Document:

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                                                                   Exhibit 10.48

                   FIRST AMENDMENT TO MODIFIED LOAN AGREEMENT
                           AND FIRST AMENDMENT TO NOTE

                  THIS FIRST AMENDMENT TO MODIFIED LOAN AGREEMENT AND FIRST
AMENDMENT TO NOTE (the "Amendment") is made and entered into to be effective as
of May 23, 2002, by and between BORDEN CHEMICALS AND PLASTICS OPERATING LIMITED
PARTNERSHIP, a Delaware limited partnership, in its capacity as
debtor-in-possession under that certain Chapter 11 bankruptcy case filed as Case
No. 01-1268 (the "Case") filed on April 3, 2001 with the United States
Bankruptcy Court for the District of Delaware (the "Court") (the "Borrower"),
and BCP MANAGEMENT, INC., a Delaware corporation, in its capacity as
debtor-in-possession under that certain Chapter 11 bankruptcy case filed as Case
No. 02-10875 (the "Lender Case") filed on March 22, 2002 with the Court (the
"Lender"). For valuable consideration, the receipt, sufficiency and adequacy of
which are hereby acknowledged, the Borrower and the Lender, intending to be
legally bound, hereby recite and agree as follows:

                                    Recitals

                  A. On April 30, 2002, the Borrower and the Lender entered into
that certain Modified Loan Agreement (the "Loan Agreement") pursuant to which
the Lender agreed to lend to the Borrower up to $6,000,000 subject to the terms
and conditions contained therein. The borrowings under the Loan Agreement were
evidenced further by that certain Note in the original principal amount of
$6,000,000 executed by the Borrower in favor of the Lender on April 30, 2002
(the "Note").

                  B. The Court has this day issued in the Lender Case a Final
Order Authorizing Extension of Debtor's Obligations under a Modified Loan
Agreement with Borden Chemicals and Plastics Operating Limited Partnership
Through June 30, 2002 (the "Order") authorizing the extension of the maturity
date under the Loan Agreement until June 30, 2002 and the reduction of the
Commitment to $4,500,000.

                  C. The Borrower and the Lender mutually wish to amend the Loan
Agreement, according to the terms and conditions hereinafter set forth.

                                    Agreement

                  1. Definitions.  All capitalized terms used herein which are
defined in the Loan Agreement shall have the same meanings when used herein.

                  2. Amendments to the Loan Agreement and Note. As of the date
hereof, the Loan Agreement shall be and hereby is amended and modified as
follows:

                     a. The definition of "Maturity Date" contained in Section
         1.1 of the Loan Agreement is hereby modified to delete therefrom the
         phrase "May 23, 2002" and replace it with the phrase "June 30, 2002".

                     b. All references in the Loan Agreement and the Note to
         "Six Million Dollars" and "$6,000,000" are hereby deleted and replaced
         with "Four Million Five Hundred Thousand Dollars" and "$4,500,000",
         respectively.

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                     c. Section 2.1 of the Loan Agreement is hereby amended (i)
         by deleting therefrom the phrase ", subject to the sublimits set forth
         in this Section 2.1" from the first sentence, (ii) by deleting the
         phrase "May 23, 2002" and replacing it with "June 30, 2002" and (iii)
         by deleting all words appearing after the semi-colon in the second
         sentence.

                     d. Exhibit B to the Loan Agreement is hereby amended to
         delete paragraph 4 therefrom.

                  3. Confirmation and Ratification. Except as specifically
modified and amended pursuant to the terms hereof, the Loan Agreement remains
unchanged and in full force and effect as written. The parties hereto hereby
ratify and confirm in all respects, as of the date hereof, all of the terms,
conditions, representations, warranties, covenants and provisions contained
therein, as modified and amended hereby, and the Borrower hereby confirms and
ratifies in all respects all of the Obligations.

                  4. No Default. The Borrower hereby ratifies and confirms that
there are no Defaults or Events of Default which have occurred and are
continuing as of the date hereof.

                  5. Governing Law. This Amendment, and the rights and
obligations of the parties hereunder, shall be governed by, and construed and
interpreted in accordance with, the laws of the State of Ohio, except and only
to the extent precluded by other laws of mandatory application. Notwithstanding
the foregoing, the Court shall retain jurisdiction over this Amendment and the
forum for any action relating hereto shall be the Court.

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

                                BORDEN CHEMICALS AND PLASTICS OPERATING LIMITED
                                PARTNERSHIP, a Delaware limited partnership

                                By: BCP Management, Inc., a Delaware
                                corporation, its general partner

                                By:_____________________________________________
                                   Mark J. Schneider
                                   President and Chief Executive Officer

                                BCP MANAGEMENT, INC.
                                a Delaware corporation

                                By:_____________________________________________
                                   Mark J. Schneider
                                   President and Chief Executive Officer

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                                                                   Exhibit 10.49

                         UNITED STATES BANKRUPTCY COURT
                              DISTRICT OF DELAWARE

IN RE:

BORDEN CHEMICALS AND PLASTICS              :   Jointly Administered
 OPERATING LIMITED PARTNERSHIP,            :
 a Delaware limited partnership, et al.,   :   Case No. 01-1268 (RRM)
                                           :
          Debtors.                         :   Chapter 11

                     AGREED INTERIM AND PROPOSED FINAL ORDER
                       AUTHORIZING SECONDARY POSTPETITION
                   FINANCING PURSUANT TO SECTION 364(b) OF THE
                      BANKRUPTCY CODE AND RULE 4001 OF THE
             FEDERAL RULES OF BANKRUPTCY PROCEDURE (DOCKET NO. 489)

     This matter came before this Court on the Amended Motion (the "Motion") of
the above-captioned debtors and debtors-in-possession (collectively, the
"Debtors"), requesting that this Court enter an Order (1) authorizing Debtor
Borden Chemicals and Plastics Operating Limited Partnership ("BCP") to obtain
additional, secondary postpetition financing (the "Secondary DIP Facility")
pursuant to a loan agreement, the form of which is attached to the Motion as
Exhibit A (the "Loan Agreement") by and between BCP, as borrower, and BCP
Management Inc. (the "Lender"), as lender; (2) pending the final hearing on this
Motion, authorizing BCP to obtain emergency postpetition loans under the
Secondary DIP Facility in an amount not to exceed $5,000,000; and (3) scheduling
the final hearing for final approval of the Secondary DIP Facility no later than
January 16, 2002. Unless otherwise indicated, the following term in this Order
shall have the meanings set forth below. Other capitalized terms used in this
Order have the meanings set forth for such terms in the postpetition credit
facility approved by this Court on a

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final basis on July 11, 2001 (the "Primary DIP Facility") by and among BCP,
Fleet Capital Corporation, as Agent ("Fleet") and the other institutions that
are lenders thereunder.

          1. Event of Default. An Event of Default defined in the Loan
Agreement.

          2. Final Hearing. The final hearing on this Motion conducted in
accordance with Fed. R. Bankr. P. 4001.

          3. Postpetition Debt. All indebtedness and obligations of BCP to the
Lender incurred pursuant to this Order and the Loan Agreement.

          4. Maturity Date. The Maturity Date defined in the Loan Agreement.

          Having examined the Motion, being fully advised of the relevant facts
and circumstances surrounding the Motion and having completed a preliminary
hearing pursuant to Code (S)(S) 363/1/ and 364 and Fed. R. Bankr. P. 4001(b) and
(c)(2), BASED UPON THE RECORD AT THE PRELIMINARY HEARING, IT APPEARS TO THE
COURT THAT:

               (a) On the filing date, the Debtors filed voluntary petitions
for relief under Chapter 11 of the Code. The Debtors' Chapter 11 cases have been
consolidated for procedural purposes only and are being administered jointly.
The Debtors are continuing in possession of their respective properties and are
acting as debtors-in-possession pursuant to Code (S)(S) 1107 and 1108.

               (b) The Debtors have stipulated and represented to the Court
that:

                    (i) BCP has executed an asset purchase agreement with
Shintech Louisiana, LLC providing for the sale of the assets and operations of
BCP's plant in Addis, Louisiana;

----------
/1/  Unless otherwise indicated, all section references are to the Bankruptcy
     Code, 11 U.S.C.(S)(S) 101 et. seq.

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                    (ii) The Debtors continue to pursue various strategic
alternatives with respect to BCP's facilities in Geismar, Louisiana and
Illiopolis, Illinois, including potential mergers, joint ventures, asset sales
or other options; and

                    (iii) The Primary DIP Facility may prove insufficient to
finance BCP's working capital needs throughout the timeframe the Debtors
anticipate they will need for selling assets and obtaining confirmation of a
plan of reorganization and have an immediate need for cash to preserve the value
of all of their assets.

               (c) An immediate need exists for BCP to obtain Postpetition Debt
in order to enable BCP to minimize disruption to its business operations. Entry
of this Order will also enhance the possibility of a successful reorganization.

               (d) The terms of the Secondary DIP Facility have been negotiated
in good faith and at arms' length and the Secondary DIP Facility is being
extended in good faith, as that term is used in Code (S) 364(e).

               (e) In order to prevent harm to the estates pending the Final
Hearing, BCP needs to incur Postpetition Debt to meet their working capital
needs through the conclusion of such Final Hearing.

               (f) Under the circumstances of the Case, the terms and conditions
of the Secondary DIP Facility and this Order are a fair and reasonable response
to the Debtors' request for BCP's incidence of Postpetition Debt, and the entry
of this Order is in the best interest of the Debtors' estates and their
creditors.

               (g) The notice provided by the Debtors of the Motion, the hearing
on the Motion, and the entry of this Order satisfy the requirements of Fed. R.
Bankr. F 4001 and were otherwise sufficient and appropriate under the
circumstances.

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          WHEREFORE, IT IS HEREBY ORDERED THAT:

          l. The Motion is GRANTED.

          2. Authorization To Incur Postpetition Debt.

               (a) Authorization To Incur Debt. BCP is authorized to incur
Postpetition Debt, and the Lender shall be required to provide BCP with
Postpetition Debt pursuant to the terms of the Loan Agreement to be executed by
BCP and the Lender. The authorization of BCP to incur Postpetition Debt is
subject to the purposes for such borrowings as set forth in the Loan Agreement.
The Postpetition Debt constitutes the debt of BCP for all purposes and shall not
under any circumstances be deemed an investment of equity by the Lender.

               (b) Administrative Expense Status. The Postpetition Debt is
hereby granted administrative expense status under Code (S) 503(b)(1)(A) and BCP
is permitted to incur the Postpetition Debt pursuant to Code (S) 364(b) with the
protection afforded by Code (S) 364(e).

          3. Termination of Right to Incur Postpetition Debt.

               (a) Maturity Date. Unless extended by the Court upon the written
agreement of the Lender, this Order and BCP's authorization to incur
Postpetition Debt pursuant to this Order will immediate terminate on the
Maturity Date.

               (b) Rights Upon Termination. On the Maturity Date, the Lender and
BCP shall be entitled to apply to this Court for all appropriate relief, upon
such notices as may be appropriate under the circumstances; provided, however,
that (1) the obligations of BCP and the rights of the Lender with respect to all
transactions which have occurred prior to the Maturity Date shall remain
unimpaired and unaffected; and (2) the Lender and BCP shall retain all of their
respective rights and remedies under the Code.

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          4. Miscellaneous Provisions.

               (a) Modification of Stay. The automatic stay of Code (S) _62 is
hereby modified with respect to the Lender to the extent necessary to effectuate
the provisons of this Order.

               (b) No Waiver. Except to the extent expressly set forth in this
Order, this Order shall not constitute a waiver by the Lender of any of its
rights under the Code or other applicable law. The Lender's failure, at any time
or times hereafter, to require strict performance by BCP (or by any Trustee) of
any provision of this Order shall not waive, affect of diminish any right of the
Lender thereafter to demand strict compliance or performance therewith. No delay
on the part of the Lender in the exercise of any right or remedy under this
Order shal1 preclude any other or further exercise of any such right or remedy
or the exercise of any other right or remedy. None of the rights or remedies of
the Lender under this Order shall be deemed to have been suspended or waived by
the Lender unless such suspension or waiver is in writing, signed by a duly
authorized officer of the Lender and directed to BCP specifying such suspension
or waiver.

          5. Authorization To Obtain Interim Credit. Pending the Final Bearing,
BCP is authorized, and the Lender shall be required to provide BCP with
Postpetition Debt, up to the Interim Amount (as defined in the Motion), pursuant
to the terms of the Loan Agreement and subject to all of the rights granted to
the Lender pursuant to this Order.

          6. Notice of Final Hearing. The Debtors shall, on or before December,
27, 200\, serve copies of a notice of entry of this Order, together with a copy
of this Order, on the Lender, the Lender's counsel, Fleet, Fleet's counsel,
counsel, to the Committee, counsel to the indenture trustee with respect to the
9 1/2% notes, the United States Trustee, and the other persons

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entitled to notice under Bankruptcy Rule 4001(c), as of such date, and any other
party-in-interest for which counsel to the Debtors has timely received a written
request in this case to receive such pleadings. The notice of entry of this
Order shall state that any party-in-interest objecting to the entry of a Final
Order on the Motion shall file a written objection with the United States
Bankruptcy Court Clerk for the District of Delaware no later than 9.00 p.m. on
January, 10, 2002, which objection shall be served so that the same is received
on or before 9.00 p.m. on such date by the Lender, the Lender's counsel, Fleet,
Fleet's counsel, counsel to the Committee, counsel to the indenture trustee with
respect to the 9 1/2% notes, counsel for the Debtors, and the United States
Trustee. A final hearing shall be held on the Motion and objections thereto on
January 16, 2002 at 11.00 a.m.

                                                    /s/ Illegible
                                                    ----------------------------
12/2/2001                                           UNITED STATES DISTRICT JUDGE

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