Document:

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                                                                    EXHIBIT 10.7

                            STERLING CHEMICALS, INC.

                  THIRD AMENDED AND RESTATED SEVERANCE PAY PLAN

                             PRELIMINARY STATEMENTS

         A.       Sterling Chemicals, Inc. is a Delaware corporation and the
                  successor by merger to Sterling Chemicals Holdings, Inc., a
                  Delaware corporation.

         B.       On March 8, 2001, the Board of Directors of Sterling
                  Chemicals, Inc. (the "Board") and the Board of Directors of
                  Sterling Chemicals Holdings, Inc. approved a severance pay
                  plan (as amended and restated as of October 31, 2001, the
                  "Existing Plan").

         C.       The Board desires to formally amend the Existing Plan in
                  certain respects and to restate the Existing Plan as so
                  amended in its entirety.

                  NOW, THEREFORE, the Existing Plan is hereby amended and
restated, effective as of the Effective Date (as defined below), to read in its
entirety as follows:

                                    ARTICLE I

                         Definitions and Interpretations

                  Section 1.01. Definitions. Capitalized terms used in this Plan
shall have the following respective meanings, except as otherwise provided or as
the context shall otherwise require:

                  "Applicable Multiplier" has the meaning specified in Section
         2.02(a).

                  "Base Salary" has the meaning specified in Section 2.02(a).

                  "Benefit Plan" means any employee benefit plan (including any
         employee benefit plan within the meaning of Section 3(3) of the
         Employee Retirement Income Security Act of 1974), program, arrangement
         or practice maintained, sponsored or provided by the Company or any
         Subsidiary, including those relating to bonuses, incentive
         compensation, retirement benefits, stock options, stock ownership or
         stock awards, healthcare and medical benefits, disability benefits,
         death benefits, disability, life, accident and travel insurance, sick
         leave, vacation pay or termination pay, as amended, or any successor to
         any of such plans.

                  "Benefit Service" means, with respect to any Participant, the
         number of years of service as of such Participant's Termination Date
         which is recognized by the Company for such Participant for benefit
         calculation purposes under the Pension Plan; provided, however, that
         any fractional year of Benefit Service shall be rounded up to the next
         full year of Benefit Service.

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                  "Board" has the meaning specified in the Preliminary
         Statements hereto.

                  "COBRA" means the Consolidated Omnibus Budget Reconciliation
         Act of 1985, as amended. Reference in this Plan to COBRA shall be
         deemed to include any amendments or successor provisions to COBRA and
         any regulations thereunder.

                  "Code" means the Internal Revenue Code of 1986, as amended.
         Reference in this Plan to any section of the Code shall be deemed to
         include any amendments or successor provisions to such section and any
         regulations under such section.

                  "Company" means Sterling and the Subsidiaries.

                  "Compensation Committee" means the Compensation Committee of
         the Board.

                  "Disability" means, with respect to any Participant, a
         physical or mental condition of such Participant that results in such
         Participant becoming eligible for long term disability benefits under
         the Company's long term disability Benefit Plan.

                  "Effective Date" means March 12, 2004.

                  "Existing Plan" has the meaning specified in the Preliminary
         Statements of this Plan.

                  "Good Reason" means, with respect to any Participant, any of
         the following actions or failures to act, but in each case only if it
         occurs while such Participant is employed by the Company, and then only
         if it is not consented to by such Participant in writing:

                  (i)      a material reduction by the Company in such
                           Participant's annual base salary in effect
                           immediately prior to the effective date of such
                           reduction;

                  (ii)     the failure of the Company to continue such
                           Participant's eligibility for participation in
                           employee benefit plans, programs, arrangements and
                           practices providing benefits that are offered
                           generally to its Non-Represented Employees; provided,
                           however, that the amendment, modification or
                           discontinuance of any such employee benefit plan,
                           program, arrangement or practice by the Company shall
                           not constitute "Good Reason" hereunder if such
                           amendment, modification or discontinuance applies
                           generally to Non-Represented Employees and does not
                           single out such Participant for disparate treatment;
                           or

                  (iii)    any change of more than 75 miles (or, in the case of
                           any Participant for whom the Compensation Committee
                           has approved a shorter distance, such shorter
                           distance) in the location of the principal place of
                           employment of such Participant immediately prior to
                           the effective date of such change.

         For purposes of this definition, any action or failure to act described
         in clauses (i) through (iii) above shall cease to be a Good Reason with
         respect to any Participant on the date

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         which is 90 days after such Participant acquires actual knowledge of
         such action or failure to act unless, prior to such date, such
         Participant gives a Termination Notice pursuant to Section 2.05.

                  "Misconduct" means, with respect to any Participant:

                  (i)      the commission by such Participant of acts of
                           dishonesty or gross misconduct which are demonstrably
                           injurious to the Company (monetarily or otherwise) in
                           any material respect;

                  (ii)     the failure of such Participant to observe and comply
                           with the Company's published policies relating to
                           alcohol and drugs, harassment or compliance with
                           applicable laws;

                  (iii)    the failure of such Participant to observe and comply
                           with any other lawful published policy of the
                           Company, but, in the case of any such failure that is
                           capable of being remedied, only if such failure shall
                           have continued unremedied for more than 30 days after
                           written notice thereof is given to such Participant
                           by the Company;

                  (iv)     the willful failure of such Participant to observe
                           and comply with all lawful and ethical directions and
                           instructions of the Board, any person to whom such
                           Participant reports or any person who has greater
                           authority than such Participant with respect to the
                           relevant directions or instructions;

                  (v)      the refusal or willful failure of such Participant to
                           perform, in any material respect, his or her duties
                           with the Company, but only if such failure was not
                           caused by disability or incapacity and shall have
                           continued unremedied for more than 30 days;

                  (vi)     the conviction of such Participant for a felony
                           offense; or

                  (vii)    any willful conduct on the part of such Participant
                           that prejudices, in any material respect, the
                           reputation of the Company in the fields of business
                           in which it is engaged or with the investment
                           community or the public at large, but only if such
                           Participant knew, or should have known, that such
                           conduct could have such result.

         If any Participant is a party to a written employment agreement with
         the Company, then clause (iv) above shall not apply to any directions
         or instructions that are contrary to or inconsistent with any of the
         positions, functions, duties or reporting responsibilities of such
         Participant as set forth in such written employment agreement or that
         violate any of such Participant's rights, privileges or immunities
         under such employment agreement. In case of any dispute regarding
         whether or not any conduct by a Participant meets any of the standards
         set forth in clauses (i) through (vii) above, the burden of proof shall
         rest with the Company.

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                  "Non-Represented Employees" means all employees of the Company
         who are not represented by a collective bargaining unit.

                  "Participants" means all Non-Represented Employees who are
         based in the United States; provided, however, that except as the
         Compensation Committee may otherwise provide in writing, any individual
         who is not paid through the Company's payroll system, or who is
         classified by the Company for purposes of this Plan as an independent
         contractor (or some other non-common law employee category), shall not
         be a "Participant" under this Plan, notwithstanding such individual's
         subsequent or retroactive (i) payment through the Company's payroll
         system or (ii) classification or reclassification for tax or other
         purposes.

                  "Pension Plan" means the Sterling Chemicals, Inc. Amended and
         Restated Salaried Employees' Pension Plan (effective as of May 1,
         1996), as amended, or any successor to such plan.

                  "Plan" means this Third Amended and Restated Severance Pay
         Plan, as amended, supplemented or modified from time to time in
         accordance with its terms.

                  "Severance Amount" has the meaning specified in Section
         2.02(a)(i).

                  "Sterling" means Sterling Chemicals, Inc., a Delaware
         corporation, and any Successor.

                  "Subsidiary" means any corporation, limited partnership,
         general partnership, limited liability company or other form of entity
         a majority of any class of voting stock or other voting rights of which
         is owned, directly or indirectly, by Sterling.

                  "Successor" means a successor to all or substantially all of
         the business, operations or assets of the Company (whether direct or
         indirect, by purchase, merger, consolidation or otherwise).

                  "Termination Date" means, with respect to any Participant, the
         termination date specified in the Termination Notice delivered by such
         Participant to the Company in accordance with Section 2.05 or the
         actual date of termination of such Participant's employment by the
         Company for any reason other than Misconduct or Disability.

                  "Termination Notice" means, with respect to any Participant, a
         notice from such Participant to the Company purporting to terminate
         such Participant's employment for Good Reason in accordance with
         Section 2.05.

                  Section 1.02. Interpretation. In this Plan, unless a clear
contrary intention appears, (a) the words "herein," "hereof" and "hereunder" and
other words of similar import refer to this Plan as a whole and not to any
particular Article, Section or other subdivision, (b) reference to any Article
or Section, means such Article or Section hereof and (c) the words "including"
(and

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with correlative meaning "include") means including, without limiting the
generality of any description preceding such term. The Article and Section
headings herein are for convenience only and shall not affect the construction
hereof.

                                   ARTICLE II

                            Eligibility and Benefits

                  Section 2.01. Eligible Employees. This Plan is only for the
benefit of Participants, and no other employees or personnel shall be eligible
to participate in this Plan or to receive any rights or benefits hereunder.

                  Section 2.02. Description of Benefits. (a) Subject to Section
2.03, each Participant shall be entitled to receive the benefits described below
if either such Participant terminates or has terminated his or her employment
for Good Reason in accordance with Section 2.05 or the Company terminates or has
terminated such Participant's employment for any reason other than a termination
for Misconduct or Disability:

                  (i)      the Company shall pay to such Participant, within 30
         days after such Participant's Termination Date, a lump sum cash payment
         equal to such Participant's Base Salary times such Participant's
         Applicable Multiplier (the "Severance Amount"); and

                  (ii)     for a period of six months following such
         Participant's Termination Date, the COBRA premium required to be paid
         by such Participant for coverage under the Company's medical and dental
         insurance plans shall not exceed the regular premiums required to be
         paid by active employees for similar coverage under such plans;
         provided, however, that the benefits provided under this clause (ii)
         shall only be available to such Participant if such Participant (or his
         or her qualified beneficiaries) makes a timely COBRA election on or
         after such Participant's Termination Date to continue coverage under
         such medical and dental insurance plans and pays the regular employee
         premium required by such plans.

For purposes of this Plan, "Base Salary" means, with respect to any Participant,
such Participant's annual base salary immediately prior to the earlier of (A)
the date on which an event occurs that results in such Participant terminating
his or her employment for Good Reason and (B) the actual date of such
Participant's termination by the Company for any reason other than Misconduct or
Disability, and "Applicable Multiplier" means, with respect to any Participant,
such Participant's years of Benefit Service as of the earlier of (x) the date on
which an event occurs that results in such Participant terminating his or her
employment for Good Reason and (y) the actual date of such Participant's
termination by the Company for any reason other than Misconduct or Disability
times a fraction having a numerator of two and a denominator of 52; provided,
however, that (A) no Participant's Applicable Multiplier shall exceed 1.0 and
(B) no Participant having a salary grade classification of E6 or higher or T6 or
higher shall have an Applicable Multiplier of less than 0.5.

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                  (b)      Notwithstanding anything to the contrary contained in
this Plan, the benefits made available under this Plan to Participants expressly
exclude outplacement services and financial counseling.

                  (c)      Participation in this Plan is voluntary. The Company
may require that each eligible employee execute a participation agreement as a
condition to becoming a Participant hereunder. By agreeing to participate in
this Plan, or by accepting any benefits under this Plan, a Participant
unconditionally agrees for all purposes under this Plan to be bound by all of
the terms and conditions of this Plan, including the provisions of Article III
hereof.

                  Section 2.03. Additional Provisions Relating to Benefits under
Sections 2.02. (a) Notwithstanding anything to the contrary contained in this
Plan, the Company's obligation to continue the benefits described in Section
2.02(a)(ii) for any Participant shall cease if and when such Participant ceases
to be eligible to continue group health plan coverage under COBRA.

                  (b)      Notwithstanding anything to the contrary contained in
this Plan, the amount of the Severance Amount payable to any Participant under
this Plan shall be reduced, dollar for dollar, by the aggregate amount of all
separation, severance or termination payments paid or payable to such
Participant under (i) any Benefit Plan (other than this Plan and the Pension
Plan), including the Company's Fourth Amended and Restated Key Employee
Protection Plan, (ii) any agreement between such Participant and the Company or
(iii) any applicable law, statute, rule, regulation, order or decree (or other
pronouncement having the effect of law) of any nation or governmental authority,
including the Worker Adjustment and Retraining Notification Act.

                  Section 2.04. Cost of Plan; Plan Unfunded; Participant's
Rights Unsecured. The entire cost of this Plan shall be borne by the Company,
and no contributions shall be required of the Participants. The Company shall
not be required to establish any special or separate fund or make any other
segregation of funds or assets to assure the payment of any benefit hereunder.
The right of any Participant to receive the benefits provided for herein shall
be an unsecured claim against the general assets of the Company.

                  Section 2.05. Termination Notices from Participants. For
purposes of this Plan, in order for any Participant to terminate his or her
employment for Good Reason, such Participant must give a written notice of
termination to the Company, which notice shall be in writing and signed by such
Participant, shall be dated the date it is given to the Company, shall specify
the termination date, shall state that the termination is for a Good Reason and
shall set forth in reasonable detail the facts and circumstances claimed to
provide a basis for such Good Reason.

                                   ARTICLE III

                     Claims Procedure and Dispute Resolution

                  Section 3.01. Claims for Benefits. Any claim relating to
benefits under this Plan shall be submitted in writing to the Compensation
Committee in such manner as it may direct. If the Compensation Committee
determines that any claimant is not entitled to receive all or part of the
benefits claimed, it will mail or deliver written notice to such claimant of (a)
its

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determination and the reasons therefor, with appropriate references to pertinent
Plan provisions, and (b) the procedure for review of its determination. Such
notice shall, if appropriate, also explain how a claimant may perfect the claim
and why submission of additional information is necessary to do so. Such notice
shall be provided within 90 days after submission of the claim. If the claimant
does not receive notice of a decision within such 90-day period, the claimant's
claim shall be deemed denied.

                  Section 3.02. Administrative Appeal. An applicant for benefits
whose claim has been denied in whole or in part, or the duly authorized
representative of such claimant, may, within 60 days after receipt of written
notice of such denial (or after the claim is deemed denied), request a review
thereof and submit to the Compensation Committee in writing such additional
information as the claimant desires. A claimant who submits a claim for review
shall have a reasonable opportunity to submit issues and comments in writing and
to review pertinent documents. The Compensation Committee will then render its
final decision with the specific reasons therefore (including references to
pertinent Plan provisions) and notify the claimant in writing of such decision
within 60 days after the submission of such request for review. If the claimant
does not receive notice of such decision within such 60-day period, the claim
for review shall be deemed denied.

                  Section 3.03. Negotiation. Subject to Section 3.05, in case a
dispute or controversy shall arise between any Participant (or any person
claiming by, through or under any Participant) and the Company (including the
Compensation Committee) relating to or arising out of this Plan or a benefit
claim for which a final administrative appeal has been denied (or deemed denied)
pursuant to Section 3.02, either disputant may give written notice to the other
disputant ("Dispute Notice") that it wishes to resolve such dispute or
controversy by negotiations, in which event the disputants shall attempt in good
faith to negotiate a resolution of such dispute or controversy. If the dispute
or controversy is not so resolved within 30 days after the effective date of the
Dispute Notice, subject to Section 3.05, either disputant may initiate
arbitration of the matter as provided in Section 3.04. All negotiations pursuant
to this Section 3.03 shall be held at the Company's principal offices in
Houston, Texas (or such other place as the disputants shall mutually agree) and
shall be treated as compromise and settlement negotiations for the purposes of
the federal and state rules of evidence and procedure.

                  Section 3.04. Arbitration. Subject to Section 3.05, any
dispute or controversy (a) which arises out of or relates to this Plan or a
benefit claim for which a final administrative appeal has been denied (or deemed
denied) pursuant to Section 3.02 and (b) which has not been resolved by
negotiations in accordance with Section 3.03 within 30 days of the effective
date of the Dispute Notice shall, upon the request of either disputant, be
finally settled by arbitration conducted expeditiously in accordance with the
labor arbitration rules of the American Arbitration Association. The arbitrator
shall not be empowered to award damages in excess of compensatory damages and
each disputant shall be deemed to have irrevocably waived any damages in excess
of compensatory damages. The arbitrator's decision shall be final and legally
binding on the disputants and their successors and assigns. The fees and
expenses of the arbitrator shall be borne solely by the prevailing disputant or,
in the event there is no clear prevailing disputant, as the arbitrator deems
appropriate. All arbitration conferences and hearings shall be held in Houston,
Texas.

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                  Section 3.05. Exclusivity, etc. The dispute resolution
procedures set forth in Sections 3.03 and 3.04 shall not apply to any matter
which, by the express provisions of this Plan, is to be finally determined by
the Compensation Committee unless and until the Compensation Committee issues
its decision in accordance with Sections 3.01 and 3.02. Any such determination
by the Compensation Committee shall be final and may not be overturned unless
such determination is found to be arbitrary and capricious or an abuse of
discretion. No legal action may be brought with respect to this Plan except for
the purpose of specifically enforcing the provisions of this Article III or for
the purpose of enforcing any arbitration award made pursuant to Section 3.04.

                                   ARTICLE IV

                            Miscellaneous Provisions

                  Section 4.01. Cumulative Benefits. Except as provided in
Section 2.03(b), the rights and benefits provided to any Participant under this
Plan are cumulative of, and are in addition to, all of the other rights and
benefits provided to such Participant under any Benefit Plan or any agreement
between such Participant and the Company.

                  Section 4.02. No Mitigation or Offset. No Participant shall be
required to mitigate the amount of any payment provided for in this Plan by
seeking or accepting other employment following a termination of his or her
employment with the Company or otherwise. Except as otherwise provided in
Section 2.03(a), the amount of any payment provided for in this Plan shall not
be reduced by any compensation or benefit earned by a Participant as the result
of employment by another employer or by retirement benefits.

                  Section 4.03. Amendment and Termination. The Board shall be
entitled to amend or terminate this Plan at any time and for any reason;
provided, however, that no amendment or termination of this Plan shall affect
the rights or benefits of any Participant or the obligations of the Company
accrued under this Plan as of the effective date of such termination or
amendment.

                  Section 4.04. Administration. (a) The Compensation Committee
is, as respects the rights and obligations of all parties with an interest in
this Plan, given the powers, rights and duties specifically stated elsewhere in
this Plan and, in addition, is given full power and final discretionary
authority to:

                  (i)      make determinations with respect to the
         administration of this Plan, construe and interpret its provisions,
         take all other actions deemed necessary or advisable for the proper
         administration of this Plan and determine all questions arising under
         this Plan, including the power to determine the rights or eligibility
         of Participants and any other persons, and the amounts of their
         benefits under this Plan, and to remedy ambiguities, inconsistencies or
         omissions;

                  (ii)     adopt such rules of procedure and regulations as in
         its opinion may be necessary for the proper and efficient
         administration of this Plan;

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                  (iii)    enforce this Plan in accordance with its terms and in
         accordance with any rules of procedure and regulations adopted by the
         Compensation Committee pursuant to clause (ii) above; and

                  (iv)     employ agents, attorneys, accountants or other
         persons (who also may be employed by the Company), and allocate,
         delegate or reallocate to them such powers, rights and duties as the
         Compensation Committee may consider necessary or advisable to properly
         carry out the administration of this Plan; provided, however, that such
         allocation or delegation and the acceptance thereof by such agents,
         attorneys, accountants or other persons are in writing.

                  (b)      Subject to applicable law, any determination,
construction or interpretation of the provisions of this Plan, and any decision
on any matter within the discretion of the Compensation Committee, that is made
by the Compensation Committee in good faith shall be binding on all persons. In
case of any claim that the Compensation Committee (or any member thereof) did
not act in good faith, the burden of proof shall rest with the person or entity
claiming the absence of good faith.

                  (c)      The members of the Compensation Committee shall
receive no additional compensation for their services relating to this Plan. Any
expenses properly incurred by the Compensation Committee incident to this Plan,
including the cost of any bond required by applicable law, shall be paid by the
Company.

                  (d)      The Company shall indemnify and hold harmless each
member of the Compensation Committee against any and all expenses and
liabilities arising out of his or her administrative functions or fiduciary
responsibilities, including any expenses and liabilities that are caused by or
result from an act or omission of such member acting in good faith in the
performance of such functions or responsibilities. Expenses against which such
member shall be indemnified hereunder shall include, without limitation, the
amounts of any settlement or judgment, costs, counsel fees and related charges
reasonably incurred in connection with a claim asserted or a proceeding brought
or settlement thereof.

                  Section 4.05. Release of Claims. As a condition to receipt of
the benefits under this Plan, a Participant will be required to sign an
agreement, to be prepared by the Company, in which he or she unconditionally and
irrevocably releases the Company and its successors, assigns, divisions,
subsidiaries, representatives, agents, officers, directors, stockholders and
employees from any claims, demands and causes of action relating to or arising
out of the termination of his or her employment with the Company, including any
statutory claims under the Age Discrimination in Employment Act of 1967, the
Americans with Disabilities Act of 1990, the Civil Rights Acts of 1964 and 1991
and the Texas Commission on Human Rights Act, but excluding, however, any
claims, demands and causes of action pertaining to (a) any benefits that are to
be provided after the date of such agreement pursuant to the terms of this Plan,
(b) such Participant's rights, if any, under the Company's Fourth Amended and
Restated Key Employee Protection Plan (as the same may hereafter be amended or
modified in accordance

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<PAGE>

with its terms) or (c) such Participant's rights, if any, under any employment
agreement between such Participant and the Company.

                  Section 4.06. Assignability. The Company shall have the right
to assign this Plan and to delegate its duties and obligations hereunder;
provided, however, that no such assignment shall relieve or discharge the
Company of or from any of its obligations under this Plan. Unless otherwise
approved by the Compensation Committee, no Participant shall transfer or assign
any of his or her rights under this Plan except by will or the laws of descent
and distribution. Except as otherwise provided by law, no benefit, right or
interest of any Participant under this Plan shall be subject to pledge,
encumbrance, charge, seizure, attachment or legal, equitable or other process,
or be liable for, or subject to, debts, liabilities or other obligations.

                  Section 4.07. Consolidations, Mergers, Etc. Sterling will
require any person, firm or entity which becomes its Successor to expressly
assume and agree to perform this Plan in writing, in the same manner and to the
same extent that Sterling would be required to perform hereunder if no such
succession had taken place.

                  Section 4.08. Benefit and Burden. This Plan shall be binding
upon and inure to the benefit of the Company and its successors and assigns.
This Plan and all rights of each Participant shall inure to the benefit of and
be enforceable by such Participant and his or her personal or legal
representatives, executors, administrators, heirs and permitted assigns. If any
Participant should die while any amounts are due and payable to such Participant
hereunder, all such amounts, unless otherwise provided herein, shall be paid in
accordance with the terms of this Plan to such Participant's devisees, legatees
or other designees or, if there be no such devisees, legatees or other
designees, to such Participant's estate.

                  Section 4.09. Notices. All notices and other communications
provided for in this Plan shall be in writing and shall be sent, delivered or
mailed, addressed (a) if to the Company, at Sterling's principal office address
or such other address as Sterling may have designated by written notice to all
Participants for purposes hereof, directed to the attention of the General
Counsel, and (b) if to any Participant, at his or her residence address on the
records of the Company or to such other address as he or she may have designated
to the Company in writing for purposes hereof. Each such notice or other
communication shall be deemed to have been duly given or mailed by United States
registered mail, return receipt requested, postage prepaid, except that any
change of notice address shall be effective only upon receipt.

                  Section 4.10. Withholdings. The Company shall have the right
to deduct from any payment hereunder all taxes (federal, state or other) and
other payments which it is required to withhold therefrom.

                  Section 4.11. No Employment Rights Conferred. Nothing
contained in this Plan shall (i) confer upon any Participant any right with
respect to continuation of employment with the Company or (ii) subject to the
rights and benefits of any Participant hereunder, interfere in any way with the
right of the Company to terminate such Participant's employment at any time.

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<PAGE>

                  Section 4.12. Governing Law. This Plan shall be governed in
accordance with the laws of the State of Texas (without giving effect to
conflicts of laws principles thereof) and applicable federal law.

                  IN WITNESS WHEREOF, and as conclusive evidence of the adoption
of this Plan by the Board, Sterling has caused this Plan to be duly executed in
its name and behalf by its proper officer thereunto duly authorized as of March
12, 2004.

                                    STERLING CHEMICALS, INC.

                                    By: ________________________________________
                                    Printed Name: ______________________________
                                    Title: _____________________________________

                                      -11-<PAGE>

                                                                EXHIBIT 10.8 (k)

                            ELEVENTH AMENDMENT TO THE
                            STERLING CHEMICALS, INC.
                              AMENDED AND RESTATED
                        SALARIED EMPLOYEES' PENSION PLAN

                              W I T N E S S E T H:

         WHEREAS, Sterling Chemicals, Inc. (the "Employer") presently maintains
the Sterling Chemicals, Inc. Amended and Restated Salaried Employees' Pension
Plan (the "Plan"); and

         WHEREAS, the Employer, pursuant to Section 15.1 of the Plan, has the
right to amend the Plan from time to time subject to certain limitations.

         NOW, THEREFORE, the Plan is hereby amended in the following manner:

         1.       Change in Plan Year. Effective January 1, 2004, Section 1.5 of
the Plan is hereby amended in its entirety to read as follows:

                  1.5      Plan Year. The Plan is administered on the basis of a
         plan year (the "Plan Year"), which means the Plan's accounting year of
         twelve (12) months commencing on January 1 of each year and ending the
         following December 31.

         2.       Reclassification of Individuals As Employees. Effective as of
the date of adoption of this amendment, Section 2.1(f) is hereby added to read
as follows:

                  (f)      Notwithstanding anything to the contrary, an
         individual who is not characterized or treated by the Employer as a
         common law employee of the Employer shall not be eligible to
         participate in the Plan. In the event such an individual is
         reclassified or deemed to be reclassified as a common law employee of
         the Employer who meets the definition of an Eligible Employee, the
         individual shall be eligible to participate in the Plan as of the
         actual date of such reclassification (to the extent such individual
         otherwise qualifies as an eligible employee hereunder). If the
         effective date of any such reclassification is prior to the actual date
         of such reclassification, in no event shall the reclassified individual
         be eligible to participate in the Plan retroactively to the effective
         date of such reclassification.

         3.       Minimum Distribution Requirements. Effective for distributions
made after December 31, 2002, Section 9.8(c) of the Plan is hereby added to read
as follows:

                  (c)      The provisions of this Section 9.8(c) will apply for
         purposes of determining required minimum distributions for calendar
         years beginning with the 2003 calendar year. All distributions required
         under this Section 9.8(c) will be

<PAGE>

         determined and made in accordance with the Treasury regulations under
         section 401(a)(9) of the Internal Revenue Code. Notwithstanding the
         other provisions of this Section 9.8(c), other than the prior sentence,
         distributions may be made under a designation made before January 1,
         1984, in accordance with section 242(b)(2) of the Tax Equity and Fiscal
         Responsibility Act (TEFRA) and the provisions of the Plan that relate
         to section 242(b)(2) of TEFRA.

                           (1)      Time and Manner of Distribution.

                                    (i)      Required Beginning Date. The
                           Participant's entire interest will be distributed, or
                           begin to be distributed, to the Participant no later
                           than the Participant's required beginning date.

                                    (ii)     Death of Participant Before
                           Distributions Begin. If the Participant dies before
                           distributions begin, the Participant's entire
                           interest will be distributed, or begin to be
                           distributed, no later than as follows:

                                             (A)      If the Participant's
                                    surviving spouse is the Participant's sole
                                    designated beneficiary, then, except as
                                    provided in the adoption agreement,
                                    distributions to the surviving spouse will
                                    begin by December 31 of the calendar year
                                    immediately following the calendar year in
                                    which the Participant died, or by December
                                    31 of the calendar year in which the
                                    Participant would have attained age 70 1/2,
                                    if later.

                                             (B)      If the Participant's
                                    surviving spouse is not the Participant's
                                    sole designated beneficiary, then
                                    distributions to the designated beneficiary
                                    will begin by December 31 of the calendar
                                    year immediately following the calendar year
                                    in which the Participant died.

                                             (C)      If there is no designated
                                    beneficiary as of September 30 of the year
                                    following the year of the Participant's
                                    death, the Participant's entire interest
                                    will be distributed by December 31 of the
                                    calendar year containing the fifth
                                    anniversary of the Participant's death.

                                             (D)      If the Participant's
                                    surviving spouse is the Participant's sole
                                    designated beneficiary and the surviving
                                    spouse dies after the Participant but before
                                    distributions to the surviving spouse begin,
                                    this Section 9.8(c)(1)(ii), other than
                                    Section 9.8(c)(1)(ii)(A), will apply as if
                                    the surviving spouse were the Participant.

                                        2
<PAGE>

                                    For purposes of this Section 9.8(c)(1)(ii)
                           and Section 9.8(c)(3), unless Section
                           9.8(c)(1)(ii)(D) applies, distributions are
                           considered to begin on the Participant's required
                           beginning date. If Section 9.8(c)(1)(ii)(D) applies,
                           distributions are considered to begin on the date
                           distributions are required to begin to the surviving
                           spouse under Section 9.8(c)(1)(ii)(A). If annuity
                           payments irrevocably commence to the Participant
                           before the Participant's required beginning date (or
                           to the Participant's surviving spouse before the date
                           distributions are required to begin to the surviving
                           spouse under Section 9.8(c)(1)(ii)(A)), the date
                           distributions are considered to begin is the date
                           distributions actually commence.

                                    (iii)    Forms of Distribution. Unless the
                           Participant's interest is distributed in the form of
                           an annuity purchased from an insurance company or in
                           a single sum on or before the required beginning
                           date, as of the first distribution calendar year
                           distributions will be made in accordance with
                           Sections 9.8(c)(2), 9.8(c)(3) and 9.8(c)(4). If the
                           Participant's interest is distributed in the form of
                           an annuity purchased from an insurance company,
                           distributions thereunder will be made in accordance
                           with the requirements of section 401(a)(9) of the
                           Code and the Treasury regulations. Any part of the
                           Participant's interest which is in the form of an
                           individual account described in section 414(k) of the
                           Code will be distributed in a manner satisfying the
                           requirements of section 401(a)(9) of the Code and the
                           Treasury regulations that apply to individual
                           accounts.

                           (2)      Determination of Amount to be Distributed
                  Each Year.

                                    (i)      General Annuity Requirements. If
                           the Participant's interest is paid in the form of
                           annuity distributions under the plan, payments under
                           the annuity will satisfy the following requirements:

                                             (A)      the annuity distributions
                                    will be paid in periodic payments made at
                                    intervals not longer than one year;

                                             (B)      the distribution period
                                    will be over a life (or lives) or over a
                                    period certain not longer than the period
                                    described in Section 9.8(c)(3) or 9.8(c)(4);

                                             (C)      once payments have begun
                                    over a period certain, the period certain
                                    will not be changed even if the period
                                    certain is shorter than the maximum
                                    permitted;

                                             (D)      payments will either be
                                    nonincreasing or

                                        3
<PAGE>

                                    increase only as follows:

                                                      (1)      by an annual
                                             percentage increase that does not
                                             exceed the annual percentage
                                             increase in a cost-of-living index
                                             that is based on prices of all
                                             items and issued by the Bureau of
                                             Labor Statistics;

                                                      (2)      to the extent of
                                             the reduction in the amount of the
                                             Participant's payments to provide
                                             for a survivor benefit upon death,
                                             but only if the beneficiary whose
                                             life was being used to determine
                                             the distribution period described
                                             in Section 9.8(c)(3) dies or is no
                                             longer the Participant's
                                             beneficiary pursuant to a qualified
                                             domestic relations order within the
                                             meaning of section 414(p);

                                                      (3)      to provide cash
                                             refunds of employee contributions
                                             upon the Participant's death; or

                                                      (4)      to pay increased
                                             benefits that result from a plan
                                             amendment.

                                    (ii)     Amount Required to be Distributed
                           by Required Beginning Date. The amount that must be
                           distributed on or before the Participant's required
                           beginning date (or, if the Participant dies before
                           distributions begin, the date distributions are
                           required to begin under Section 9.8(c)(1)(ii)(A) or
                           (B)) is the payment that is required for one payment
                           interval. The second payment need not be made until
                           the end of the next payment interval even if that
                           payment interval ends in the next calendar year.
                           Payment intervals are the periods for which payments
                           are received, e.g., bi-monthly, monthly,
                           semi-annually, or annually. All of the Participant's
                           benefit accruals as of the last day of the first
                           distribution calendar year will be included in the
                           calculation of the amount of the annuity payments for
                           payment intervals ending on or after the
                           Participant's required beginning date.

                                    (iii)    Additional Accruals After First
                           Distribution Calendar Year. Any additional benefits
                           accruing to the Participant in a calendar year after
                           the first distribution calendar year will be
                           distributed beginning with the first payment interval
                           ending in the calendar year immediately following the
                           calendar year in which such amount accrues.

                           (3)      Required For Annuity Distributions That
                  Commence During Participant's Lifetime.

                                        4
<PAGE>

                                    (i)      Joint Life Annuities Where the
                           Beneficiary Is Not the Participant's Spouse. If the
                           Participant's interest is being distributed in the
                           form of a joint and survivor annuity for the joint
                           lives of the Participant and a nonspouse beneficiary,
                           annuity payments to be made on or after the
                           Participant's required beginning date to the
                           designated beneficiary after the Participant's death
                           must not at any time exceed the applicable percentage
                           of the annuity payment for such period that would
                           have been payable to the Participant using the table
                           set forth in Q&A-2 of section 1.401(a)(9)-6T of the
                           Treasury regulations. If the form of distribution
                           combines a joint and survivor annuity for the joint
                           lives of the Participant and a nonspouse beneficiary
                           and a period certain annuity, the requirement in the
                           preceding sentence will apply to annuity payments to
                           be made to the designated beneficiary after the
                           expiration of the period certain.

                                    (ii)     Period Certain Annuities. Unless
                           the Participant's spouse is the sole designated
                           beneficiary and the form of distribution is a period
                           certain and no life annuity, the period certain for
                           an annuity distribution commencing during the
                           Participant's lifetime may not exceed the applicable
                           distribution period for the Participant under the
                           Uniform Lifetime Table set forth in section
                           1.401(a)(9)-9 of the Treasury regulations for the
                           calendar year that contains the annuity starting
                           date. If the annuity starting date precedes the year
                           in which the Participant reaches age 70, the
                           applicable distribution period for the Participant is
                           the distribution period for age 70 under the Uniform
                           Lifetime Table set forth in section 1.401(a)(9)-9 of
                           the Treasury regulations plus the excess of 70 over
                           the age of the Participant as of the Participant's
                           birthday in the year that contains the annuity
                           starting date. If the Participant's spouse is the
                           Participant's sole designated beneficiary and the
                           form of distribution is a period certain and no life
                           annuity, the period certain may not exceed the longer
                           of the Participant's applicable distribution period,
                           as determined under this Section 9.8(c)(3)(ii), or
                           the joint life and last survivor expectancy of the
                           Participant and the Participant's spouse as
                           determined under the Joint and Last Survivor Table
                           set forth in section 1.401(a)(9)-9 of the Treasury
                           regulations, using the Participant's and spouse's
                           attained ages as of the Participant's and spouse's
                           birthdays in the calendar year that contains the
                           annuity starting date.

                           (4)      Required For Minimum Distributions Where
                  Participant Dies Before Date Distributions Begin.

                                    (i)      Participant Survived by Designated
                           Beneficiary. If the Participant dies before the date
                           distribution of his or her

                                        5
<PAGE>

                           interest begins and there is a designated
                           beneficiary, the Participant's entire interest will
                           be distributed, beginning no later than the time
                           described in Section 9.8(c)(1)(ii)(A) or (B), over
                           the life of the designated beneficiary or over a
                           period certain not exceeding:

                                             (A)      unless the annuity
                                    starting date is before the first
                                    distribution calendar year, the life
                                    expectancy of the designated beneficiary
                                    determined using the beneficiary's age as of
                                    the beneficiary's birthday in the calendar
                                    year immediately following the calendar year
                                    of the Participant's death; or

                                             (B)      if the annuity starting
                                    date is before the first distribution
                                    calendar year, the life expectancy of the
                                    designated beneficiary determined using the
                                    beneficiary's age as of the beneficiary's
                                    birthday in the calendar year that contains
                                    the annuity starting date.

                                    (ii)     No Designated Beneficiary. If the
                           Participant dies on or after the date distributions
                           begin and there is no designated beneficiary as of
                           September 30 of the year after the year of the
                           Participant's death, distribution of the
                           Participant's entire interest will be completed by
                           December 31 of the calendar year containing the fifth
                           anniversary of the Participant's death.

                                    (ii)     Death of Surviving Spouse Before
                           Distributions to Surviving Spouse Are Required to
                           Begin. If the Participant dies before the date
                           distributions begin, the Participant's surviving
                           spouse is the Participant's sole designated
                           beneficiary, and the surviving spouse dies before
                           distributions are required to begin to the surviving
                           spouse, this Section 9.8(c)(4) will apply as if the
                           surviving spouse were the Participant, except that
                           the time by which distributions must begin will be
                           determined without regard to Section
                           9.8(c)(1)(ii)(A).

                           (5)      Definitions.

                                    (i)      Designated Beneficiary. The
                           individual who is designated as the beneficiary under
                           Section 9.10 of the Plan and is the designated
                           beneficiary under section 401(a)(9) of the Internal
                           Revenue Code and section 1.401(a)(9)-1, Q&A-4, of the
                           Treasury regulations.

                                    (ii)     Distribution Calendar Year. A
                           calendar year for which a minimum distribution is
                           required. For distributions

                                        6
<PAGE>

                           beginning before the Participant's death, the first
                           distribution calendar year is the calendar year
                           immediately preceding the calendar year which
                           contains the Participant's required beginning date.
                           For distributions beginning after the Participant's
                           death, the first distribution calendar year is the
                           calendar year in which distributions are required to
                           begin under Section 9.8(c)(1)(ii).

                                    (iii)    Life Expectancy. Life expectancy as
                           computed by use of the Single Life Table in section
                           1.401(a)(9)-1, Q&A-4, of the Treasury regulations.

                                    (iv)     Required Beginning Date. The date
                           specified in Section 9.8(b) of the Plan.

         4.       Claims Procedures. Effective January 1, 2003, Section 12.10
and Section 12.11 of the Plan are hereby added to read as follows:

                  12.10 Claims Procedure. Claims for benefits under the Plan may
         be filed with the Plan Committee on forms supplied by the Employers.
         Written notice of the disposition of a claim shall be furnished to the
         claimant within 90 days after the application is filed, unless the Plan
         Committee determines that special circumstances require an extension of
         time for processing the claim. If the Plan Committee determines that an
         extension of time for processing is required, written notice of the
         extension shall be furnished to the claimant prior the termination of
         the 90-day period. In no event shall such extension exceed a period of
         90 days from the end of such initial 90-day period. The extension
         notice shall indicate the special circumstances requiring an extension
         of time and the date by which the Plan expects to render the benefit
         determination.

                  In the event the claim is denied, the reasons for the denial
         shall be specifically set forth in the notice in language calculated to
         be understood by the claimant, pertinent provisions of the Plan on
         which the determination is based will be cited and a description of any
         additional material or information necessary for the claimant to
         perfect the claim, and an explanation of why such material or
         information is necessary, will be included. In addition, the claimant
         shall be furnished with an explanation of the Plan's claims review
         procedure and the time limits applicable to such procedures, including
         a statement of the claimant's right to bring a civil action under
         section 502(a) of ERISA following an adverse benefit determination on
         review.

                  12.11 Claims Review Procedure. Any Employee, former Employee,
         or Beneficiary of either, who has been denied a benefit by a decision
         of the Plan Committee pursuant to Section 12.10 shall be entitled to
         request the Plan Committee to give further consideration to his claim
         by filing with the Plan Committee (on a form which may be obtained from
         the Plan Committee) a request for review. Any such review will take
         into account all comments,

                                        7
<PAGE>

         documents, records, and other information submitted by the claimant
         relating to the claim, without regard to whether such information was
         submitted or considered in the initial benefit determination. Such
         request, together with a written statement of the reasons why the
         claimant believes his claim should be allowed, shall be filed with the
         Plan Committee no later than 60 days after receipt of the written
         notification provided for in Section 12.10. The claimant or his
         representative shall have an opportunity to have reasonable access,
         free of charge, to review and have copies of all documents, records,
         and other information in the possession of the Plan Committee which are
         relevant (as defined in 29 CFR Section 2560.503-1(m)(8)) to the claim
         at issue and its disallowance.

                  A final decision as to the allowance of the claim shall be
         made by the Plan Committee within 60 days of receipt of the appeal
         (unless there has been an extension of 60 days due to special
         circumstances, provided, however, that the delay and the special
         circumstances occasioning it are communicated to the claimant within
         the 60-day period). Such communication shall be written in a manner
         calculated to be understood by the claimant and shall include (i)
         specific reasons for the decision; (ii) specific references to the
         pertinent Plan provisions on which the decision is based; (iii) a
         statement that the claimant is entitled to receive, upon request and
         free of charge, reasonable access to, and copies of, all documents,
         records, and other information "relevant" (as defined in 29 CFR Section
         2560.503-1(m)(8)) to the claimant's claim for benefits; and (iv) a
         statement describing any voluntary appeal procedures offered by the
         Plan, if applicable, and a statement of the claimant's right to bring
         an action under section 502(a) of ERISA.

         IN WITNESS WHEREOF, the Employer has executed this Eleventh Amendment
to the Sterling Chemicals, Inc. Amended and Restated Salaried Employees' Pension
Plan on the _____ day of December, 2003.

                                    STERLING CHEMICALS, INC.

                                    By:    ___________________________________

                                    Name:  ___________________________________

                                    Title: ___________________________________

                                        8

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