Document:

<PAGE>

                                                                     EXHIBIT 4.2

                       FIRST AMENDMENT TO CREDIT AGREEMENT

            THIS FIRST AMENDMENT TO CREDIT AGREEMENT, dated as of December 22,
2005 (this "Agreement"), is made by and among Wellman, Inc., a Delaware
corporation ("Wellman"), Prince, Inc., a Delaware corporation ("Prince"),
Wellman of Mississippi, Inc., a Delaware corporation ("Wellman Mississippi"),
Carpet Recycling of Georgia, Inc., a Georgia corporation ("Carpet"), ALG, Inc.,
a Delaware corporation ("ALG"), PermaClear East Incorporated, a Delaware
corporation ("PermaClear"), PTA Resources, LLC, a Delaware limited liability
company ("PTA Resources"), Wellman Resins, LLC, a Delaware limited liability
company ("Resins") and Fiber Industries, Inc., a Delaware corporation ("Fiber"
and, together with Wellman, Prince, Wellman Mississippi, Carpet, ALG,
PermaClear, PTA Resources and Resins, each individually referred to herein as a
"Borrower" and collectively as "Borrowers" with Wellman acting in its capacity
as Funds Administrator for the Borrowers), each of the undersigned Lenders and
Deutsche Bank Trust Company Americas, acting in its capacity as administrative
agent (the "Administrative Agent") and collateral agent ("Collateral Agent") for
the Lenders hereunder (in its capacities as Administrative Agent and Collateral
Agent, the "Agent").

                              W I T N E S S E T H:

            WHEREAS, the Borrowers, the Agent and certain financial institutions
parties thereto (each, a "Lender"; collectively, the "Lenders") are parties to
that certain Credit Agreement dated as of February 10, 2004 (as in effect from
time to time, the "Credit Agreement").

            WHEREAS, the Borrowers have requested certain amendments to the
Credit Agreement, and the Agent and the Lenders are willing to effect such
amendments.

            NOW, THEREFORE, in consideration of the recitals herein contained
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

SECTION 1. DEFINITIONS. Unless otherwise defined herein, all capitalized terms
used herein shall have the meanings given them in the Credit Agreement, as
amended hereby.

SECTION 2. AMENDMENTS TO CREDIT AGREEMENT

      (a) SECTION 1.1 -- DEFINITIONS. Section 1.1 of the Credit Agreement is
amended as follows:

            (I) APPLICABLE MARGIN. The definition of "Applicable Margin" is
      hereby amended by (A) inserting the clause "or the Leverage Certificate
      that is required to be delivered pursuant to Section 7.1(i)" immediately
      after the clause "the financial statements that are required to be
      delivered pursuant to Section 7.1(b)" and (B) inserting
<PAGE>

      the phrase "or Leverage Certificate" immediately after the phrase "such
      financial statements".

            (II) APPLICABLE MARGIN PERIOD. The definition of "Applicable Margin
      Period" is hereby amended by deleting such definition in its entirety and
      replacing it with the following definition:

            "'Applicable Margin Period' shall mean each period which shall
            commence on the first Business Day of each March, June, September
            and December (each such day, a "Start Date") following delivery of
            (a) with respect to the Applicable Margin Periods beginning in June,
            September and December, the financial statements and compliance
            certificate pursuant to Section 7.1(b) relating to the most recently
            ended Fiscal Quarter and (b) with respect to the Applicable Margin
            Periods beginning in March, a Leverage Certificate relating to the
            most recently ended Fiscal Quarter. The Applicable Margin Period
            shall end, in each case, on the earlier of (i) the day immediately
            preceding the Start Date of the next Applicable Margin Period or
            (ii) the Expiration Date; provided that the first Applicable Margin
            Period shall commence on the first Business Day of the month
            following the delivery of the financial statements in respect of the
            Fiscal Quarter ending on March 31, 2005."

            (III) INTERCOMPANY INDEBTEDNESS. The definition of "Intercompany
      Indebtedness" is hereby amended by deleting "8.3(d)" where it appears in
      such definition and replacing it with "8.3(c)".

            (IV) INTEREST PERIOD. The definition of "Interest Period" is hereby
      amended by deleting the parenthetical "(and if available to all Lenders,
      nine or twelve)" and inserting the parenthetical "(and other longer or
      shorter periods if available to all Lenders)" immediately after the words
      "six months".

            (v) RESPONSIBLE OFFICER. The definition of "Responsible Officer" is
      hereby amended by deleting such definition in its entirety and replacing
      it with the following definition:

            "'Responsible Officer' means the controller, chief financial
            officer, treasurer, assistant treasurer, chief accounting officer or
            any other similar financial officer or position."

            (VI) START DATE. The definition of "Start Date" is hereby amended by
      deleting such definition in its entirety and replacing it with the
      following definition:

            "'Start Date' shall have the meaning ascribed to such term in the
            definition of Applicable Margin Period."

            (VII) LEVERAGE CERTIFICATE. The following definition is
      hereby inserted alphabetically in Section 1.1:

                                       2
<PAGE>

      "'Leverage Certificate' means a certificate signed by a Responsible
      Officer of Wellman in the form of Exhibit F."

      (b) SECTION 2.4(e) -- MANDATORY PAYMENTS; MANDATORY REDUCTIONS OF
COMMITMENTS. Section 2.4(e) of the Credit Agreement is hereby amended by
inserting after the clause "On the Business Day on which any Asset Sale occurs"
the clause "which decreases the Eligible Inventory and/or Eligible Accounts
Receivable amounts that are included in computation of the Borrowing Base".

      (c) SECTION 7.1 -- FINANCIAL INFORMATION. Section 7.1 of the Credit
Agreement is amended as follows:

            (i) SECTIONS 7.1(b), 7.1(c) AND 7.1(f). Sections 7.1(b), 7.1(c) and
      7.1(f) are hereby amended by deleting the phrase "the chief accounting
      officer or chief financial officer" where it appears in each such section
      and inserting in its place in each such section the phrase "a Responsible
      Officer".

            (II) SECTIONS 7.1(h) AND (i). Section 7.1(h) is hereby amended by
      deleting the word "and" found at the end of such section, and Section
      7.1(i) is hereby redesignated as Section 7.1(j).

            (III) SECTION 7.1(i). The following is added as the new Section
      7.1(i) immediately after Section 7.1(h):

                  "(i) as soon as available but in no event later than the
                  Business Day preceding the Start Date occurring each March, a
                  Leverage Certificate duly certified by a Responsible Officer
                  of Wellman; and".

      (d) SECTION 8.2 -- CAPITAL EXPENDITURES. Section 8.2 of the Credit
Agreement is amended as follows:

            (i) SECTION 8.2(d). Section 8.2(d) is hereby amended by deleting the
      amount "$50 million" where it appears in such section and replacing it
      with the amount "$65 million".

            (II) SECTION 8.2(e) AND 8.2(f). Section 8.2(e) is hereby amended by
      deleting the phrase "270 days" where it appears in such section and
      replacing it with the phrase "365 days" and by deleting the parenthetical
      phrase "(whether due to application of a deductible or otherwise)". The
      following is added immediately after Section 8.2(e) as Section 8.2(f):

            "(f) In addition to the foregoing, to the extent that Wellman or any
            Subsidiary suffers a Casualty Loss (without regard to the minimum
            threshold requirement in Section 7.8) on property or assets which
            are insured (without regard to the deductible or otherwise), Wellman
            or such Subsidiary may incur Capital Expenditures to repair or
            replace such assets within 365 days of such Casualty Loss."

                                       3
<PAGE>

      (e) SECTION 8.3 -- ADDITIONAL INDEBTEDNESS. Section 8.3(c) of the Credit
Agreement is hereby amended by deleting such section in its entirety and
inserting the following in its place:

            "(c) subject to Section 8.9(f), a Borrower and its Subsidiaries may
            incur and remain liable with respect to Intercompany Indebtedness,
            subject to no Lien held by any Person other than a Borrower or a
            Subsidiary Guarantor or a Lien permitted by this Credit Agreement,
            provided, however, that all Intercompany Indebtedness owed by the
            Borrowers and/or any of the Subsidiary Guarantors, on the one hand,
            to the Subsidiaries which are not Credit Parties, on the other,
            incurred under this clause (c) shall be Subordinated Indebtedness;".

      (f) SECTION 8.5 -- SALE OF ASSETS. Section 8.5 is hereby amended by
redesignating clause (d) therein as clause (e) and inserting the following in
such section as the new clause (d):

            "(d) any disposition of assets or property which, in the reasonable
            judgment of such Borrower, is uneconomical, obsolete, worn out or no
            longer useful in such Borrower's or such Subsidiary's business;".

      (g) SECTION 8.9 -- INVESTMENTS. Section 8.9(f) is hereby amended by
deleting such section in its entirety and replacing it with the following:

            "(f) So long as no Default or Event of Default has occurred and is
            continuing, (i) Investments consisting of intercompany loans by any
            Credit Party to any Foreign Subsidiary made after the Closing Date
            in an amount not in excess of $15.0 million in the aggregate at any
            time outstanding, (ii) Investments other than intercompany loans
            made by any Credit Party in any Foreign Subsidiary after the Closing
            Date in an amount not in excess of $5.0 million in the aggregate at
            any time outstanding and (iii) Investments by any Credit Party in
            any Foreign Subsidiary made after the Closing Date in an amount not
            to exceed the amount of cash received by Credit Parties (whether as
            a return of capital, dividend, loan, interest or otherwise, but
            excluding trade payables or proceeds of asset sales between any
            Credit Party and any Foreign Subsidiary) from any Foreign
            Subsidiaries after the Closing Date but without duplication of
            amounts already credited in determining the amount of loans or other
            Investments permitted under clauses (i) and (ii) of this Section
            8.9(f);".

      (h) SECTION 8.17 -- VOLUNTARY PREPAYMENT OF DEBT. Section 8.17 is hereby
amended by inserting the word "and" before the phrase "(y) Average Normalized
Availability" and deleting the clause "and (z) the Pearl River Project is
complete and substantially all Capital Expenditures required to be made in
connection therewith have been paid".

      (i) SECTION 9.1 -- EVENTS OF DEFAULT. Section 9.1(b) is hereby amended by
inserting the phrase "7.1(i)," immediately after the phrase "excluding
Sections". Section 9.1(c) is hereby amended by inserting the phrase "7.1(i) or
Section" immediately in front of the phrase "9.1(a) or (b) above".

                                       4
<PAGE>

      (j) SECTION 10.4, 10.10 AND 11.10 -- SUPER MAJORITY LENDERS.

            (i) SECTION 10.4. Section 10.4 is hereby amended by deleting the
      phrase "the Super Majority Lenders or" where it appears in such section.

            (II) SECTION 10.10. Section 10.10 is hereby amended by deleting the
      phrases "or the Super Majority Lenders, as the case may be," and "or Super
      Majority Lenders" where such phrases appears in such section.

            (III) SECTION 11.10(b). Section 11.10(b) is hereby amended by
      deleting clauses (iv) and (v) of such section in their entirety and
      inserting the following clauses (iv) and (v) in their place:

            (iv) change the percentage of the Commitments, or any minimum
            requirement necessary for the Lenders or the Majority Lenders to
            take any action hereunder; (v) amend or waive this Section 11.10, or
            change the definition of Majority Lenders;

            (IV) SECTION 11.10(c). Section 11.10(c) is hereby amended by (A)
      deleting the phrase "Super Majority Lenders" where it appears in clause
      (i) of such section and replacing it with the phrase "Majority Lenders"
      and (B) deleting the text of clause (ii) and replacing such text with the
      word "[Reserved.]"

      (k) EXHIBIT F -- LEVERAGE CERTIFICATE. The form of Leverage Certificate
attached to this Agreement as Exhibit B is hereby added to the Credit Agreement
as Exhibit F.

SECTION 3. REPRESENTATIONS AND WARRANTIES

      3.1. REPRESENTATIONS AND WARRANTIES. In order to induce the Agent and the
Lenders to enter into this Agreement, the Borrowers hereby represent and warrant
to the Agent and the Lenders, in each case after giving effect to this
Agreement, as follows:

            (a) POWER AND AUTHORITY. Each Borrower has the power and authority
to execute, deliver and perform this Agreement and, in the case of each Borrower
and each Credit Party, all agreements, documents and instruments executed and
delivered pursuant to this Agreement and each Borrower and each Credit Party has
taken all necessary action to authorize the execution, delivery and performance
by it of this Agreement and all agreements, documents and instruments executed
and delivered by it pursuant to this Agreement, as the case may be.

            (b) BINDING OBLIGATION. This Agreement has been duly executed and
delivered by each Borrower and the Acknowledgement and Consent (as hereinafter
defined) has been duly executed by each Subsidiary Guarantor, and such documents
are the legal, valid and binding obligation of each such entity a party thereto,
enforceable against such entity in accordance with its terms, except to the
extent that the enforcement thereof may be limited by applicable bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium or other similar
laws generally affecting creditors' rights and by equitable principles
(regardless of whether enforcement is sought in equity or at law).

                                       5
<PAGE>

            (c) INCORPORATION OF REPRESENTATIONS AND WARRANTIES FROM THE CREDIT
AGREEMENT. After giving effect to this Agreement, the representations and
warranties contained in the Credit Agreement and the other Credit Documents are
true and correct in all material respects on and as of the Effective Date as
though made on such date, except to the extent that such representations and
warranties are expressly made as of a specific date (in which event such
representations and warranties shall have been true and correct in all material
respects on and as of such specified date).

            (d) NO VIOLATION OR CONFLICT. Neither execution, delivery and
performance of this Agreement nor the transactions contemplated hereby will (i)
contravene in any material respect any Requirement of Law, (ii) conflict or be
inconsistent with or result in any breach of any of the terms, covenants,
conditions or provisions of, or constitute a default under, or result in the
creation or imposition of (or the obligation to create or impose) any Lien upon
any of the properties or assets of any Borrower or any Subsidiary pursuant to
the terms of any indenture, mortgage, deed of trust, credit agreement or loan
agreement, or any other agreement, contract or instrument, to which a Borrower
or any Subsidiary is a party or by which it or any of its property or assets is
bound or to which it may be subject, except for any such conflict, breach or
Lien which would not individually or in the aggregate reasonably be expected to
have a Material Adverse Effect, or (iii) will violate or conflict with the
Governing Documents of any Credit Party.

            (e) NO ADDITIONAL CONSENTS REQUIRED. No authorization or approval or
other action by, and no notice to or filing or registration with, any
Governmental Authority or other Person is required in connection with the
execution, delivery and performance of this Agreement and all agreements,
documents and instruments executed and delivered pursuant to this Agreement
other than those obtained and in full force and effect.

            (f) ABSENCE OF DEFAULT. No Default or Event of Default will exist or
be continuing.

            (g) GOOD STANDING. On the Effective Date, each Credit Party is a
duly organized and validly existing entity in good standing in its jurisdiction
of incorporation or formation.

SECTION 4. CONDITIONS PRECEDENT

      4.1. CONDITIONS TO EFFECTIVENESS OF AGREEMENT. This Agreement shall become
effective upon the date when each of the following conditions precedent have
been satisfied (the "Effective Date"):

            (a) EXECUTION AND DELIVERY OF AGREEMENT. Each Borrower, the
Administrative Agent and the Majority Lenders shall have executed and delivered
this Agreement.

            (b) ACKNOWLEDGEMENT AND CONSENT. The Administrative Agent shall have
received an acknowledgement and consent dated the Effective Date in the form of
Exhibit A attached hereto (the "Acknowledgement and Consent"), duly executed and
delivered by each Subsidiary Guarantor.

                                       6
<PAGE>

            (c) NO DEFAULTS. After giving effect to this Agreement, no Default
or Event of Default under the Credit Agreement shall have occurred and be
continuing.

            (d) REPRESENTATIONS AND WARRANTIES. After giving effect to this
Agreement, the representations and warranties of the Borrower and the other
Credit Parties contained in the Credit Agreement and the other Credit Documents
are true and correct in all material respects on and as of the Effective Date as
though made on such date, except to the extent that such representations and
warranties are expressly made as of a specific date (in which event such
representations and warranties shall have been true and correct in all material
respects on and as of such specified date).

      4.2 ADDITIONAL CONDITIONS TO EFFECTIVENESS OF SECTION 2(j). Section 2(j)
of this Agreement shall, notwithstanding the prior effectiveness of the
Agreement, become effective only if all Lenders shall have executed and
delivered this Agreement.

SECTION 5. MISCELLANEOUS

      5.1. MISCELLANEOUS. The parties hereto hereby further agree as follows:

            (a) COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which, when executed and delivered, shall be deemed to be
an original and all of which counterparts, taken together, shall constitute but
one and the same document with the same force and effect as if the signatures of
all of the parties were on a single counterpart, and it shall not be necessary
in making proof of this Agreement to produce more than one (1) such counterpart.

            (b) HEADINGS. Headings used in this Agreement are for convenience of
reference only and shall not affect the construction of this Agreement.

            (c) INTEGRATION. This Agreement, the other agreements and documents
executed and delivered pursuant to this Agreement and the Credit Agreement
constitute the entire agreement among the parties hereto with respect to the
subject matter hereof.

            (d) GOVERNING LAW. THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT
MADE UNDER THE LAWS OF THE STATE OF NEW YORK, AND THE RIGHTS AND DUTIES OF THE
FUNDS ADMINISTRATOR, THE BORROWERS, THE AGENT, EACH ISSUING BANK AND THE LENDERS
UNDER THIS AGREEMENT AND ANY OTHER DOCUMENTS EXECUTED IN CONNECTION HEREWITH
SHALL, PURSUANT TO NEW YORK GENERAL OBLIGATIONS LAW SECTION 5-1401, BE GOVERNED
BY THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAW
PRINCIPLES.

            (e) BINDING EFFECT. This Agreement shall be binding upon and inure
to the benefit of and be enforceable by each Borrower, the Agent and the Lenders
and their respective successors and assigns. Except as expressly set forth to
the contrary herein, this Agreement shall not be construed so as to confer any
right or benefit upon any Person other than the each Borrower, the Agent and the
Lenders and their respective successors and permitted assigns.

                                       7
<PAGE>

            (f) LIMITATIONS. Except as expressly provided herein, the execution
and delivery of this Agreement shall not: (a) constitute an extension,
modification, or waiver of any aspect of the Credit Agreement or the other
Credit Documents; (b) extend the terms of the Credit Agreement or the due date
of any of the Obligations; (c) give rise to any obligation on the part of the
Agent and the Lenders to extend, modify or waive any term or condition of the
Credit Agreement or any of the other Credit Documents; or (d) give rise to any
defenses or counterclaims to the right of the Agent and the Lenders to enforce
its or their rights and remedies under the Credit Agreement and the other Credit
Documents.

            (g) REFERENCE TO AND EFFECT ON THE CREDIT AGREEMENT. The parties
hereto agree and acknowledge that nothing contained in this Agreement in any
manner or respect limits or terminates any of the provisions of the Credit
Agreement or any of the other Credit Documents other than as expressly set forth
herein and further agree and acknowledge that the Credit Agreement (as amended
hereby) and each of the other Credit Documents remain and continue in full force
and effect and are hereby ratified and confirmed. Except to the extent expressly
set forth herein, the execution, delivery and effectiveness of this Agreement
shall not operate as an amendment of any rights, power or remedy of the Lenders
or the Agent under the Credit Agreement or any other Credit Document, nor
constitute an amendment of any provision of the Credit Agreement or any other
Credit Document. On and after the Effective Date each reference in the Credit
Agreement to "this Agreement," "hereunder," "hereof," "herein" or words of like
import, and each reference to the Credit Agreement in the Credit Documents and
all other documents delivered in connection with the Credit Agreement shall mean
and be a reference to the Credit Agreement as amended hereby. Each Borrower
acknowledges and agrees that this Agreement constitutes a "Credit Document" for
purposes of the Credit Agreement. None of the terms and conditions of this
Agreement may be changed, waived, modified or varied in any manner, whatsoever,
except in accordance with Section 11.10 of the Credit Agreement.

                            [SIGNATURE PAGES FOLLOW]

                                       8
<PAGE>

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

                                      BORROWERS:

                                      WELLMAN, INC.,
                                      a Delaware corporation, individually, as a
                                      Borrower and as Funds Administrator

                                      By:/s/ Keith R. Phillips

                                      Title: Chief Financial Officer

                                      PRINCE, INC., as a Borrower

                                      By: /s/ Keith R. Phillips
                                          ---------------------
                                      Title: President

                                      WELLMAN OF MISSISSIPPI, INC.,
                                      as a Borrower

                                      By: /s/ Keith R. Phillips
                                          ---------------------
                                      Title: Vice President

                                      CARPET RECYCLING OF GEORGIA,
                                      INC.,
                                      as a Borrower

                                      By: /s/ Keith R. Phillips
                                          ---------------------
                                      Title: Vice President

             Signature Page to First Amendment to Credit Agreement

<PAGE>

                                      ALG, INC.,
                                      as a Borrower

                                      By: /s/ Keith R. Phillips
                                          ---------------------
                                      Title: Vice President

                                      PERMACLEAR EAST INCORPORATED,
                                      as a Borrower

                                      By: /s/ Keith R. Phillips
                                          ---------------------
                                      Title: Vice President

                                      FIBER INDUSTRIES, INC.,
                                      as a Borrower

                                      By: /s/ Keith R. Phillips
                                          ---------------------
                                      Title: Vice President

                                      WELLMAN RESINS LLC,
                                      as a Borrower

                                      By: /s/ Keith R. Phillips
                                          ---------------------
                                      Title: Vice President

                                      PTA RESOURCES, LLC,
                                      as a Borrower

                                      By: /s/ Keith R. Phillips
                                          ---------------------
                                      Title: Vice President

              Signature Page to First Amendment to Credit Agreement

<PAGE>

                                      AGENT:

                                      DEUTSCHE BANK TRUST COMPANY
                                      AMERICAS, as a Lender, Administrative
                                      Agent and Collateral Agent

                                      By: /s/ Frank Fazio
                                          ---------------
                                      Title: Director

              Signature Page to First Amendment to Credit Agreement

<PAGE>

                                      LENDERS:

                                      JP Morgan Chase Bank, NA

                                      By: /s/ James H. Ramage
                                          -------------------
                                      Title: Managing Director

                                      LENDERS:

                                      General Electric Capital Corporation

                                      By: /s/ Marie G. Mollo
                                          ------------------
                                      Title:  Duly Authorized Signatory

                                      LENDERS:

                                      LASALLE BUSINESS CREDIT, LLC

                                      By: /s/ Steven Friedlander
                                          ----------------------
                                      Title:  Senior Vice President

                                      LENDERS:

                                      PB Capital Corporation

                                      By:  /s/ Tyler J. McCarthy
                                           ---------------------
                                      Title:  Vice President

                                      By:  /s/ Kevin M. Higgins
                                           --------------------
                                      Title: Assistant Vice President

                                      LENDERS:

                                      CONGRESS FINANCIAL CORPORATION

                                      BY: /s/ Barry Felker
                                          ----------------
                                      Title: Associate

                                      LENDERS:

                                      WELLS FARGO FOOTHILL, LLC

                                      By:  /s/ Yelenda Kravshuk
                                           --------------------
                                      Title: Assistant Vice President

              Signature Page to First Amendment to Credit Agreement

<PAGE>

                                      LENDERS:

                                      GMAC COMMERCIAL FINANCE LLC

                                      By: /s/ Thomas Brent
                                          ----------------
                                      Title: Director

                                      LENDERS:

                                      Merill Lynch Capital, a division of
                                      Merrill Lynch Business Financial Services
                                      Inc.

                                      By: /s/ Ed Shuster
                                          --------------
                                      Title: Assistant Vice President

                                      LENDERS:

                                      PNC BANK, NATIONAL ASSOCIATION

                                      By: /s/ John Cunningham
                                          -------------------
                                      Title:  Vice President

                                      LENDERS:

                                      ALLIED IRISH BANK, PLC

                                      By: /s/ Martin Chin
                                          ---------------
                                      Title: Senior Vice President

                                      LENDERS:

                                      WEBSTER BUSINESS CREDIT
                                      CORPORATION

                                      By: /s/ Bradford Mitch
                                          ------------------
                                      Title: Vice President

                  Signature Page to First Amendment to Credit Agreement

<PAGE>

                                   EXHIBIT A

                                     FORM OF
                           ACKNOWLEDGMENT AND CONSENT

      The undersigned entities, constituting Subsidiaries of the Borrowers
(each, a "Subsidiary Guarantor"), hereby (a) acknowledge that they have reviewed
the terms and provisions of (i) the Credit Agreement dated as of February 10,
2004 (as amended, the "Agreement"), by and among Wellman, Inc. ("Wellman"),
Prince, Inc. ("Prince"), Wellman of Mississippi, Inc. ("Wellman Mississippi"),
Carpet Recycling of Georgia, Inc. ("Carpet"), ALG, Inc. ("ALG"), PermaClear East
Incorporated ("PermaClear"), PTA Resources, LLC ("PTA Resources"), Wellman
Resins, LLC ("Resins") and Fiber Industries, Inc. ("Fiber" and, together with
Wellman, Prince, Wellman Mississippi, Carpet, ALG, PermaClear, PTA Resources and
Resins, each individually referred to herein as a "Borrower" and collectively as
"Borrowers" with Wellman acting in its capacity as Funds Administrator for the
Borrowers), the financial institutions party thereto as Lenders and Deutsche
Bank Trust Company Americas, acting in its capacity as administrative agent (the
"Administrative Agent") and collateral agent ("Collateral Agent") for the
Lenders hereunder (in its capacities as Administrative Agent and Collateral
Agent, the "Agent") and (ii) the First Amendment to Credit Agreement (the
"Amendment") and (b) consent to the amendment of the Agreement pursuant to the
Amendment and the other matters contemplated under the Amendment.

      Each Subsidiary Guarantor hereby acknowledges and agrees that any of the
Credit Documents to which it is a party or otherwise bound shall continue in
full force and effect and that all of its obligations thereunder shall be valid
and enforceable and shall not be impaired or affected by the execution or
effectiveness of the Amendment. Each Subsidiary Guarantor represents and
warrants that all representations and warranties applicable to it contained in
the Agreement as amended by this Amendment and the Credit Documents to which it
is a party or otherwise bound are true and correct in all material respects on
and as of the Effective Date (except to the extent that such representations and
warranties are expressly made as of a specific date, in which event such
representations and warranties shall have been true and correct in all material
respects on and as of such specified date).

      Each Subsidiary Guarantor acknowledges and agrees that (i) notwithstanding
the conditions to effectiveness set forth in the Amendment, each Subsidiary
Guarantor is not required by the terms of the Agreement or any other Credit
Document to consent to the amendment of the Agreement effected pursuant to the
Amendment and (ii) nothing in the Agreement or the Amendment or any other Credit
Document shall be deemed to require the consent of any Subsidiary Guarantor to
any future amendment of the Agreement or any other Credit Document.

                            [SIGNATURE PAGE FOLLOWS]

                                   Exhibit A

<PAGE>

      IN WITNESS WHEREOF, each of the Subsidiary Guarantors has caused this
Acknowledgement and Consent to First Amendment to Agreement to be duly executed
and delivered by its proper and duly authorized officer as of the ___th day of
December, 2005.

                                      WAREHOUSE ASSOCIATES, INC. USA

                                      By: /s/ Keith R. Phillips
                                          ---------------------
                                      Name: Keith Phillips
                                      Title:  Vice President & Treasurer

                                      FINWELL, INC.

                                      By: /s/ Keith R. Phillips
                                          ---------------------
                                      Name: Keith Phillips
                                      Title:  Director & President

                                      MRF, INC.

                                      By: /s/ Keith R. Phillips
                                          ---------------------
                                      Name: Keith Phillips
                                      Title:  Vice President & Treasurer

                                      JOSDAV INC.

                                      By: /s/ Keith R. Phillips
                                          ---------------------
                                      Name: Keith Phillips
                                      Title:  Vice President & Treasurer

                 Signature Page to Acknowledgement and Consent

<PAGE>

                                      FIISB, INC.

                                      By: /s/ Keith R. Phillips
                                          ---------------------
                                      Name: Keith Phillips
                                      Title:  Vice President

                                      MED RESINS, INC.

                                      By: /s/ Keith R. Phillips
                                          ---------------------
                                      Name: Keith Phillips
                                      Title:  President

                                      WELLMAN EXPORTS V.I.

                                      By: /s/ Keith R. Phillips
                                          ---------------------
                                      Name: Keith Phillips
                                      Title:  Treasurer

                  Signature Page to Acknowledgement and Consent

<PAGE>

                                    EXHIBIT B

                          FORM OF LEVERAGE CERTIFICATE

            This Leverage Certificate is given by Wellman, Inc. for itself and
its Subsidiaries ("Wellman") pursuant to Section 7.1(i) of that certain Credit
Agreement, dated as of February 10, 2004, among Wellman, the other Borrowers
named therein, the Lenders signatory thereto from time to time, and Deutsche
Bank Trust Company Americas, as Agent (as such agreement may have been amended,
restated, supplemented or otherwise modified from time to time, the "Credit
Agreement"). Capitalized terms used herein without definition shall have the
meanings set forth in the Credit Agreement.

            The undersigned is duly authorized to execute and deliver this
Leverage Certificate on behalf of Borrowers. By executing this Leverage
Certificate such officer hereby certifies to Agent and Lenders that the Leverage
Ratio for the Fiscal Quarter ending December 31, [____], is ____, and the
Applicable Margins shall be calculated using Level ___.

            IN WITNESS WHEREOF, Wellman has caused this Leverage Certificate to
be executed by its ________________________ this _______ day of _____________.

                                  WELLMAN, INC.

                                  By:___________________________________________

                                  its:__________________________________________

                                   Exhibit B<PAGE>
                                                                    EXHIBIT 10.3

                                 [WELLMAN LOGO]

                                  WELLMAN, INC.

                               LIFE INSURANCE PLAN

                                       FOR

                              DESIGNATED EMPLOYEES

                            Personal and Confidential

<PAGE>

                                TABLE OF CONTENTS

        Article I              Name

        Article II             Statement of Purpose

        Article III            Plan Administration

        Article IV             Participation

        Article V              Definitions

        Article VI             Requirements for Life Insurance

        Article VII            Change in Status during the Plan Year

        Article VIII           General Provisions

        Article IX             Limitations

<PAGE>

           WELLMAN, INC. LIFE INSURANCE PLAN FOR DESIGNATED EMPLOYEES

                                    ARTICLE I

                                      NAME

1.1 The "Plan" is the "Wellman, Inc. Life Insurance Plan for Designated
Employees."

                                   ARTICLE II

                              STATEMENT OF PURPOSE

2.1 The purpose of the Plan is to provide adequate life insurance to certain
designated executives (the "Participants") as part of their overall compensation
from Wellman, Inc. (the "Company").

2.2 The Plan permits Participants to utilize an amount paid by the Company which
is 9.5% of their Base Salary to purchase a Life Insurance Product (as defined
below).

                                   ARTICLE III

                               PLAN ADMINISTRATION

3.1 The Compensation Committee of the Wellman, Inc. Board of Directors (the
"Committee") or their designee shall be responsible for the design,
administration, and interpretation of the Plan.

3.2 This Plan may be amended, suspended or terminated at any time at the sole
discretion of the Board of Directors of Wellman, Inc. (the "Board") upon the
recommendation of the Committee.

                                   ARTICLE IV

                                  PARTICIPATION

4.1 The Participants are all Company executives recommended by the Chief
Executive Officer and approved by the Committee.

                                    ARTICLE V

                                   DEFINITIONS

5.1   "Plan Year" is the fiscal year of the Company, which is generally the
      calendar year.

5.2   "Base Salary" means the annual salary paid by the Company to a Participant
      for performance of his job excluding any fringe benefits, incentive
      awards, bonuses or any component of pay other than the base amount.

5.3   "Beneficiary" means any person, estate or trust entitled to receive the
      Participant's Death Benefit upon the Death of the Participant, including
      contingent Beneficiaries.

5.4   "Code" means the Internal Revenue Code of 1986 as amended.

<PAGE>

5.5   "Death Benefit" and "Life Insurance Amount" mean the amount payable with
      respect to a Life Insurance Product where the Participant is one of the
      Insured to the Participant's Beneficiaries regardless of the source of
      that amount, i.e., cash value, pure insurance, etc.

5.6   "Life Insurance Product" is a product, plan and/or policy or combination
      of products, plans and/or policies which include life insurance and that
      provide a Death Benefit. Group Term Life Insurance provided by the Company
      is not a Life Insurance Product. The Life Insurance Product may be in any
      form that is appropriate for the Participant and may include whole life
      products, term life products, second to die policies and annuities. The
      Participant shall select the company(s) providing the Life Insurance
      Product ("Insurance Company"); however, before any such product, plan or
      policy commences, the Company reserves the right to decide that any such
      Insurance Company is not appropriate for any reason including
      administrative reasons. If this occurs the Participant shall select an
      alternative Insurance Company that is acceptable to the Company to provide
      such Life Insurance Product(s).

                                   ARTICLE VI

                         REQUIREMENTS FOR LIFE INSURANCE

6.1   The Plan requires Participants to have a Life Insurance Product providing
      a Death Benefit which, when combined with their Group Term Policy provided
      by the Company is at least five (5) times their Base Salary. Participants
      are eligible to apply an amount, paid by the Company, of up to 9.5% of
      their Base Salary, toward the premium for a Life Insurance Product
      ("Premium Payments"). If the amount paid by the Company is insufficient to
      purchase the required Death Benefit, the Participant is responsible for
      paying the additional premium required to bring the Death Benefit up to
      the required level, except as provided in Section 6.2.

6.2   The required Life Insurance Benefit may be reduced, with the approval of
      the Committee or its representative in certain circumstances. Examples of
      this would be: It becomes difficult or impossible for the Participant to
      purchase additional coverage because of their physical condition, or upon
      the attainment of certain ages, or reductions in the amount of the group
      term insurance policy.

6.3   Premium Payments will be treated as taxable income to the Participant
      except where the Internal Revenue Code provides a specific exemption from
      taxation.

6.4   The Life Insurance Product is the property of the Participant.

                                   ARTICLE VII

                      CHANGE IN STATUS DURING THE PLAN YEAR

7.1 Disability. A Participant shall be deemed "Permanently Disabled" if, because
of a physical or mental condition, the Participant is unable for a period of at
least one year to perform the principle duties of his/her occupation as
determined by a physician selected by the Committee. As long as the Participant
remains an employee of the Company and is a Participant, the Company will
continue to make Premium Payments until the Participant is "Permanently
Disabled."

7.2 Death. A Participant's participation in this program terminates upon death.

<PAGE>

7.3 Retirement. In the year of a Participant's retirement upon or after reaching
age 55 the Company will continue to make Premium Payments on the dates they are
normally paid until the monthly premium due date coincident with or following
the Participant's retirement date.

7.4 Resignation or Termination. No Premium Payments will be made after a
Participant's employment ends.

7.5 Participant's Own Life Insurance Policies. In all cases the scheduled
payment date of the Life Insurance Product governs when the payments are made.
If any Premium Payments are made before any of the events named in Sections 7.1
to 7.4 the Premium Payment is included in the value of the Life Insurance
Product which is the property of the Participant. If a Premium Payment is due
after any of the events named in Sections 7.1 to 7.4 the Premium Payment is only
required to be made if it is a contractual obligation of the Company under the
terms of another plan or agreement.

7.6 No Guarantee. Participation in the Plan provides no guarantee that this Plan
will continue.

                                  ARTICLE VIII

                               GENERAL PROVISIONS

8.1 Withholding of Taxes. The Company shall have the right to withhold the
amount of taxes, which in the determination of the Company, are required to be
withheld under law with respect to any amount due or paid under the Plan.

8.2 Expenses. The Company shall pay all expenses and costs in connection with
the adoption and administration of the Plan.

8.3 No prior Right or Offer. Except and until expressly granted pursuant to the
Plan, nothing in the Plan shall be deemed to give any Participant any
contractual or other right to participate in the benefits of the Plan.

                                   ARTICLE IX

                                   LIMITATIONS

9.1 No Continued Employment. Neither the establishment of the Plan or the grant
of an award hereunder shall be deemed to constitute an express or implied
contract of employment for any period of time or in any way abridge the rights
of the Company to determine the terms and conditions of employment or to
terminate the employment of any Participant with or without cause at any time.

9.2 No Vested Rights. Except as otherwise provided herein and provided in
Participant's Life Insurance Product, the Plan does not confer on any
Participant or other person any claim of right (legal, equitable, or otherwise)
to any payment for a Death Benefit from the Company. No interest conferred
herein to a Participant shall be assignable or subject to claim by a
Participant's creditors.

9.3 Not Part of Other Benefits. The benefits provided in this Plan shall not be
deemed a part of any other benefit provided by the Company to its Participants.
The Company assumes no obligation to Plan Participants except as specified
herein. This is a complete statement of the terms and conditions of the Plan.

9.4 Other Plans. Nothing contained herein shall limit the Company or the
Committee's ability to make payments for insurance to other employees of the
Company, whether or not Participants in this Plan.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]