, both legal and equitable, shall be, regarded as part of
the Real Estate conveyed hereby. Trustor warrants that Trustor's correct name,
identity, state of incorporation and address are as set forth herein. Trustor
agrees that it shall provide Trustee and Beneficiary with thirty (30) days prior
written notice of any change in Trustor's name, identity, state of incorporation
or address. The mailing address of the Beneficiary from which information may be
obtained concerning the security interest created herein is also set forth
herein. This information hereof is provided in order that this Deed of Trust
shall comply with the requirements of the Uniform Commercial Code as enacted in
the State for instruments to be filed as financing statements. In accordance
with the laws of the State, this Deed of Trust shall remain effective as a
fixture filing until this Deed of Trust is released or satisfied of record or
its effectiveness otherwise terminates as to the Trust Premises.

                  SECTION 1.20 Representations and Warranties. In order to
induce the Beneficiary to enter into this Deed of Trust, the Indenture and the
other Security Documents, the Trustor agrees that all of the representations and
warranties of Trustor set forth in the Indenture are incorporated into this Deed
of Trust by reference as if fully set forth herein.

                  SECTION 1.21 Trustor's Covenants. In order to induce the
Beneficiary to accept this Deed of Trust and enter into the Indenture and the
other Security Documents, the Trustor agrees that all of the covenants of
Trustor set forth in the Indenture are incorporated in this Deed of Trust by
reference as if fully set forth herein.

                  SECTION 1.22 Attornment. Beneficiary, by its acceptance of
this Deed of Trust, hereby acknowledges and agrees that the liens granted herein
are or will be subject to the rights of certain lessees under: (i) certain
Leases in existence on the date hereof; (ii) Leases entered into by Trustor
after the date hereof provided that Trustor obtains the written consent of
Beneficiary prior to entering into such Leases; and (iii) Leases entered into by
Trustor after the date hereof without the consent of Trustor provided that such
Lease is described in item 19 of the definition of Permitted Lien set forth in
the Indenture (each of the Leases described in clauses (i) (ii) and (iii), a
"Permitted Lease"). The rights of the tenants under the Permitted Leases shall
not be adversely affected by the exercise by Beneficiary of any of its rights
hereunder, nor shall any such tenant be in any way deprived of its rights under
the applicable Permitted Lease except in accordance with the terms of such
lease. In the event that Beneficiary succeeds to the interest of Trustor under a
Permitted Lease, such Permitted Lease shall not be terminated or affected
thereby except as set forth therein, and any sale of the applicable leased
premises by Beneficiary or pursuant to the judgment of any court in an action to
enforce the remedies provided for in this Deed of Trust shall be made subject to
such Permitted Lease and the rights of such tenant expressly set forth
thereunder. If Beneficiary succeeds to the interests of Trustor in and to the
applicable leased premises or under such Permitted Lease or enters into
possession of such leased premises, the Beneficiary, and such tenants, shall be
bound to each other under all of the express terms, covenants and conditions of
such Permitted Lease, as if the Beneficiary was originally the Trustor as lessor
thereunder.

                                      13

<PAGE>

                  SECTION 1.23 Inspections. Trustor will permit the Trustee or
the Beneficiary, or the agents of either of them, to enter upon the Property and
all parts thereof, for the purpose of investigating and inspecting the condition
and operation thereof and of the other Trust Premises. If an Event of Default
has occurred and is continuing, then such investigation and inspection shall be
performed at the cost and expense of Trustor.

                                   ARTICLE II

                 INSURANCE; DAMAGE, DESTRUCTION OR TAKING, ETC.

                  SECTION 2.1 Insurance.

                  SECTION 2.1.1 Risks to be Insured. The Trustor will, at its
expense, maintain or cause to be maintained: (a) insurance with respect to the
Improvements against loss or damage by fire, lightning and such other risks as
are included in standard "all-risk" policies, in amounts sufficient to prevent
the Trustor and the Beneficiary from becoming a co-insurer of any partial loss
under the applicable policies, but in any event in amounts not less than the
then full insurable value (accrual replacement value) of the Improvements
(subject to commercially reasonable deductibles), as determined by the Trustor
in accordance with generally accepted insurance practice and approved by the
Beneficiary (provided that: (x) Beneficiary's approval shall be deemed given if
Beneficiary fails to respond within five (5) business days after receipt of a
request for Beneficiary's approval clearly stating that Beneficiary's failure to
respond within the aforesaid period shall be deemed Beneficiary's approval; and
(y) Beneficiary, by its acceptance of this Deed of Trust, approves the amount of
insurance maintained by Trustor on the date hereof pursuant to this clause (a)),
(b) comprehensive public liability, including bodily injury and product
liability and property damage, insurance, with personal injury endorsements,
applicable to the Trust Premises in such amounts as are customarily carried by
Persons operating similar properties in the same general locality, but in any
event with a combined single limit of not less than Twenty Million Dollars
($20,000,000) per occurrence, (c) explosion insurance in respect of any steam
and pressure boilers and similar properties in the same general locality, but in
any event in an amount not less than Twenty Million Dollars ($20,000,000), (d)
business interruption insurance (including added expense coverage against all
insurable perils for a period of not fewer than twelve (12) months (subject to a
reasonable aggregate deductible), (e) worker's compensation insurance to the
full extent required by applicable law for all employees of the Trustor engaged
in any work on or about the Property, (f) employer's liability insurance with a
limit of not less than Ten Million Dollars ($10,000,000) for each occurrence,
and (g) all-risk, builders' risk insurance with respect to the Property during
any period during which there is any construction work being performed, against
loss or damage by fire or other risks, including vandalism, malicious mischief
and sprinkler leakage, as are included in so-called "extended coverage" clauses
at the time available and (h) such other insurance with respect to the Property
in such amounts and against such insurable hazards as the Beneficiary from time
to time my reasonably require by written notice to the Trustor and is then being
required by lenders of facilities similar to the Trust Premises, which
facilities are located in a similar geographic area to the Trust Premises.
Notwithstanding the foregoing, to the extent any insurance required herein is no
longer available Trustor shall not be in default of its obligations hereunder if
it fails to obtain such unavailable insurance. In addition, to the extent it
becomes commercially

                                      14

<PAGE>

unreasonable to maintain any such insurance (which shall be true if such
insurance is: (i) not being renewed or obtained by substantially all owners of
facilities similar to the Trust Premises which are located in a similar
geographic area to the Trust Premises; and (ii) the Board of Directors of
Trustor resolves that such insurance is not available on commercially reasonable
terms) then Trustor shall not be required to maintain such insurance until the
earlier of: (A) the time such insurance is available on commercially reasonable
terms; or (B) one (1) year from the date of the resolution of the Board of
Directors of Trustor (subject to the extension of such waiver if the Board of
Directors of Trustor issues a new resolution confirming the unavailability of
such insurance on commercially reasonable terms).

                  SECTION 2.1.2 Policy Provisions. All insurance maintained by
the Trustor pursuant to Section 2.1.1 shall: (a) be provided by insurers that
are approved and licensed to conduct business or authorized to write insurance
in the State of Texas with a minimum Best rating of "A-VIII" (provided that,
with respect to the insurance maintained by Trustor on the date hereof, Trustor
may maintain or renew such insurance with its current insurers if the Financial
Size Category ("FSC") of such insurer is no lower than the lower of VIII or such
insurers FSC on the date hereof); (b) (except for worker's compensation
insurance) list the Beneficiary, as an additional insured as its interest may
appear; (c) (except for worker's compensation and public liability insurance)
provide that the proceeds of any losses shall be adjusted by the Trustor subject
to the approval of the Beneficiary in the event the proceeds shall exceed
$1,000,000, and shall be payable to the Beneficiary, to be held and applied as
provided in Section 2.3; (d) include effective waivers by the insurer of all
rights of subrogation against any named insured, the indebtedness secured by
this Deed of Trust and the Trust Premises and all claims for insurance premiums
against the Beneficiary; (e) (except for worker's compensation and public
liability insurance) provide that any losses shall be payable notwithstanding
(i) any act, failure to act or negligence of or violation of warranties,
declarations or conditions contained in such policy by any named insured, (ii)
the occupation or use of the Trust Premises for purposes more hazardous than
permitted by the terms thereof, (iii) any foreclosure or other action or
proceeding taken by the Beneficiary pursuant to any provision of this Deed of
Trust, or (iv) any change in title or ownership of the Trust Premises; (f)
provide no cancellation, reduction in amount or material change in coverage
thereof or any portion thereof shall be effective until at least thirty (30)
days after receipt by the Beneficiary of written notice thereof; (g) provide
that any notice under such policies shall be simultaneously delivered to the
Beneficiary. Any insurance maintained pursuant to this Section 2.1 may be
evidenced by blanket insurance policies covering the Property and other
properties or assets of the Trustor, provided that any such policy shall specify
the portion, if less than all, of the total coverage of such policy that is
allocated to the Trust Premises and shall in all other respects comply with the
requirements of this Section 2.1.

                  SECTION 2.1.3 Delivery of Certificates, etc. The Trustor will
deliver to the Beneficiary, promptly upon request, (a) certificates of all
policies evidencing all insurance required to be maintained under Section 2.1.1
(or, in the case of blanket policies, certificates thereof by the insurers
together with a counterpart of each blanket policy), and (b) evidence as to the
payment of all premiums due thereon (with respect to public liability insurance
policies, all installments for the current year due thereon to such date),
provided that the Beneficiary shall not be deemed by reason of its custody of
such certificates to have knowledge of the contents thereof or of the applicable
policies. The Trustor will also deliver to the Beneficiary fifteen (15) days

                                      15

<PAGE>

prior to the expiration of any policy, a binder or certificate of the insurer
evidencing the replacement thereof and when the new policy is issued a
certificate of the new policy (or, in the case of a replacement blanket policy,
a certificate thereof of the insurer together with a counterpart of the blanket
policy). If Trustor fails to obtain insurance in accordance herewith,
Beneficiary may do so (but shall not be obligated to do so) and without limiting
any of Beneficiary's other remedies exercise its rights under Section 3.14.

                  SECTION 2.1.4 Separate Insurance. The Trustor will not take
out separate insurance concurrent in form or contributing in the event of loss
with that required to be maintained pursuant to this Section 2.1 unless such
additional insurance will not affect Beneficiary's rights with respect to the
insurance maintained pursuant to this Section 2.1.

                  SECTION 2.2 Damage, Destruction or Taking; Trustor to Give
Notice; Assignment of Awards. In case of:

                  (a)      any material damage to or destruction of the Trust
Premises or any material part thereof; or

                  (b)      any taking, whether for permanent or temporary use,
of all or any material part of the Trust Premises or any material interest
therein or material right accruing thereto, as the result of the exercise of the
right of condemnation or eminent domain (a "Taking"), or the commencement of any
proceedings or negotiations which may result in a Taking,

the Trustor will promptly give written notice thereof to the Beneficiary,
generally describing the nature and extent of such damage or destruction and the
Trustor's best estimate of the cost of restoring the Trust Premises, or the
nature of such proceedings or negotiations and the nature and extent of the
Taking which might result therefrom, as the case may be. The Beneficiary shall
be entitled to all insurance proceeds payable on account of such damage or
destruction and to all awards or payments allocable to the Trust Premises on
account of such Taking up to the amount of the Secured Obligations, and the
Trustor hereby irrevocably assigns, transfers and sets over to the Beneficiary
all rights, title and interest of the Trustor to any such proceeds, awards or
payments up to the amount of the Secured Obligations and irrevocably authorizes
and empowers the Beneficiary, at its option, in the name of the Trustor or
otherwise, to file and prosecute what would otherwise be the Trustor's claim for
any such proceeds, award or payment and to collect, receipt for and retain the
same for disposition in accordance with Section 2.3. The Trustor will pay all
reasonable costs and expenses incurred by the Beneficiary in connection with any
such damage, destruction or Taking and seeking and obtaining any insurance
proceeds, awards or payments in respect thereof.

                  SECTION 2.3 Application of Proceeds and Awards. The
Beneficiary may, at its option, apply all amounts recovered under any insurance
policy covering the Trust Premises required to be maintained by the Trustor
hereunder and all awards and payments received by it on account of any Taking
covering the Trust Premises in any one or more of the following ways:

                  (a)      to the payment of the reasonable costs and expenses
incurred by the Beneficiary in obtaining any such insurance proceeds or awards,
including the reasonable fees and expenses of attorneys and insurance and other
experts and consultants, the costs of litigation,

                                      16

<PAGE>

arbitration, mediation, investigations and other judicial, administrative or
other proceedings and all other out-of-pocket expenses;

                  (b)      to the payment of the principal of the Senior Notes
and any interest (including Post Petition Interest to the extent such interest
is a Secured Obligation) accrued and unpaid thereon, without regard to whether
any portion or all of such amounts shall be matured or unmatured, and, in case
such amount shall be insufficient to pay in full all such amounts, then such
amount shall be applied, first, to the payment of all amounts of interest
(including Post-Petition Interest to the extent such interest is a Secured
Obligation) accrued on the Senior Notes and unpaid, second, to the payment of
all amounts of principal in the time outstanding;

                  (c)      to the payment of, or the application to, any Secured
Obligations (other than as provided in clause (b) above); and

                  (d)      to fulfill any of the other covenants contained
herein, in the Indenture, the Senior Notes, and the Security Documents, as the
Beneficiary may determine in its reasonable discretion;

                  (e)      to the Trustor for application to the cost of
restoring the Trust Premises and the replacement of Goods destroyed, damaged or
taken; and

                  (f)      to the Trustor.

Notwithstanding the foregoing provisions of this Section 2.3 to the contrary
(but subject to the provisions of Section 2.4), and if each of the following
conditions is satisfied, the Beneficiary, upon request of the Trustor, shall
apply insurance proceeds or condemnation awards paid with respect to the Trust
Premises and received by it to the restoration or replacement of the Trust
Premises, to the extent necessary for the restoration or replacement thereof:

                  (i)      there shall then exist no uncured Event of Default;

                  (ii)     the Trustor shall furnish to the Beneficiary a
certificate of an architect or engineer reasonably acceptable to the Beneficiary
stating (x) that the Trust Premises is capable of being restored, prior to the
maturity of the Indenture, to substantially the same condition as existed prior
to the casualty or Taking, (y) the aggregate estimated direct and indirect costs
of such restoration and (z) as to any Taking, that the property taken in such
Taking, or sold under threat thereof, is not necessary to the Trustor's
customary use or occupancy of the Property or Trustor otherwise provides
Beneficiary adequate assurance that the Trust Premises can be restored or is not
necessary to Trustor's customary use or occupancy of the Property; and

                  (iii)    in the event that the estimated cost of restoration
set forth in the certificate of such architect or engineer (and such revisions
to such estimate as are from time to time made) exceeds the net insurance
proceeds or condemnation awards actually received from time to time, the Trustor
shall deposit the amount of such excess with the Beneficiary.

         In the event that such insurance proceeds or condemnation awards are to
be utilized in the restoration of the Trust Premises, the Beneficiary shall
disburse such Proceeds and the additional

                                      17

<PAGE>

amounts deposited by the Trustor for such restoration after receipt of a written
request for disbursement, on not fewer than five (5) Business Days' notice to be
disbursed in accordance with standard construction loan practices. In the event
that such insurance or condemnation awards are to be utilized to replace the
Trust Premises so destroyed or taken, the Beneficiary shall disburse such
Proceeds after receipt of a written request for disbursement, on not fewer than
five (5) Business Days' notice simultaneously with the acquisition of such
replacement property by the Trustor. In the event that, after the restoration or
replacement of the Trust Premises, any insurance or condemnation awards shall
remain, such amount shall be paid to the Trustor. Insurance proceeds and
condemnation awards shall be invested in the manner reasonably requested by the
Trustor and reasonably approved by the Beneficiary, and all interest earned
thereon shall be applied as provided in this Section 2.3. If, prior to the
receipt by the Beneficiary of such insurance proceeds or condemnation awards,
the Trust Premises shall have been sold on foreclosure, the Beneficiary shall
have the right to receive said insurance proceeds or condemnation awards to the
extent of any deficiency found to be due upon such sale, with legal interest
thereon, whether or not a deficiency judgment shall have been sought or received
or denied, and the reasonable attorneys' fees, costs and disbursements incurred
by the Beneficiary in connection with the collection of such award payment.

                  SECTION 2.4 Total Taking and Total Destruction. In the event
of a Total Destruction or a Total Taking, the Beneficiary shall apply all
amounts recovered under any insurance policy referred to in Section 2.1.1 and
all awards received by it on account of any such Taking as follows:

                  (a)      first, to the payment of the reasonable costs and
expenses incurred by the Beneficiary in obtaining any such insurance proceeds or
awards, including the reasonable fees and expenses of attorneys and insurance
and other experts and consultants, the costs of litigation, arbitration,
mediation, investigations and other judicial, administrative or other
proceedings and all other out-of-pocket expenses;

                  (b)      second, to the payment of the principal of the Senior
Notes and any interest (including Post-Petition Interest to the extent such
interest is a Secured Obligation) accrued and unpaid thereon, without regard to
whether any portion or all of such amounts shall be matured or unmatured;, and,
in case such amount shall be insufficient to pay in full all such amounts, then
such amount shall be applied, first, to the payment of all amounts of interest
(including Post-Petition Interest to the extent such interest is a Secured
Obligation) accrued to the Senior Notes and unpaid, and second, to the payment
of all amounts of principal at the time outstanding;

                  (c)      third, to the payment of, or the application to, any
Secured Obligation (other than as provided in clause (b) above);

                  (d)      fourth, to fulfill any of the other covenants
contained herein as the Beneficiary may determine; and

                  (e)      fifth, the balance, if any, to the Trustor.

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<PAGE>

                                  ARTICLE III

                        EVENTS OF DEFAULT; REMEDIES, ETC.

                  SECTION 3.1 Event of Default; Acceleration. If an Event of
Default shall have occurred and be continuing, then and in any such event the
Beneficiary may at any time thereafter (unless all Events of Default shall
theretofore have been remedied and all costs and expenses including, without
limitation, attorneys' fees and expenses, incurred by or on behalf of the
Beneficiary of which Trustor has notice shall have been paid in full by the
Trustor) declare, by written notice to the Trustor, the Senior Notes and all
other Secured Obligations to be due and payable immediately or on a date
specified in such notice, and on such date the same shall be and become due and
payable, together with interest accrued thereon, without presentment, demand,
protest or notice, all of which the Trustor hereby waives. The Trustor will pay
on demand all reasonable costs and expenses, including, without limitation,
reasonable attorneys' fees and expenses, incurred by or on behalf of the
Beneficiary in enforcing this Deed of Trust, the Indenture, the Senior Notes, or
the Security Documents that are occasioned by any default hereunder.

                  SECTION 3.2 Legal Proceedings; Judicial Foreclosure. If an
Event of Default shall have occurred and be continuing, the Beneficiary at any
time may, at its election, proceed at law or in equity or otherwise to enforce
the payment and performance of the Secured Obligations in accordance with the
terms hereof and thereof and to foreclose the lien of this Deed of Trust as
against all or any part of the Trust Premises and to have the same sold under
the judgment or decree of a court of competent jurisdiction. The Beneficiary
shall be entitled to recover in such proceedings all costs incident thereto,
including reasonable attorneys' fees and expenses in such amounts as may be
fixed by any court.

                  SECTION 3.3 Power of Sale. If an Event of Default shall have
occurred and be continuing, the Beneficiary may direct the Trustee to sell or
offer for sale the Trust Premises in such portions, order and parcels as the
Beneficiary may determine, with or without having first taken possession of the
same, to the highest bidder for cash at public auction. Such sale shall be made
at the courthouse of the county wherein the Land (or any of that portion thereof
to be sold) is situated (whether the parts or parcels thereof, if any, in
different counties are contiguous or not, and without the necessity of having
any personal property hereby mortgaged present at such sale) on the first
Tuesday of any month between the hours of 10:00 a.m. and 4:00 p.m. after posting
a written or printed notice or notices of the place, the earliest time at which
the sale will begin and terms of the sale of the Trust Premises for twenty-one
(21) days prior to the date of the sale at the courthouse door of the county in
which the sale is to be made and at the courthouse door of any other county in
which a portion of the Trust Premises may be situated and filing a copy of such
notice(s) in the office of the county clerk in each of such counties, and by
serving written notice of the proposed sale at least twenty-one (21) days
preceding the date of sale by certified mail on each debtor obligated to pay the
Secured Obligations according to the records of the Beneficiary. Service of such
notice shall be completed upon deposit of the notice, enclosed in a postpaid
wrapper, properly stamped and addressed to such debtor at the most recent
address as shown by the records of the Beneficiary, in a post office or official
depository under the care and custody of the United States. It is agreed that
the posting and transmittal of notices

                                      19

<PAGE>

may be performed by the Trustee, Beneficiary, or by any person acting for them.
In lieu of the foregoing, the sale may be accomplished by following the
procedures permitted or required by Section 51.002 of the Texas Property Code,
as same may be amended from time to time, relating to the sale of real estate
and/or by the Texas Uniform Commercial Code-Secured Transactions (same being
Chapter 9 of the Texas Business and Commerce Code) relating to the sale of
personal property collateral after default by a debtor (as said Section and
Chapter may now exist or may hereafter be amended or succeeded), or by any other
present or subsequent articles or enactments relating to the same. Nothing
contained in this Section shall be construed to limit in any way the Trustee's
rights to sell the Trust Premises by private sale if, and to the extent, that
such private sale is permitted under the laws of the State or by public or
private sale after entry of judgment by any court of competent jurisdiction
ordering the same. At any such sale (i) whether made under power herein
contained, Section 51.002 of the Texas Property Code, the Texas Uniform
Commercial Code- Secured Transactions, any other legal requirement or by virtue
of any judicial procedure or any other legal right, remedy or recourse, it shall
not be necessary for the Trustee to have physically present, or to have
constructive possession of, the Trust Premises (Trustor hereby covenanting and
agreeing to deliver to the Trustee any portion of the Trust Premises not
actually or constructively possessed by the Trustee immediately upon demand by
the Trustee), and the title to and right of possession of any such property
shall pass to the purchaser thereof as completely as if the same had been
actually present and delivered to purchaser at such sale, (ii) each instrument
of conveyance executed by the Trustee shall contain a special warranty of title,
binding upon Trustor, (iii) each and every recital contained in any instrument
of conveyance made by the Trustee shall conclusively establish the truth and
accuracy of the matters recited therein, including, without limitation,
nonpayment of the Secured Obligations, advertisement and conduct of such sale in
the manner provided herein and otherwise by law and appointment of any successor
to the Trustee hereunder, (iv) any and all prerequisites to the validity thereof
shall be conclusively presumed to have been performed, (v) the receipt of the
Trustee or of such other party or officer making the sale shall be a sufficient
discharge to the purchaser or purchasers for his or their purchase money and no
such purchaser or purchasers, or his or their assigns or personal
representatives, shall thereafter be obligated to see to the application of such
purchase money or be in any way answerable for any loss, misapplication or
nonapplication thereof, (vi) to the fullest extent permitted by law, Trustor
shall be completely and irrevocably divested of all of its right, title,
interest, claim and demand whatsoever, either at law or in equity, in and to the
property sold and such sale shall be a perpetual bar, both at law and in equity,
against Trustor, and against any and all other persons claiming or to claim the
property sold or any part thereof, by, through or under Trustor, and (vii) to
the extent and under such circumstances as are permitted by law, Beneficiary may
be a purchaser at any such sale. The Trust Premises may be sold in one or more
parcels and in such manner and order as Trustee and Beneficiary, in their sole
discretion, may elect, it being expressly understood and agreed that the right
of sale arising out of any Event of Default shall not be exhausted by any one or
more sales but other and successive sales may be made until all of the Trust
Premises have been sold or until the Secured Obligations have been fully
satisfied. The Trustee may postpone the sale of all or any portion of such Trust
Premises by public announcement at the time and place of such sale, and from
time to time thereafter may further postpone such sale by public announcement
made at the time of sale fixed by the preceding postponement. In case
Beneficiary shall have proceeded to invoke any right, remedy or recourse
permitted under this Deed of Trust and shall thereafter elect to discontinue or
abandon the same for any reason, Beneficiary shall have the

                                      20

<PAGE>

unqualified right so to do and, in such event, Trustor and Beneficiary shall be
restored to their former positions with respect to the Secured Obligations, the
Trust Premises and otherwise, and the rights, remedies, recourses and powers of
Beneficiary shall continue as if same had never been invoked.

                  SECTION 3.4 Uniform Commercial Code Remedies. If an Event of
Default shall have occurred and be continuing, the Beneficiary may exercise from
time to time and at any time any rights and remedies available to it under
applicable law upon default in the payment of indebtedness, including, without
limitation, any right or remedy available to it as a secured party under the
Uniform Commercial Code of the State. The Trustor shall, promptly upon request
by the Beneficiary, assemble the Trust Premises, or any portion thereof
generally described in such request, and make it available to the Beneficiary at
such place or places designated by the Beneficiary and reasonably convenient to
the Beneficiary and the Trustor. If the Beneficiary elects to proceed under the
Uniform Commercial Code of the State to dispose of portions of the Trust
Premises, the Beneficiary, at its option, may give the Trustor notice of the
time and place of any public sale of any such property, or of the date after
which any private sale or other disposition thereof is to be made, by sending
notice by registered or certified first class mail, postage prepaid, to the
Trustor at least ten (10) days before the time of the sale or other disposition.
If any notice of any proposed sale, assignment or transfer by the Beneficiary of
any portion of the Trust Premises or any interest therein is required by law,
the Trustor conclusively agrees that ten (10) days notice to the Trustor of the
date, time and place (and, in the case of a private sale, the terms) thereof is
reasonable.

                  SECTION 3.5 Beneficiary Authorized to Execute Deeds, etc. The
Trustor irrevocably appoints the Trustee and the Beneficiary (which appointment
is coupled with an interest) the true and lawful attorney-in-fact of the
Trustor, in its name and stead and on its behalf, for the purpose of
effectuating any sale, assignment, transfer or delivery for the enforcement
hereof, whether pursuant to power of sale, foreclosure or otherwise, to execute
and deliver all such deeds, bills of sale, assignments, releases and other
instruments as may be designated in any such request; provided, however, Trustee
and Beneficiary are permitted to take such actions only upon and during the
continuation of an Event of Default or when otherwise permitted under the
Indenture or any Security Document.

                  SECTION 3.6 Purchase of Trust Premises by Beneficiary. The
Beneficiary may be a purchaser of the Trust Premises or of any part thereof or
of any interest therein at any sale thereof, whether pursuant to power of sale,
foreclosure or otherwise, and the Beneficiary may apply upon the purchase price
thereof the indebtedness secured hereby owing to the Beneficiary. Such purchaser
shall, upon any such purchase, acquire good title to the properties so
purchased, free of the security interest and lien of this Deed of Trust and free
of all rights of redemption in the Trustor.

                  SECTION 3.7 Receipt a Sufficient Discharge to Purchaser. Upon
any sale of the Trust Premises or any part thereof or any interest therein,
whether pursuant to power of sale, foreclosure or otherwise, the receipt of the
Trustee or the officer making the sale under judicial proceedings shall be a
sufficient discharge to the purchaser for the purchase money, and such purchaser
shall not be obliged to see to the application thereof.

                                      21

<PAGE>

                  SECTION 3.8 Waiver of Appraisement Valuation, etc. The
Trustor hereby waives, to the fullest extent it may lawfully do so, the benefit
of appraisement, valuation, stay, extension and redemption laws now or hereafter
in force and all rights of marshaling in the event of any sale of the Trust
Premises or any part thereof or any interest therein.

                  SECTION 3.9 Sale a Bar Against Trustor. Any lawfully
conducted sale of the Trust Premises or any part thereof or any interest therein
under or by virtue of this Deed of Trust, whether pursuant to power of sale,
foreclosure or otherwise, shall forever be a bar against the Trustor.

                  SECTION 3.10 Secured Obligations to Become Due on Sale.
Except as otherwise provided in the Indenture or herein, upon any sale of the
Trust Premises or any portion thereof or interest therein by virtue of the
exercise of any remedy by the Beneficiary, or the Trustee on behalf of the
Beneficiary, under or by virtue of this Deed of Trust, whether pursuant to power
of sale, foreclosure or otherwise in accordance with this Deed of Trust or by
virtue of any other remedy available at law or in equity or by statute or
otherwise, at the option of the Beneficiary, any sums or monies due and payable
pursuant to the Indenture or Security Documents and in connection with the
Secured Obligations shall, if not previously declared due and payable,
immediately become due and payable, together with interest accrued thereon, and
all other indebtedness which this Deed of Trust by its terms secures.

                  SECTION 3.11 Application of Proceeds of Sale and Other
Moneys. Except as otherwise provided in the Indenture or in this Deed of Trust,
the proceeds of any sale of the Trust Premises or any part thereof or any
interest therein under or by virtue of this Deed of Trust, whether pursuant to
power of sale, foreclosure or otherwise, and all other moneys at any time held
by the Beneficiary as part of the Trust Premises, shall be applied in such order
of priority as the Beneficiary shall determine in its sole and absolute
discretion including, without limitation, as follows:

                  (a)      first, to the payment of the reasonable costs and
expenses of such sale (including, without limitation, the cost of evidence of
title and the costs and expenses, if any, of taking possession of, retaining
custody over, repairing, managing, operating, maintaining and preserving the
Trust Premises or any part thereof prior to such sale), all reasonable costs and
expenses incurred by the Beneficiary or any other Person in obtaining or
collecting any insurance proceeds, condemnation awards or other amounts received
by the Beneficiary, all reasonable costs and expenses of any receiver of the
Trust Premises or any part thereof, and any Impositions or other charges or
expenses prior to the security interest or lien of this Deed of Trust, which the
Beneficiary may consider it necessary or desirable to pay;

                  (b)      second, to the payment of any Secured Obligations,
applied

                           (i)      first to fees and expense reimbursements
then due to the Indenture Trustee;

                           (ii)     then to interest due to the Indenture
Trustee;

                           (iii)    then to pay the remaining outstanding
Secured Obligations, and

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<PAGE>

                  (c)      third, the balance, if any, held by the Beneficiary
after payment in full of all amounts referred to in subdivisions Sections
3.11(a) and (b) above, shall, unless a court of competent jurisdiction may
otherwise direct by final order not subject to appeal, be paid to or upon the
direction of the Trustor.

                  SECTION 3.12 Appointment of Receiver. If an Event of Default
shall have occurred and be continuing, the Beneficiary shall, as a matter of
right, be entitled to seek a court order for the appointment of a receiver for
all or any part of the Trust Premises, whether such receivership be incidental
to a proposed sale of the Trust Premises or otherwise, and the Trustor hereby
consents to the appointment of such a receiver and will not oppose any such
appointment.

                  SECTION 3.13 Possession, Management and Income. If an Event
of Default shall have occurred and be continuing, in addition to, and not in
limitation of, the rights and remedies provided in Section 1.14, the Trustee and
the Beneficiary, upon five (5) days written notice to the Trustor, may enter
upon and take possession of the Trust Premises or any part thereof by force,
summary proceeding, ejectment or otherwise and may remove the Trustor and all
other Persons and any and all property therefrom and may hold, operate,
maintain, repair, preserve and manage the same and receive all earnings, income,
Rents, issues and Proceeds accruing with respect thereto or any part thereof.
The Trustee and the Beneficiary shall be under no liability for or by reason of
any such taking of possession, entry, removal or holding, operation or
management, except that any amounts so received by the Trustee and the
Beneficiary shall be applied to pay all costs and expenses of so entering upon,
taking possession of, holding, operating, maintaining, repairing, preserving and
managing the Trust Premises or any part hereof, and any Impositions or other
charges prior to the lien and security interest of this Deed of Trust which the
Trustee and the Beneficiary may consider it necessary or desirable to pay, and
any balance of such amounts shall be applied as provided in Section 3.11.

                  SECTION 3.14 Right of Beneficiary to Perform Trustor's
Covenants, etc. If the Trustor shall fail to make any payment or perform any act
required to be made or performed hereunder or under the Indenture or the Senior
Notes, the Beneficiary, without notice to or demand upon the Trustor and without
waiving or releasing any obligation or Event of Default, may (but shall be under
no obligation) at any time thereafter make such payment or perform such act for
the account and at the expense of the Trustor, and may enter upon the Trust
Premises for such purpose and take all such action thereon as, in the
Beneficiary's opinion, may be necessary or appropriate therefor. No such entry
and no such action shall be deemed an eviction of any lessee of the Property or
any part thereof. All sums so paid by the Beneficiary and all costs and expenses
(including, without limitation, reasonable attorneys' fees and expenses) so
incurred, together with interest thereon at the rate provided in the Indenture
from the date of payment or incurring, shall constitute additional indebtedness
under the Security Documents and shall be paid by the Trustor to the Trustee or
the Beneficiary, as the case may be, on demand.

                  SECTION 3.15 Subrogation. To the extent that the Beneficiary,
on or after the date hereof, pays any sum due under any provision of any Legal
Requirement or any instrument creating any lien prior or superior to the lien of
this Deed of Trust, or the Trustor or any other Person pays any such sum with
the proceeds of the Senior Notes, the Beneficiary shall have and be entitled to
a lien on the Trust Premises equal in priority to the lien discharged, and the

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<PAGE>

Beneficiary shall be subrogated to, and receive and enjoy all rights and liens
possessed, held or enjoyed by, the holder of such lien, which shall remain in
existence and benefit the Beneficiary in securing the Secured Obligations.

                  SECTION 3.16 Remedies, etc., Cumulative. Each right, power
and remedy of the Beneficiary provided for in this Deed of Trust, the Indenture
and in the Senior Notes or now or hereafter existing at law or in equity or by
statute or otherwise shall be cumulative and concurrent and shall be in addition
to every other right, power or remedy provided for in this Deed of Trust, the
Indenture, the Senior Notes or the other Security Documents or now or hereafter
existing at law or in equity or by statute or otherwise, and the exercise or
beginning of the exercise by the Beneficiary or the Trustee of any one or more
of the rights, powers or remedies provided for in this Deed of Trust, the
Indenture, the Senior Notes, or the other Security Documents or now or hereafter
existing at law or in equity or by statute or otherwise shall not preclude the
simultaneous or later exercise by the Beneficiary or the Trustee of any or all
such other rights, powers or remedies.

                  SECTION 3.17 Provisions Subject to Applicable Law. All
rights, powers and remedies provided in this Deed of Trust may be exercised only
to the extent that the exercise thereof does not violate any applicable
provisions of law and are intended to be limited to the extent necessary so that
they will not render this Deed of Trust invalid, unenforceable or not entitled
to be recorded, registered or filed under the provisions of any applicable law.
If any term of this Deed of Trust or any application thereof shall be invalid or
unenforceable, the remainder of this Deed of Trust and any other application of
such term shall not be affected thereby.

                  SECTION 3.18 No Waiver, etc. No failure by the Trustee or the
Beneficiary to insist upon the strict performance of any term hereof or of the
Indenture, the Senior Notes, or the other Security Documents or to exercise any
right, power or remedy consequent upon a breach hereof or thereof, shall
constitute a waiver of any such term or of any such breach. No waiver of any
breach shall affect or alter this Deed of Trust, which shall continue in full
force and effect with respect to any other then existing or subsequent breach.
By accepting payment or performance of any amount or other Secured Obligations
secured hereby before or after its due date, neither the Trustee nor the
Beneficiary shall be deemed to have waived its right either to require prompt
payment or performance when due of all other amounts and Secured Obligations
payable or performance due hereunder or to declare a default for failure to
effect such prompt payment or performance.

                  SECTION 3.19 Compromise of Actions, etc. Any action, suit or
proceeding brought by the Beneficiary pursuant to any of the terms of this Deed
of Trust, the Indenture, the Senior Notes, or the other Security Documents, or
otherwise, and any claim made by the Beneficiary hereunder or thereunder, may be
compromised, withdrawn or otherwise dealt with by the Beneficiary without any
notice to or approval of the Trustor.

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<PAGE>

                                   ARTICLE IV

                                   DEFINITIONS

                  SECTION  4.1 Terms Defined in this Deed of Trust. When used
herein the following terms have the following meanings:

         "Administrative Agent" means the CIT Group/Business Credit, Inc. as
administrative agent under the Credit Agreement (as defined in the Indenture),
or any successor thereto.

         "Beneficiary" shall have the meaning set forth in the preamble.

         "Contracts" shall have the meaning set forth in clause (g) of the
granting clause.

         "Disposition" shall have the meaning set forth in the Senior Debt
Intercreditor Agreement.

         "Deed of Trust" shall have the meaning set forth in the preamble.

         "Event of Default" means any Event of Default under and as defined in
the Indenture.

         "Goods" shall have the meaning set forth in clause (c) of the granting
clause.

         "Hazardous Material" shall have the meaning specified in the Federal
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as
subsequently modified, supplemented or amended ("CERCLA"), provided, in the
event that CERCLA is amended so as to broaden the meaning of any term defined
thereby, such broader meaning shall apply subsequent to the effective date of
such amendment and, provided further, to the extent the laws of any jurisdiction
where the Trust Premises is located on the date hereof or on any subsequent date
establish a meaning for "hazardous material," which is broader than that
specified in either CERCLA, such broader meaning shall apply.

         "herein", "hereof", "hereto", and "hereunder" and similar terms refer
to this Deed of Trust and not to any particular Section, paragraph or provision
of this Deed of Trust.

         "Highest Lawful Rate" shall have the meaning set forth in Section 5.16.

         "Holders" means, collectively, the Holders of the Senior Notes from
time to time.

         "Impositions" shall have the meaning set forth in Section 1.5.

         "Improvements" shall have the meaning set forth in clause (b) of the
granting clause.

         "Indemnified Parties" shall have the meaning set forth in Section 1.16.

         "Indenture" is defined in the second recital.

         "Indenture Trustee" is defined in the preamble.

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<PAGE>

         "Insurance Requirements" shall have the meaning set forth in paragraph
(a) of Section 1.6.

         "Land" shall have the meaning set forth in the first recital.

         "Leases" shall have the meaning set forth in clause (d) of the granting
clause.

         "Legal Requirements" shall have the meaning set forth in paragraph (b)
of Section 1.6.

         "Material Adverse Effect" means a material adverse effect on the Trust
Premises taken as a whole.

         "Permits" shall have the meaning set forth in clause (f) of the
granting clause.

         "Permitted Encumbrances" shall have the meaning set forth in Section
1.2.

         "Person" means a corporation, an association, a partnership, an
organization, a business, an individual, a government or political subdivision
thereof or a governmental agency or officer.

         "Plans" shall have the meaning set forth in clause (e) of the granting
clause.

         "Post-Petition Interest" means interest accruing at the rate provided
for in the documents evidencing the Senior Notes after the filing of a petition
by or against the Trustor under any Bankruptcy Law (as defined in the
Indenture), whether or not allowed as a claim in any such proceeding.

         "Proceeds" shall have the meaning set forth in clause (j) of the
granting clause.

         "Property" shall have the meaning set forth in clause (b) of the
granting clause.

         "Real Estate" shall have the meaning set forth in clause (a) of the
granting clause.

         "Rents" shall have the meaning set forth in clause (i) of the granting
clause.

         "Secured Obligations" means the Obligations, as defined in the
Indenture.

         "Secured Parties" means the Indenture Trustee, for the benefit of the
Holders.

         "Security Agreement" shall have the meaning set forth in the Indenture.

         "Senior Debt Intercreditor Agreement" means the Intercreditor
Agreement, dated as of the date hereof between the Trustee and The CIT
Group/Business Credit, Inc.

         "Security Documents" shall have the meaning set forth in the Indenture.

         "Senior Notes" is defined in the second recital.

         "State" means the State of Texas.

                                      26

<PAGE>

         "State Uniform Commercial Code" means the Uniform Commercial Code of
the State of Texas, in effect and as amended from time to time.

         "Total Destruction" means any damage to or destruction of the
Improvements or any part thereof which, in the reasonable estimation of the
Beneficiary shall require the expenditure of an amount in excess of Forty
Million Dollars ($40,000,000) to restore the Improvements to substantially the
same condition of the Improvements immediately prior to such damage or
destruction.

         "Total Taking" means a Taking, whether permanent or for temporary use,
which, in the reasonable judgment of the Beneficiary, shall substantially
interfere with and adversely affect the normal operation of the Property by the
Trustor to such an extent as would reasonably be anticipated to cause a Material
Adverse Effect.

         "Trustee" shall have the meaning set forth in the preamble.

         "Trustor" shall have the meaning set forth in the preamble.

         "Trust Premises" shall have the meaning set forth in the granting
clause.

                  SECTION 4.2 Use of Defined Terms. Terms for which meanings
are provided in this Deed of Trust shall, unless otherwise defined or the
context requires, have such meanings when used in any certificate and any
opinion, notice or other communication delivered from time to time in connection
with this Deed of Trust or pursuant hereto.

                  SECTION 4.3 Indenture Definitions. Unless otherwise defined
herein or the context otherwise requires, terms used in this Deed of Trust,
including its preamble and recitals, have the meanings provided in the
Indenture.

                                   ARTICLE V

                                  MISCELLANEOUS

                  SECTION 5.1 Further Assurances; Financing Statements.

                  SECTION 5.1.1 Further Assurances. The Trustor, at its
expenses, will execute, acknowledge and deliver all such instruments and take
all such other action as the Beneficiary from time to time may reasonably
request:

                  (a)      to better subject to the lien and security interest
of this Deed of Trust all or any portion of the Trust Premises,

                  (b)      to perfect, publish notice or protect the validity of
the lien and security interest of this Deed of Trust,

                  (c)      to preserve and defend the title to the Trust
Premises and the rights of the Beneficiary therein against the claims of all
Persons as long as this Deed of Trust shall remain undischarged,

                                      27

<PAGE>

                  (d)      to better subject to the lien and security interest
of this Deed of Trust or to maintain or preserve the lien and security interest
of this Deed of Trust with respect to any replacement or substitution for any
Trust Premises or any other after-acquired property except as provided in the
Indenture, or

(e) in order to further effectuate the purposes of this Deed of Trust and to
carry out the terms hereof and to better assure and confirm to the Beneficiary
its rights, powers and remedies hereunder.

                  SECTION 5.2 Financing Statements. Notwithstanding any other
provision of this Deed of Trust, the Trustor hereby agrees that, without notice
to or the consent of the Trustor, the Beneficiary may file with the appropriate
public officials such financing statements, continuation statements, amendments
and similar documents as are or may become necessary to perfect, preserve or
protect the security interest granted by this Deed of Trust.

                  SECTION 5.3 Additional Security. Without notice to or consent
of the Trustor, and without impairment of the security interest and lien and
rights created by this Deed of Trust, the Trustee or the Beneficiary may accept
from the Trustor or any other Person additional security for the Secured
Obligations. Neither the giving of this Deed of Trust nor the acceptance of any
such additional security shall prevent the Trustee or the Beneficiary from
resorting, first, to such additional security, or, first, to the security
created by this Deed of Trust, or concurrently to both, in any case without
affecting the Trustee's or the Beneficiary's lien and rights under this Deed of
Trust.

                  SECTION 5.4 Defeasance; Partial Release etc.

                  SECTION 5.4.1 Defeasance. If the Secured Obligations and all
other amounts owing pursuant to the Indenture and the Security Documents and all
other sums payable hereunder by the Trustor shall be irrevocably repaid in full
in accordance with the terms thereof and Trustor shall have complied with all
the terms, conditions and requirements hereof and of the Secured Obligations, or
otherwise as may be provided in the Indenture, then on such date, the
Beneficiary shall, upon the request of the Trustor and at the Trustor's sole
cost and expense, execute and deliver such instruments, in form and substance
reasonably satisfactory to the Beneficiary, as may be necessary to effectively
reconvey, release and discharge this Deed of Trust.

                  SECTION 5.4.2 Partial Release, etc. The Beneficiary may at
any time and from time to time, without liability therefor, and without prior
notice to the Trustor, release or reconvey any part of the Trust Premises,
consent to the making of any map or plat of the Property, join in granting any
easement thereon or join in any extension agreement or agreement subordinating
the lien of this Deed of Trust.

                  SECTION 5.5 Notices, etc. All notices and other
communications provided to any of the parties hereto shall be in writing and
addressed, delivered or transmitted to such party as set forth in the Indenture.

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<PAGE>

                  SECTION 5.6 Waivers, Amendments, etc. The provisions of this
Deed of Trust may be amended, discharged or terminated and the observance or
performance of any provision of this Deed of Trust may be waived, either
generally or in a particular instance and either retroactively or prospectively,
only by an instrument in writing executed by the Trustor and the Beneficiary.

                  SECTION 5.7 Cross-References. References in this Deed of
Trust and in each instrument executed pursuant hereto to any Section or Article
are, unless otherwise specified, to such Section or Article of this Deed of
Trust or such instrument, as the case may be, and references in any Section,
Article or definition to any clause are, unless otherwise specified, to such
clause of such Section, Article or definition.

                  SECTION 5.8 Headings. The various headings of this Deed of
Trust and of each instrument executed pursuant hereto are inserted for
convenience only and shall not affect the meaning or interpretation of this Deed
of Trust or such instrument or any provisions hereof or thereof.

                  SECTION 5.9 Currency. Unless otherwise expressly stated, all
references to any currency or money, or any dollar amount, or amounts
denominated in "Dollars" herein will be deemed to refer to the lawful currency
of the United States.

                  SECTION 5.10 Governing Law. THIS DEED OF TRUST SHALL BE
DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE LAWS OF THE STATE.

                  SECTION 5.11 Successors and Assigns, etc. This Deed of Trust
shall be binding upon and shall inure to the benefit of the parties hereto and
their respective successors and assigns.

                  SECTION  5.12 Concerning the Trustee.

                  SECTION 5.12.1 Acceptance of Trusts; Certain Terms of the
Trusts. The Trustee, for itself and its successors, hereby accepts the trusts of
this Deed of Trust, but only upon the terms herein set forth, including the
following:

                  (a)      The recitals in this Deed of Trust and in any
supplement hereto which may hereafter be executed by the Trustor and the Trustee
shall be taken as the statements of the Trustor and shall not be considered as
made by, or imposing any obligation or liability upon, the Trustee.

                  (b)      The Trustee may execute any of the trusts or powers
hereof and perform any duty hereunder either directly or through its agents or
attorneys, and the Trustee shall not be responsible for the acts of any agent or
attorney appointed by it in good faith and without negligence.

                                      29

<PAGE>

                  (c)      The Trustee may, at the expense of the Trustor,
consult with legal counsel to be selected by it, and the Trustee shall not be
liable for any action taken, suffered or omitted to be taken by it in good faith
in accordance with the advice of counsel.

                  (d)      The Trustor will pay to the Trustee from time to
time, on demand, compensation for all services rendered hereunder (which shall
not be limited to the compensation of trustees of any express trust as provided
by law) and also all reasonable expenses, charges, counsel fees and other
disbursements and those of its agents and attorneys, made or incurred in the
administration of the trusts hereby created and any other duties hereby imposed.
The Trustor agrees to indemnify and save harmless the Trustee against and from
any liability or damages which it may incur or sustain, in good faith, in the
exercise and performance of any of its powers and duties hereunder.

                  (e)      The Trustee shall not be liable, in case of taking
possession of the Trust Premises, for debts contracted or liability or damages
incurred in the management or operation of the Trust Premises for the salaries
of employees of the Trustor or for nonfulfillment of contracts by the Trustor.

                  (f)      The Trustee shall be protected in acting upon any
notice, resolution, request, consent, order, certificate, report, opinion,
statement, obligation, appraisal or other document believed by it to be genuine
and to have been signed by the proper party or parties or by a person or persons
authorized to act on his or their behalf.

                  (g)      The Trustee shall not be responsible for the validity
or genuineness of any securities, personal property, notes or deeds of trust at
any time pledged and deposited hereunder.

                  SECTION 5.12.2 Duties and Responsibility of Trustee; In Case
of Default; Prior to Default; When Acting Under Direction of Beneficiary. If an
Event of Default shall have occurred and shall be continuing to the actual
knowledge of the Trustee, or if the Trustee shall have received notice thereof
from the Beneficiary, the Trustee, only if so directed by the Beneficiary, shall
exercise such of the rights and powers vested in it by this Deed of Trust, and
in so doing shall use the same degree of care and skill in their exercise, as a
prudent man would exercise or use under the circumstances in the conduct of his
own affairs. None of the provisions of this Deed of Trust shall be construed as
relieving the Trustee from liability for its own negligent action, own negligent
failure to act, or own willful misconduct, except that,

                  (a)      so long as no Event of Default shall have occurred
and be continuing,

                           (i)      the Trustee shall not be liable except for
the performance of such duties as are specifically set forth in this Deed of
Trust, and no implied covenants or obligations shall be read into this Deed of
Trust against the Trustee, whose duties and obligations shall be determined
solely by the express provisions of this Deed of Trust, and

                           (ii)     in the absence of bad faith on the part of
the Trustee, the Trustee may conclusively rely, as to the truth of the
statements and the correctness of opinions expressed therein, upon certificates
or opinions conforming to the requirements of this Deed of Trust;

                                      30

<PAGE>

                  (b)      the Trustee shall not be liable for any error of
judgment made in good faith by an officer or officers of the Trustee, unless it
shall be proved that the Trustee was negligent in ascertaining the pertinent
facts;

                  (c)      the Trustee shall not be liable with respect to any
action taken or omitted to be taken by it in good faith in accordance with
provisions of applicable law and the direction of the Beneficiary, relating to
the time, method, and place of conducting any proceeding for any remedy
available to the Trustee or exercising any trust or power conferred upon the
Trustee under this Deed of Trust;

                  (d)      the Trustee shall not be liable for any error of
judgment made in good faith by an officer or officers of the Trustee, unless it
shall be proved that the Trustee was negligent in ascertaining the pertinent
facts;

                  (e)      if an Event of Default shall have occurred and shall
be continuing, the Trustee shall not exercise any of the powers granted to it
hereunder unless and until specifically requested to do so by the Beneficiary;
and

                  (f)      none of the provisions contained in this Deed of
Trust shall require the Trustee to advance or use its own funds or otherwise
incur personal financial liability in the performance of any of its duties or in
the exercise of any of its rights or powers.

                  SECTION  5.12.3 Resignation and Removal; Appointment of
Successor Trustee.

                  (a)      The Trustee may resign and be discharged from the
trusts hereby created by giving written notice thereof to the Trustor and to the
Beneficiary. Such resignation shall become effective upon the appointment of its
successor and such successor's acceptance of such appointment, provided that, if
a successor Trustee has not been so appointed, or, if so appointed, has not
accepted the appointment within thirty (30) days after the date of such written
notice of resignation, the Trustee may apply to any court of competent
jurisdiction for the appointment of a successor Trustee.

                  (b)      The Trustee may be removed at any time, in the
Beneficiary's sole discretion, by an instrument or instruments signed by the
Beneficiary and filed with the Trustor and the Trustee.

                  (c)      The Beneficiary may appoint a successor Trustee at
any time by filing for record in the office of the Register of Deeds of the
County in which the Property is located a substitution of Trustee. From the time
the substitution is filed for record, the successor Trustee shall succeed to all
of the powers, duties, authority and title of the Trustee without the necessity
of any conveyance from the Trustee originally herein named or any successor.
Each such substitution shall be executed and acknowledged, and notice thereof
shall be given and proof thereof made in accordance with applicable law. The
Trustor agrees to accept and confirm any such successor Trustee hereunder by
executing and delivering a supplemental Deed of Trust and security agreement or
any other appropriate agreement.

                                      31

<PAGE>

                  SECTION 5.13 Waiver of Jury Trial; Submission to
Jurisdiction. EACH OF THE TRUSTOR AND THE BENEFICIARY HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY LITIGATION BASED HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION
WITH THIS DEED OF TRUST, THE INDENTURE, THE SENIOR NOTES, THE SECURITY DOCUMENTS
OR ANY OTHER RELATED INSTRUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
STATEMENTS (WHETHER ORAL OR WRITTEN), OR ACTIONS OF THE TRUSTOR OR THE
BENEFICIARY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE BENEFICIARY AND THE
HOLDERS TO ENTER INTO THE TRANSACTIONS PROVIDED FOR IN THE INDENTURE.

                  (b)      FOR THE PURPOSE OF ANY ACTION OR PROCEEDING INVOLVING
THIS DEED OF TRUST OR THE INDENTURE, THE SENIOR NOTES, OR THE SECURITY
DOCUMENTS, THE TRUSTOR, TRUSTEE AND BENEFICIARY HEREBY EXPRESSLY AND IRREVOCABLY
SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF ALL FEDERAL AND STATE COURTS LOCATED
IN THE STATE AND CONSENT THAT THEY MAY BE SERVED WITH ANY PROCESS OR PAPER BY
REGISTERED MAIL OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE IN ACCORDANCE
WITH APPLICABLE LAW, PROVIDED A REASONABLE TIME FOR APPEARANCE IS ALLOWED. THE
TRUSTOR AND THE BENEFICIARY EACH EXPRESSLY WAIVES, TO THE EXTENT IT MAY LAWFULLY
DO SO, ANY OBJECTION, CLAIM OR DEFENSE WHICH IT MAY HAVE AT ANY TIME TO THE
LAYING OF VENUE OF ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF THIS DEED OF
TRUST OR THE INDENTURE IN ANY SUCH COURT, IRREVOCABLY WAIVES ANY CLAIM THAT ANY
SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM AND FURTHER IRREVOCABLY WAIVES THE RIGHT TO OBJECT, WITH
RESPECT TO ANY SUCH CLAIM, SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT,
THAT SUCH COURT DOES NOT HAVE JURISDICTION OVER THE PERSON OF THE TRUSTOR.
NOTHING CONTAINED HEREIN WILL BE DEEMED TO PRECLUDE EITHER OF THE TRUSTEE OR THE
BENEFICIARY FROM BRINGING AN ACTION AGAINST THE TRUSTOR IN ANY OTHER
JURISDICTION.

                  SECTION 5.14 Severability; Conflicts. Any provision of this
Deed of Trust, the Indenture, the Senior Notes, or any other Security Document
which is prohibited or unenforceable in any jurisdiction shall as to such
provision and such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions of
this Deed of Trust, the Indenture, the Senior Notes, or other Security Documents
or affecting the validity or enforceability of such provision in any other
jurisdiction. In the event of any conflict between the terms of this Deed of
Trust and the terms of the Indenture, the terms of the Indenture shall control.

                  SECTION 5.15 Security Agreement. This Deed of Trust is a
document executed pursuant to the Indenture and, unless otherwise expressly
indicated herein, shall be construed, administered and applied in accordance
with the terms and provisions thereof.

                                      32

<PAGE>

                  SECTION 5.16 Usury Savings Clause. In no event shall any
provision of this instrument, the Indenture, the Senior Notes, or any other
instrument evidencing or securing the Secured Obligations ever obligate Trustor,
to pay or allow Beneficiary to collect interest on the Senior Notes or any other
Secured Obligations secured hereby at a rate greater than the maximum
non-usurious rate permitted by applicable law (herein referred to as the
"Highest Lawful Rate"), or obligate Trustor to pay any amounts that would be
held or deemed to constitute interest under applicable law which, when added to
the interest payable on the Senior Notes, would be held to constitute the
payment by Trustor of interest at a rate greater than the Highest Lawful Rate;
and this provision shall control over any provision to the contrary. To the
extent the Highest Lawful Rate is determined by reference to the laws of the
State of Texas, same shall be determined by reference to the indicated rate
ceiling (as defined and described in Chapter 303 of the Texas Finance Code, as
amended) at the applicable time in effect.

         Without limiting the generality of the foregoing, in the event the
maturity of all or any part of the principal amount of the Secured Obligations
shall be accelerated for any reason, then such principal amount so accelerated
shall be credited with any interest theretofore paid thereon in advance and
remaining unearned at the time of such acceleration. If, pursuant to the terms
of this Deed of Trust or the Senior Notes, any funds are applied to the payment
of any part of the principal amount of the Secured Obligations prior to the
maturity thereof, then (a)(a) any interest which would otherwise thereafter
accrue on the principal amount so paid by such application shall be canceled,
and (b) the Secured Obligations remaining unpaid after such application shall be
credited with the amount of all interest, if any, theretofore collected on the
principal amount so paid by such application and remaining unearned at the date
of said application; and if the funds so applied shall be sufficient to pay in
full all the Secured Obligations, then Beneficiary shall refund to Trustor all
interest theretofore paid thereon in advance and remaining unearned at the time
of such acceleration. Regardless of any other provision in this instrument, or
in any of the written evidences of the Secured Obligations, Trustor shall never
be required to pay any unearned interest on the Secured Obligations or any
portion thereof, and shall never be required to pay interest thereon at a rate
in excess of the Highest Lawful Rate construed by courts having competent
jurisdiction thereof.

         It is the intention of the Trustor and the Beneficiary to conform
strictly to the usury laws governing the Indenture and the Security Documents,
and any interest payable under the Indenture and the Security Documents executed
pursuant to the Indenture shall be subject to reduction to the amount not in
excess of the maximum non-usurious amount allowed under such laws, as construed
by the courts having jurisdiction over such matters. In the event the maturity
of the Secured Obligations is accelerated by reason of any provision of the
Indenture and the Security Documents executed pursuant or by reason of an
election by the Beneficiary resulting from an Event of Default, then earned
interest may never include more than the maximum amount permitted by law,
computed from the dates of each advance of loan proceeds under the Indenture
until payment, and any interest in excess of the maximum amount permitted by law
shall be canceled automatically or, if theretofore paid, at the option of the
Beneficiary, shall be rebated to the Trustor, or shall be credited on the
principal amount of the Secured Obligations or, if all principal has been
repaid, then the excess shall be rebated to the Trustor. If any interest is
canceled, credited against principal or rebated to the Trustor in accordance
with the foregoing sentence and, if thereafter the interest payable hereunder is
less than the maximum amount

                                      33

<PAGE>

permitted by applicable law, the rate hereunder shall automatically be increased
to the maximum extent possible to permit repayment to the Beneficiary and the
Lenders as soon as possible of any interest in excess of the maximum amount
permitted by law which was earlier canceled, credit against principal or rebated
to the Trustor pursuant to the provisions of the foregoing sentence.

                  SECTION 5.17 Entire Agreement. THIS WRITTEN DEED OF TRUST,
ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT AND FIXTURE FILING REPRESENTS
THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE
OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

                  SECTION 5.18 No Partnership. Nothing contained herein is
intended or shall be construed to create a partnership or joint venture among
Trustor, Trustee and/or Beneficiary.

           THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

                            [SIGNATURE PAGE FOLLOWS]

                                      34

<PAGE>

         In Witness Whereof, the undersigned, by its duly elected officers and
pursuant to proper authority of its board of directors has duly executed,
sealed, acknowledged and delivered this instrument as of the day and year first
above written.

                                                 STERLING CHEMICALS, INC.,
                                                 a Delaware corporation

                                                 By:
                                                 ______________________________
                                                     Name:
                                                     __________________________
                                                     Title: Treasurer

                              [NOTARY PAGE FOLLOWS]

                                      35

<PAGE>

[CORPORATE NOTARY PAGE]

                      Multi-State Corporate Acknowledgement

TRUSTOR

State of
County of

On this __________________ day of November, 2002, before me, the undersigned
officer, personally appeared ____________________________, with a residence at
___________________ personally known and acknowledged himself/herself/themselves
to me, or produced _________________________________'s identification to be the
____________________ ___ of _____________________________, hereinafter, (the
"Corporation") and that as such officer(s), being duly authorized to do so
pursuant to its bylaws or a resolution of its board of directors, executed,
subscribed and acknowledged the foregoing instrument for the purposes and
consideration therein contained, by signing the name of the Corporation by
himself/herself/themselves in their authorized capacities as such officer(s) as
his/her/their free and voluntary act and deed and the free and voluntary act and
deed of said Corporation.

In Witness Whereof, I hereunto set my hand and official seal.

                                                  ______________________________
                                                              Notary

                                      36

<PAGE>

                                    EXHIBIT A

                                    The Land

<PAGE>

                                    EXHIBIT B

                             Permitted Encumbrances<PAGE>

                                                                     EXHIBIT 4.3

                                                                  EXECUTION COPY

                               SECURITY AGREEMENT

         THIS SECURITY AGREEMENT (as amended, supplemented, amended and restated
or otherwise modified from time to time, this "Agreement"), dated December 19,
2002 (the "Closing Date"), is made by STERLING CHEMICALS, INC., a Delaware
corporation, STERLING CHEMICALS ENERGY, INC., a Delaware corporation
(individually referred to as an "Assignor", and collectively referred to as the
"Assignors"), NATIONAL CITY BANK, as collateral agent (the "Collateral Agent")
and NATIONAL CITY BANK, as indenture trustee (the "Trustee") for the benefit of
the holders (the "Holders") of the Senior Secured Notes due 2007 of Sterling
Chemicals, Inc.

                              W I T N E S S E T H:

         WHEREAS, the Assignors and the Trustee, as trustee, have entered into
that certain indenture, dated December 19, 2002 (as amended, amended and
restated, supplemented or otherwise modified from time to time, the
"Indenture"), pursuant to which Sterling Chemicals, Inc. issued $94,275,000 in
the aggregate principal amount of Senior Secured Notes due 2007 (together with
any notes issued pursuant to such indenture in lieu of payment of interest in
cash and any notes issued in replacement thereof or in exchange or substitution
therefor the "Notes").

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and in order to induce the
Trustee, for the benefit of the Holders, to enter into the Indenture, each
Assignor jointly and severally agrees, for the benefit of each Holder, as
follows:

                                    ARTICLE I
                                   DEFINITIONS

         SECTION 1.1       Certain Terms. The following terms (whether or not
underscored) when used in this Agreement, including its preamble and recitals,
shall have the following meanings (such definitions to be equally applicable to
the singular and plural forms thereof):

         "Actionable Default" means any Event of Default under and as defined in
the Indenture.

         "Agreement" is defined in the preamble.

         "Assignors" is defined in the preamble.

         "Certain Permitted Liens" means the Liens described in clauses 4, 5, 6,
13, 14, 18, 19, 20 and 22 of the definition of Permitted Liens.

         "Closing Date" is defined in the preamble.

         "Collateral" is defined in Section 2.1.

         "Collateral Agent" is defined in the preamble.

         "Company" means Sterling Chemicals, Inc., and any and all successors
thereto.

<PAGE>

         "Equipment" has the meaning as defined in Section 9-109 of the U.C.C.

         "Holders" is defined in the preamble.

         "Indenture" is defined in the recital.

         "Intercreditor Agreement" means the Intercreditor Agreement, dated the
date hereof, between the Trustee and The CIT Group/Business Credit, Inc., as
such agreement may be amended, modified or supplemented from time to time.

         "Issue Date" is defined in the Indenture.

         "Material Contracts" means all contracts for the receipt by such
Assignor of services or supplies, but excluding contracts that give rise to the
payment of money to such Assignor.

         "Material Patents" means all of Assignors right, title and interest in
and to all patentable inventions, letters patent, and applications for letters
patent that are necessary or appropriate for the continued operation of the
plants located at the Real Property.

         "Material Trade Secrets" means all of Assignor's right, title and
interest in and to all common law and statutory trade secrets and all other
confidential or proprietary or useful information and all know-how obtained by
or used in or contemplated at any time for use in the business of any Assignor
(all of the foregoing being collectively called a "Trade Secret") that are
necessary or appropriate for the continued operation of the plants located at
the Real Property, whether or not such Trade Secret has been reduced to a
writing or other tangible form, including all documents and things embodying,
incorporating or referring in any way to such Trade Secret, all Trade Secret
licenses, and including the right to sue for and to enjoin and to collect
damages for the actual or threatened misappropriation of any Trade Secret and
for the breach or enforcement of any such Trade Secret license.

         "Notes" is defined in the recital.

         "Notice of Actionable Default" means a notice by the Trustee delivered
to the Collateral Agent, stating that an Actionable Default has occurred. A
Notice of Actionable Default shall be deemed to have been given when the notice
referred to in the preceding sentence has actually been received by the
Collateral Agent and to have been rescinded when the Collateral Agent has
actually received from the notifying party a notice withdrawing such Notice. A
Notice of Actionable Default shall be deemed to be outstanding at all times
after such Notice has been given until such time, if any, as such Notice has
been rescinded.

         "Obligations" means (a) the due and punctual payment of (i) principal
and premium, if any, and interest (including interest accruing during the
pendency of any bankruptcy, insolvency, receivership or other similar
proceeding, regardless of whether allowed or allowable in such proceeding) owing
by the Assignors under the Secured Debt Documents, when and as due, whether at
maturity, by acceleration, upon one or more dates set for prepayment,
repurchase, redemption or otherwise, and (ii) all other monetary obligations,
including fees, commissions, costs, expenses and indemnities, whether primary,
secondary, direct, contingent, fixed or otherwise (including monetary
obligations incurred during the pendency of any bankruptcy,

                                       -2-

<PAGE>

insolvency, receivership or other similar proceeding, regardless of whether
allowed or allowable in such proceeding), of the Assignors to the Trustee, or
that are otherwise payable to the Trustee, under the Secured Debt Documents and
(b) the due and punctual performance of all covenants, agreements, obligations
and liabilities of the Assignors under or pursuant to the Secured Debt
Documents.

         "Permitted Liens" is defined in the Indenture.

         "Real Property" means all real property now owned or hereafter acquired
by any Assignor, including, without limitation, the real property more
particularly described in Exhibit A of that certain Deed of Trust, Assignment of
Leases and Rents, Security Agreement and Fixture Filing, of even date herewith,
among the Company, as Trustor, to National City Bank, as Trustee, for the
benefit of National City Bank, as Collateral Agent, for the benefit of the
Trustee.

         "Satisfaction Date" means the date on which all Obligations have been
irrevocably paid in full or otherwise satisfied.

         "Secured Debt Documents"  means the Security Documents, the Indenture
and the Notes.

         "Security Documents" is defined in the Indenture.

         "Security Agreement" means each of this Agreement and any other
agreement pursuant to which one or more Assignors grants a security interest to
the Collateral Agent for the benefit of the Trustee.

         "Trustee" is defined in the preamble.

         SECTION 1.2       Indenture Definitions. Unless otherwise defined
herein or the context otherwise requires, terms used in this Agreement,
including its preamble and recitals, have the meanings provided in the
Indenture.

         SECTION 1.3       U.C.C. Definitions. Unless otherwise defined herein
or the context otherwise requires, terms for which meanings are provided in the
Uniform Commercial Code from time to time in effect in the State of New York
(the "U.C.C.") are used in this Agreement, including its preamble and recitals,
with such meanings.

                                   ARTICLE II
                                SECURITY INTEREST

         SECTION 2.1       Grant of Security. Each Assignor hereby assigns,
pledges, hypothecates, charges, delivers and transfers to the Collateral Agent
for its benefit and the ratable benefit of the Holders and hereby grants to the
Collateral Agent for its benefit and the ratable benefit of the Holders a
continuing first priority (subject only to Permitted Liens existing on the Issue
Date and Certain Permitted Liens) security interest in all of the following,
whether now owned or hereafter acquired (collectively, the "Collateral"):

                                       -3-

<PAGE>

                  (a)      the Real Property, buildings, structures and other
         improvements to any of the foregoing of the Assignors and to the extent
         any of the following items of property constitute fixtures and/or
         Equipment under applicable laws, all fixtures, fittings, appliances,
         apparatus, Equipment, machinery, building and construction materials
         and all other articles of every kind and nature whatsoever (other than
         Inventory (as defined in the UCC) and other current assets) and all
         replacements thereof and additions, enhancements or upgrades thereto,
         now or hereafter affixed or attached to, placed upon or located on or
         in the Real Property or any buildings, structures and other
         improvements located thereon, the Material Patents, the Material Trade
         Secrets and the Material Contracts;

                  (b)      all products, offspring, rents, issues, profits,
         returns, income and proceeds of and from any and all of the foregoing
         Collateral (including proceeds which constitute property of the types
         described in clause (a) and, to the extent not otherwise included, all
         payments under insurance (whether or not the Collateral Agent is the
         loss payee thereof) or any indemnity, warranty or guaranty, payable by
         reason of loss or damage to or otherwise with respect to any of the
         foregoing Collateral); provided, however, that in no event shall the
         Collateral include any products, offsprings, rents, issues, profits,
         returns, income or proceeds that constitute Credit Agreement Collateral
         under section 2.1(c) of the Intercreditor Agreement.

Notwithstanding the foregoing, "Collateral" shall not include any general
intangibles or other rights arising under any contracts, instruments, licenses
or other documents as to which the grant of a security interest would constitute
a violation of a valid and enforceable restriction in favor of a third party on
such grant, unless and until any required consents shall have been obtained.
Each Assignor agrees to use its best efforts to obtain any such required consent
with respect to any material item of Collateral.

         SECTION 2.2       Security for Obligations. This Agreement secures the
payment in full in cash and the performance of all Obligations.

         SECTION 2.3       Continuing Security Interest. This Agreement shall
create a continuing first priority (subject only to Permitted Liens existing on
the Issue Date and Certain Permitted Liens) security interest in the Collateral
and shall:

                  (a)      remain in full force and effect until the
         satisfaction of all Obligations;

                  (b)      be binding upon each Assignor, its successors,
         transferees and assigns; and

                  (c)      inure, together with the rights and remedies of the
         Collateral Agent hereunder, to the benefit of the Collateral Agent, the
         Trustee and the Holders.

         SECTION 2.4       Assignor Remains Liable. Anything herein to the
contrary notwithstanding;

                  (a)      each Assignor will remain liable under the contracts
         and agreements included in the Collateral to the extent set forth
         therein, and will perform all of its duties and obligations under such
         contracts and agreements to the same extent as if this Agreement had
         not been executed;

                                       -4-

<PAGE>

                  (b)      the exercise by the Collateral Agent of any of its
         rights hereunder will not release any Assignor from any of its duties
         or obligations under any such contracts or agreements included in the
         Collateral; and

                  (c)      neither the Collateral Agent nor any Holder will have
         any obligation or liability under any such contracts or agreements
         included in the Collateral by reason of this Agreement, nor will the
         Collateral Agent or any other Collateral Agent or any Holder be
         obligated to perform any of the obligations or duties of any Assignor
         thereunder or to take any action to collect or enforce any claim for
         payment assigned hereunder.

         SECTION 2.5       Security Interest Absolute. All rights of the
Collateral Agent and the security interests granted to the Collateral Agent
hereunder, and all obligations of each Assignor hereunder, shall be absolute and
unconditional, irrespective of:

                  (a)      any lack of validity or enforceability of the
         Indenture or this Agreement;

                  (b)      the failure of the Collateral Agent or any Holder

                           (i)      to assert any claim or demand or to enforce
                  any right or remedy against the Assignors or any other Person
                  under the provisions of the Indenture or this Agreement or
                  otherwise or

                           (ii)     to exercise any right or remedy against any
                  guarantor of, or Collateral securing, any Obligations;

                  (c)      any change in the time, manner or place of payment
         of, or in any other term of, all or any of the Obligations or any other
         extension, compromise or renewal of any Obligations;

                  (d)      any redaction, limitation, impairment or termination
         of any Obligations for any reason (other than the repayment in full and
         in cash of all Obligations), including any claim of waiver, release,
         surrender, alteration or compromise, and shall not be subject to (and
         each Assignor hereby waives any right to or claim of) any defense or
         set-off, counterclaim, recoupment or termination whatsoever by reason
         of the invalidity, illegality, nongenuineness, irregularity, compromise
         or unenforceability of, or any other event or occurrence affecting, any
         Obligations or otherwise;

                  (e)      any amendment to, rescission, waiver or other
         modification of, or any consent to departure from, any of the terms of
         the Indenture or this Agreement;

                  (f)      any addition, exchange, release, surrender or
         non-perfection of any collateral (including the Collateral), or any
         amendment to or waiver or release of or addition to or consent to
         departure from any guaranty for any of the Obligations; or

                  (g)      any other circumstances which might otherwise
         constitute a defense available to, or a legal or equitable discharge
         of, any Assignor, any surety or any guarantor.

                                       -5-

<PAGE>

         SECTION 2.6       Postponement of Subrogation, etc. Each Assignor
hereby agrees that it will not exercise any rights which it may acquire by
reason of any payment made hereunder, whether by way of subrogation,
reimbursement or otherwise, until the Satisfaction Date. Any amount paid to any
Assignor hereunder prior to the Satisfaction Date shall be held in trust for the
benefit of the Collateral Agent and the Holders and shall immediately be paid to
the Collateral Agent for the benefit of the Holders and credited and applied
against the Obligations, whether matured or unmatured, in accordance with the
terms of Section 6.1 hereof; provided, however, that if:

                  (a)      such Assignor has made payment to the Collateral
         Agent of all or any part of the Obligations: and

                  (b)      the Satisfaction Date has occurred,

the Collateral Agent, on behalf of the Holders agrees that, at the requesting
Assignor's request, the Collateral Agent, on behalf of the Collateral Agent and
the Holders will execute and deliver to such Assignor appropriate documents
(without recourse and without representation or warranty) necessary to evidence
the transfer by subrogation to such Assignor of an interest in the Obligations
resulting from such payment by such Assignor. In furtherance of the foregoing,
prior to the Satisfaction Date, each Assignor shall refrain from taking any
action or commencing any proceeding against any Assignor (or its successors or
assigns, whether in connection with a bankruptcy proceeding or otherwise) to
recover any amounts in respect of payments made under this Agreement to the
Collateral Agent or Holders.

                                   ARTICLE III
                         REPRESENTATIONS AND WARRANTIES

         SECTION 3.1       Representations and Warranties. Except as disclosed
on Schedule I attached hereto, each Assignor represents and warrants to the
Collateral Agent and the Holders as set forth in this Article III.

         SECTION 3.2       Ownership, No Liens, etc. Each Assignor owns its
Collateral free and clear of any Lien, except for the Lien in favor of the
Collateral Agent and Permitted Liens. No effective financing statement or other
instrument similar in effect covering all or any part of the Collateral is on
file in any recording office, except such as may have been filed in favor of the
Collateral Agent relating to this Agreement or as have been filed in connection
with Permitted Liens.

         SECTION 3.3       Validity, etc. This Agreement creates a valid
continuing first priority (subject only to Permitted Liens existing on the Issue
Date and Certain Permitted Liens) security interest in the Collateral securing
the payment in full in cash and performance of the Obligations, and the
Assignors will at all times cause the security interests granted pursuant to
this Agreement to constitute valid perfected continuing first priority (subject
only to Permitted Liens existing on the Issue Date and Certain Permitted Liens)
security interest in the Collateral, enforceable as such against all creditors
of the Assignors and (except as otherwise specifically provided herein) any
Persons purporting to purchase any Collateral from the Assignors. Each Assignor
will, promptly upon request by Collateral Agent, execute and deliver or cause to
be executed and

                                       -6-

<PAGE>

delivered, or use its best efforts to procure, tax stamps, assignments,
instruments and other documents, all in form and substance reasonably
satisfactory to the Collateral Agent, and take any other actions that are
necessary or, in the reasonable opinion of Collateral Agent, desirable to
perfect, continue the perfection of, or protect the continuing first priority
(subject only to Permitted Liens existing on the Issue Date and Certain
Permitted Liens) security interest of the Collateral Agent in the Collateral, to
protect the Collateral against the rights, claims or interests of third persons,
to enable the Collateral Agent to exercise or enforce its rights and remedies
hereunder, or otherwise to effect the purposes of this Agreement. Each Assignor
also hereby authorizes the Collateral Agent to file any financing or
continuation statements with respect to the Collateral without the signature of
such Assignor to the extent permitted by applicable law. The Assignors will pay
all costs incurred in connection with any of the foregoing.

         SECTION 3.4       Authorization, Approval, etc. Except as have been
obtained or made and are in full force and effect, no material authorization,
material approval or other action by, and no material notice to or material
filing with, any Governmental Authority or regulatory body is required either
(a) for the grant by any of the Assignors of the security interest granted
hereby, the pledge by any of the Assignors of any Collateral pursuant hereto or
for the execution, delivery and performance of this Agreement by any of the
Assignors or (b) for the perfection of or the exercise by the Collateral Agent
of its rights and remedies hereunder.

         SECTION 3.5       Compliance with Laws. Each Assignor is in compliance
with the requirements of all applicable laws (including the provisions of the
Fair Labor Standards Act), rules, regulations and orders of every Governmental
Authority, the non-compliance with which could reasonably be expected to have a
material adverse effect or which could reasonably be expected to materially
adversely affect the value of the Collateral.

         SECTION 3.6       Location of Collateral, etc. All of the Equipment is
located at the address of the Real Property.

         SECTION 3.7       Material Patents. None of the Assignors has any
Material Patents.

                                   ARTICLE IV
                                    COVENANTS

         SECTION 4.1       Equipment. Each Assignor hereby agrees that it shall:

                  (a)      keep all the Equipment at the places therefor
         specified in Section 3.6. or, upon 30 days prior written notice to the
         Collateral Agent, at such other places in a jurisdiction where all
         representations and warranties set forth in Article III shall be true
         and correct in all material respects, and all action required pursuant
         to the first sentence of Section 4.2 shall have been taken with respect
         to the Equipment;

                  (b)      cause the Equipment to be maintained and preserved in
         good repair, ordinary wear and tear excepted, and in all material
         respects in accordance with any manufacturer's manual; and forthwith,
         or in the case of any loss or damage to any of the Equipment that is
         material to the operations of any of the Assignors, as quickly as
         practicable after the occurrence thereof, make or cause to be made all
         repairs,

                                       -7-

<PAGE>

         replacements, and other improvements in connection therewith which are
         reasonably necessary to such end; and

                  (c)      pay promptly when due all property and other taxes,
         assessments and governmental charges or levies imposed upon, and all
         claims (including claims for labor, materials and supplies) against the
         Equipment, except to the extent the validity thereof is being contested
         in good faith by appropriate proceedings.

         SECTION 4.2       Further Assurances. etc. Each Assignor agrees that,
from time to time at its own expense, it will promptly execute and deliver all
further instruments and documents and take all further action, that may be
necessary or desirable, or that the Collateral Agent may reasonably request, in
order to perfect, preserve, protect and record any security interest granted or
purported to be granted hereby or to enable the Collateral Agent to exercise and
enforce its rights and remedies hereunder with respect to any Collateral.
Without limiting the generality of the foregoing, each Assignor will:

                  (a)      execute and file such financing or continuation
         statements, or amendments thereto, and such other instruments or
         notices as may be necessary or desirable, or as the Collateral Agent
         may request, in order to perfect and preserve the security interests
         and other rights granted or purported to be granted to the Collateral
         Agent hereby; and

                  (b)      furnish to the Collateral Agent, from time to time
         at the Collateral Agent's request, statements and schedules further
         identifying and describing the Collateral and such other reports in
         connection with the Collateral as the Collateral Agent may reasonably
         request, all in reasonable detail.

         SECTION 4.3       Material Patents. Each Assignor agrees that if it
develops or otherwise acquires any Material Patents, such Assignor shall take
such actions and execute and deliver such documents and instruments as may be
required or necessary to grant to the Collateral Agent for its benefit and the
ratable benefit of the Holders a first priority (subject only to Permitted Liens
existing on the date of the grant of such security interests and Certain
Permitted Liens) security interest in such Material Patents, including promptly
executing and delivering to the Collateral Agent a Patent and Security Agreement
substantially in the form of Exhibit A attached hereto.

With respect to the foregoing and the grant of the security interest hereunder,
each Assignor hereby authorizes the Collateral Agent to file one or more
financing or continuation statements, and amendments thereto, relative to all or
any part of the Collateral without the signature of such Assignor where
permitted by law. A carbon, photographic or other reproduction of this Agreement
or any financing statement covering the Collateral or any part thereof shall be
sufficient as a financing statement where permitted by law.

                                   ARTICLE V
                   THE COLLATERAL AGENT; RECOURSE OF TRUSTEE;
                                 ACTS OF TRUSTEE

         SECTION 5.1       Collateral Agent Appointed Attorney-in-Fact. Each
Assignor hereby irrevocably appoints the Collateral Agent as such Assignor's
attorney-in-fact, with full authority

                                       -8-

<PAGE>

to act in the name, place and stead of the Assignor or in its own name, from
time to time in the Collateral Agent's discretion, to take, upon the occurrence
and during the continuance of an Actionable Default, any action and to execute
any instrument which the Collateral Agent may deem necessary or advisable to
accomplish the purposes of this Agreement, including without limitation:

                  (a)      to ask, demand, collect, sue for, recover, compromise
         and receive and give acquittance and receipts for moneys due and to
         become due under or in respect of any of the Collateral;

                  (b)      to receive, endorse and collect any drafts or other
         instruments, documents and chattel paper, in connection with clause (a)
         above;

                  (c)      to file any claims or take any action or institute
         any proceedings which the Collateral Agent may deem necessary or
         desirable to protect and preserve the Collateral or for the collection
         of any of the Collateral or otherwise to enforce the rights and
         remedies of the Collateral Agent with respect to any of the Collateral
         thereunder or otherwise; and

                  (d)      to perform the affirmative obligations of such
         Assignor hereunder (including all obligations of such Assignor pursuant
         to Section 4.2).

         SECTION 5.2       Authority of Collateral Agent. The Collateral Agent
shall have and be entitled to exercise all powers hereunder that are
specifically granted to Collateral Agent by the terms hereof, together with such
powers as are reasonably incidental thereto. The Collateral Agent may perform
any of its duties hereunder or in connection with the Collateral by or through
agents or employees and shall be entitled to retain counsel and to act in
reliance upon the advice of counsel concerning all such matters. Neither the
Collateral Agent nor any director, officer, employee, attorney or agent of the
Collateral Agent shall be responsible for the validity, effectiveness or
sufficiency hereof or of any document or security furnished pursuant hereto. The
Collateral Agent and its directors, officers, employees, attorneys and agents
shall be entitled to rely on any communication, instrument or document
reasonably believed by it or them to be genuine and correct and to have been
signed or sent by the proper person or persons.

         Each Assignor acknowledges that the rights and responsibilities of the
Collateral Agent under this Agreement with respect to any action taken by the
Collateral Agent or the exercise or non-exercise by the Collateral Agent of any
option, right, request, judgment or other right or remedy provided for herein or
resulting or arising out of this Agreement shall, as between the Collateral
Agent, the Trustee and the Holders, be governed by this Agreement, the Indenture
and by such other agreements with respect thereto as may exist from time to time
among them, but, as between the Collateral Agent and the Assignors, the
Collateral Agent shall be conclusively presumed to be acting as agent for the
Trustee and the Holders with full and valid authority so to act or refrain from
acting, and the Assignors shall not be obligated or entitled to make any inquiry
respecting such authority.

         SECTION 5.3       Appointment of Collateral Agent; Resignation or
Removal of the Collateral Agent.

                                       -9-

<PAGE>

                  (a)      The Trustee, acting on behalf of the Holders,
         pursuant to the Indenture, hereby appoints National City Bank to act as
         Collateral Agent pursuant to the terms of this Agreement. The
         relationship between the Collateral Agent and the Trustee, on behalf of
         the Holders, is and shall be that of agent and principal only, and
         nothing contained in this Agreement shall be construed to constitute
         the Collateral Agent, as such, as a trustee for the Trustee or any
         Holder.

                  (b)      Until such time as the Obligations shall have been
         paid in full, the Collateral Agent may at any time, by giving written
         notice to the Assignors, the Trustee and the Holders, resign and be
         discharged of the responsibilities hereby created, such resignation to
         become effective upon (i) the appointment of a successor Collateral
         Agent and (ii) the acceptance of such appointment by such successor
         Collateral Agent. As promptly as practicable after the giving of any
         such notice, the Trustee (if the Trustee is not then acting as the
         Collateral Agent hereunder) or if the Trustee and the Collateral Agent
         are the same person or entity, the Holders shall appoint a successor
         Collateral Agent, which successor Collateral Agent shall be reasonably
         acceptable to the Company. If no successor Collateral Agent shall be
         appointed and shall have accepted such appointment within 90 days after
         the Collateral Agent gives the aforesaid notice of resignation, the
         Collateral Agent may apply to any court of competent jurisdiction to
         appoint a successor Collateral Agent to act until such time, if any, as
         a successor shall have been appointed as provided in this Section 5.3.
         Any successor so appointed by such court shall immediately and without
         further act be superseded by any successor Collateral Agent appointed
         by the Holders, as provided in this Section 5.3. Any Collateral Agent
         that has resigned shall be entitled to fees, costs and expenses to the
         extent incurred or arising, or relating to events occurring, before its
         resignation or removal.

         SECTION 5.4       Release; Termination of Agreement. (a) This Agreement
shall terminate upon the earlier to occur of (i) the Satisfaction Date, (ii) the
latest of (x) the day of the Legal Defeasance of all of the Obligations owing to
the Holders pursuant to Section 8.02 of the Indenture (other than those
surviving Obligations owing to the Holders specified therein); and (y) the date
of payment in full of all Obligations, and (iii) the later of (x) such other
termination date as is provided in the Indenture and (y) the date of payment in
full of all Obligations. At such time, the Collateral Agent shall, at the
request of the Assignors, reassign and redeliver to the Assignors all of the
Collateral hereunder that has not been sold, disposed of, retained or applied by
the Collateral Agent in accordance with the terms hereof. Such reassignment and
redelivery shall be without warranty by or recourse to the Collateral Agent,
except as to the absence of any prior assignments by the Collateral Agent of its
interest in the Collateral, and shall be at the expense of the Assignors.

                  (b)      Each of the Assignors agree that they will not,
         except as permitted by the Indenture, sell or dispose of, or grant any
         option or warrant with respect to, any of the Collateral; provided,
         however, that if any Assignor shall sell any of the Collateral in
         accordance with the terms of the Indenture, the Collateral Agent shall,
         at the request of the Assignors and subject to requirements of Section
         10.03 of the Indenture, release the Collateral subject to such sale
         free and clear of the Lien under this Agreement.

                                      -10-

<PAGE>

                  (c)      Trust Indenture Act Compliance. Notwithstanding the
         foregoing provisions of this Section 5.4, the Collateral Agent is not
         authorized to release any Collateral or to provide any such release or
         termination statement unless the Collateral Agent shall have received a
         certificate from the Company certifying that all documentation required
         by Section 314(d) of the Trust Indenture Act of 1939, as amended, in
         connection with such release has been duly furnished to the Trustee in
         accordance with Section 10.04 of each of the Indenture.

         SECTION 5.5       Collateral Agent Has No Duty. The powers conferred on
the Collateral Agent hereunder are solely to protect the interest of the Trustee
(on behalf of the Holders) in the Collateral and shall not impose any duty on it
to exercise any such powers. Except for reasonable care of any Collateral in its
possession and the accounting for moneys actually received by it hereunder, the
Collateral Agent shall have no duty as to any Collateral or responsibility for:

                  (a)      ascertaining or taking action with respect to calls,
         conversions, exchanges, maturities, tenders or other matters relative
         to any investment property, whether or not the Collateral Agent has or
         is deemed to have knowledge of such matters; or

                  (b)      taking any necessary steps to preserve rights against
         prior parties or any other rights pertaining to any Collateral.

         SECTION 5.6       Action Under Agreement. The Collateral Agent shall
not be obligated to take any action under this Agreement except for the
performance of such duties as are specifically set forth herein. The Collateral
Agent shall take any action hereunder which is requested by the Trustee and
which is not inconsistent with or contrary to the provisions of this Agreement
or the Indenture; provided, that the Collateral Agent shall not amend or waive
any provision of this Agreement except in accordance with Section 8.2 hereof. At
any time when a Notice of Actionable Default shall have been given and shall be
outstanding, the Collateral Agent shall exercise or refrain from exercising all
such rights, powers and remedies as shall be available to it hereunder in
accordance with any written instructions received from the Trustee. The
Collateral Agent shall have the right to decline to follow any such direction if
the Collateral Agent, being advised by counsel, determines that the directed
action is not permitted by the terms of this Agreement or the Indenture, may not
lawfully be taken or would involve it in personal liability, and the Collateral
Agent shall not be required to take any such action unless any indemnity which
is required hereunder in respect of such action has been provided. The
Collateral Agent may rely on any such direction given to it by the Trustee and
shall be fully protected, and shall under no circumstances (absent the gross
negligence and willful misconduct of the Collateral Agent) be liable to any of
the Assignors, any of the Holders or any other Person for taking or refraining
from taking action in accordance therewith. Absent written instructions from the
Trustee (a) at a time when a Notice of Actionable Default shall be outstanding
or (b) in the case of an emergency in order to protect any of the Collateral,
the Collateral Agent may take, but shall have no obligation to take, any and all
such actions hereunder or otherwise as it shall deem to be in the best interests
of the Trustee. Except as provided in the preceding sentence, in the absence of
written instructions (which may relate to the exercise of specific remedies or
to the exercise of remedies in general) from the Trustee, the Collateral Agent
shall not exercise remedies available to it hereunder with respect to the
Collateral or any part thereof.

                                      -11-

<PAGE>

         SECTION 5.7       Reasonable Care. The Collateral Agent is required to
exercise reasonable care in the custody and preservation of any of the
Collateral in its possession; provided, however, that the Collateral Agent shall
be deemed to have exercised reasonable care in the custody and preservation of
any of the Collateral if it takes such action for that purpose as the Trustee or
any Assignor reasonably requests in writing from time to time, but failure of
the Collateral Agent to comply with any such request at any time shall not in
itself be deemed a failure to exercise reasonable care. If an Actionable Default
has occurred and is continuing, the Collateral Agent shall not be required to
comply with any request of the Assignors with respect to the matters described
in this Section 5.7.

         SECTION 5.8       Recourse of Trustee; Other Collateral. The Trustee
acknowledges and agrees that (a) it shall only have recourse to the Collateral
through the Collateral Agent and that it shall have no independent recourse to
the Collateral, and (b) the Collateral Agent shall have no obligation to take
any action, or refrain from taking any action, except upon instructions from the
Trustee in accordance with Section 5.9 hereof. Nothing contained herein shall
restrict the rights of the Trustee to pursue remedies, by proceedings in law and
equity, to collect principal of or interest on the Notes or to enforce the
performance of and provisions of the Indenture, to the extent that such remedies
do not relate to the Collateral or interfere with the Collateral Agent's right
to take action hereunder.

         SECTION 5.9       Acts of Trustee. Any request, demand, authorization,
direction, notice, consent, waiver or other action permitted or required by this
Agreement to be given or taken by the Trustee may be and, at the request of the
Collateral Agent, shall be embodied in and evidenced by one or more instruments
satisfactory in form to the Collateral Agent and signed by or on behalf of the
Trustee and, except as otherwise expressly provided in any such instrument, any
such action shall become effective when such instrument or instruments shall
have been delivered to the Collateral Agent. The instrument or instruments
evidencing any action (and the action embodied therein and evidenced thereby)
are sometimes referred to herein as an "Act" of the persons signing such
instrument or instruments. The Collateral Agent shall be entitled to rely
absolutely upon an Act of the Trustee if such Act purports to be taken by or on
behalf of the Trustee, and nothing in this Section 5.9 or elsewhere in this
Agreement shall be construed to require the Trustee to demonstrate that it has
been authorized by the Holders to take any action which it purports to be
taking, the Collateral Agent being entitled to rely conclusively, and being
fully protected in so relying, on any Act of the Trustee.

         SECTION 5.10      Notices to the Trustee and the Assignors. The
Collateral Agent shall within five (5) business days following receipt thereof
furnish to the Trustee and the Assignors:

                  (a)      a copy of each Notice of Actionable Default received
         by the Collateral Agent;

                  (b)      a copy of each certificate received by the Collateral
         Agent rescinding a Notice of Actionable Default;

                  (c)      written notice of any release or subordination by the
         Collateral Agent of any Collateral; and

                                      -12-

<PAGE>

                  (d)      such other notices required by the terms of this
         Agreement to be furnished by the Collateral Agent.

                                   ARTICLE VI
                                    REMEDIES

         SECTION 6.1       Certain Remedies. If any Actionable Default shall
have occurred and be continuing:

                  (a)      The Collateral Agent may exercise in respect of the
         Collateral, in addition to other rights and remedies provided for
         herein or otherwise available to it, all the rights and remedies of a
         secured party on default under the U.C.C. (whether or not the U.C.C.
         applies to the affected Collateral) and also may

                           (i)      require each Assignor to, and each Assignor
                  hereby agrees that it will, at its expense and upon request of
                  the Collateral Agent forthwith, assemble all or part of the
                  Collateral as directed by the Collateral Agent and make it
                  available to the Collateral Agent at a place to be designated
                  by the Collateral Agent which is reasonably convenient to both
                  parties, and

                           (ii)     without notice except as specified below,
                  sell the Collateral or any part thereof in one or more parcels
                  at public or private sale, at any of the Collateral Agent's
                  offices or elsewhere, for cash, on credit or for future
                  delivery, and upon such other terms as the Collateral Agent
                  may deem commercially reasonable. Each Assignor agrees that,
                  to the extent notice of sale shall be required by law, at
                  least ten days prior notice to such Assignor of the time and
                  place of any public sale or the time after which any private
                  sale is to be made shall constitute reasonable notification.
                  The Collateral Agent shall not be obligated to make any sale
                  of such Collateral regardless of notice of sale having been
                  given. The Collateral Agent may adjourn any public or private
                  sale from time to time by announcement at the time and place
                  fixed therefor, and such sale may, without further notice, be
                  made at the time and place to which it was so adjourned.

                  (b)      All cash proceeds received by the Collateral Agent in
         respect of any sale of, collection from or other realization upon all
         or any part of the Collateral shall be applied by the Collateral Agent
         against all or any part of the Obligations as follows:

                           (i)      first, to the payment of any amounts payable
                  to the Collateral Agent pursuant to Section 6.3 or any other
                  Security Agreement;

                           (ii)     second, to the equal and ratable payment of
                  any Obligations owing to the Holders which are owed to the
                  Trustee or any Holder pursuant to the Indenture, applied

                                    (A)      first to fees and expense
                           reimbursements then due to the Trustee;

                                      -13-

<PAGE>

                                    (B)      then to interest due to the
                           Trustee;

                                    (C)      then to pay the remaining
                           outstanding Obligations owing to the Holders;

                           (iii)    third, to be held as additional collateral
                  security until the Satisfaction Date, after which such
                  remaining cash proceeds shall be paid over to the applicable
                  Assignor or to whomsoever may be lawfully entitled to receive
                  such surplus.

                  (c)      The Collateral Agent may:

                           (i)      transfer all or any part of the Collateral
                  into the name of the Collateral Agent or its nominee, with or
                  without disclosing that such Collateral is subject to the lien
                  and security interest hereunder,

                           (ii)     enforce collection of any of the Collateral
                  by suit or otherwise, and surrender, release or exchange all
                  or any part thereof, or compromise or extend or renew for any
                  period (whether or not longer than the original period) any
                  obligations of any nature of any party with respect thereto,

                           (iii)    take control of any proceeds of the
                  Collateral, and

                           (iv)     execute (in the name, place and stead of
                  such Assignor), assignments and other instruments of
                  conveyance or transfer with respect to all or any of the
                  Collateral.

         SECTION 6.2       Compliance with Restrictions. Each Assignor agrees
that in any sale of any of the Collateral whenever an Actionable Default shall
have occurred and be continuing, the Collateral Agent is hereby authorized to
comply with any limitation or restriction in connection with such sale as it may
be advised by counsel is necessary in order to avoid any violation of applicable
law or in order to obtain any required approval of the sale or of the purchaser
by any Governmental Authority or official, and such Assignor further agrees that
such compliance shall not result in such sale being considered or deemed not to
have been made in a commercially reasonable manner, nor shall the Collateral
Agent be liable nor accountable to such Assignor for any discount allowed by the
reason of the fact that such Collateral is sold in compliance with any such
limitation or restriction.

         SECTION 6.3       Indemnity and Expenses. Each Assignor hereby jointly
and severally indemnifies and holds harmless the Collateral Agent from and
against any and all claims, losses and liabilities arising out of or resulting
from this Agreement (including enforcement of this Agreement), except claims,
losses or liabilities resulting from the Collateral Agent's gross negligence or
willful misconduct and each Assignor will, upon demand, pay to the Collateral
Agent the amount of any and all reasonable expenses, including the reasonable
fees and disbursements of its counsel and of any experts and agents, which the
Collateral Agent may incur, in each case, in connection with:

                  (a)      the administration of this Agreement;

                                      -14-

<PAGE>

                  (b)      the custody, preservation, use, or operation of or
         the sale of, collection from, or other realization upon, any of the
         Collateral;

                  (c)      the exercise or enforcement of any of the rights of
         the Collateral Agent hereunder; or

                  (d)      the failure by any Assignor to perform or observe any
         of the provisions hereof.

                                   ARTICLE VII
                            MISCELLANEOUS PROVISIONS

         SECTION 7.1       Security Agreement. This Agreement is a Security
Agreement executed pursuant to the Indenture and shall (unless otherwise
expressly indicated herein) be construed, administered and applied in accordance
with the terms and provisions thereof.

         SECTION 7.2       Amendments, etc. No amendment to or waiver of any
provision of this Agreement nor consent to any departure by the Trustee or any
Assignor herefrom shall in any event be effective unless the same shall be in
writing and signed by the Collateral Agent, the Trustee and each Assignor and
then such waiver or consent shall be effective only in the specific instance and
for the specific purpose for which given.

         SECTION 7.3       Protection of Collateral. The Collateral Agent may
from time to time, at its option, perform any act which each Assignor agrees
hereunder to perform and which such Assignor shall fail to perform after being
requested in writing so to perform (it being understood that no such request
need be given after the occurrence and during the continuance of any Actionable
Default) and the Collateral Agent may from time to time take any other action
which the Collateral Agent reasonably deems necessary for the maintenance,
preservation or protection of any of the Collateral or of its security interest
therein.

         SECTION 7.4       Addresses for Notices. All notices and other
communications provided for hereunder shall be in writing and addressed,
delivered or transmitted, if to any Assignor, at the address or facsimile number
of the Company provided for in the Indenture, if to the Collateral Agent, at the
following address or facsimile number: (317) 267-7658, and if to the Trustee, at
the address or facsimile number provided for in the Indenture, or to such other
address or facsimile number as shall be designated by such party in a written
notice to each other party complying as to delivery with the terms of this
Section 7.4. Any notice, (a) if mailed and properly addressed with postage
prepaid or if properly addressed and sent by pre-paid courier service, shall be
deemed given when received, or (b) if transmitted by facsimile, shall be deemed
given when transmitted (and telephonic confirmation of receipt thereof has been
received).

         SECTION 7.5       Headings. The various headings of this Agreement are
inserted for convenience only, and shall not affect the meaning or
interpretation of this Agreement or any provision hereof.

         SECTION 7.6       Severability. Any provision of this Agreement which
is prohibited or unenforceable in any jurisdiction shall, as to such provision
and such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining

                                      -15-

<PAGE>

provisions of this Agreement or affecting the validity or enforceability of such
provision in any other jurisdiction.

         SECTION 7.7       Counterparts; Effectiveness. This Agreement may be
executed by the parties hereto in several counterparts, each of which shall be
deemed to be an original (whether such counterpart is originally executed or an
electronic copy of an original) and all of which shall constitute together but
one and the same agreement. This Agreement shall become effective as of the date
first above written and be binding upon an Assignor when a counterpart hereof
executed on behalf of such Assignor shall have been received by the Collateral
Agent.

         SECTION 7.8       Governing Law. THIS AGREEMENT SHALL BE DEEMED TO BE A
CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK,
EXCLUDING THE LAW OF CONFLICTS EXCEPT TO THE EXTENT THAT THE VALIDITY OR
PERFECTION OF THE SECURITY INTEREST HEREUNDER, OR REMEDIES HEREUNDER, IN RESPECT
OF ANY PARTICULAR COLLATERAL, ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER
THAN THE STATE OF NEW YORK.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                      -16-

<PAGE>

         IN WITNESS WHEREOF, each Assignor has caused this Agreement to be duly
executed and delivered by its officer thereunto duly authorized as of the date
first above written.

                                    STERLING CHEMICALS, INC.

                                    By _________________________________________
                                             Title

                                    STERLING CHEMICALS ENERGY, INC.

                                    By _________________________________________
                                             Title

                                    NATIONAL CITY BANK, as Collateral Agent
                                    and Trustee

                                    By _________________________________________
                                             Title

                                      -17-

<PAGE>

                                                                  EXECUTION COPY

EXHIBIT A TO SECURITY AGREEMENT

                        FORM OF PATENT SECURITY AGREEMENT

         This PATENT SECURITY AGREEMENT (this "Patent Security Agreement"),
dated as of _________, 200[ ], is made by [STERLING CHEMICALS, INC., a Delaware
corporation, and STERLING CHEMICALS ENERGY, INC., a Delaware corporation]
(individually referred to as an "Assignor", and collectively referred to as the
"Assignors"), and NATIONAL CITY BANK, as Collateral Agent.

                                   WITNESSETH:

         WHEREAS, Sterling Chemicals, Inc, Sterling Chemicals Energy, Inc. and
the Collateral Agent, as Collateral Agent, have entered into that certain
Security Agreement, dated December 19, 2002 (as amended, amended and restated,
supplemented or otherwise modified from time to time, the "Agreement"), the
terms of which require that the Assignor (i) pledge to the Collateral Agent for
the benefit of the Holders (as defined in the Agreement), and grant to the
Collateral Agent for the ratable benefit of the Holders a continuing first
priority security interest in the Collateral (as defined herein) and (ii)
execute and deliver this Patent Security Agreement in order to secure the
payment in full in cash and performance by the Assignor of all of its
Obligations (as defined in the Agreement);

         WHEREAS, pursuant to Section 4.3 of the Agreement, each Assignor agreed
to grant a security interest in any Material Patents it may develop or otherwise
acquire;

         NOW, THEREFORE, in consideration of the premises, the Assignor hereby
agrees with the Collateral Agent for its benefit and the benefit of the Holders
as follows:

         SECTION l.        Definitions. Unless otherwise defined herein or the
context otherwise requires, terms used in this Patent Security Agreement,
including its preamble and recitals, have the meanings provided (or incorporated
by reference) in the Agreement.

         SECTION 2.        Grant of Security Interest. For good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, to
secure the payment in full in cash and the performance of all of the
Obligations, each Assignor does hereby pledge and hypothecate to the Collateral
Agent, and grant to the Collateral Agent a continuing first priority security
interest in, in each case subject only to Permitted Liens existing on the date
hereof and Certain Permitted Liens, for its benefit and the benefit of each
Holder, all of Assignors right, title and interest in and to the following
Material Patents (as that term is defined in the Agreement) (the "Patent
Collateral"), whether now owned or hereafter acquired or existing by it:

                  (a)      all patentable inventions and all letters patent and
         applications for letters patent listed in Item A of Schedule I attached
         hereto and all inventions and improvements described and claimed
         therein;

                  (b)      all reissues, divisions, continuations,
         continuations-in-part, extensions, renewals and reexaminations of any
         of the items described in clause (a);

<PAGE>

                  (c)      all patent licenses referred to in Item B of
         Schedule I attached hereto whether Assignor is a licensor or licensee;
         and

                  (d)      all proceeds of, and rights associated with, the
         foregoing (including license royalties and proceeds of infringement
         suits), the right to sue third parties for past, present or future
         infringements or misappropriations of any invention, patent or patent
         application, referred to in clauses (a) or (b) above, and for breach or
         enforcement of any patent license referred to in clause (c) above.

         SECTION 3.        Representations and Warranties. Except as disclosed
on Schedule I attached hereto, each Assignor represents and warrants as to
itself and its Patent Collateral as follows:

                  (a)      Such Assignor has made all necessary filings and
         recordations to protect, maintain and record its interest in the
         patents and patent applications set forth in Schedule I, including,
         without limitation, all necessary filings and recordations in the
         United States Patent and Trademark Office.

                  (b)      Each patent and patent application set forth in
         Schedule I that is owned by such Assignor is subsisting and has not
         been adjudged invalid, unpatentable or unenforceable, in whole or in
         part, and, to such Assignor's knowledge, each such patent is valid,
         subsisting and enforceable and each such patent application is believed
         to be patentable. Each license identified in Schedule I is validly
         subsisting and has not been adjudged invalid or unenforceable, in whole
         or in part, and, to such Assignor's knowledge, is valid and
         enforceable. Such Assignor has notified the Collateral Agent in writing
         of all facts concerning any item of Patent Collateral of which such
         Assignor is aware which could reasonably be expected to lead to such
         item becoming invalid or unenforceable.

                  (c)      Such Assignor has not made a previous assignment,
         sale, transfer or agreement constituting a present or future
         assignment, sale, transfer or encumbrance of any of the Patent
         Collateral that has not been terminated or released. Such Assignor has
         not granted any license (other than those listed on Schedule I hereto),
         shop right, release, covenant not to sue, or non-assertion assurance to
         any person with respect to any part of the Patent Collateral.

                  (d)      Except for the licenses listed on Schedule I hereto,
         such Assignor has no knowledge of the existence of any right or any
         claim that is likely to be made under any item of Patent Collateral
         contained on Schedule I.

                  (e)      No claim has been made and is continuing against such
         Assignor or, to such Assignor's knowledge, threatened that any Patent
         Collateral is invalid or unenforceable or that the use by such Assignor
         of any product or process claimed in any Patent Collateral owned by
         such Assignor does or may violate the rights of any person. To such
         Assignor's knowledge, there is currently no infringement or
         unauthorized use of any Patent Collateral contained on Schedule I.

                                       -2-

<PAGE>

                  (f)      Such Assignor has no knowledge of the existence of
         any patent or license agreement held or claimed by any other person
         that would preclude such Assignor from distributing, marketing, selling
         or providing any product sold or provided by it, as the case may be,
         under or in connection with any of the Patent Collateral (except, in
         each case, to the extent that such Assignor has granted an exclusive
         license to another person), or that would interfere with the ability of
         such Assignor to carry on its business as currently carried on, and
         such Assignor has no knowledge of any claim that is likely to be made
         that if upheld would preclude or interfere with the business of such
         Assignor as currently carried on under any of the Patent Collateral.

         SECTION 4.        Further Assurances.

                  (a)      In accordance with Section 4.3 of the Agreement, each
         Assignor agrees that, should it obtain an ownership interest in any
         patent, patent application or patent license which is not now a part of
         the Patent Collateral, (i) the provisions of Section 2 hereof shall
         automatically apply thereto, (ii) any such patent, patent application
         or patent license shall automatically become part of the Patent
         Collateral, and (iii) with respect to any ownership interest in any
         patent, patent application or patent license that such Assignor should
         obtain, it shall give prompt written notice thereof to the Collateral
         Agent. Each Assignor authorizes the Collateral Agent to modify this
         Agreement by amending Schedule I (and will cooperate reasonably with
         the Collateral Agent in effecting any such amendment) to include any
         patent, patent application or patent license which becomes part of the
         Patent Collateral under this Section 4(a).

                  (b)      With respect to each patent, patent application and
         license included in the Patent Collateral, each Assignor agrees,
         subject to the last sentence of this subsection (b), to take all
         commercially reasonable steps, including, without limitation, in the
         United States Patent and Trademark Office or in any court, to (i)
         maintain each such patent, patent application and license, and (ii)
         prosecute each such patent application, now or hereafter included in
         the Patent Collateral, including, without limitation, the filing of
         divisional, continuation, and continuation-in-part applications, the
         filing of applications for reissue, renewal or extensions, the payment
         of maintenance fees, and the participation in interference,
         reexamination, opposition, infringement and misappropriation
         proceedings. Each Assignor agrees to take corresponding steps with
         respect to each new or acquired patent, patent application or license
         which it is now or later becomes entitled for which such Assignor has
         determined in its reasonable business judgment to be desirable in
         connection with its operations. Any expenses incurred in connection
         with such activities shall be borne by such Assignor. Such Assignor
         shall not knowingly abandon any right to file any patent application,
         or abandon any patent pending application or patent included in the
         Patent Collateral, without the written consent of the Collateral Agent,
         unless such Assignor shall have determined in its reasonable business
         judgment that it is no longer desirable to maintain such right,
         application or patent in connection with the conduct of such Assignor's
         business and that the loss thereof will not have a material adverse
         impact on such Assignor's business, in which case, such Assignor will
         give written notice of any such abandonment to the Collateral Agent
         within 90 days after such abandonment.

                                       -3-

<PAGE>

                  (c)      Each Assignor agrees to notify the Collateral Agent
         promptly and in writing if it learns (i) that any item of the Patent
         Collateral contained on Schedule I may be determined to have become
         abandoned or (ii) of any adverse determination or the institution of
         any proceeding (including, without limitation, the institution of any
         proceeding in the United States Patent and Trademark Office or any
         court) regarding any item of the Patent Collateral, unless such
         Assignor shall have determined in its reasonable business judgment that
         such abandonment or determination will not have a material adverse
         impact on such Assignor's business.

                  (d)      In the event that any Assignor becomes aware that any
         item of the Patent Collateral is infringed or misappropriated by a
         third party, such Assignor shall promptly notify the Collateral Agent
         and shall take such actions as such Assignor deems appropriate under
         the circumstances to protect such Patent Collateral, including, without
         limitation, suing for infringement or misappropriation and for an
         injunction against such infringement or misappropriation. Any expense
         incurred in connection with such activities shall be borne by such
         Assignor.

                  (e)      Each Assignor shall to the extent it deems reasonable
         in its business judgment mark its products with the numbers of the
         appropriate Patents contained in Schedule I or the designation "patent
         pending," as the case may be.

         SECTION 5.        Security Agreement. This Patent Security Agreement
has been executed and delivered by the Assignor for the purpose of recording the
security interest of the Collateral Agent in the Patent Collateral with the
United States Patent and Trademark Office. The security interest granted hereby
has been granted as a supplement to, and not in limitation of, the security
interest granted to the Collateral Agent for its benefit and the benefit of each
Holder. The Agreement (and all rights and remedies of the Collateral Agent and
each Holder thereunder) shall remain in full force and effect in accordance with
its terms.

         SECTION 6.        Release of Security Interest. Upon the earliest to
occur of (i) the sale, transfer or other disposition of any Patent Collateral in
accordance with the terms of the Indenture, (ii) the later of (x) the day of the
Legal Defeasance of all Obligations owing to the Holders pursuant to Section
8.02 of the Indenture (other than those surviving Obligations owing to the
Holders specified therein) and (y) the date of payment in full of all
Obligations, (iii) the Satisfaction Date and (iv) the later of (x) such other
termination date as is provided in the Indenture and (y) the date of payment in
full of all Obligations, the Collateral Agent shall, subject to the requirements
of Section 10.03 of the Indenture, upon the request of an Assignor and at such
Assignor's expense, execute and deliver to such Assignor all instruments and
other documents as may be necessary or proper to release the Lien on the Patent
Collateral which has been granted hereunder.

         SECTION 7.        Acknowledgment. Each Assignor does hereby further
acknowledge and affirm that the rights and remedies of the Collateral Agent with
respect to the Lien on the Patent Collateral granted hereby are more fully set
forth in the Agreement, the terms and provisions of which (including the
remedies provided for therein) are incorporated by reference herein as if fully
set forth herein.

                                       -4-

<PAGE>

         SECTION 8.        The Indenture or any other Security Agreement, etc.
This Patent Security Agreement is a Security Agreement executed pursuant to the
Indenture and shall (unless otherwise expressly indicated herein) be construed,
administered and applied in accordance with the terms and provisions of the
Indenture.

         SECTION 9.        Counterparts. This Patent Security Agreement may be
executed by the parties hereto in several counterparts, each of which shall be
deemed to be an original (whether such counterpart is originally executed or an
electronic copy of an original) and all of which shall constitute together but
one and the same agreement. This Patent Security Agreement shall become
effective and binding as of the date first above written when a counterpart
hereof executed on behalf of such Assignor shall have been received by the
Collateral Agent.

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

                                    ASSIGNOR:

                                    [STERLING CHEMICALS, INC.]

                                    By: ________________________________________
                                    Title: _____________________________________

                                    [STERLING CHEMICALS ENERGY, INC.]

                                    By: ________________________________________
                                    Title: _____________________________________

                                       -5-

<PAGE>

                                   SCHEDULE I
                              TO SECURITY AGREEMENT

([NAME OF ASSIGNOR])

Item A. Patents

<TABLE>
<CAPTION>
Issued Patents
<S>             <C>          <C>          <C>           <C>
                Patent No.   Issue Date   Inventor(s)   Title
</TABLE>

<TABLE>
<CAPTION>
Pending Patent Applications
<S>             <C>          <C>          <C>           <C>
                Serial No.   Filing Date  Inventor(s)   Title
</TABLE>

<TABLE>
<CAPTION>
Item B. Patent Licenses
<S>             <C>          <C>          <C>           <C>            <C>
                                          Effective     Expiration     Subject
                Licensor     Licensee     Date          Date           Matter
</TABLE>

                                       -6-

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