Document:

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                                                                Exhibit 10.1

              AMENDMENT NO. 4 TO FINANCING AGREEMENT AND WAIVER

         THIS AMENDMENT NO. 4 TO FINANCING AGREEMENT AND WAIVER, dated as of
March 17, 2006 (this "Amendment"), by and among Solutia Inc., as a debtor
                      ---------
and debtor-in-possession, a Delaware corporation (the "Parent"), and Solutia
                                                       ------
Business Enterprises, Inc., as a debtor and debtor-in-possession, a New York
corporation, ("Solutia Business" and together with the Parent, each a
               ----------------
"Borrower" and collectively, the "Borrowers"), each subsidiary of the Parent
 --------                         ---------
listed as a "Guarantor" on the signature pages hereto, each as a debtor and
debtor-in-possession (each a "Guarantor" and collectively, the
                              ---------
"Guarantors"), the lenders from time to time party hereto (each a "Lender"
 ----------                                                        ------
and collectively, the "Lenders"), the issuers from time to time party hereto
                       -------
(each an "Issuer" and collectively, the "Issuers"), Citicorp USA, Inc.
          ------                         -------
("CUSA"), as collateral agent for the Lenders (in such capacity, the
  ----
"Collateral Agent"), CUSA, as administrative agent for the Lenders (in such
 ----------------
capacity, the "Administrative Agent"), and CUSA and Wells Fargo Foothill,
               --------------------
LLC, as co-documentation agents for the Lenders, (in such capacity, the
"Documentation Agent" and together with the Collateral Agent and the
 -------------------
Administrative Agent, each an "Agent" and collectively, the "Agents").
                               -----                         ------

                                  RECITALS:

         WHEREAS, the Borrowers, the Guarantors, the Lenders, the Issuers,
and the Agents have heretofore entered into that certain Financing
Agreement, dated as of January 16, 2004, as amended by that certain
Amendment No. 1 to Financing Agreement and Waiver, dated as of March 1,
2004, that certain Amendment No. 2 to Financing Agreement and Waiver (the
"Second Amendment"), dated as of July 20, 2004, and that certain Amendment
 ----------------
No. 3 to Financing Agreement and Waiver, dated as of June 1, 2005 (the
"Third Amendment") (as so amended, the "Financing Agreement");
 ---------------                        -------------------

         WHEREAS, the Financing Agreement consists of (a) a multiple draw
Term Loan A in the aggregate principal amount of $50,000,000 which loan was
available to be drawn from time to time following the Facility Effective
Date and was drawn in full prior to the date hereof, (b) a single draw Term
Loan B in the aggregate principal amount of $300,000,000 which loan was
drawn in full on the Facility Effective Date, and (c) a revolving credit
facility in an aggregate principal amount not to exceed $175,000,000 at any
time outstanding, which revolving credit facility includes a letter of
credit subfacility for the issuance of letters of credit;

         WHEREAS, (i) the Borrowers and the Guarantors have asked (a) the
Lenders to make additional post-petition loans and advances to the Borrowers
consisting of an additional single draw Term Loan B in the aggregate
principal amount of $300,000,000 which loan shall be drawn in full on the
Fourth Amendment Effective Date (as defined herein), (b) the existing Term
Loan A Lenders to convert the Term Loan A Loans to Term Loan B Loans, and
(c) the Lenders to amend the Financing Agreement in certain other respects,
as hereinafter provided, and (ii) the New Term Loan B Lenders (as defined in
Section 2.01, below) have severally, and not jointly, agreed to extend the
------------
New Term B Loans, the Term Loan A Lenders have agreed to convert their Term
Loan A

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Loans to Term Loan B Loans and the Lenders have agreed to make such other
amendments subject to the terms and conditions hereinafter set forth;

         WHEREAS, the Borrowers, the Guarantors, the Lenders, the Issuers
and the Agents now desire to amend the Financing Agreement in certain
respects, as hereinafter provided; and

         NOW, THEREFORE, in consideration of the premises set forth above,
the terms and conditions contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

                                  ARTICLE I

                                 DEFINITIONS

                  Section 1.01 Definitions. Unless otherwise defined or the
                               -----------
         context otherwise requires, terms for which meanings are provided
         in the Financing Agreement shall have such meanings when used in
         this Amendment.

                                 ARTICLE II

                                 AMENDMENTS

                  Section 2.01 Amendments to Section 1.01 of the Financing
                               -------------------------------------------
         Agreement.
         ---------

                  (a) Section 1.01 of the Financing Agreement is hereby
amended by deleting the words "and $25,000,000 for the period commencing
January 1, 2006, and ending upon the scheduled Final Maturity Date,"
appearing in clause (c)(ii) of the definition of "Consolidated Net Income"
and inserting in lieu thereof the words "$55,000,000 in 2006, and
$20,000,000 for the period commencing January 1, 2007, and ending upon the
scheduled Final Maturity Date,".

                  (b) Section 1.01 of the Financing Agreement is hereby
amended by inserting at the end of the definition of "Extraordinary
Receipts" the following text:

         "; and provided, further, that 'Extraordinary Receipts' shall not
                --------  -------
         include distributions or dividends received by any Loan Party or
         Subsidiary in the ordinary course of business (other than
         distributions and dividends of the proceeds of or amounts otherwise
         received in connection with the sale of all or any material portion
         of the assets of the entity paying the dividend or distribution)".

                  (c) Section 1.01 of the Financing Agreement is hereby
amended by deleting the text "June 19, 2006," appearing in the definition of
"Final Maturity Date" and inserting in lieu thereof the text "March 31,
2007,".

                                     2

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                  (d) Section 1.01 of the Financing Agreement is hereby
amended by inserting the text "each of the Supplemental Bankruptcy Court
Orders," immediately following the text "Bankruptcy Court Orders" appearing
in the definition of "Loan Documents".

                  (e) Section 1.01 of the Financing Agreement is hereby
amended by (i) deleting the word "and" at the end of clause (k) of the
definition of "Permitted Indebtedness", (ii) deleting the "." at the end of
clause (l) of such definition and inserting in lieu thereof the text ";
and", and (iii) adding the following text at the end of such definition:

         "(m) Indebtedness incurred solely for the purpose of refinancing
         the Euro Notes; provided, that such refinancing (i) shall not have
                         --------
         a shorter weighted average life or earlier maturity date than the
         Euro Notes, (ii) shall not have a higher interest rate than the
         Euro Notes, (iii) shall not be secured by a Lien on any asset of
         any Loan Party other than assets currently securing the Euro Notes
         and (iv) shall otherwise be on terms and conditions that, when
         taken as a whole, are at least as favorable to, and no more
         restrictive upon, Parent and its Subsidiaries as the Euro Notes;
         and

         "(n) Indebtedness of any direct or indirect Foreign Subsidiary to
         any Loan Party incurred with respect to the China Expansion in an
         aggregate principal amount outstanding at any time not exceeding
         (when combined with equity investments made in reliance on Section
                                                                    -------
         8.02(e)(xvii)) $25,000,000; provided, that the incurrence of any
         --------------              --------
         such Indebtedness shall be subject to applicable approvals of the
         Bankruptcy Court; and provided, further, that, after giving effect
                               --------  -------
         thereto, Availability shall be greater than or equal to
         $50,000,000."

                  (f) Section 1.01 of the Financing Agreement is hereby
amended by (i) deleting the word "and" at the end of clause (m) of the
definition of "Permitted Liens", (ii) deleting the "." at the end of clause
(n) of such definition and inserting in lieu thereof the text "; and", and
(iii) adding the following text at the end of such definition:

         "(o) Liens on the Maryville Property to secure obligations incurred
         in connection with the Maryville Restructuring; and

         "(p) Liens in favor of the PBGC that are (A) junior to the liens
         and claims of the of the Collateral Agent for the benefit of the
         Agents and the Lenders and "silent" through the Final Maturity
         Date, and (B) junior to the liens securing the Borrowers' exit
         financing facility and "silent" through the term of such facility,
         in each case pursuant to an intercreditor agreement on terms
         satisfactory to the Administrative Agent (or, in the case of the
         exit financing facility, on terms satisfactory to the
         administrative agent under such facility)."

                                     3

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                  (g) Section 1.01 of the Financing Agreement is hereby
amended by deleting the phrase "clauses (b), (c), (i), and (j)" appearing in
the definition of "Permitted Priority Liens" and inserting in lieu thereof
the phrase "clauses (b), (c), (i), (j), and (p)".

                  (h) Section 1.01 of the Financing Agreement is hereby
amended by amending and restating the definition of "Required Term A/B
Lenders" in its entirety as follows:

         "'Required Term A/B Lenders' means (x) prior to the Fourth
           -------------------------
         Amendment Effective Date, (i) the Term Loan A Lenders whose Pro
         Rata Share (as defined under clause (b) of such definition) of the
         Term Loan A Commitments aggregate at least 51% and (ii) the Term
         Loan B Lenders whose Pro Rata Share (as defined under clause (c) of
         such definition) of the Term Loan B Commitments aggregate at least
         51%, and (y) on and after the Fourth Amendment Effective Date, the
         Term Loan B Lenders whose Pro Rata Share (as defined under clause
         (c) of such definition) of the Term Loan B Commitments aggregate at
         least 51%."

                  (i) Section 1.01 of the Financing Agreement is hereby
amended by amending and restating the definition of "Supermajority Consent"
in its entirety as follows:

         "'Supermajority Consent' means (x) prior to the Fourth Amendment
           ---------------------
         Effective Date, the consent of each of (i) the Revolving Loan
         Lenders whose Pro Rata Shares (as defined under clause (a) of such
         definition) of the Revolving Credit Commitments aggregate at least
         66.667%, (ii) the Term Loan A Lenders whose Pro Rata Share (as
         defined under clause (b) of such definition) of the Term Loan A
         Commitments aggregate at least 66.667% and (iii) the Term Loan B
         Lenders whose Pro Rata Share (as defined under clause (c) of such
         definition) of the Term Loan B Commitments aggregate at least
         66.667%, and (y) on and after the Fourth Amendment Effective Date,
         the consent of each of (i) the Revolving Loan Lenders whose Pro
         Rata Shares (as defined under clause (a) of such definition) of the
         Revolving Credit Commitments aggregate at least 66.667%, and (ii)
         the Term Loan B Lenders whose Pro Rata Share (as defined under
         clause (c) of such definition) of the Term Loan B Commitments
         aggregate at least 66.667%."

                  (j) Section 1.01 of the Financing Agreement is hereby
amended by amending and restating the definition of "Term Loan A" in its
entirety as follows:

         "'Term Loan A' means, collectively, the loans made by the Term Loan
           -----------
         A Lenders to the Borrowers pursuant to Section 2.01(a)(ii) prior to
                                                -------------------
         the Fourth Amendment Effective Date, which loans were converted in
         their entirety to Converted Term Loan B Loans on the Fourth
         Amendment Effective Date pursuant to Section 2.01(a)(ii) on such
                                              -------------------
         date."

                                     4

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                  (k) Section 1.01 of the Financing Agreement is hereby
amended by amending and restating the definition of "Term Loan B" in its
entirety as follows:

         "Term Loan B" means, collectively, the loans made by the Term Loan
          -----------
         B Lenders to the Borrowers on the Facility Effective Date and the
         Fourth Amendment Effective Date pursuant to Section 2.01(a)(iii)
                                                     --------------------
         and shall include in all events, each Original Term Loan B, each
         Converted Term Loan B and each New Term Loan B."

                  (l) Section 1.01 of the Financing Agreement is hereby
amended by amending and restating the definition of "Term Loan B Commitment"
in its entirety as follows:

         "'Term Loan B Commitment' means with respect to each Term Loan B
           ----------------------
         Lender, the commitment of such Lender to make a Term Loan B to the
         Borrowers (or, in the case of a Converted Term Loan B Lender, to
         convert its Term Loan A Loans to Term Loan B Loans pursuant to
         Section 2.01(a)(ii)) in the amounts and on the dates set forth
         -------------------
         opposite such Lender's name in Schedule 1.01(A), as such amount may
                                        ----------------
         be terminated or reduced from time to time in accordance with the
         terms of this Agreement."

                  (m) Section 1.01 of the Financing Agreement is hereby
amended by adding the following text immediately prior to the period at the
end of the definition of "Termination Event": " and that no Termination
Event shall be deemed to have occurred with respect to the Solutia Inc.
Employees' Pension Plan as a result of an application for a minimum funding
waiver under Section 412(d) of the Code or Section 303 of ERISA or as a
result of any failure to make required contributions for which a funding
waiver has been applied for and not denied".

                  (n) Section 1.01 of the Financing Agreement is hereby
amended by inserting the following definitions in the proper alphabetical
position:

         "'China Expansion' means the construction of a SAFLEX(R) PVB
           ---------------
         interlayer plant in Suzhou, China."

         "'Converted Term Loan B' means, collectively, the loans originally
           ---------------------
         made to the Borrowers as Term Loan A Loans under this Agreement
         pursuant to Section 2.01(a)(ii) and converted to Term Loan B Loans
                     -------------------
         hereunder on the Fourth Amendment Effective Date pursuant to the
         terms of the Fourth Amendment and such Section 2.01(a)(ii)."
                                                -------------------

         "'Converted Term Loan B Lenders' means, collectively, each of the
           -----------------------------
         Term Loan B Lenders that held all or any portion of the unpaid
         principal amount of the Term Loan A on the Fourth Amendment
         Effective Date."

         "'Fourth Amendment' means that certain Fourth Amendment to
           ----------------
         Financing Agreement, dated as of March 17, 2006, by and among the
         Borrowers,

                                     5

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         the Guarantors party thereto, the Lenders and Issuers party thereto,
         and the Agents, as amended, supplemented, or otherwise modified from
         time to time."

         "'Fourth Amendment Effective Date' means the date upon which the
           -------------------------------
         Fourth Amendment becomes effective pursuant to Section 4.01
         thereof."

         "'Maryville Property' means Parent's principal headquarters located
           ------------------
         at 575 Maryville Centre Drive, St. Louis, Missouri, including both
         the land and the building thereon."

         "'Maryville Restructuring' means the restructuring of the financing
           -----------------------
         arrangement entered into by and between Solutia and United Missouri
         Bank & Trust, N.A. on August 26, 1999 to finance the acquisition
         and construction of the Maryville Property."

         "'New Term Loan B' means, collectively, the loans made by certain
           ---------------
         of the Term Loan B Lenders to the Borrowers on the Fourth Amendment
         Effective Date pursuant to Section 2.01(a)(iii)."
                                    --------------------

         "'New Term Loan B Lenders' means, collectively, each of the Term
           -----------------------
         Loan B Lenders which had a Term Loan B Commitment to make a New
         Term Loan B on the Fourth Amendment Effective Date."

         "'Original Term Loan B' means, collectively, the loans made by
           --------------------
         certain of the Term Loan B Lenders to the Borrowers on the Facility
         Effective Date under this Agreement as originally executed on
         January 16, 2004 pursuant to Section 2.01(a)(iii)."
                                      --------------------

         "'Original Term Loan B Lenders' means, collectively and as the
           ----------------------------
         context requires, each of the Term Loan B Lenders which had a Term
         Loan B Commitment to make an Original Term Loan B (or a Term Loan B
         Lender that held all or any portion of the unpaid principal amount
         of the Original Term Loan B on the Fourth Amendment Effective
         Date)."

         "'Supplemental Bankruptcy Court Orders' means the collective
           ------------------------------------
         reference to the orders of the Bankruptcy Court entered on (i) July
         20, 2004 approving the Second Amendment (as defined in the Fourth
         Amendment), (ii) on July 25, 2005 approving the Third Amendment (as
         defined in the Fourth Amendment) and (ii) March 14, 2006
         approving the Fourth Amendment.

                  Section 2.02 Amendments to Section 2.01 of the Financing
                               -------------------------------------------
         Agreement.
         ---------

                  (a) Section 2.01(a) of the Financing Agreement is hereby
amended by inserting the following text at the end of clause (ii) thereof:

                                     6

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         "; provided, that, effective immediately upon the Fourth Amendment
            --------
         Effective Date and notwithstanding anything in this Agreement to
         the contrary, (A) the Term Loan A Commitment of each Term Loan A
         Lender shall automatically and permanently be reduced to zero, and
         (B) all Term Loan A Loans outstanding at such time shall
         automatically be converted to Term Loan B Loans and shall be
         subject to, and be entitled to, all of the terms, conditions and
         benefits afforded to Term Loan B Loans hereunder (and, for
         avoidance of doubt, the outstanding principal amount of Term Loan A
         Loans shall be deemed to be zero for all purposes hereof) and each
         Term Loan A Lender shall automatically be and become a Converted
         Term Loan B Lender to the full extent of its holdings of the
         Converted Term Loan B Loans hereunder."

                  (b) Section 2.01(a) of the Financing Agreement is hereby
further amended by amending and restating clause (iii) thereof in its
entirety as follows:

         "(iii) (A) each Original Term Loan B Lender is the holder of
         Original Term Loan B Loans made to the Borrowers on the Facility
         Effective Date in an aggregate principal amount equal to the Term
         Loan B Commitment relating to the Original Term Loan B Loans set
         forth opposite such Lender's name in Schedule 1.01(A), and (B) each
                                              ----------------
         New Term Loan B Lender severally agrees to make a New Term Loan B
         to the Borrowers on the Fourth Amendment Effective Date in an
         aggregate principal amount not to exceed the amount of such
         Lender's Term Loan B Commitment as of such date relating to the
         New Term Loan B Loans set forth opposite such Lender's name in
         Schedule 1.01(A)."
         ----------------

                  (c) Section 2.01(b) of the Financing Agreement is hereby
amended by amending and restating clause (iii) thereof in its entirety as
follows:

         "(iii) (A) the aggregate principal amount of the Original Term Loan
         B made on the Facility Effective Date shall not exceed the Total
         Term Loan B Commitment identified on Schedule 1.01(A) as relating
         to the Original Term Loan B Loans, and (B) the aggregate principal
         amount of the New Term Loan B made on the Fourth Amendment
         Effective Date shall not exceed the Total Term Loan B Commitment
         identified on Schedule 1.01(A) as relating to the New Term Loan B
         Loans;".

                  Section 2.03 Amendments to Section 2.02 of the Financing
                               -------------------------------------------
         Agreement.
         ---------

                  (a) Section 2.02(a) of the Financing Agreement is hereby
amended by amending and restating clause (i) of the third sentence thereof
as follows: "(i) the principal amount of the proposed Loan, which, in the
case of the Original Term Loan B, shall fully utilize the Total Term Loan B
Commitment identified on Schedule 1.01(A) as relating to the Original Term
                         ----------------
Loans on the Facility Effective Date, and which, in the case of the New Term
Loan B, shall fully utilize the Total Term Loan B Commitment

                                     7

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identified on Schedule 1.01(A) as relating to the New Term Loan B Loans on
              ----------------
the Fourth Amendment Effective Date,".

                  (b) Section 2.02(a) of the Financing Agreement is hereby
further amended by amending and restating clause (iii) of the third sentence
thereof as follows: "the proposed borrowing date, which must be a Business
Day, with respect to the Revolving Loans, must be on or after the Facility
Effective Date, in the case of the Original Term Loan B, must be the
Facility Effective Date, and in the case of the New Term Loan B, must be the
Fourth Amendment Effective Date,".

                  Section 2.04 Amendments to Section 2.03 of the Financing
                               -------------------------------------------
         Agreement. Section 2.03(a) of the Financing Agreement is amended by
         ---------
         amending and restating clause (i) thereof in its entirety as follows:
         "[intentionally omitted]."

                  Section 2.05 Amendments to Section 2.04 of the Financing
                               -------------------------------------------
         Agreement. Section 2.04(a)(ii) of the Financing Agreement is hereby
         ---------
         amended by deleting the text "4.25%" contained therein and
         inserting in lieu thereof the text "3.50%".

                  Section 2.06 Amendments to Section 2.05 of the Financing
                               -------------------------------------------
         Agreement.
         ---------

                  (a) Section 2.05(a)(i)(B) of the Financing Agreement is
hereby amended and restated in its entirety as follows:

         "(B)(1) the Total Term Loan B Commitment identified on Schedule
         1.01(A) as relating to the Original Term Loan B Loans shall
         terminate on the Facility Effective Date, and (2) the Total Term
         Loan B Commitment identified on Schedule 1.01(A) as relating to the
         Converted Term Loan B Loans or the New Term Loan B Loans shall
         terminate on the Fourth Amendment Effective Date."

                  (b) Section 2.05(a)(iv) of the Financing Agreement is
amended by amending and restating such clause in its entirety as follows:
"[intentionally omitted]."

                  (c) Section 2.05(c)(iii) of the Financing Agreement is
hereby amended by deleting the figure "$10,000,000" in the first place such
figure appears therein and inserting in lieu thereof the figure
"$20,000,000".

                  (d) Section 2.05(c)(iv) of the Financing Agreement is
hereby amended by deleting the phrase "Section 2.05(c)(vii)(B)" contained
                                       -----------------------
therein and inserting in lieu thereof the phrase "Sections 2.05(c)(vii)(B)
                                                  ------------------------
and (C)".
    ---

                  (e) Section 2.05(c)(vii) of the Financing Agreement is
hereby amended by deleting the figure "$17,500,000" in each place such
figure appears in clause (B) thereof and inserting in lieu thereof the
figure "$30,000,000".

                  (f) Section 2.05(c)(vii) of the Financing Agreement is
hereby further amended by inserting at the end of clause (B) thereof the
following text:

         "; and (C) the Borrowers shall not be required to make a prepayment
         under clause (iv) of this Section 2.05(c) in connection with the
               -----------         ---------------
         lesser of (i) $25,000,000 in the aggregate (for each of (A) and (B)
         below), and

                                     8

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         (ii) 50% individually (for each of (A) and (B) below), of (A) any
         Extraordinary Receipts received with respect to Item 1 on
         Schedule 2.05 and (B) any Extraordinary Receipts received with
         respect to Item 2 on Schedule 2.05.

                  (g) Section 2.05(d)(i) of the Financing Agreement is
hereby amended by inserting the words "of a Loan Party" immediately
following the word "Inventory" in each place it appears in such Section.

                  (h) Section 2.05(d)(ii) of the Financing Agreement is
hereby amended by amending and restating clause (B) thereof in its entirety
as follows: "(B) the remaining proceeds shall be applied first, to the Term
Loan B until paid in full, and second, to the Revolving Loans until paid in
full".

                  (i) Section 2.05(d)(iii) of the Financing Agreement is
hereby amended by amending and restating such clause in its entirety as
follows:

         "(iii) the proceeds from any prepayment event set forth in clause
         (iii) of Section 2.05(c) (other than with respect to Dispositions
                  ---------------
         described in clauses (i) or (ii) of this Section 2.05(d)), clause
                                                  ---------------
         (iv) of Section 2.05(c) (other than proceeds from any insurance
                 ---------------
         policy or condemnation award with respect to Inventory of a Loan
         Party) or clause (v) of Section 2.05(c) shall be applied first, to
                                 ---------------
         the Term Loan B until paid in full, and, second, to the Revolving
         Loans until paid in full."

                  Section 2.07 Amendments to Section 5.04 of the Financing
                               -------------------------------------------
         Agreement. Section 5.04(c) of the Financing Agreement is hereby
         ---------
         amended by deleting the text "the Term Loan A or" each time it
         appears in such Section.

                  Section 2.08 Amendments to Section 7.01 of the Financing
                               -------------------------------------------
         Agreement.
         ---------

                  (a) Section 7.01(i) of the Financing Agreement is hereby
amended and restated in its entirety as follows:

         "(i) ERISA. Except as set forth on Schedule 7.01(i), (i) each
              -----                         ----------------
         Employee Plan is in compliance in all material respects with ERISA
         and the Internal Revenue Code, (ii) no Termination Event has
         occurred on or prior to the Facility Effective Date nor is
         reasonably expected to result in a Material Adverse Effect after
         the Facility Effective Date with respect to any Employee Plan,
         (iii) the most recent annual report (Form 5500 Series) with respect
         to each Employee Plan, including any required Schedule B (Actuarial
         Information) thereto, copies of which have been filed with the
         Internal Revenue Service and delivered to the Administrative Agent
         and the Collateral Agent, is complete and correct in all material
         respects and fairly presents the funding status of such Employee
         Plan, and since the date of such report there has been no material
         adverse change in such

                                     9

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         funding status, (iv) copies of each agreement entered into with the
         PBGC, the U.S. Department of Labor or the Internal Revenue Service
         with respect to any Employee Plan have been delivered to the
         Administrative Agent and the Collateral Agent, (v) no Employee Plan
         had an accumulated or waived funding deficiency or permitted
         decrease which would create a deficiency in its funding standard
         account or has applied for an extension of any amortization period
         within the meaning of Section 412 of the Internal Revenue Code at
         any time during the previous 60 months. Except as set forth on
         Schedule 7.01(i), no Loan Party or any of its ERISA Affiliates has
         ----------------
         incurred any withdrawal liability in excess of $1,000,000 under
         ERISA with respect to any Multiemployer Plan, or is aware of any
         facts indicating that it or any of its ERISA Affiliates may in the
         future incur any such withdrawal liability. No Loan Party or any of
         its ERISA Affiliates or any fiduciary of any Employee Plan has (A)
         engaged in a nonexempt prohibited transaction described in Sections
         406 of ERISA or 4975 of the Internal Revenue Code, (B) failed to
         pay any required installment or other payment required under
         Section 412 of the Internal Revenue Code on or before the due date
         for such required installment or payment (other than the failure to
         make any contribution for which a minimum funding waiver has been
         applied for and not denied) (C) engaged in a transaction within the
         meaning of Section 4069 of ERISA or (D) incurred any liability to
         the PBGC which remains outstanding other than the payment of
         premiums or the provision of security pursuant to a minimum funding
         waiver and there are no premium payments which have become due
         which are unpaid. Except as set forth on Schedule 7.01(i), there
                                                  ----------------
         are no pending or, to the best knowledge of any Loan Party,
         threatened claims, actions, proceedings or lawsuits (other than
         claims for benefits in the normal course) asserted or instituted
         against (x) any Employee Plan or its assets, (y) any fiduciary with
         respect to any Employee Plan, or (z) any Loan Party or any of its
         ERISA Affiliates with respect to any Employee Plan, except for
         claims, actions, proceedings or lawsuits asserted or instituted
         which could not, individually or in the aggregate, reasonably be
         expected to result in a Material Adverse Effect. Except as set
         forth on Schedule 7.01(i) and except as required by Section 4980B
                  ----------------
         of the Internal Revenue Code, no Loan Party or any of its ERISA
         Affiliates maintains an employee welfare benefit plan (as defined
         in Section 3(1) of ERISA) which provides health or welfare benefits
         (through the purchase of insurance or otherwise) for any retired or
         former employee of any Loan Party or any of its ERISA Affiliates or
         coverage after a participant's termination of employment."

                  (b) Section 7.01(bb) of the Financing Agreement is hereby
amended by amending and restating the first sentence thereof in its entirety
as follows:

         "There is no location at which any Loan Party has any Collateral
         (except for Inventory in transit) with an aggregate Book Value in
         excess of $500,000 other than (i) those locations listed on
         Schedule 7.01(bb), (ii)

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<PAGE>

         any other locations identified in writing by the Administrative
         Borrower to the Collateral Agent (and, with respect to Inventory,
         the Administrative Agent) from time to time, and (iii) those
         locations set forth on audit reports prepared by or delivered to
         the Collateral Agent or the Administrative Agent in connection with
         audits of the Borrowers conducted pursuant to or in connection with
         the Loan Documents from time to time."

                  (c) Section 7.01(dd) of the Financing Agreement is hereby
amended by inserting the text "and each of the Supplemental Bankruptcy Court
Orders" immediately following the text "Bankruptcy Court Order" in such
Section.

                  Section 2.09 Amendments to Section 8.02 of the Financing
                               -------------------------------------------
         Agreement.
         ---------

                  (a) Section 8.02(a) of the Financing Agreement is hereby
amended by inserting the following text at the end of such Section: ", and
Liens described in clause (p) of the definition of Permitted Liens".

                  (b) Section 8.02(c) of the Financing Agreement is hereby
amended by deleting the text "(or agree to do any of the foregoing)" in each
place such text appears in such Section and inserting in lieu thereof the
text "(or agree to do any of the foregoing, except to the extent that the
consummation of the Loan Parties' plan of reorganization is a condition to
each Loan Party's obligations under any such agreement)".

                  (c) Section 8.02(c)(iv) of the Financing Agreement is
hereby amended and restated in its entirety as follows:

         "any Subsidiary that is not a Significant Subsidiary (determined
         without regard to the consolidated earnings test contained in such
         definition) nor a Loan Party may wind-up its business and
         operations, liquidate or dissolve so long as (A) no other provision
         of this Agreement would be violated thereby, and (B) no Default or
         Event of Default shall have occurred and be continuing either
         before or after giving effect to such transaction;"

                  (d) Section 8.02(e) of the Financing Agreement is hereby
amended by (i) deleting the text "and" appearing at the end of Section
8.02(e)(xv), (ii) replacing the ".", appearing the end of Section
8.02(e)(xvi) with the following text: "; and" and inserting the following
text as a new Section 8.02(e)(xvii) and restated in its entirety as follows:

         "(xvii) loans by any Loan Party to any direct or indirect Foreign
         Subsidiary permitted under clause (n) of the definition of
         "Permitted Indebtedness" and other investments by any Loan Party in
         any direct or indirect Foreign Subsidiary in respect of the China
         Expansion in an aggregate amount outstanding at any time not
         exceeding $25,000,000, provided that such loans or equity
                                --------
         investments shall be subject to

                                     11

<PAGE>
<PAGE>

         applicable approvals of the Bankruptcy Court; and provided,
                                                           --------
         further, that, after giving effect thereto, Availability shall be
         -------
         greater than or equal to $50,000,000;"

                  (e) Section 8.02(g) of the Financing Agreement is hereby
amended by deleting the words "and $95,000,000 for the period commencing
January 1, 2006, and ending upon the scheduled Final Maturity Date "
appearing therein and inserting in lieu thereof the words "$130,000,000 in
Fiscal Year 2006, and $45,000,000 for the period commencing January 1, 2007,
and ending upon the scheduled Final Maturity Date."

                  (f) Section 8.02(m)(iii)(A) of the Financing Agreement is
hereby amended and restated by inserting the following text: "and item 1 on
Part V" immediately following text: "Part II" appearing therein.

                  (g) Section 8.02(p) of the Financing Agreement is hereby
amended by (i) adding the following text to the beginning of clause (iii)
thereof "except pursuant to a settlement as entered into pursuant to Section
1114 of the Bankruptcy Code", and (ii) inserting the following text at the
end of clause (v) thereof: "(other than the failure to make any contribution
for which a minimum funding waiver has been applied for and not denied)".

                  (h) Section 8.02(s) of the Financing Agreement is hereby
amended by inserting the following text as a new clause (v):

         "(v) Notwithstanding anything to the contrary in this Agreement,
         the Loan Parties shall be permitted to grant in favor of the PBGC
         of (i) a superpriority administrative expense claim pursuant to
         Section 364(c)(1) of the Bankruptcy Code (the "PBGC Superpriority
                                                        ------------------
         Claim") with priority over any and all administrative expenses of
         -----
         the kind specified in section 503(b) or 507(b) of the Bankruptcy
         Code with the exception of the superpriority administrative expense
         claims granted to the Lenders (as defined in the Supplemental
         Bankruptcy Court Orders) and to UST/Clerk Fees and the Carve-Out
         Expenses (the "Senior Superpriority Claims"), it being understood
                        ---------------------------
         that the Senior Superpriority Claims will be senior in all respects
         to the PBGC Superpriority Claim."

                  Section 2.10 Amendments to Section 8.03 of the Financing
                               -------------------------------------------
         Agreement.
         ---------

                  (a) Section 8.03(a) of the Financing Agreement is hereby
amended by deleting the following text from the table appearing therein:

                   "March 31, 2006                        $132,000,000
                   April 30, 2006                         $133,000,000
                   May 31, 2006                           $134,000,000"

and inserting in lieu thereof the following text:

                                     12

<PAGE>
<PAGE>

                   "March 31, 2006                        $120,800,000
                   April 30, 2006                         $124,300,000
                   May 31, 2006                           $127,000,000
                   June 30, 2006                          $125,400,000
                   July 31, 2006                          $124,400,000
                   August 31, 2006                        $134,700,000
                   September 30, 2006                     $135,800,000
                   October 31, 2006                       $148,900,000
                   November 30, 2006                      $151,900,000
                   December 31, 2006                      $157,500,000
                   January 31, 2007                       $153,000,000
                   February 28, 2007                      $151,100,000"

                  (b) Section 8.03(a) of the of the Financing Agreement is
hereby further amended by inserting the following text at the end of such
Section:

         "In calculating the Consolidated EBITDA for purposes of this
         Section 8.03(a) (but not for purposes of Schedule 8.03 or for any
         ---------------
         other purpose), the results of the business described in Item 3 on
         Part II of Schedule 8.02(c)(i) shall be disregarded."

                  Section 2.11 Amendments to Section 10.01 of the Financing
                               --------------------------------------------
         Agreement.
         ---------

                  (a) Sections 10.01(i), (l) and (o) of the Financing
Agreement is hereby amended by inserting the phrase "or any Supplemental
Bankruptcy Court Order" immediately following the phrase "Bankruptcy Court
Order" in each place it appears in such Section.

                  (b) Section 10.01 of the Financing Agreement is hereby
further amended by inserting the following text at the end of clause (cc) of
such Section: ", or any agreement, instrument or other document evidencing
or otherwise related to any indebtedness incurred to refinance any portion
thereof."

                  Section 2.12 Amendments to Schedule 1.01(A) of the
                               -------------------------------------
         Financing Agreement. Schedule 1.01(A) of the Financing Agreement is
         -------------------
         hereby amended as set forth in Exhibit A hereto.
                                        ---------

                  Section 2.13 Amendments to Schedule 7.01(i) of the
                               -------------------------------------
         Financing Agreement. Schedule 7.01(i) of the Financing Agreement is
         -------------------
         hereby amended as set forth in Exhibit B hereto.
                                        ---------

                  Section 2.14 Amendments to Schedule 8.02(c)(i) of the
                               ----------------------------------------
         Financing Agreement. Schedule 8.02(c)(i) of the Financing Agreement
         -------------------
         is hereby amended as set forth in Exhibit C hereto.
                                           ---------

                                     13

<PAGE>
<PAGE>

                  Section 2.15 Amendments to Schedule 8.03 of the Financing
                               --------------------------------------------
         Agreement. Schedule 8.03 of the Financing Agreement is hereby
         ---------
         amended as set forth in Exhibit D hereto.
                                 ---------

                  Section 2.16 New Schedule 2.05 of the Financing Agreement.
                               --------------------------------------------
         The Schedules to the Financing Agreement are amended and restated
         to add the new Schedule 2.05 set forth on Exhibit E hereto.
                                                   ---------

                  Section 2.17 Limited Waiver with respect to Section
                               --------------------------------------
         7.01(i) of the Financing Agreement. The Lenders hereby waive any
         ----------------------------------
         Default or Event of Default arising under the Financing Agreement
         and any other Loan Document solely as a result of any
         representation or warranty contained in Section 7.01(i) of the
         Financing Agreement being incorrect in any material respect when
         made or deemed made prior to the Fourth Amendment Effective Date
         due to the existence of litigation, proceedings, claims or matters
         set forth on Exhibit F hereto. Such waiver does not constitute a
                      ---------
         waiver of any non-compliance with Section 7.01(i) of the Financing
         Agreement as amended hereby, any waiver of such Section after the
         Fourth Amendment Effective Date, any other provision of the
         Financing Agreement or any other Loan Document or a waiver of any
         other Default or Event of Default that may exist under the
         Financing Agreement or an acquiescence thereof.

                  Section 2.18 Limited Waiver with respect to Section
                               --------------------------------------
         7.01(bb) of the Financing Agreement. The Lenders hereby waive any
         -----------------------------------
         Default or Event of Default arising under the Financing Agreement
         and any other Loan Document solely as a result of any
         representation or warranty contained in Section 7.01(bb) of the
         Financing Agreement being incorrect in any material respect when
         made or deemed made prior to the Fourth Amendment Effective Date
         due to (a) one or more Loan Parties having Collateral with an
         aggregate Book Value in excess of $500,000 at locations not listed
         on Schedule 7.01(bb) to the Financing Agreement and identified in
         writing to the Collateral Agent and the Administrative Agent in
         writing but not approved in writing by the Collateral Agent and the
         Administrative Agent, or (b) Schedule 7.01(bb) to the Financing
         Agreement not containing a true, correct and complete list, as of
         the Facility Effective Date, of the legal names and addresses of
         each warehouse at which Collateral of each Loan Party was stored.
         Such waiver does not constitute a waiver of any non-compliance with
         Section 7.01(bb) of the Financing Agreement as amended hereby, any
         waiver of such Section after the Fourth Amendment Effective Date,
         any other provision of the Financing Agreement or any other Loan
         Document or a waiver of any other Default or Event of Default that
         may exist under the Financing Agreement or an acquiescence thereof.

                  Section 2.19 Limited Waiver with respect to Section
                               --------------------------------------
         8.01(l) of the Financing Agreement. The Lenders hereby waive any
         ----------------------------------
         Default or Event of Default arising under the Financing Agreement
         and any other Loan Document solely as a result of any failure by
         the Loan Parties to comply with the provisions of Section 8.01(l)
         of the Financing Agreement to the extent that the Loan Parties
         failed to give the Collateral Agent not less than ten (10) Business
         Days' prior written notice of any change in the location of any
         Collateral with a book value in excess of

                                     14

<PAGE>
<PAGE>

         $2,000,000 prior to the Fourth Amendment Effective Date; provided,
                                                                  --------
         that the foregoing waiver shall only apply to the extent that the
         Loan Parties gave the Collateral Agent written notice of such
         change in location prior to the Fourth Amendment Effective Date.
         Such waiver does not constitute a waiver of Section 8.01(l) of the
         Financing Agreement for any other purpose or a waiver of any other
         provision of the Financing Agreement or any other Loan Document or
         any waiver of any other Default or Event of Default that may exist
         under the Financing Agreement or an acquiescence therein.

                  Section 2.20 Limited Waiver of Section 8.02(c) of the
                               ----------------------------------------
         Financing Agreement. The Lenders hereby waive compliance by the
         -------------------
         Loan Parties with the provisions of Section 8.02(c) of the
         Financing Agreement to the extent that such Section would prohibit
         the sale of the assets identified on Exhibit G to this Amendment;
                                              ---------
         provided, that each of the foregoing sales shall be for at least
         --------
         fair market value and for cash and the Borrowers shall comply with
         Section 2.05(c) of the Financing Agreement in respect of each such
         asset sale and provided further that no such asset sale shall be
         permitted unless no Default or Event of Default shall have occurred
         and be continuing before and after giving effect to such
         transaction. Such waiver does not constitute a waiver of Section
         8.02(c) of the Financing Agreement for any other purpose or a
         waiver of any other provision of the Financing Agreement or any
         other Loan Document or any waiver of any other Default or Event of
         Default that may exist under the Financing Agreement or an
         acquiescence therein.

                  Section 2.21 Consent to Release of Lien on Maryville
                               ---------------------------------------
         Property. The Lenders hereby consent to the release of the
         --------
         Collateral Agent's Liens on the Maryville Property effective
         contemporaneously with the closing of the Maryville Restructuring.

                                ARTICLE III

                    SECURITY AND ADMINISTRATIVE PRIORITY

                  Section 3.01 Reaffirmation of Grant of Lien and Security
                               -------------------------------------------
         Interest.
         --------

                  (a) As security for the full and timely payment and
performance of all of the Obligations each of the Loan Parties after giving
effect to this Amendment, each of the Loan Parties confirms and reaffirms
its assignment, pledge and grant to the Collateral Agent, for the benefit of
the Lenders, of the security interest in and to and Lien on all of the
Collateral set forth in Section 4.01 of the Financing Agreement on the terms
and subject to the provisions of the Loan Documents.

                  (b) Upon entry of the Supplemental Bankruptcy Court Order
relating to this Amendment, the Liens and security interests in favor of the
Collateral Agent referred to in Section 3.01(a) shall continue to be valid
                                ---------------
and perfected Liens and security interests in the Collateral, prior to all
other Liens and security interests in the Collateral, other than for the
Permitted Priority Liens.

                                     15

<PAGE>
<PAGE>

                  Section 3.02 Administrative Priority. Subject to the
                               -----------------------
         Bankruptcy Court Order and the Supplemental Bankruptcy Court
         Orders, each of the Borrowers and Guarantors agrees for itself that
         the Obligations of such Person shall constitute allowed
         administrative expenses in the Chapter 11 Cases, having priority
         over all administrative expenses of and unsecured claims against
         such Person now existing or hereafter arising, of any kind or
         nature whatsoever, including, without limitation, all
         administrative expenses of the kind specified in, or arising or
         ordered under, Sections 105, 326, 328, 503(b), 506(c), 507(a),
         507(b), 546(c), 1113 and 1114 of the Bankruptcy Code, subject only
         to the prior payment of expenses to the extent set forth in clause
         "first" of the definition of the term "Agreed Administrative
         Expense Priorities".

                                 ARTICLE IV

                            CONDITIONS PRECEDENT

                  Section 4.01 Conditions to Effectiveness of this
                               -----------------------------------
         Amendment. This Amendment shall be effective as of the date hereof,
         ---------
         upon the satisfaction (or waiver) of the conditions precedent that:

                  (a) Bankruptcy Court Order. (i) The Administrative Agent,
                      ----------------------
the Collateral Agent and the Lenders shall have received a final,
non-appealable order of the Bankruptcy Court approving this Amendment and
the terms and conditions hereof, which order shall be in form and substance
satisfactory to the Administrative Agent in its sole discretion and shall
have been entered by the Bankruptcy Court, (ii) the Administrative Agent
shall have received a true and complete copy of such order, and (iii) such
order shall be in full force and effect and shall not have been reversed,
modified, amended, stayed or vacated absent prior written consent of the
Administrative Agent.

                  (b) Fees and Expenses. The Borrowers shall have paid all
                      -----------------
costs, fees and expenses referred to in Section 5.05 and the Fee Letter
dated February 23, 2006 (the "Fourth Amendment Fee Letter"), to the extent
                              ---------------------------
due on or prior to the date hereof, and all costs and expenses (including,
without limitation, legal fees and disbursements, filing fees, documentary,
stamp and filing taxes (subject to Section 2.08 of the Financing Agreement))
of the Administrative Agent, the Collateral Agent and each Lender incurred
in connection with this Amendment and the transactions, documents and
agreements contemplated hereby.

                  (c) Representations and Warranties. As of the date hereof,
                      ------------------------------
both before (but after giving effect to the limited waivers set forth in
Article II above) and after giving effect to this Amendment, all of the
representations and warranties contained in the Financing Agreement and in
each other Loan Document shall be true and correct in all material respects
as though made on the date hereof, except to the extent such representation
and warranty expressly relates to a specific prior date in which case such
representation and warranty shall be true and correct in all material
respects as of such date (and by its execution hereof, the Borrowers shall
be deemed to have represented and warranted such).

                                     16

<PAGE>
<PAGE>

                  (d) No Default. As of the date hereof, both before and
                      ----------
after giving effect to this Amendment, no Default (other than Defaults that
would, upon effectiveness of this Amendment, be waived pursuant to Article
II above) shall have occurred and be continuing (and by its execution
hereof, the Borrowers shall be deemed to have represented and warranted
such).

                  (e) Legality. The making of the Term Loan B Loans on the
                      --------
Fourth Amendment Effective Date as contemplated by this Amendment shall not
contravene any law, rule or regulation applicable to any Agent or any
Lender.

                  (f) Delivery of Documents. The Administrative Agent and
                      ---------------------
the Collateral Agent shall have received on or before the Fourth Amendment
Effective Date (or in the case of clause (ii) below the Loan Parties shall
have used their commercially reasonable efforts to cause such delivery) the
following, each in form and substance reasonably satisfactory to each of the
Administrative Agent and the Collateral Agent and, unless indicated
otherwise, dated on or as of the Fourth Amendment Effective Date:

                  (i) executed counterparts of this Amendment, duly executed
         by each of the Lenders, the Borrowers, each Guarantor, the
         Documentation Agent, the Administrative Agent, the Collateral
         Agent and the Issuer;

                  (ii) with respect to each Principal Property (including,
         without limitation, each Additional Principal Property, but
         excluding the Krummrich Property), (A) if such Principal Property
         is located in a state that assesses mortgage taxes, a notice of
         order of the Bankruptcy Court referenced in subsection (a) above
         (together with a certified copy of said order), in recordable form,
         (B) if such Principal Property is located in a state that does not
         assess mortgage taxes, an amendment to the Mortgage for such
         property, duly executed by the applicable Loan Party and in
         recordable form, (C) a modification endorsement to the title policy
         for such property and (D) a date-down endorsement to the title
         policy for such property (which date-down endorsement may be
         combined with the modification endorsement into a single
         endorsement) or, in cases where such endorsement cannot be obtained
         at a reasonable cost, an updated title search and/or a date-down
         letter from the title insurance company, in each case indicating no
         Liens other than Permitted Liens;

                  (iii) a copy of the resolutions of each Loan Party,
         certified as of the Fourth Amendment Effective Date by a Secretary
         or an Assistant Secretary thereof, authorizing (A) the borrowings
         and other transactions contemplated by the Financing Agreement as
         amended hereby and the other Loan Documents delivered in connection
         herewith to which such Loan Party is or will be a party, and (B)
         the execution, delivery and performance by such Loan Party of this
         Amendment and each other Loan Document to which such Loan Party is
         or will be a party and the execution

                                     17

<PAGE>
<PAGE>

         and delivery of the other documents to be delivered by such Person
         in connection herewith and therewith;

                  (iv) a certificate of a Secretary or an Assistant Secretary
         of each Loan Party, certifying the names and true signatures of the
         representatives of such Loan Party authorized to sign each Loan
         Document to which such Loan Party is or will be a party and the
         other documents to be executed and delivered by such Loan Party in
         connection herewith and therewith, together with evidence of the
         incumbency of such authorized officers;

                  (v) to the extent required by the Collateral Agent, a
         certificate of the appropriate official(s) of the state or other
         applicable jurisdiction of organization of each Loan Party
         certifying as to the subsistence in good standing of, and the
         payment of taxes by, such Loan Party in such states and certified
         as of a recent date not more than 30 days prior to the Fourth
         Amendment Effective Date, together, if requested by the Collateral
         Agent, with confirmation by telephone or telecopy (where available)
         on the Fourth Amendment Effective Date from such official(s) as to
         such matters;

                  (vi) a copy of the charter and by-laws, limited liability
         company agreement, operating agreement, agreement of limited
         partnership or other organizational document of each Loan Party,
         together with all amendments thereto, certified as of the Fourth
         Amendment Effective Date by a Secretary or an Assistant Secretary
         of such Loan Party;

                  (vii) an opinion of Kirkland & Ellis LLP, counsel to the
         Loan Parties, in form and substance reasonably satisfactory to the
         Administrative Agent;

                  (viii) a certificate of an Authorized Officer of each Loan
         Party, certifying as to the matters set forth in clauses (c) and
                                                          -----------
         (d) of this Section 4.01;
         ---         ------------

                  (ix) a certificate of a Secretary or an Assistant Secretary
         of the Administrative Borrower, certifying the names and true
         signatures of the persons that are authorized to provide Notices of
         Borrowing and all other notices under the Financing Agreement and
         the other Loan Documents;

                  (x) the Loan Parties' draft 2005 audited financial statements;

                  (xi) a Notice of Borrowing in respect of the New Term Loan B
         Loan delivered at least three Business Days prior to the Fourth

                                     18

<PAGE>
<PAGE>

         Amendment Effective Date and otherwise conforming to the
         requirements of Section 2.02 of the Financing Agreement; and

                  (xii) such other agreements, instruments, approvals,
         opinions and other documents, each satisfactory to the
         Administrative Agent in form and substance, as the Administrative
         Agent may reasonably request.

                  (g) Priority. The Collateral Agent shall be satisfied that
                      --------
it has been granted, and after giving effect to this Amendment continues to
hold, for the benefit of the Lenders, a perfected, first priority Lien on,
and security interest in, all of the Collateral described in Section
4.01(a)(i) of the Financing Agreement, subject only to Permitted Priority
Liens.

                  (h) Approvals. All consents, authorizations and approvals
                      ---------
of, and filings and registrations with, and all other actions in respect of,
any Governmental Authority or other Person required in connection with the
making of the Loans shall have been obtained and shall be in full force and
effect.

                  Section 4.02 Post-Closing Deliveries. The Administrative
                               -----------------------
         Agent and the Collateral Agent shall have received on or before the
         date which is sixty (60) days following the Fourth Amendment
         Effective Date (or, in the case of any as such time period may be
         extended by the Administrative Agent) such amendments,
         confirmations or other agreements as the Administrative Agent or
         Collateral Agent may reasonably require with respect to (A) any
         Pledge Agreement to provide or confirm that the Liens granted
         thereunder secure all of the Obligations after giving effect to
         this Amendment or (B) any other Loan Document to continue the
         effectiveness thereof with respect to the Financing Agreement as
         amended hereby, each in form and substance reasonably satisfactory
         to each of the Administrative Agent and the Collateral Agent.

                                  ARTICLE V

                                MISCELLANEOUS

                  Section 5.01 Effect; Ratification. The amendments, waivers
                               --------------------
         and consents set forth herein are effective solely for the purposes
         set forth herein and shall be limited precisely as written, and
         shall not be deemed to (i) be a consent to, or acknowledgment of,
         any amendment, waiver or modification of any other term or
         condition of the Financing Agreement or of any other instrument or
         agreement referred to herein or therein or (ii) prejudice any right
         or remedy which the Agents or any other party may now have or may
         have in the future under or in connection with the Financing
         Agreement as amended hereby or any other instrument or agreement
         referred to therein. This Amendment shall be construed in
         connection with and as part of the Financing Agreement, and all
         terms, conditions, representations, warranties, covenants and
         agreements set forth in the Financing Agreement, each other Loan
         Document and each other instrument or agreement

                                     19

<PAGE>
<PAGE>

         referred to therein, except as herein amended, are hereby ratified and
         confirmed and shall remain in full force and effect.

                  Section 5.02 Acknowledgement. Each of the Borrowers and
                               ---------------
         Guarantors hereby acknowledges and agrees that as of the Fourth
         Amendment Effective Date and immediately after giving effect to
         this Amendment, the making of the New Term Loan B Loans and the
         other transactions contemplated hereby the Borrowers and Guarantors
         are and continue to be indebted to the Lenders under the Financing
         Agreement (as amended hereby) in the principal amount of
         $703,500,000, which principal amount consists of $53,500,000 of
         outstanding Revolving Loans, $300,000,000 of outstanding Original
         Term Loan B Loans, $50,000,000 of outstanding Converted Term Loan B
         Loans and $300,000,000 of outstanding New Term Loan B Loans and
         remain liable for reimbursement obligations under Letters of Credit
         outstanding on the date hereof with an aggregate undrawn face
         amount equal to $93,729,949.

                  Section 5.03 Due Authorization; Authority; No Conflicts;
                               -------------------------------------------
         Enforceability. The execution, delivery and performance by each
         --------------
         Loan Party of this Amendment (i) have been duly authorized by all
         necessary action, (ii) do not and will not contravene its charter
         or by-laws, its limited liability company or operating agreement or
         its certificate of partnership or partnership agreement, as
         applicable, or any applicable law or any contractual restriction
         binding on or otherwise affecting it or any of its properties
         (other than conflicts, breaches and defaults, the enforcement of
         which will be stayed by virtue of the filing of the Chapter 11
         Cases), or any order or decree of any court or Governmental
         Authority (including, without limitation, any order entered in the
         Chapter 11 Cases), (iii) do not and will not result in or require
         the creation of any Lien upon or with respect to any of its
         material properties, and (iv) do not and will not result in any
         material default, noncompliance, suspension, revocation,
         impairment, forfeiture or nonrenewal of any material permit,
         license, authorization or approval applicable to its operations or
         any of its properties. Other than the order referred to in Section
                                                                    -------
         4.01(a) hereof, no authorization or approval or other action by,
         -------
         and no notice to or filing with, any Governmental Authority,
         including the Bankruptcy Court, is required in connection with the
         due execution, delivery and performance by any Loan Party of this
         Amendment. This Amendment, when delivered hereunder, is or will be,
         duly and validly executed and delivered by each of the Loan Parties
         which is a party hereto and each of this Amendment and the
         Financing Agreement as amended hereby constitutes the legal, valid
         and binding obligation of each of the Loan Parties which is a party
         hereto or thereto, enforceable in accordance with the terms hereof
         or thereof and subject to the entry of, and the terms of, the
         Bankruptcy Court order referred to in Section 4.01(a) hereof.
                                               ---------------

                  Section 5.04 No Novation. Neither this Amendment nor the
                               -----------
         replacement of the terms of the Financing Agreement by the terms of
         this Amendment shall extinguish the obligations for the payment of
         money outstanding under the Financing Agreement or discharge or
         release the Lien or priority of any security agreement, any pledge
         agreement or any other security therefor. Nothing herein contained
         shall be construed as a substitution or novation of the Obligations
         outstanding under the Financing Agreement or instruments securing
         the same,

                                     20

<PAGE>
<PAGE>

         which shall remain in full force and effect, except as modified
         hereby. Nothing expressed or implied in this Amendment or any other
         document contemplated hereby or thereby shall be construed as a
         release or other discharge of the Borrowers or any other Loan Party
         under any Loan Document from any of its obligations and liabilities
         thereunder. Each of the Financing Agreement and the other Loan
         Documents shall remain in full force and effect, until and except
         as modified hereby or in connection herewith. This Amendment, the
         Fourth Amendment Fee Letter and each document, instrument and
         agreement required to be delivered pursuant to Section 4.01(f)(ii)
                                                        -------------------
         hereof are Loan Documents executed pursuant to the Financing
         Agreement and shall be construed, administered and applied in
         accordance with the terms and provisions thereof.

                  Section 5.05 Costs, Fees and Expenses. The Borrowers jointly
                               ------------------------
         and severally agree to reimburse the Agents and the Lenders upon
         demand in accordance with Section 13.04 of the Financing Agreement
         for all reasonable costs, fees and expenses (including the
         reasonable fees and expenses of counsel to the Agents and the
         Lenders) incurred in connection with the preparation, execution,
         delivery and filing or recordation of this Amendment and other
         documents contemplated hereby.

                  Section 5.06 Counterparts. This Amendment may be executed
                               ------------
         in any number of counterparts and by different parties hereto in
         separate counterparts, each of which shall be deemed to be an
         original, but all of which taken together shall constitute one and
         the same agreement. Delivery of an executed counterpart of this
         Amendment by telecopier or a .PDF by electronic mail shall be
         equally as effective as delivery of an original executed
         counterpart of this Amendment. Any party delivering an executed
         counterpart of this Amendment by telecopier also shall deliver an
         original executed counterpart of this Amendment but the failure to
         deliver an original executed counterpart shall not affect the
         validity, enforceability, and binding effect of this Amendment.

                  Section 5.07 Severability. Any provision of this Amendment
                               ------------
         which is prohibited or unenforceable in any jurisdiction shall, as
         to such jurisdiction, be ineffective to the extent of such
         prohibition or unenforceability without invalidating the remaining
         portions hereof or affecting the validity or enforceability of such
         provision in any other jurisdiction.

                  Section 5.08 CHOICE OF LAW. THIS AMENDMENT SHALL BE
                               -------------
         GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE
         OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE
         STATE OF NEW YORK EXCEPT AS GOVERNED BY THE BANKRUPTCY CODE.

                  Section 5.09 No Party Deemed Drafter. Each of the parties
                               -----------------------
         hereto agrees that no party hereto shall be deemed to be the
         drafter of this Amendment.

                                     21

<PAGE>
<PAGE>

                  Section 5.10 Ratification of Guaranty. Each Guarantor
                               ------------------------
         hereby consents to this Amendment and hereby confirms and agrees
         that (a) notwithstanding the effectiveness of this Amendment, the
         Guaranty is, and shall continue to be, in full force and effect and
         is hereby ratified and confirmed in all respects, except that, on
         and after the effectiveness of this Amendment, each reference in
         the Guaranty to the "Agreement", "thereunder", "thereof" or words
         of like import referring to the Financing Agreement shall mean and
         be a reference to the Financing Agreement as amended by this
         Amendment, and (b) the Loan Documents to which it is a party and
         all of the Collateral described therein do, and shall continue to,
         secure the payment of all of the Obligations secured thereby.

                          (Signature Page Follows)

                                     22

<PAGE>
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be executed by their respective officers thereunto duly
authorized, as of the date first above written.

                           BORROWERS:
                           ---------

                           SOLUTIA INC., as a debtor and a debtor-in-
                           possession

                           By: /s/ James A. Tichenor
                              --------------------------------------------
                              Name:  James A. Tichenor
                              Title: Assistant Treasurer

                           SOLUTIA BUSINESS ENTERPRISES, INC., as
                           a debtor and a debtor-in-possession

                           By: /s/ James A. Tichenor
                               -------------------------------------------
                               Name:  James A. Tichenor
                               Title: Vice President & Treasurer

                           GUARANTORS:
                           ----------

                           AXIO RESEARCH CORPORATION, as a debtor
                           and a debtor-in-possession

                           By: /s/ James A. Tichenor
                              --------------------------------------------
                              Name:  James A. Tichenor
                              Title: Vice President & Treasurer

                                     23

<PAGE>
<PAGE>

                           BEAMER ROAD MANAGEMENT COMPANY, as a
                           debtor and a debtor-in-possession

                           By: /s/ James A. Tichenor
                               -------------------------------------------
                               Name: James A. Tichenor
                               Title: Vice President & Treasurer

                           CPFILMS INC., as a debtor and a debtor-
                           in-possession

                           By: /s/ James A. Tichenor
                               -------------------------------------------
                               Name:  James A. Tichenor
                               Title: Vice President & Assistant Treasurer

                           MONCHEM, INC., as a debtor and a debtor-in-
                           possession

                           By: /s/ James A. Tichenor
                               -------------------------------------------
                               Name:  James A. Tichenor
                               Title: Vice President & Treasurer

                           MONCHEM INTERNATIONAL, INC., as a debtor and a
                           debtor-in-possession

                           By: /s/ James A. Tichenor
                              --------------------------------------------
                              Name:  James A. Tichenor
                              Title: Vice President & Treasurer

                           SOLUTIA GREATER CHINA, INC., as a debtor and a
                           debtor-in-possession

                           By: /s/ James A. Tichenor
                              --------------------------------------------
                              Name:  James A. Tichenor
                              Title: Vice President & Treasurer

                                     24

<PAGE>
<PAGE>

                           SOLUTIA INTER-AMERICA, INC., as a debtor and
                           a debtor-in-possession

                           By: /s/ James A. Tichenor
                               -------------------------------------------
                               Name:  James A. Tichenor
                               Title: Vice President & Treasurer

                           SOLUTIA INTERNATIONAL HOLDING, LLC, as a debtor
                           and a debtor-in-possession

                           By: /s/ James A. Tichenor
                               -------------------------------------------
                               Name:  James A. Tichenor
                               Title: Vice President & Treasurer

                           SOLUTIA INVESTMENTS, LLC, as a debtor and a
                           debtor-in-possession

                           By: /s/ James A. Tichenor
                               -------------------------------------------
                               Name:  James A. Tichenor
                               Title: Vice President & Treasurer

                           SOLUTIA MANAGEMENT COMPANY, INC., as a debtor
                           and a debtor-in-possession
\

                           By: /s/ James A. Tichenor
                               -------------------------------------------
                               Name:  James A. Tichenor
                               Title: Vice President & Treasurer

                           SOLUTIA OVERSEAS, INC., as a debtor and a
                           debtor-in-possession

                           By: /s/ James A. Tichenor
                                ------------------------------------------
                                Name:  James A. Tichenor
                                Title: Vice President & Treasurer

                                     25

<PAGE>
<PAGE>

                           SOLUTIA SYSTEMS, INC., as a debtor and a
                           debtor-in-possession

                           By: /s/ James A. Tichenor
                               -------------------------------------------
                               Name:  James A. Tichenor
                               Title: Vice President & Treasurer

                           SOLUTIA TAIWAN, INC., as a debtor and a
                           debtor-in-possession

                           By: /s/ James A. Tichenor
                               -------------------------------------------
                               Name:  James A. Tichenor
                               Title: Vice President & Treasurer

                                     26

<PAGE>
<PAGE>

                           ADMINISTRATIVE AGENT, COLLATERAL AGENT,
                           ---------------------------------------
                           CO-DOCUMENTATION AGENT AND A LENDER:
                           -----------------------------------

                           CITICORP USA, INC., for itself as the
                           Administrative Agent, the Collateral Agent,
                           a Co-Documentation Agent and a Lender

                           By: /s/ David Jaffee
                               -------------------------------------------
                               Name:  David Jaffee
                               Title: Director/Vice President

                                     27

<PAGE>
<PAGE>

                           CO-DOCUMENTATION AGENT AND A LENDER:
                           -----------------------------------

                           WELLS FARGO FOOTHILL, LLC, for itself as a
                           Co-Documentation Agent and a Lender

                           By: /s/ Yelena Kravchuk
                              --------------------------------------------
                              Name:  Yelena Kravchuk
                              Title: AVP

                                     28

<PAGE>
<PAGE>

                           ISSUER:
                           ------

                           CITIBANK, N.A., as an Issuer and a Lender

                           By: /s/ David Jaffee
                               -------------------------------------------
                               Name:  David Jaffee
                               Title: Director/Vice President

                                     29

<PAGE>
<PAGE>

                           LENDER:
                           ------

                           Citigroup Financial Products Inc.,
                           ----------------------------------
                           as a Lender

                           By: /s/ Gregory W. Frenzel
                              --------------------------------------------
                              Name:  Gregory W. Frenzel
                              Title: Managing Director

                                     30

<PAGE>
<PAGE>

                           LENDER:
                           -------

                           Baverische Hypo- und Vereinsbank AG,
                           ------------------------------------
                           New York Branch
                           ---------------
                           as a Lender

                           By: /s/ Miriam Trautmann
                               -------------------------------------------
                               Name:  Miriam Trautmann
                               Title: Associate Director

                           By: /s/ Salvatore Esposito
                               -------------------------------------------
                               Name:  Salvatore Esposito
                               Title: Managing Director

                                     31

<PAGE>
<PAGE>

                           LENDER:
                           -------

                           UBS AG, Stemford Branch
                           ------------------------------------
                           as a Lender

                           By: /s/ Anthony N. Joseph
                               -------------------------------------------
                               Name:  Anthony N. Joseph
                               Title: Director
                                      Banking Products Services, US

                           By: /s/ Toba Lumbantobing
                               -------------------------------------------
                               Name:  Toba Lumbantobing
                               Title: Associate Director
                                      Banking Products Services, US

                                     32

<PAGE>
<PAGE>

                           LENDER:
                           -------

                           GREYWOLF LOAN PARTICIPATION LLC,
                           as a Lender
                           By: Greywolf Capital Management LP,
                               its manager

                           By: /s/ William Troy
                               -------------------------------------------
                               Name:  William Troy
                               Title: Partner

                                     33

<PAGE>
<PAGE>

                           VELOCITY CLO, LTD.
                           By: TCW Advisors, Inc.,
                               its Collateral Manager

                           By: /s/ G. Wayne Hosang
                               -------------------------------------------
                               Name:  G. WAYNE HOSANG
                               Title: VICE PRESIDENT

                           By: /s/ Jonathan R. Insull
                               -------------------------------------------
                               Name:  JONATHAN R. INSULL
                               Title: MANAGING DIRECTOR

                                     34

<PAGE>
<PAGE>

                           CELEBRITY CLO, LIMITED
                           By: TCW Advisors, Inc.,
                           as Agent

                           By: /s/ G. Wayne Hosang
                               -------------------------------------------
                               Name:  G. WAYNE HOSANG
                               Title: VICE PRESIDENT

                           By: /s/ Jonathan R. Insull
                               -------------------------------------------
                               Name:  JONATHAN R. INSULL
                               Title: MANAGING DIRECTOR

                                     35

<PAGE>
<PAGE>

                           DARIEN LOAN FUNDING COMPANY
                           By: TCW Advisors as its Interim
                           Interim Collateral Manager

                           By: /s/ G. Wayne Hosang
                               -------------------------------------------
                               Name:  G. WAYNE HOSANG
                               Title: VICE PRESIDENT

                           By: /s/ Jonathan R. Insull
                               -------------------------------------------
                               Name:  JONATHAN R. INSULL
                               Title: MANAGING DIRECTOR

                                     36

<PAGE>
<PAGE>

                           LOAN FUNDING I LLC,
                               a wholly owned subsidiary of Citibank, N.A.
                                 By: TCW Advisors, Inc.,
                               as Portfolio Manager of Loan Funding I LLC

                           By: /s/ G. Wayne Hosang
                               -------------------------------------------
                               Name:  G. WAYNE HOSANG
                               Title: VICE PRESIDENT

                           By: /s/ Jonathan R. Insull
                               -------------------------------------------
                               Name:  JONATHAN R. INSULL
                               Title: MANAGING DIRECTOR

                                     37

<PAGE>
<PAGE>

                           TCW Senior Secured Loan Fund, LP
                             By: TCW Advisors, Inc., as its Investment
                             Advisor

                           By: /s/ G. Wayne Hosang
                               -------------------------------------------
                               Name:  G. WAYNE HOSANG
                               Title: VICE PRESIDENT

                           By: /s/ Jonathan R. Insull
                               -------------------------------------------
                               Name:  JONATHAN R. INSULL
                               Title: MANAGING DIRECTOR

                                     38

<PAGE>
<PAGE>

                           TCW SELECT LOAN FUND, LIMITED
                             By: TCW Advisors, Inc., as its
                             Collateral Manager

                           By: /s/ G. Wayne Hosang
                               -------------------------------------------
                               Name:  G. WAYNE HOSANG
                               Title: VICE PRESIDENT

                           By: /s/ Jonathan R. Insull
                               -------------------------------------------
                               Name:  JONATHAN R. INSULL
                               Title: MANAGING DIRECTOR

                                     39

<PAGE>
<PAGE>

                           LENDER:
                           -------

                           CDL Loan Funding LLC
                           ------------------------------------
                           as a Lender

                           By: /s/ Jason Trala
                               -------------------------------------------
                               Name:  JASON TRALA
                               Title: Attorney-in-Fact

                                     40

<PAGE>
<PAGE>

                           LENDER:
                           -------

                           Citibank N.A.
                           ------------------------------------
                           as a Lender

                           By: /s/ Jason Trala
                               -------------------------------------------
                               Name:  JASON TRALA
                               Title: Attorney-in-Fact

                                     41

<PAGE>
<PAGE>

                           LENDER:
                           -------

                           Satellite Senior Income Fund, LLC

                           By: Satellite Asset Management L.P.
                           Its Manager

                           By: /s/ Simon Raykher
                               -------------------------------------------
                               Name:  Simon Raykher
                               Title: General Counsel

                                     42

<PAGE>
<PAGE>

                           LENDER:
                           -------

                           Satellite Senior Income Fund II, LLC

                           By: Satellite Asset Management L.P.
                           Its Manager

                           By: /s/ Simon Raykher
                               -------------------------------------------
                               Name:  Simon Raykher
                               Title: General Counsel

                                     43

<PAGE>
<PAGE>

                           LENDER:
                           -------

                           Highland Legacy Limited
                           By: Highland Capital Management, L.P.,
                           As Collateral Manager
                           By: Strand Advisors, Inc., Its General Partner
                           as a Lender

                           By: /s/ Chad Schramek
                               -------------------------------------------
                               Name:  Chad Schramek
                               Title: Assistant Treasurer
                                      Strand Advisors, Inc., General Partner of
                                      Highland Capital Management, L.P.

                                     44

<PAGE>
<PAGE>

                           LENDER:
                           -------

                           Restoration Funding CLO, LTD
                           By: Highland Capital Management, L.P.,
                           As Collateral Manager
                           By: Strand Advisors, Inc., Its General Partner
                           as a Lender

                           By: /s/ Chad Schramek
                               -------------------------------------------
                               Name:  Chad Schramek
                               Title: Assistant Treasurer
                                      Strand Advisors, Inc., General Partner of
                                      Highland Capital Management, L.P.

                                     45

<PAGE>
<PAGE>

                           LENDER:
                           -------

                           Highland Loan Funding V Ltd.
                           By: Highland Capital Management, L.P.,
                           As Collateral Manager
                           By: Strand Advisors, Inc., Its General Partner
                           as a Lender

                           By: /s/ Chad Schramek
                               -------------------------------------------
                               Name:  Chad Schramek
                               Title: Assistant Treasurer
                                      Strand Advisors, Inc., General Partner of
                                      Highland Capital Management, L.P.

                                     46

<PAGE>
<PAGE>

                           LENDER:
                           -------

                           Pam Capital Funding L.P.
                           By: Highland Capital Management, L.P.,
                           As Collateral Manager
                           By: Strand Advisors, Inc., Its General Partner
                           as a Lender

                           By: /s/ Chad Schramek
                               -------------------------------------------
                               Name:  Chad Schramek
                               Title: Assistant Treasurer
                                      Strand Advisors, Inc., General Partner of
                                      Highland Capital Management, L.P.

                                     47

<PAGE>
<PAGE>

                           ROCKVIEW

                           LENDER:
                           ------

                           ROCKVIEW TRADING, LTD
                           -----------------------------------------------
                           as a Lender

                           By: /s/ David Muschel
                               -------------------------------------------
                               Name:  DAVID MUSCHEL
                               Title: MANAGER

                                     48

<PAGE>
<PAGE>

                           GUGGENHEIM

                           LENDER:
                           ------

                           GPC XLI, LLC
                           -----------------------------------------------
                           as a Lender

                           By: /s/ David Muschel
                               -------------------------------------------
                               Name:  DAVID MUSCHEL
                               Title: MANAGER

                                     49

<PAGE>
<PAGE>

                           LENDER:
                           -------

                           WatchTower CLO IPLC
                           By: Citadel Limited Partnership, Collateral Manager
                           By: Citadel Investment Group, L.L.C.,
                           Its General Partner
                           as a Lender

                           By: /s/ Erica L. Tarpey
                               -------------------------------------------
                               Name:  ERICA L. TARPEY
                               Title: Authorized Signatory

                                     50

<PAGE>
<PAGE>

                           LENDER:
                           -------

                           Oppenheimer Senior Floating Rate Fund,
                           as a Lender

                           By: /s/ Lisa Chaffee
                               -------------------------------------------
                               Name:  LISA CHAFFEE
                               Title: AVP

                                     51

<PAGE>
<PAGE>

                           LENDER:
                           -------

                           Quattro Fund, Ltd.,
                           -------------------
                           as a Lender

                           By: /s/ Andrew Kaplan
                               -------------------------------------------
                               Name:  Andrew Kaplan
                               Title: Principal

                                     52

<PAGE>
<PAGE>

                           LENDER:
                           -------

                           Quattro Distressed Opportunities Fund, L.P.,
                           --------------------------------------------
                           as a Lender

                           By: /s/ Andrew Kaplan
                               -------------------------------------------
                               Name:  Andrew Kaplan
                               Title: Principal

                                     53

<PAGE>
<PAGE>

                           LENDER:
                           -------

                           Quattro Multi-Strategy Fund, Ltd.,
                           ---------------------------------
                           as a Lender

                           By: /s/ Andrew Kaplan
                               -------------------------------------------
                               Name:  Andrew Kaplan
                               Title: Principal

                                     54

<PAGE>
<PAGE>

                           LENDER:
                           -------

                           LOAN FUNDING XIII for itself or as agent
                           for Corporate Funding XIII,
                           as a Lender

                           By: /s/ Aaron A. Meyer
                               -------------------------------------------
                               Name:  Aaron A. Meyer
                               Title: Principal
                                      Silvermine Capital Management, LLC
                                      263 Treaser Blvd.
                                      10th Floor
                                      Stamford, CT 06901
                                      (T) 203 399-3020
                                      (F) 203 399-3002

                                     55

<PAGE>
<PAGE>

                           LENDER:
                           -------

                           DKR Wolf Point Holding Fund Ltd,
                           -------------------------------
                           as a Lender

                           By: /s/ Barbara Burger
                               -------------------------------------------
                               Name:  Barbara Burger
                               Title: Director

                                     56

<PAGE>
<PAGE>

                           LENDER:
                           -------

                           SMBC DIP Limited
                           -----------------------------------------------
                           as a Lender

                           By: /s/ Susumu Ogawa
                               -------------------------------------------
                               Name:  Susumu Ogawa
                               Title: Director

                                     57

<PAGE>
<PAGE>

                           LENDER:
                           -------

                           Highland Credit ops CDO Ltd,
                           -----------------------------------------------
                           as a Lender

                           By: /s/ Darrin Britt
                               -------------------------------------------
                               Name:  Darrin Britt
                               Title: Attorney-in-Fact

                                     58

<PAGE>
<PAGE>

                           LENDER:
                           -------

                           Foothill Income Trust II, L.P.,
                           -----------------------------------------------
                           as a Lender

                           by FIT II GP, LLC, Its Gen Partner

                           By: /s/ Sean Dixon
                               -------------------------------------------
                               Name:  SEAN DIXON
                               Title: MANAGING MEMBER

                                     59Exhibit 10.1

The Agreement ("Agreement") is entered into March 11, 2006 by the following
parties:

     Party A: Wu Ju Ying and Beijing Ruixing Shiji Investment Co., Ltd (the
shareholders of Beijing Broadcasting and Television Media Co., Ltd.)

     Address:              Room A2205, #26, Chaowai  Road, Chaoyang District,
                           Beijing, 100020, China
     Representative:       Yang Wen Quan             Nationality: Chinese

     Party B: Navistar Communication Holding, LTD

     Contact Address:      4001 S DECATUR BLVD, SUITE 37-218 LAS VEGAS NV 89103

     Representative:       Don Lee                   Nationality:  U.S.A.

     (1)  Party A is the sole shareholder of Beijing Broadcasting and Television
          Media Co., Ltd., legally registered limited liability companies
          established according to the laws of the People's Republic of China
          ("China") laws, who authorizes its representative Yang Wen Quan to
          represent Beijing Broadcasting and Television Media Co., Ltd. to sign
          this Agreement; Party B is a legally registered limited liability
          company registered in U.S.A.

<PAGE>

     (2)  In Accordance with The Company Law of China, The Contract Law of China
          as well as other prevailing laws and regulations, Part B decides to
          take operation control of and make investment in Beijing Broadcasting
          and Television Media Co., Ltd., and invest in Beijing Broadcasting and
          Television Media Co., Ltd. directly or indirectly through one of Party
          B's subsidiaries.

     1.   Representations and Warranties

     1.1  The representations and warranties jointly made by the both parties
          are listed as follows:

          (1)  The both parties have all the relevant legal rights and capacity
               and are qualified for signing and implementation of this
               Agreement, and at the same time, the signing and implementation
               of this Agreement will not violate any or all the legal documents
               such as regulations on the company regulation, contracts and
               agreements which may impose certain restrictions on it.

          (2)  The both parties have already carried out all the required
               actions or will do so, to obtain the consent, approval,
               authorization and permit required by signing and implementation
               of this Agreement.

          (3)  In keeping with the principles of reliability and creditability
               and responsibility, both parties will make utmost efforts to work
               in close cooperation to promote the smooth implementation of this
               Agreement. The parties will follow the principles set forth
               within this Agreement, and will not impede the implementation of
               this Agreement.

     The representations and warranties of Party A

     1.2  The representations and warranties that Party A makes to Party B are
          listed as follows:

          (1)  All the materials having been or to be provided by Party A are
               authentic, complete, accurate with no misleading information.

          (2)  The registered capital of Beijing Broadcasting and Television
               Media Co., Ltd. has been fully contributed; Beijing Broadcasting
               and Television Media Co., Ltd. owns the legal ownership and use
               rights of the total assets.

<PAGE>

          (3)  Beijing Broadcasting and Television Media Co., Ltd. has obtained
               necessary rights and permits, authorizations, approvals and
               consent required for media content production and business
               operation. The business scope of Beijing Broadcasting and
               Television Media Co., Ltd. does not go beyond the operational
               scope approved as well as the rules of its articles.

          (4)  Its financials statements as audited by its auditing firm
               according to the US GAAP shall be true and correct and fairly
               represent the operation results of Beijing Broadcasting and
               Television Media Co., Ltd.

          (5)  Party A shall disclose all the mortgage of assets, sponsor and
               related lawsuits and arbitration as well as administrative
               penalties to which Party A is subject.

          (6)  Additional Representations and Warranties: There will be no
               material changes in the contributed assets and debts of Beijing
               Broadcasting and Television Media Co., Ltd. and Party A will
               maintain normal cash flow for it operational activities;

     1.3  The representations and warranties that Party B makes to Party A are
          listed as follows:

          (1)  All the materials having been or to be provided to party A are
               authentic, timely and complete.

          (2)  Party B recognizes all the contracts entered into before this
               Agreement, and will cause the Joint Venture to duly fulfill the
               implementation of this Agreement.

     2.   Operation Control and Investment

     2.1  The scope of the capital assets of this cooperation refers to the
          total assets appearing on the financials of Beijing Broadcasting and
          Television Media Co., Ltd..

     2.2. As of the date of this Agreement, Party B shall assume the full
          operation control of Party A, including without limitation all aspects
          of Beijing Broadcasting and Television Media Co., Ltd. 's business
          operation, production, distribution and sale of products and shall
          have the complete power to appoint and change Beijing Broadcasting and
          Television Media Co., Ltd. 'stop management staff and executives.
          Party B shall also nominate majority of Beijing Broadcasting and
          Television Media Co., Ltd.'s board members including its chairman.

<PAGE>

     2.3  Party B agrees to inject additional funding into Beijing Broadcasting
          and Television Media Co., Ltd. either directly or indirectly. After
          the completion of investment from Party B, Beijing Broadcasting and
          Television Media Co., Ltd. will become a subsidiary of Party B with
          Party B holds 70% of the total equity and Party A holds 30% of the
          total equity of Beijing Broadcasting and Television Media Co., Ltd..

     2.4  Standstill

     Party A shall not enter into any discussion of capital contribution and
cooperation with any third party without the consent of Party B and shall avail
itself for the acquisition transaction as provided in Section 2.2 above.

     3.   Arrangement of the transaction

          3.1  A total of US$1,500,000 worth of shares are going to be issued to
               Party A and their designees. The total shares are valued at US
               $1,500,000 at $1.00 per share to be paid to Party A within 10
               days upon the signing of this Agreement.

     4.   Additional Bonus for Special Services Party A shall be paid a total of
          $900,000 worth of shares if Party A can secure for Party B the
          pre-Olympics sports column in China.

     5. Others

     5.1  This Agreement is not allowed to be terminated on unilaterally.

     5.2  If any of the parties breaches the Agreement, the non-breaching party
          has rights to ask the other party for compensations due to breach of
          Agreement.

     5.3  If any dispute arises between the two parties, the dispute shall be
          negotiated and settled within 30 working days. If the negotiation
          fails, the two parties can seek arbitration as the exclusive remedy
          and such arbitration award shall be final, exclusive, binding and
          enforceable against the parties. The arbitration shall be held in Hong
          Kong before the arbitral tribunal under the auspices of the Hong Kong
          Chamber of Commerce using its procedural rules.

<PAGE>

     5.4  For issues fails to be mentioned in this Agreement, the two parties
          may sign supplementary Agreement or attachment in writing, which forms
          effective components of this Agreement with the same legal effect.

     5.5  This Agreement is in quadruplicate, with two copies held by each
          party.

     Party A: Authorized representative:

     Party B: Authorized representative:

<PAGE>

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