Document:

<PAGE>

                                                                   Exhibit 10.43

                         UNITED STATES BANKRUPTCY COURT
                              DISTRICT OF DELAWARE

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

          Debtors.

                     AGREED FINAL ORDER AUTHORIZING DEBTOR:
              (A) TO USE CASH COLLATERAL; (B) TO INCUR POSTPETITION
             DEBT; AND (C) TO GRANT ADEQUATE PROTECTION AND PROVIDE
                 SECURITY TO FLEET CAPITAL CORPORATION, AS AGENT
                 -----------------------------------------------

          This matter came before this Court on the motion (the "Motion") of
debtor Borden Chemicals and Plastics Operating Limited Partnership (the
"Debtor") requesting that this Court enter an order: (1) authorizing the Debtor
to use certain cash collateral; (2) authorizing the Debtor to incur Postpetition
Debt (as defined herein); and (3) granting certain liens and other relief to
Fleet Capital Corporation, as agent for the Lenders defined herein) (the
"Agent"). Unless otherwise indicated, the following terms 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 Loan Agreement (as defined
below).

          1. Aggregate Collateral. Collectively, the Prepetition Collateral and
the Postpetition Collateral.

          2. Aggregate Liens. Collectively, the Prepetition Liens, the
Replacement Liens, and the Postpetition Liens.

          3. Allowable 506(b) Amounts. All fees, costs, expenses, interest and
other charges due or coming due under the Prepetition Documents with respect to
the Prepetition Debt (regardless of whether such fees, costs, interest and other
charges are included in the Budget) to the extent allowable under Code (S)
506(b), including, without limitation, all reasonable out-of-pocket filing and
recording fees, attorneys and paralegals' fees and expenses, external and
internal audit fees and expenses, closing fees unused facility

<PAGE>

fees, letter of credit fees, and all other costs and expenses incurred by Agent
and the Lenders under the Prepetition Documents with respect to the Prepetition
Debt, including such fees, costs and charges incurred in connection with: (a)
the negotiation, preparation and submission of this Order and any other order or
document related hereto; and (b) the representation of the Agent and the Lenders
in and in connection with the Case.

          4. Allowed Claim. Any claim, as that term is defined in Code (S) 101,
for which a proof of claim was timely and properly filed, or which has been or
hereafter is listed by the Debtor on its schedules as liquidated in amount and
not disputed or contingent, provided that: (a) no objection to the allowance of
the claim is timely interposed; or (b) if any objection to the allowance of the
claim is timely interposed, the claim has been allowed.

          5. Appraisal. The report of the appraiser retained by the Agent that
has provided an in place valuation of, and orderly liquidation value for, the
Debtor's facilities in Geismar, Louisiana, Addis, Louisiana and Illiopolis,
Illinois.

          6. Budget. The budget attached to this Order as Exhibit A including
and allowing for the Permitted Variances, and such revised or updated budgets
which the Agent and Lenders consent to in writing, provided that any such
revised or updated budget shall be provided to the Committee and shall not be
implemented until two business days following delivery to the Committee.

          7. Capex Payments. Payments made by the Debtor or its subsidiaries on
account of capital expenditures in accordance with generally accepted accounting
principles provided that the cumulative capital expenditures from the Filing
Date to the dates listed below do not exceed the amounts listed below for such
dates:

April 30, 2001       $   800,000
May 31, 2001         $ 1,600,000
June 30, 2001        $ 2,400,000
July 31, 2001        $ 3,500,000
August 31, 2001      $ 4,600,000
September 30, 2001   $ 5,700,000
October 31, 2001     $ 6,800,000
November 30, 2001    $ 7,900,000
December 31, 2001    $ 9,000,000
January 31, 2002     $10,100,000
February 28, 2002    $11,200,000
March 31, 2002       $12,300,000

          8. Carveout. The carveout for professional fees of the estate set
forth in Paragraph 4(c) of this Order.

          9. Case. This chapter 11 case or any superseding chapter 7 case of the
Debtor.

          10. Cash Collateral. All "cash collateral," as that term is defined in
Code (S) 363(a), in which the Lenders have an interest, all deposits subject to
setoff rights in favor of the Lenders, and all cash arising from the collection
or other conversion to cash of the

                                      -2-

<PAGE>

Aggregate Collateral, including, without limitation, from the sale of inventory
and the collection of accounts receivable. To the extent any such cash collected
or received is not clearly identifiable as attributable to Prepetition
Collateral or Postpetition Collateral, such cash shall be deemed to be proceeds
of Prepetition Collateral.

          11. Committee. The official creditors' committee appointed to
represent unsecured creditors in this Case pursuant to Code (S) 1102.

          12. Cure Period. (a) With respect to the occurrence of an Event of
Default (a) through (d), none; and (b) with respect to Event of Default (e);
three business days following the receipt of Agent's written notice to the
Debtor, the United States Trustee, and the Committee, via facsimile or overnight
mail, of the occurrence of such Event of Default.

          13. Event of Default. Any one or more of the following: (a) the Debtor
commits any Event of Default as such term is defined in Section 10 of the Loan
Agreement (as modified by this Order and with the exception of Sections 10.1.2
and 10.1.8); provided that (1) it will not be an Event of Default under this
Order if the Event of Default occurring under the Loan Agreement occurred prior
to the Filing Date or is the result of an event that occurred on or prior to the
Filing Date; and (2) no Event of Default will occur under this Order as a result
of the Debtor's bankruptcy filing or the resulting requirements or provisions of
the Code; (b) any representation or warranty made by the Debtor in any
certificate, report or financial statement delivered to the Agent after the
Filing Date proves to have been false or misleading in any material respect as
of the time when made or given (including by omission of material information
necessary to make such representation, warranty or statement not misleading);
(c) this chapter 11 case is converted to a case under chapter 7 of the Code; (d)
a Trustee is appointed or elected in this Case, or an examiner with the power to
operate the Debtor's business is appointed in this Case, and (e) the Debtor
fails to perform any of its other obligations in accordance with the terms of
this Order or the Budget. Agent (and the Requisite Lenders) shall have the
exclusive right to assert or waive any Event of Default.

          14. Filing Date. April 3, 2001.

          15. First Priority Liens. Liens which are first priority, properly
perfected, valid and enforceable security interests, which are not subject to
any claims, defenses, or setoffs, and which are otherwise unavoidable under any
provisions of the Code.

          16. Interim Orders. The Agreed Interim and Proposed Final Order
Authorizing Debtor: (A) To Use Cash Collateral; (B) To Incur Postpetition Debt;
and (C) To Grant Adequate Protection and Provide Security to Fleet Capital
Corporation, as Agent entered on April 5, 2001 pursuant to the Motion and the
Amended Agreed Interim and Proposed Final Order Authorizing Debtor: (A) To Use
Cash Collateral (B) To Incur Postpetition Debt; and (C) To Grant Adequate
Protection and Provide Security to Fleet Capital Corporation, as Agent entered
on April 9, 2001 pursuant to the Motion.

                                      -3-

<PAGE>

          17. Lenders. The financial institutions party to the Loan Agreement
(defined therein as "Lenders"), which are extending Postpetition Debt to the
Debtor.

          18. Loan Agreement. That certain Loan and Security Agreement, dated as
of March 31, 2000, by Borden Chemicals and Plastics Operating Limited
Partnership, Agent, and the Lenders, as amended prior to the Filing Date.

          19. Net Cash Flow. The difference between (1) Receipts Less Production
Payments, and (2) SG&A Payments.

          20. Overadvance. The least of: (a) $35,000,000; (b) 35% of the
liquidation value in place of the Debtor's facilities in Geismar, Louisiana,
Addis, Louisiana and Illiopolis, Illinois, as determined by the Appraisal; and
(c) 80% of the orderly liquidation value as determined by the Appraisal;
provided, that the percentages contained in clauses (b) and (c) herein shall be
reduced by 1% on the first day of each calendar month, beginning with May 1,
2001.

          21. Permitted Liens. Liens in favor of third parties upon any of the
Aggregate Collateral with priority over the Lenders' security interests in the
Prepetition Collateral, which third-party liens were (i) non-avoidable, valid,
properly perfected and enforceable as of the Filing Date, or (ii) existed prior
to the Filing Date and become non-avoidable, valid, properly perfected and
enforceable after the Filing Date pursuant to Section 546(b) of the Code.

          22. Permitted Variances. The amount by which the actual Receipts Less
Production Payments, SG&A Payments and Net Cash Flow may differ adversely from
the respective amounts included in the Budget, provided that the calculation of
Permitted Variances is performed on a "trailing" 4 week basis (i.e. the sum of
the cash flows for the 4 prior weeks) and the calculation is performed for the
period from June 10, 2001 to July 7, 2001 and weekly thereafter. The Permitted
Variance shall be calculated as follows: (a) Receipts less Production Payments:
the greater of $500,000 or 20% of the budgeted Receipts less Production
Payments, (b) SG&A Payments: 20% of the budgeted SG&A Payments, (c) Net Cash
Flow: the greater of $500,000 or 10% of Net Cash Flow. There shall be no
Permitted Variances for Capex Payments or Professionals' Fee Payments which,
instead, shall be subject to the Budget and the cumulative limits set forth in
and calculated pursuant to the definitions of Capex Payments and Professionals'
Fee Payments.

          23. Positive Borrowing Availability. The amount of positive borrowing
availability under the collateral advance formulas set forth in Section 1.1 ___
of the Loan Agreement, plus the Overadvance; provided, (a) the portion of clause
(ii) of the definition of Borrowing Base which adds to the Borrowing Base the
lesser of $17,000,_00 and 5% of "Consolidated Net Tangible Assets" (as defined
in the Indenture referred to ___ Exhibit 8.2.3 of the Loan Agreement) is
eliminated, (b) the $10,000,000 Availability restriction contained in Sections
8.3 and 9.4 of the Loan Agreement is eliminated, and (c) the portion of clause
(ii) of the definition of Borrowing Base which adds to the Borrowing Base __% of
the net amount of Eligible Inventory exclusive of "caustic," "additive" and
"solvent" inventories and

                                      -4-

<PAGE>

50% of the net amount of Eligible Inventory consisting of "caustic," "additive"
and "solvent" inventories shall be limited to the lesser of the amount
calculated by such provision and $40,000,000; provided, however, that the
Postpetition Collateral and the Lender's applications of Cash Collateral to the
Prepetition Debt and the Postpetition Debt pursuant to Paragraph 5(d) of this
Order shall be included in the calculations of such positive borrowing
availability. Notwithstanding the foregoing, (1) the Lenders shall have the
rights to establish reserves against such availability pursuant to the terms of
the Loan Agreement and a reserve for the Carveout and the unfunded portion
(whether or not then earned) of the cumulative Professionals' Fee Payments, and
(2) the Agent, with the written consent of the Lenders, shall have the right to
increase Positive Borrowing Availability hereunder from time to time, on such
terms as it deems appropriate, without the need for further Court hearing.

          24. Postpetition Charges. All fees, costs, expenses, interest and
other charges due or coming due in connection with the Postpetition Debt
(regardless of whether such fees, costs, interest and other charges are included
in the Budget), including, without limitation, all reasonable out-of-pocket
filing and recording fees, attorneys' fees and paralegals' fees and expenses,
external and internal audit fees and expenses, closing fees, unused facility
fees, letter of credit fees, and all other costs and expenses incurred by the
Agent in connection with the Postpetition Debt including without limitation the
$1,000,000 facility fee payable to the Agent on behalf of the Lenders upon entry
of this Order, the $333,000 structuring fee payable to the Agent upon entry of
this Order, the $__50,000 success fee payable to the Agent on behalf of the
Lenders upon the Termination Date or the date on which all Prepetition and
Postpetition Debt owing to the Agent and the Lenders is indefeasibly paid in
full, the $30,000 initial administrative fee payable to the Agent upon entry of
this Order and the $20,000 monthly administrative fee payable to the Agent on
the first business day of each successive calendar month, which amounts shall
compensate the Agent and the Lenders for all financial accommodations made
hereunder. ___ the event the aggregate amount of Prepetition Debt and
Postpetition Debt available to the Debtor increases above $100,000,000 pursuant
to Paragraph 3(a) of this Order: (a) the $1,000,000 facility fee payable to the
Agent on behalf of the Lenders shall increase by the amount of 1% of the
increase in the maximum loans available to the Debtor above $100,000,000, and
(b) the $333,000 structuring fee payable to the Agent shall increase by the
amount of 0.33% of the increase in the maximum loans available to the Debtor
above $100,000,000; and the balance of such increased facility fee and
structuring fee shall be immediately due and payable.

          25. Postpetition Collateral. All of the real and personal property of
the Debtor of any description whatsoever, wherever located and whenever arising
or acquired, including, without limitation, all cash, accounts, inventory,
equipment, fixtures, chattel paper, and general intangibles (excluding claims
and recoveries under Code (S)(S) 544, 547, 548, 549, 550 and 553), and all
proceeds and products, whether tangible or intangible, of any of the foregoing,
including proceeds of insurance covering any of the foregoing.

          26. Postpetition Debt. (a) All indebtedness or obligations of the
Debtor to the Agent and the Lenders incurred on or after the Filing Date
pursuant to this Order or the

                                      -5-

<PAGE>

Interim Orders, including any advances made by the Lenders to pay Allowable
506(b) Amounts, plus (b) the Postpetition Charges.

          27. Postpetition Documents. (a) The Loan Agreement, as modified by
this Order or the Interim Orders; (b) the Loan Documents (as that term is
defined in the Loan Agreement), as modified by this Order or the Interim Orders;
and (c) this Order, the Interim Orders, and any financing orders entered by the
Court modifying or supplementing such orders.

          28. Postpetition Liens. First Priority Liens in the Aggregate
Collateral granted to the Agent for the benefit of the Lenders pursuant to this
Order and the Interim Orders, subject only to: (a) Permitted Liens; (b) the
Carveout; and (c) the claim of the United States Trustee for the payment of fees
under 28 U.S.C. (S) 1930 and the fees of the Clerk of the Court (the "UST and
Clerk Fees"), which liens are and shall be in addition to the Prepetition Liens,
are and shall be, pursuant to Code (S) 364(d), senior to the Prepetition Liens
and the Replacement Liens without any further action by the Debtor, the Agent or
the Lenders and without the execution, filing or recordation of any financing
statements, security agreements, mortgages or other documents or instruments.

          29. Prepetition Collateral. All of the Collateral (as that term is
defined in the Loan Agreement) existing as of the Filing Date, and all proceeds
and products thereof.

          30. Prepetition Debt. (a) All indebtedness or obligations under the
Prepetition Documents as of the Filing Date, including all fees, interest and
expenses (including the LC Amount of $2,500,000, which amount was cash
collateralized prior to the Filing Date), plus (b) all Allowable 506(b) Amounts.

          31. Prepetition Documents. The Loan Agreement and the Loan Documents
(as that term is defined in the Loan Agreement).

          32. Prepetition Liens. The Agent's asserted security interests in the
Prepetition Collateral under the Prepetition Documents, subject to: (a) the
Postpetition Liens; (b) Permitted Liens; (c) the Carveout; and (d) the UST and
Clerk Fees.

          33. Professionals' Fee Payments. Payments made by the Debtor or its
subsidiaries to non-ordinary course professionals (excluding Taylor Strategic
Divestitures) retained pursuant to Section 327 or 1103 of the Code (including
professionals retained by the Committee), subject to approval by the Court. No
Professionals' Fee Payments may be used to prosecute, as opposed to investigate
whether to bring, an Avoidance Action (as defined herein).

          34. Replacement Liens. First Priority Liens in the Postpetition
Collateral granted to the Agent for the benefit of the Lenders pursuant to this
Order and the Interim Orders, subject only to: (a) the Postpetition Liens; (b)
Permitted Liens; (c) the Carveout; and (d) the UST and Clerk Fees.

                                      -6-

<PAGE>

          35. Receipts Less Production Payments. Cash received by the Debtor or
its subsidiaries (in the ordinary course of business and excluding any sale of
assets outside the ordinary course of business) less payments made by the Debtor
to suppliers of materials used in its production facilities and payments to
other vendors or employees providing services in connection with such production
including, but not limited to, amounts in relation to the transportation of raw
materials or finished goods.

          36. Requisite Lenders. As of any date, Lenders holding 66._6% or more
of the aggregate Prepetition Debt and Postpetition Debt.

          37. SG&A Payments. Payments made by the Debtor or its subsidiaries on
account of selling, general and administrative expenses incurred, including for
the purposes of this definition, amounts paid on account of Postpetition
Charges, other interest charges and tax liabilities of the Debtor.

          38. Termination Date. The earliest to occur of: (a) the late of (1)
the date on which the written notice to the Debtor, the United States Trustee,
and the Committee of the occurrence of an Event of Default is received from the
Agent via facsimile or overnight mail, and (2) if any Cure Period is applicable
with respect to such Event of Default, the expiration of such Cure Period
(provided that the Debtor may cure such Event of Default within any such Cure
Period, and the Agent may seek to terminate this Order prior to the expiration
of any such Cure Period); and (b) March 31, 2002.

          39. Trustee. Any trustee appointed or elected in the Case.

          Having examined the Motion, being fully advised of the relevant facts
and circumstances surrounding the Motion and having completed a hearing pursuant
to Code (S)(S) 363 and 364/1/ and Fed. R. Bankr. P. 4001(b) and (c)(2), THE
COURT FINDS THAT:

          A. On the Filing Date, the Debtor filed a voluntary petition for
relief under chapter 11 of the Code. The Debtor has retained possession of its
property and continues to operate its business as a debtor in possession
pursuant to Code (S)(S)1107 and 1108.

          B. (1) The Prepetition Debt, the Prepetition Liens and the prepetition
financing relationship between the Debtor, the Agent and the Lenders is
evidenced and governed by the Prepetition Documents; (2) as of the Filing Date,
the Prepetition Debt was, at least $84 million; (3) the payment of all of the
Prepetition Debt is secured by, among other things, the Prepetition Liens; and
(4) the Prepetition Liens are First Priority Liens, subject to Permitted Liens.

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

                                      -7-

<PAGE>

          C. Upon the entry of this Order, the Lenders' interests in the
Prepetition Collateral will be adequately protected, without prejudice to the
Agent's right to later assert that the Lenders' interest in the Aggregate
Collateral lacks adequate protection, and as of the Filing Date, including for
purposes of Code (S) 506(b) and (S) 507(b), the liquidation value of the
Prepetition Collateral was not less than $100 million without prejudice to the
parties' rights to later seek higher or lower valuations at a subsequent date.

          D. An immediate need exists for the Debtor to use Cash Collateral and
to obtain Postpetition Debt in order to enable the Debtor to minimize disruption
to and to avoid the termination of its business operations. Entry of this Order
will also enhance the possibility of a successful reorganization.

          E. Pursuant to Code (S)(S) 364(a) and 364(b), the Debtor has attempted
to obtain, but is unable to obtain, unsecured credit or unsecured credit
allowable under Code (S) 503(b)(1). The terms of the Postpetition Debt have been
negotiated in good faith and at arms' length, and the Postpetition Debt is being
extended in good faith, as that term is used in Code (S) 364(e).

          F. Under the circumstances of the Case, the terms and conditions of
this Order are a fair and reasonable response to the Debtor's request for the
Lenders' consent to the use of Cash Collateral and for the Debtor's incurrence
of Postpetition Debt, and the entry of this Order is in the best interests of
the Debtor's estate and its creditors.

          G. The notice provided by the Debtor of the Motion, the hearing on the
Motion, and the entry of this Order satisfy the requirements of Fed. R. Bankr.
P. 4001 and were otherwise sufficient and appropriate under the circumstances.

          H. This Order resolves the Limited Objection of the Committee filed on
May 8, 2001 and the Amended Objection of the Committee filed on May 25, 2001.

          WHEREFORE, IT IS HEREBY ORDERED THAT:

          1. Authorization to Use Cash Collateral. The Debtor is authorized to
use Cash Collateral solely in accordance with and pursuant to the terms and
provisions of this Order. Prior to the Termination Date and indefeasible payment
in full of the Postpetition Debt, the Debtor may not use or seek to use Cash
Collateral other than pursuant to the terms of this Order.

                                      -8-

<PAGE>

          2. Procedure for Use of Cash Collateral.

          (a) Delivery of Cash Collateral to Agent. The Debtor is authorized and
directed to deposit all Cash Collateral now or hereafter in its possession or
under its control into the existing lockbox/blocked account established by the
Agent (or to otherwise deliver all such Cash Collateral to the Agent in a manner
satisfactory to the Agent) promptly upon receipt thereof. Such Cash Collateral
shall thereafter be applied by the Agent in accordance to Paragraph 5(d) of this
Order.

          (b) Account Debtors. The Debtor may, without further order of court,
be directed by the Agent to, or the Agent may directly, instruct all account
debtors of existing and future accounts receivable included in the Aggregate
Collateral to make payments directly into any blocked/lockbox account
established by the Agent or such other accounts satisfactory to the Agent, in
which event all such proceeds shall be treated in accordance with the provisions
of this Order.

          (c) Cash Collateral in Agent's Possession. The Agent is authorized to
collect upon, convert to cash and enforce checks, drafts, instruments and other
forms of payment now or hereafter coming into its possession or under its
control which constitute Aggregate Collateral or proceeds of Aggregate
Collateral.

          3. Authorization To Incur Postpetition Debt.

          (a) Positive Borrowing Availability/Maximum Loans. If there is
Positive Borrowing Availability (after giving effect to outstanding Prepetition
Debt and Postpetition Debt), the Debtor is authorized to incur Postpetition
Debt, and the Lenders shall be required to provide the Debtor with Postpetition
Debt pursuant to the terms of the Loan Agreement (as modified by this Order and
the Interim Orders), to the extent of such remaining Positive Borrowing
Availability. Notwithstanding the amount of Positive Borrowing Availability or
anything to the contrary in this Order, the aggregate of Prepetition Debt and
Postpetition Debt shall not at any time exceed $120,000,000; provided, however,
that until such time as all Lenders and the Debtors agree in writing or the
Agent obtains (with the written consent of the Lenders and the Debtor) the
agreement of one or more financial institutions (in addition to the Lenders who
were parties to the Loan Agreement prior to Filing Date), to extend

                                      -9-

<PAGE>

additional Postpetition Debt to the Debtor pursuant to the terms of this Order
and the Postpetition Documents, the aggregate of Prepetition Debt and
Postpetition Debt shall not at any time exceed $100,000,000.

          (b) Budget. The Debtor is authorized to incur Postpetition Debt solely
in accordance with and pursuant to the terms and provisions of this Order and
only to the extent required to pay those expenses listed in the Budget
(including Permitted Variances) as and when such expenses become due and payable
(including expenses of the Debtor's subsidiaries to the extent included in the
Budget). Notwithstanding anything to the contrary in this Paragraph 3, however:
(1) the Debtor is hereby authorized and directed to incur the Postpetition Debt
at any time to pay Allowable 506(b) Amounts, the UST and Clerk Fees, and the
Postpetition Charges, and (2) if the Lenders advance monies to the Debtor and
the Debtor uses such monies other than in accordance with or pursuant to the
terms or provisions of this Order, such advances shall be considered
Postpetition Debt for purposes of this Order. The cumulative Professionals' Fee
Payments (excluding amounts paid to __aylor Strategic Divestitures) from the
Filing Date to the following dates shall not exceed the cumulative amounts
listed for such dates -- (a) to June 30, 2001, $1.8 million; (b) to July 31,
2001, $2.6 million; (c) to August 31, 2001, $3.4 million; (d) to September 30,
2001, $4.__ million; (e) to October 31, 2001, $5.0 million; (f) to November 30,
2001, $5.8 million; (g) to December 31, 2001, $6.6 million; (h) to January 31,
2002, $7.4 million; (i) to February 28, 2002, $8.2 million; and (j) to March 31,
2002, $9.0 million. Notwithstanding any provision to the contrary in this Order,
all professionals shall have the right to seek approval of fees and expenses in
excess of the amounts set forth in this Paragraph 3(b) and Paragraph 4(c),
provided, however, such professionals shall not seek payment of such fees and
expenses, and such amounts shall not be due, until indefeasible and final
payment in full ___all allowed or allowable secured Prepetition Debt and all
allowed or allowable secured Postpetition Debt, provided further, such fees and
expenses shall not be paid out of the Cash Collateral.

          (c) Superpriority Administrative Expense Status; Postpetition Liens.
The Postpetition Debt is hereby granted superpriority administrative expense
status under Code (S) 364(c)(1), with priority over all costs and expenses of
administration of the Case that are incurred under any provision of the Code,
but subject to the Carveout and the UST and Clerk

                                      -10-

<PAGE>

Fees. In addition, the Agent and the Lenders are hereby granted the Postpetition
Liens to secure the Postpetition Debt. The Postpetition Liens: (1) are and shall
be in addition to the Prepetition Liens; (2) are and shall be, pursuant to Code
(S) 364(d), senior to the Prepetition Liens and the Replacement Liens without
any further action by the Debtor, the Agent or the Lenders and without the
execution, filing or recordation of any financing statements, security
agreements, mortgages or other documents or instruments; and (3) shall remain in
full force and effect notwithstanding any subsequent conversion or dismissal of
the Case. Notwithstanding the foregoing, the Debtor is authorized and directed
to execute and deliver to the Agent such financing statements, mortgages,
instruments and other documents as the Agent may deem necessary or reasonably
desirable from time to time.

          (d) Conditions Subsequent. Notwithstanding anything to the contrary
contained in this Order, the following shall be conditions to Debtor's continued
authorization to incur Postpetition Debt:

               (i) On or before November 1, 2001, the Debtor shall have
     announced an achievable exit strategy that will enable the Debtor to
     indefeasibly pay in full all Prepetition Debt and Postpetition Debt; and

               (ii) On or before March 31, 2002, such exit strategy shall have
     been implemented and the Lenders shall have been indefeasibly paid in full;

provided, that the dates in this Paragraph 2(d) and clause (c) of the definition
of Termination Date may be extended with the written consent of the Requisite
Lenders and without further order of court.

          (e) Additional Terms of Postpetition Debt.

               (i) Letters of Credit. From and after the Filing Date no Letters
     of Credit shall be issued and no LC Guaranties shall be made by the

                                      -11-

<PAGE>

     Agent or the Lenders under the Loan Agreement or the Postpetition
     Documents. The Letters of Credit and LC Guaranties outstanding as of the
     Filing Date shall remain outstanding until such time as they are drawn upon
     or expire in accordance with their respective terms.

               (ii) Notwithstanding anything to the contrary in the Loan
     Agreement, the Prepetition Documents or the Postpetition Documents,
     effective from March 15, 2001, interest on the principal amount of the
     Prepetition Debt outstanding at the end of each day (after the application
     of cash collateral in accordance with Paragraph 5(d) of this Order), shall
     accrue at a fluctuating rate per annum equal to (a) with respect to the
     Base Rate Portion of Prepetition Debt, 1.25% plus the Alternate Base Rate,
     and (b) with respect to the LIBOR Portion of the Prepetition Debt, 3.00%
     plus the LIBOR Rate. The Lenders otherwise waive their right to charge the
     Default Rate with respect to the Prepetition Debt until the occurrence of
     an Event of Default. Notwithstanding the foregoing, and notwithstanding
     anything to the contrary in the Loan Agreement, the Prepetition Documents
     or the Postpetition Documents, the LIBOR Period for any Postpetition Debt
     shall not exceed one month, any Prepetition Debt consisting of LIBOR
     Portion may only be renewed as Base Rate Portion or as a LIBOR Portion with
     a LIBOR Period one month or less, and any Prepetition Debt consisting of
     Base Rate Portion may only be converted to a LIBOR Portion with a LIBOR
     Period of of one month or less. All interest on the Prepetition Debt and
     the Postpetition Debt shall be

                                      -12-

<PAGE>

     paid by the Debtor pursuant to the terms of the Loan Agreement prior to an
     Event of Default. The Postpetition Debt shall: (1) bear interest at 1.25%
     plus the Alternate Base Rate for the Base Rate Portion and 3.00% plus the
     LIBOR Rate for the LIBOR Portion; provided, that such LIBOR Portion shall
     have no LIBOR Periods in excess of one month; and (2) mature and be paid in
     full on the Termination Date.

               (iii) Sale Process Reporting. On Tuesday of each week, beginning
     with April 10, 2001, the Debtor shall provide the Agent and counsel for the
     Committee with a report describing the steps the Debtor has taken to comply
     with Paragraph 3(d) of this Order, including any information on reports
     received from Taylor Strategic Divestitures.

               (iv) Disposition of Assets. Notwithstanding the terms of Section
     8.2.9 of the Loan Agreement or any other provisions contained in the
     Prepetition Documents or the Postpetition Documents, or herein, the Debtor
     shall not dispose of any portion of its assets out of the ordinary course
     of business, whether pursuant to Code (S) 363 or otherwise, without the
     Agent's written consent; provided that, notwithstanding the foregoing, so
     long as the net proceeds of such sale are applied as set forth in paragraph
     3(e)(v), the Agent and the Lenders agree that the Debtor shall be permitted
     to sell or otherwise dispose of (a) the vacant real estate located adjacent
     to the Geismer, Louisiana facility, (b) the methanol plant that is a
     part of the Geismer, Louisiana facility (together, the "Permitted
     Sales"), and/or (c) any ineligible

                                      -13-

<PAGE>

     Accounts due from Armstrong World Industries, Inc. (or any related entity)
     or any of the following Canadian entities or any affiliate thereof ---
     American Biltrite of Canada, Ltd., Best Glove Manufacturing, Ltd.,
     Plastique Reinier, Inc., and Stedfast, Inc. (the "Ineligible Accounts")
     sold for at least 85% of the uncollected amount of such Accounts.

               (v) Mandatory Repayment. All net proceeds (after costs, taxes,
     and satisfaction of Permitted Liens) received by the Debtor from a sale or
     disposition of assets (other than Ineligible Accounts) outside the ordinary
     course of business (consented to by the Agent if required by the
     immediately foregoing Paragraph 3(e)(iv)), in excess of the amount of
     Positive Borrowing Availability supported by Accounts and Inventory
     transferred as part of the non-ordinary course sale or disposition (the
     "Net Sales Proceeds"), will result in the permanent reduction in the
     Overadvance as follows:

               (A)  if the Net Sales Proceeds exceed by two times the Lendable
                    Value of the sale or disposition assets other than the
                    Accounts and Inventory, the Overadvance shall be reduced by
                    50% of the Net Sales Proceeds;

               (B)  if the Net Sales Proceeds exceed the Lendable Value of the
                    sale or disposition assets other than Accounts and
                    Inventory, but are less than two times the Lendable Value of
                    the sale or disposition assets (other than the Accounts
                    and Inventory), the Overadvance shall be reduced by the

                                      -14-

<PAGE>

                    Lendable Value plus 50% of the amount in excess of the
                    Lendable Value; and

               (C)  if the Net Sales Proceeds are less than or equal to the
                    Lendable Value of the sale or disposition assets other than
                    Accounts and Inventory, the Overadvance shall be reduced by
                    the full amount of the Net Sales Proceeds;

provided, that the "Lendable Value" for purposes of this Paragraph 3(e)(v) sha11
be the lesser of 35% of the liquidation value in place or 80% of the orderly
liquidation value of the assets being transferred in the sale or disposition, as
determined in the Appraisal, and, provided, further, after making application of
the proceeds and reducing the Overadvance as provided in this Paragraph 3(e)(v),
the Overadvance shall not exceed the least of $35,000,000, 35% of the
liquidation value in place, and 80% of the orderly liquidation value of the
remaining assets, as determined by the Appraisal (subject to the amortization of
such advance percentages in accordance with the definition of "Overadvance" in
this Order). Notwithstanding anything in this Paragraph 3(e)(v) to the contrary,
upon the consummation of the Permitted Sales and the application of the proceeds
thereof, the Overadvance will be permanently reduced by an amount equal to 50%
of the Net Sales Proceeds of the Permitted Sales.

          4. Termination of Right to Use Cash Collateral And To Incur
Postpetition Debt.

          (a) Termination Date. Unless extended by the Court upon the written
agreement of the Agent, this Order and the Debtor's authorization to use Cash
Collateral and

                                      -15-

<PAGE>

incur Postpetition Debt pursuant to this Order will immediately terminate on the
Termination Date.

          (b) Rights Upon Termination. On the Termination Date, the Agent and
the Debtor shall be entitled to apply to this Court for all appropriate relief,
upon such notice as may be appropriate under the circumstances; provided,
however, that: (1) the obligations of the Debtor and the rights of the Agent and
the Lenders with respect to all transactions which have occurred prior to the
Termination Date shall remain unimpaired and unaffected; and (2) the Agent, the
Lenders and the Debtor shall retain all of their respective rights and remedies
under the Code, including, without limitation, the Debtor's right, after paying
the Postpetition Debt, including any Overadvance, in full, to request the
continued use of Cash Collateral, and the Agent's right to oppose the Debtor's
further use of Cash Collateral and to move for relief from the automatic stay.

          (c) Carveout. Notwithstanding anything to the contrary in this Order,
the Interim Orders, or any of the Prepetition Documents or the Postpetition
Documents, or otherwise, should the Lenders' obligations to make loans or other
financial accommodations under this Order terminate as a result of an Event of
Default or the occurrence of the Termination Date, the Lenders agree that,
notwithstanding the termination of such obligations, the Debtor may use the
Agent's and the Lenders' cash collateral to pay, in addition to any accrued fees
and expenses as of such date permitted by the Budget (a) any unpaid UST Fees and
Clerk Fees as such fees are charged to the Debtor; and (b) unpaid fees and
expenses allowed by the Bankruptcy Court of professionals or professional firms
retained pursuant to Section 327 or 1103 of the Code (excluding Taylor Strategic
Dive_titures), which professional fees and expenses do not exceed in the
aggregate $1.0 million (the amount of all such professional fees and expenses
being defined herein as the "Carveout"). The Agent's and the Lenders' liens on
the Aggregate Collateral, and any claim or claim arising under

                                      -16-

<PAGE>

Sections 364(c), 364(d), 506(b), or 507(b) of the Code, shall be subject and
subordinate to the Carveout and the UST and Clerk Fees, and (B) the terms of
this Paragraph 4(c) shall survive and not be affected by the termination of
this Order or the Interim Orders, any default hereunder, the conversion or
dismissal of this Chapter 11 case, the confirmation of a plan, or the
appointment of any trustee. Notwithstanding the foregoing, no part of the
Carveout may be used to prosecute, as opposed to investigate whether to bring,
an Avoidance Action (as defined herein).

          5. Adequate Protection of Interests of the Lenders in the Aggregate
Collateral and the Aggregate Liens. As adequate protection of the interests of
the Lenders in the Prepetition Collateral and the Prepetition Liens:

          (a) Priority of Prepetition Liens/Allowance of Lender's Claim. Subject
to the reservation of rights set forth in Paragraph 7(a) of this Order: (1) the
Prepetition Liens shall constitute First Priority Liens, subject to Permitted
Liens, Postpetition Liens, Replacement Liens, the Carveout, and the UST and
Clerk Fees; (2) the Lenders' claim with respect to the Prepetition Debt shall
constitute an Allowed Claim in an amount it not less than $84 million, all of
which shall be an allowed secured claim within the meaning of Code (S)(S) 506(a)
and 506(b); and (3) Debtor waives and releases any and all claim and causes of
action it may assert against Agent, any Lender or the Aggregate Collateral.

          (b) Replacement Liens. The Agent and the Lenders are hereby granted
the Replacement Liens to secure Prepetition Debt in an amount equal to the
decline (if any) in the value of the Agent's and the Lenders' interests in the
Prepetition Collateral during the Case. The Replacement Liens: (1) are and shall
be in addition to the Prepetition Liens; (2) are and shall be First Priority
Liens that, subject to Permitted Liens, the Carveout, and the UST and Clerk
Fees, are properly perfected, valid and enforceable without any further action
by the Debtor or the Agent and without the execution, filing or recordation of
any financing statements, security agreements, mortgages or other documents or
instruments; and (3) shall remain in full force and effect notwithstanding any
subsequent conversion or dismissal of the Case. Notwithstanding the foregoing,
the Debtor is authorized and directed to execute and

                                      -17-

<PAGE>

deliver to the Agent such financing statements, mortgages, instruments and other
documents as the Agent may deem necessary or reasonably desirable from time to
time.

          (c) Allowed Code (S) 507(b) Claim. If and to the extent the adequate
protection of the interests of the Agent and the Lenders in the Prepetition
Collateral granted to the Agent and the Lenders pursuant to this Order proves
insufficient, the Agent and the Lenders shall have an Allowed Claim under Code
(S) 507(b) in the amount of any such insufficiency, with priority over: (1) all
costs and expenses of administration of the Case (other than the Lenders' claim
pursuant to Paragraph 3(c) of this Order) that are incurred under any provision
of the Code, including, without limitation, Code (S)(S) 03(b), 506(c), 507(a),
or 552(b); and (2) the claims of any other party in interest under Code (S)
507(b), but in each case, subject and subordinate to the Carveout and the UST
and Clerk Fees.

          (d) Application of Cash Collateral. The Agent is authorized to apply
all Cash Collateral now or hereafter coming into the Agent's possession or
control as follows: (1) first, to payment of Prepetition Debt consisting of
Allowable 506(b) Amounts; (2) second, to payment of other Prepetition Debt; (3)
third, to payment of Postpetition Charges; and (4) fourth, to payment of other
Postpetition Debt. All such applications to Prepetition Debt shall be final in
nature, subject only to the right of parties in interest to object to
applications to Allowable 506(b) Amounts under and in accordance with Paragraph
6(a) of the Order.

          (e) Prohibition Against Use of Cash Collateral. With the exception of
that certain Order Authorizing the Debtor to Use Cash Collateral, entered by the
Court on June 21, 2001 subject to Paragraph 5(f) below, no order shall be
entered in this Case authorizing Debtor to use Cash Collateral, unless, in
addition to the satisfaction of all requirements of Code (S) 363 for the use of
such Cash Collateral: (a) the Agent and the Lenders have consented to such
order; (b) no Prepetition Debt or Postpetition Debt is outstanding at the time
of the entry of such an order, and no obligation of the Lenders to extend
additional Postpetition Debt; or (c) such Cash Collateral is first used to
immediately pay the then remaining Prepetition Debt and Postpetition Debt in
full.

          (f) Prohibition Against Additional Debt. No order shall be entered in
this case authorizing the Debtor (under Code (S) 364(d) or otherwise) to incur
debt other than the Carveout or the UST Fees) secured by a lien which is equal
to or superior to the Aggregate

                                      -18-

<PAGE>

Liens, or which is given superpriority administrative expense status under Code
(S) 364(c)(1) equal to or superior to the superpriority administrative expense
status granted to the Postpetition Debt, unless, in addition to the satisfaction
of all requirements of Code (S) 364 for the incurrence of such debt: (a) the
Agent and the Lenders have consented to such order; (b) there is no Prepetition
Debt or Postpetition Debt outstanding at the time of the entry of such an order
and the Agent and Lenders have no obligation under this Order, the Interim
Orders or otherwise to extend Postpetition Debt; or (c) such credit or debt is
used to immediately pay the Postpetition Debt in full.

          (g) No Surcharge. At no time during this Case shall the surcharge
provisions of Code (S) 506(c) or the enhancement of collateral provisions of
Code (S) 552 be imposed upon the Agent or the Lenders or any of the Aggregate
Collateral for the benefit of any party in interest, including Debtor, any of
Debtor's professionals, the Committee, any of the Committee's professionals, or
any Trustee.

          (h) Waiver of Right to Return/Consent to Setoff. The Debtor hereby
waives its right: (1) to return any Prepetition Collateral or Postpetition
Collateral pursuant to Bankruptcy Code (S) 546(g); or (2) to consent to setoff
pursuant to Bankruptcy Code (S) 553 without 14 days prior notice to the Agent of
such proposed setoff and prior approval of the Court for such proposed setoff.

          6. Miscellaneous Provisions.

          (a) Notice of and Objections to Allowable 506(b) Amounts. The Agent
shall provide the Debtor's counsel, counsel for any Committee, and the United
States Trustee with copies of all invoices sent by the Agent's counsel to the
Agent (edited to delete any attorney-client or other confidential information)
with respect to the attorneys' fees and related costs and expenses asserted as
Allowable 506(b) Amounts. Any such party may object to the reasonableness of any
such fees, costs and expenses. However, any objection by any such party to any
such fees, costs, or expenses shall be forever waived and barred unless, within
thirty days of receipt of the invoice to which the objection relates: (1) the
objection is filed with the Court and served upon the Agent; and (2) the
objection describes with particularity the items or categories of fees, costs
and expenses that are the subject of the objection and provides the specific
basis of the objection to each such item or category of

                                      -19-

<PAGE>

fees, costs and expenses. Any hearing on an objection to the fees, costs and
expenses of the Agent set forth on any invoice shall be limited to the
reasonableness or necessity of the particular items or categories of the fees,
costs and expenses that are the subject of such objection.

          (b) Force and Effect of Prepetition Documents; Conflicts. Except as
modified herein, and subject to the other provisions of this Order and the Code,
the Prepetition Documents, and the terms and provisions thereof, shall remain in
full force and effect with respect to the Prepetition Debt. The Postpetition
Debt shall be governed by the Postpetition Documents except where they conflict
with the provisions of this Order, in which case the provisions of this Order
shall prevail. In addition to the modifications otherwise contained in this
Order, the Loan Agreement is further modified as follows: (1) Sections 2.7, 8.3,
9.2 (with respect to prepetition conduct) and 9.4 of the Loan Agreement are
eliminated; (2) each representation and warranty set forth in Section 7 of the
Loan Agreement is modified to take into account the events and circumstances
that customarily occur as a result of the events leading up to and following the
commencement of a proceeding under chapter 11 of the Code, or events that have
occurred leading up to the commencement of the Case; (3) the reporting
requirements of Sections 8.1.3 (i) (with respect to the delivery of an
unqualified annual audit), 8.1.3(iii) and 8.1.7 of the Loan Agreement are
eliminated; and (4) the conditions precedent set forth Sections 9.5 and 9.6 are
modified to take into account the events and circumstances that customarily
occur as a result of the events leading up to and following the commencement of
a proceeding under chapter 11 of the Code, or events that have occurred leading
up to the commencement of the Case. To the extent that any of the Prepetition
Documents conflict with the provisions of this Order, the provisions of this
Order shall prevail.

          (c) Modification of Stay. The automatic stay of Code (S) 362 is hereby
modified with respect to the Agent and the Lenders to the extent necessary to
effectuate the provisions of this Order.

          (d) Financial Information; Insurance. The Debtor is hereby directed to
deliver to the Agent such financial and other information concerning the
business and affairs of the Debtor and any of the Aggregate Collateral as may be
required pursuant to the

                                      -20-

<PAGE>

Prepetition Documents and such financial information and other information as
the Agent shall reasonably request from time to time, including monthly
information ___ to the Debtor's post-petition accrued, unpaid expenses, a daily
borrowing base report in form and substance substantially identical to that
provided immediately prior to the Filing Date, a weekly inventory estimate,
information necessary to confirm that the Debtor is within the Budget and
Permitted Variances. The Debtor is also directed to allow the Agent (and any
consultant retained by the Agent) access to the premises for the purpose of
enabling the Agent (or Agent's consultant) to inspect and audit the Aggregate
Collateral and the Debtor's books and records. Such access for such purpose
shall be permitted during normal business hours and upon forty-eight hours'
notice or such shorter notice as may be provided in the Prepetition Documents;
provided, however, that if the Agent alleges fraud or gross mismanagement, the
Agent (or the Agent's consultant) shall be permitted access to the premises for
such purpose at any time without notice. The Debtor is further directed to
deliver to the Agent evidence, satisfactory to the Agent, that the Aggregate
Collateral is insured for the full replacement value thereof, that all insurance
policies required by the Prepetition Documents or obtained in connection with
the Aggregate Collateral are maintained in full force and effect, and that the
Agent is named as loss payee on all such property insurance policies and named
as additional insured on all such liability policies as its interests may
appear. Counsel for the Committee shall receive from the Debtor the weekly
financial reporting provided to the Agent.

          (e) No Waiver. Except to the extent expressly set forth in this Order,
this Order shall not constitute a waiver by the Agent or the Lenders of any of
their rights under the Prepetition Documents, the Code or other applicable law,
including, without limitation: (1) its right to later assert that,
notwithstanding the terms and provisions of this Order, any of their interests
in the Prepetition Collateral lack adequate protection within the meaning of
Code (S)(S) 362(d) or 363(e); or (2) their right to later assert a claim under
Code (S) 507. The Agent's failure, at any time or times hereafter, to require
strict performance by the Debtor (or by any Trustee) of any provision of this
Order shall not waive, affect or disminish any right of the Agent and the
Lenders thereafter to demand strict compliance and performance therewith. No
delay on the part of the Agent in the exercise of any right or remedy under this
Order shall preclude any other or further exercise of any such right or remedy
or the exercise of any

                                      -21-

<PAGE>

other right or remedy. None of the rights or remedies of the Agent or the
Lenders under this Order shall be deemed to have been suspended or waived by the
Agent unless such suspension or waiver is in writing, signed by a duly
authorized officer of the Agent, consented to in writing by the Lenders and
directed to the Debtor specifying such suspension or waiver.

          7. Binding Effect.

          (a) Stipulations and Findings; Reservation of Rights. The findings
contained in Paragraphs B and C of this Order shall be binding on all parties in
interest in the Case and their respective successors and assigns, including,
without limitation, any Trustee, subject only to the provisions of this
Paragraph 7(a). The Committee and any party in interest shall have through 45
days from the entry of this Order to file an action in this Court limited solely
to (1) challenging the validity, enforceability, extent or priority of the
Prepetition Debt or the Lender's liens in the Prepetition Collateral, and (2) as
a result, to the extent required by such actions, asserting that the payment of
any Prepetition Debt authorized or directed by this Order should be avoided (an
"Avoidance Action"). Any timely asserted Avoidance Action may be filed in the
name of the Debtor without further leave of Court. To the extent that a
party-in-interest or the Committee ultimately prevails with respect to such
Avoidance Action (whether initially, on appeal, or otherwise), to the extent
required by such Avoidance Action, the Court shall grant any appropriate relief,
including appropriate relief in respect of the payment of the Prepetition Debt.
Such challenges are limited to those described above and there shall be no
challenge to the provisions contained in this Order, including, without
limitation, Paragraph 5(d).

          (b) Order. Except as provided in Paragraph 7(a) of this Order, this
Order shall be binding on all parties in interest in this Case and their
respective successors and assigns, including, without limitation, any Trustee,
except that any Trustee shall have the right to terminate this Order after
notice and a hearing. If this Order never becomes a final and nonappealable
order, if a Trustee terminates this Order, or if any or all of the provisions of
this Order are hereafter modified, vacated or stayed by subsequent order of this
Court or any other court, such termination or subsequent order shall not affect
any one or more of the following: (a) the priority, validity, enforceability or
effectiveness of any lien, security

                                      -22-

<PAGE>

interest, priority, or other benefit authorized hereby with respect to any Cash
Collateral used or Postpetition Debt incurred prior to the effective date of
such subsequent order (and all such liens, security interests, priorities and
other benefits shall be governed in all respects by the original provisions of
this Order); (b) the findings contained in Paragraphs B and C of this Order; or
(c) the validity, enforceability or effectiveness of the provisions of
Paragraphs 5(d), 5(f), and 5(g) of this Order. Except as otherwise explicitly
set forth in this Order, no third parties are intended to be or shall be deemed
to be third party beneficiaries of this Order.

          (c) Notice of Entry of Final Order. The Debtor shall, on or before
July    , 2001, serve by regular mail a copy of this Order on the Agent and each
     ---
of the Lenders, the Agent's counsel at the address set forth at the end of this
Order, counsel to the Committee, the twenty (20) largest unsecured creditors of
the Debtor as set forth on schedules filed by the Debtor pursuant to Bankruptcy
Rule 1007(d), the United States Trustee, any other persons which the Debtor
knows are entitled to notice under Bankruptcy Rule 4001 (b) as of such date, and
any other party-in-interest for which counsel to the Debtor has received a
written request in this Case before 2:00 p.m. (EDT) on such date to receive such
a pleading.

                                                    /s/ Illegible
                                                    ----------------------------
                                                    UNITED STATES DISTRICT JUDGE
                                                                         7/11/01

Dated: July 10, 2001

AGREED AND ACKNOWLEDGED BY:

BORDEN CHEMICALS AND PLASTICS
OPERATING LIMITED PARTNERSHIP

By: /s/ Illegible
    -------------------------
      One of Its Attorneys

JONES, DAY, REAVIS & POGUE

                                      -23-

<PAGE>

Neil P. Olack                                      Brad B. Erens, Esq.
3500 Suntrust Plaza                                77 W, Wacker Drive
303 Peachtree Street                               Suite 3800
Atlanta, Georgia 30308-3242                        Chicago, II. 60601-1692
Telephone: (404) 581-8473                          Telephone: (312) 782-3939
Telecopier: (404) 581-833                          Telecopier: (312) 782-8585

DUANE, MORRIS & HECKSCHER LLP

Michael R. Lastowaki, Esq.
1100 North Market Street, Suite 1200
Wilmington, Delaware 19801
Telephone: (302) 657-4900
Telecopier: (302) 657-4901

FLEET CAPITAL CORPORATION, FOR
ITSELF AND AS AGENT FOR THE
LENDERS

By: /s/ Illegible
    ----------------------
     One of Its Attorneys

GOLDBERG, KOHN, BELL, BLACK,                       THE BAYARD FIRM
ROSENBLOOM & MORITZ, LTD.

Alan P. Solow, Esq.                                Michael L. Vild, Esq.
Dimitri G. Karcazes, Esq.                          222 Delaware Ave., Suite 900
55 E.Monroe St., Suite 3700                        Wilmington, DE 19899
Chicago, IL 60603                                  Telephone: (302) 655-5000
Telephone: (312) 201-4000                          Telecopier: (302) 658-6395
Telecopier: (312) 332-2196

                                      -24-

<PAGE>

OFFICIAL UNSECURED CREDITORS';
COMMITTEE

By: /s/ Illegible
   --------------------------------
     One of Its Attorneys

KRAMER LEVIN NAFTALIS &                            REED SMITH LLP
FRANKEL LLP
Mitchell A. Seider, Esq.                           Kurt F. Gwynne, Esq.
919 Third Avenue                                   1201 Market Street
New York, New York 10022                           Suite 1500
Telephone: (212) 715-7582                          Wilmington, Delaware 19801
Telecopier: (212) 715-8000                         Telephone: (302) 778-7500
                                                   Telecopier: (302) 778-7575

                                      -25-

<PAGE>

                                    EXHIBIT A

                                     BUDGET

                                      -26-

<PAGE>

<TABLE>
<CAPTION>
                                                           ------------------------
                                                                    Actual
                                                           ------------------------   ------------------------------------------
                                        Period Ending      16-Jun   23-Jun   30-Jun    7-Jul   14-Jul   21-Jul   28-Jul   31-Jul
                                                           ------------------------   ------------------------------------------
<S>                                                        <C>      <C>      <C>      <C>      <C>      <C>       <C>     <C>
Cash Flow
Receipts                                                    6,340    4,227    4,472    5,066    7,598    7,598    3,940    3,940

Production Payments (including freight)                     8,304    5,710    8,026    3,305    5,966    5,079    3,868    3,305
Deposits                                                                                   0        0        0        0      500
Critical vendors/first day order payments                      --       --        0      413    2,406      236      150      150
Credit from critical vendors                                   --       --        0        0     (248)  (1,443)    (142)     (90)
                                                           ------------------------   ------------------------------------------
Total Production Payments                                   8,304    5,710    8,026    3,718    8,123    3,871    3,876    3,865
(including 1st day order payments, freight)
                                                           ------------------------   ------------------------------------------
Receipts less Production payments                          (1,964)  (1,483)  (3,554)   2,348     (525)   3,727       64       75

SG&A and Other Payments                                       882      484      553      852      393      695      393    1,018

Net Cash Flow                                              (2,846)  (1,967)  (4,107)     495     (918)   3,032     (330)    (943)

Capex                                                          84       44       29      220      220      220      220      220
Chapter 11 Professional Fees                                    0        0      208                                          592
Total Cash Flow                                            (2,930)  (2,011)  (4,344)     275   (1,138)   2,812     (550)  (1,755)

Trailing 4-week totals

Receipts less Production payments                                                     (5,653)  (4,214)     995    4,613

SG&A and Other Payments                                                                2,771    2,283    2,493    2,334

Net Cash Flow                                                                         (8,425)  (6,497)  (1,498)   2,279

Trailing 4-week totals after permitted variances
Actual/Outlook
1. Receipts less Production payments, less greater
   of 20% or $500                                     20%                             (6,784)  (5,057)     495    3,690
                                                     500

2. SG&A and Other Payments, plus 20%                  20%                              3,326    2,739    2,992    2,800

3. Net Cash Flow less greater of 10% or $500          10%                             (9,267)  (7,147)  (1,998)   1,779
                                                     500
</TABLE>

                                       1

<PAGE>

<TABLE>
<CAPTION>
                                                   -----------------------------------------   ---------------------------------
                                   Period Ending   4-Aug   11-Aug   18-Aug   25-Aug   31-Aug   8-Sep    15-Sep   22-Sep   29-Sep
                                                   -----------------------------------------   ---------------------------------
<S>                                                <C>     <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>
Cash Flow
Receipts                                           4,915   7,372    7,372    3,823    3,823    11,905   7,143     3,704    3,704
Production Payments (including freight)            3,505   6,166    5,279    4,068    3,505     9,679   5,283     4,072    3,509
Deposits                                               0       0        0        0        0         0       0         0    1,500
Critical vendors/first day order payments             50     545      515      150      150       500     315       150      150
Credit from critical vendors                         (90)    (30)    (327)    (309)     (90)      (90)   (300)     (189)     (90)
                                                   -----------------------------------------   ---------------------------------
Total Production Payments                          3,465   6,681    5,467    3,909    3,565    10,089   5,298     4,033    5,069
(including 1st day order payments, freight)        -----------------------------------------   ---------------------------------
Receipts less Production payments                  1,450     691    1,905      (87)     258     1,816   1,845      (329)  (1,365)

SG&A and Other Payments                              893     393      695      393      393     1,300     695     1,893      893

Net Cash Flow                                        557     298    1,210     (480)    (136)      517   1,150    (2,222)  (2,258)

Capex                                                220     220      220      220      220       440     220       220      220
Chapter 11 Professional Fees                                                            640                                1,000
Total Cash Flow                                      337      78      990     (700)    (996)       77     930    (2,442)  (3,478)

Trailing 4-week totals

Receipts less Production payments                  4,791   6,007    4,185    4,035    2,767     3,892   3,833     3,590    1,967

SG&A and Other Payments                            3,392   3,392    3,392    3,392    1,874     2,781   2,781     4,281    4,781

Net Cash Flow                                      1,398   2,614      793      642      893     1,112   1,052      (691)  (2,813)

Trailing 4-week totals after permitted variances
Actual/Outlook
1. Receipts less Production payments, less
   greater of 20% or $500                          3,833   4,805    3,348    3,228    2,214     3,114   3,066     2,872    1,467

2. SG&A and Other Payments, plus 20%               4,071   4,071    4,071    4,071    2,249     3,337   3,337     5,137    5,737

3. Net Cash Flow Less greater of 10% or $500         898   2,114      293      142      393       612     552    (1,191)  (3,313)
</TABLE>

                                       2

<PAGE>

<TABLE>
<CAPTION>
                                                                    ------------------------------------------
                                                    Period Ending    6-Oct   13-Oct   20-0ct   27-0ct   31-Oct
                                                                    ------------------------------------------
<S>                                                                 <C>      <C>       <C>     <C>      <C>
Cash Flow

Receipts                                                             4,793    7,189    7,189    3,728    3,728

Production Payments (including freight)                              3,428    6,089    5,202    4,357    3,428
Deposits
Critical vendors/first day order payments                              450      295      220      150      l50
Credit from critical vendors                                           (90)    (270)    (177)    (132)     (90)
                                                                    ------------------------------------------
Total Production Payments                                            3,788    6,114    5,245    4,375    3,488
(including 1st day order payments, freight)
                                                                    ------------------------------------------
Receipts less Production payments                                    1,005    1,075    1,944     (647)     240

SG&A and Other Payments                                                884      393      624      393    1,018

Net Cash Flow                                                          121      682    1,321   (1,041)    (778)

Capex                                                                  220      220      220      220      220
Chapter 11 Professional Fees                                                                               640
Total Cash Flow                                                        (99)     462    1,101   (1,261)  (1,638)

Trailing 4-week totals

Receipts less Production payments                                    1,156      386    2,660    3,377

SG&A and Other Payments                                              4,365    4,064    2,794    2,294

Net Cash Flow                                                       (3,209)  (3,678)    (135)   1,083

Trailing 4-week totals after permitted variances
Actual/Outlook
1. Receipts less Production payments, less greater of 20% or $500      656     (114)   2,128    2,702

2. SG&A and Other Payments,plus 20%                                  5,238    4,877    3,353    2,753

3. Net Cash Flow less greater of 10% or $500                        (3,709)  (4,178)    (635)     583

<CAPTION>
                                                                    ------------------------------------------
                                                    Period Ending    3-Nov   10-Nov   17-Nov   24-Nov   30-Nov
                                                                    ------------------------------------------
<S>                                                                 <C>      <C>      <C>      <C>      <C>
Cash Flow

Receipts                                                            4,799    7,198    7,198     3,732   3,732

Production Payments (including freight)                             3,333    5,994    5,107     4,262   3,333
Deposits
Critical vendors/first day order payments                              50      495      170       100     100
Credit from critical vendors                                          (90)     (30)    (297)     (102)    (60)
                                                                    ------------------------------------------
Total Production Payments                                           3,293    6,459    4,980     4,260   3,373
(including 1st day order payments, freight)
                                                                    ------------------------------------------
Receipts less Production payments                                   1,506      739    2,218      (528)    359

SG&A and Other Payments                                               910      393      624       393     393

Net Cash Flow                                                         596      346    1,594      (921)    (34)

Capex                                                                 220      220      220       220     220
Chapter 11 Professional Fees                                                                              640
Total Cash Flow                                                       376      126    1,374    (1,141)   (894)

Trailing 4-week totals

Receipts less Production payments                                   4,118    3,781    4,055     4,174   2,788

SG&A and Other Payments                                             3,338     3338    3,338     3,338   1,804

Net Cash Flow                                                         779      443      716       836     984

Trailing 4-week totals after permitted variances
Actual/Outlook
1. Receipts less Production payments, less greater of 20% or $500   3,294    3,025    3,244     3,339   2,230

2. SG&A and Other Payments,plus 20%                                 4,006    4,006    4,006     4,006   2,164

3. Net Cash Flow less greater of 10% or $500                          279      (57)     216       336     484
</TABLE>

                                       3

<PAGE>

<TABLE>
<CAPTION>
                                               -----------------------------------------
                               Period Ending   8-Dec   15-Dec   22-Dec   29-Dec   31-Dec
                                               -----------------------------------------
<S>                                            <C>      <C>      <C>     <C>      <C>
Cash Flow
Receipts                                       4,730    7,095    7,095    3,679    3,679

Production Payments (including freight)        3,166    5,700    4,855    4,095    3,166
Deposits
Critical vendors/first day order payments        380      265      100      100      100
Credit from critical vendors                     (60)    (228)    (159)     (60)     (60)
                                               -----------------------------------------
Total Production Payments                      3,486    5,737    4,796    4,135    3,206
(including 1st day order payments, freight)
                                               -----------------------------------------
Receipts less Production payments              1,244    1,358    2,299     (456)     473

SG&A and Other Payments                          916      393      624      393    3,393

Net Cash Flow                                    328      965    1,675     (849)  (2,920)

Capex                                            220      220      220      220      220
Chapter 11 Professional Fees                                                       1,120
                                               -----------------------------------------
Total Cash Flow                                  108      745    1,455   (1,069)  (4,260)

Trai1ing 4-week totals

Receipts less Production Payments              3,293    2,434    5,261    4,445

SG&A and Other Payments                        2,326    2,096    2,326    2,326

Net Cash Flow                                    967      338    2,934    2,119

Trailing 4-week totals after permitted
variances Actual/Outlook
1. Receipts less Production payments, less
   greater of 20% or $500                      2,635    1,934    4,208    3,556

2. SG&A and Other Payments, plus 20%           2,792    2,515    2,792    2,792

3. Net Cash Flow less greater of 10% or $500     467     (162)   2,434    1,619

<CAPTION>
                                              ------------------------------------------
                              Period Ending    6-Jan   13-Jan   20-Jan   27-Jan   31-Jan
                                              ------------------------------------------
<S>                                           <C>      <C>      <C>      <C>      <C>
Cash Flow
Receipts                                       4,643    6,964    6,964    3,611    3,611

Production Payments (including freight)        3,584    6,118    5,274    4,513    3,584
Deposits
Critical vendors/first day order payments          0
Credit from critical vendors                     (60)
                                                       ---------------------------------
Total Production Payments                      3,524    6,118    5,274    4,513    3,584
(including 1st day order payments, freight)
                                              ------------------------------------------
Receipts less Production payments              1,119      846    1,691     (902)      27

SG&A and Other Payments                          918      393      624      393    3,518

Net Cash Flow                                    201      453    1,067   (1,295)  (3,491)

Capex                                            140      140      140      140      140
Chapter 11 Professional Fees                       0        0        0        0      640
                                              ------------------------------------------
Total Cash Flow                                   61      313      927   (1,435)  (4,271)

Trai1ing 4-week totals

Receipts less Production payments              4,793    4,281    3,672    3,226

SG&A and Other Payments                        5,721    5,721    5,721    5,722

Net Cash Flow                                   (928)  (1,441)  (2,049)  (2,495)

Trailing 4-week totals after permitted
variances Actual/Outlook
1. Receipts less Production payments, less
   greater of 20% or $500                      3,834    3,425    2,938    2,581

2. SG&A and Other Payments, plus 20%           6,866    6,866    6,866    6,866

3. Net Cash Flow less greater of 10% or $500  (1,428)  (1,941)  (2,549)  (2,995)
</TABLE>

                                       4

<PAGE>

<TABLE>
<CAPTION>
                                                     ------------------------------------------   ---------------------------------
                                     Period Ending    3-Feb   10-Feb   17-Feb   24-Feb   28-Feb    3-Mar   10-Mar   17-Mar   24-Mar
                                                     ------------------------------------------   ---------------------------------
<S>                                                  <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>
Cash Flow
Receipts                                              4,807    7,210    7,210    3,739    3,739    5,188    7,783    7,783    4,035

Production Payments (including freight)               4,071    6,606    5,761    5,000    4,071    4,558    7,093    6,248    5,488
Deposits
Critical vendors/first day order payments
Credit from critical vendors
                                                     ------------------------------------------   ---------------------------------
Total Production Payments                             4,071    6,606    5,761    5,000    4,071    4,558    7,093    6,248    5,488
(including 1st day order payments, freight)
                                                     ------------------------------------------   ---------------------------------
Receipts less Production payments                       736      605    1,450   (1,262)    (332)     630      690    1,535   (1,452)

SG&A and Other Payments                                 942      393      624      393      393      974      393      624      393

Net Cash Flow                                          (206)     212      826   (1,655)    (726)    (344)     297      911   (1,845)

Capex                                                   160      160      160      160      160      220      220      220      220
Chapter 11 Professional Fees                              0        0        0        0      640        0        0        0        0
                                                     ------------------------------------------   ---------------------------------
Total Cash Flow                                        (366)      52      666   (1,815)  (1,526)    (564)      77      691   (2,065)

Trailing 4-week totals

Receipts less Production payments                     2,397    2,156    1,915    1,556             1,091    1,176    1,261    1,070

SG&A and Other Payments                               5,871    5,871    5,871    5,871             2,778    2,778    2,778    2,778

Net Cash Flow                                        (3,474)  (3,715)  (3,956)  (4,315)           (1,687)  (1,602)  (1,517)  (1,707)

Trailing 4-week totals after permitted variances
Actual/Outlook
1. Receipts less Production payments, less greater
   of 20% or $500                                     1,897    1,656    1,415    1,056               591      676      761      570

2. SG&A and Other Payments, plus 20%                  7,045    7,045    7,045    7,045             3,333    3,333    3,333    3,333

3. Net Cash Flow less greater of 10% or $500         (3,974)  (4,215)  (4,456)  (4,815)           (2,187)  (2,102)  (2,017)  (2,207)
</TABLE>

                                       5

<PAGE>

                                   Period Ending   31-Mar
                                                   ------
Cash Flow
Receipts                                            4,035

Production Payments (including freight)             4,558
Deposits
Critical vendors/first day order payments
Credit from critical vendors
                                                   ------
Total Production Payments                           4,558
(including 1st day order payments, freight)
                                                   ------
Receipts less Production payments                    (523)

SG&A and Other Payments                             1,143

Net Cash Flow                                      (1,666)

Capex                                                 220
Chapter 11 Professional Fees                        1,120
                                                   ------
Total Cash Flow                                    (3,006)

Trailing 4-week totals

Receipts less Production payments                     250

SG&A and Other Payments                             2,554

Net Cash Flow                                      (2,304)

Trailing 4-week totals after permitted variances
Actual/Outlook
1. Receipts less Production payments, less
   greater of 20% or $500                            (250)

2. SG&A and OtherPayments, plus 20%                 3,065

3. Net Cash Flow less greater of 10% or $500       (2,804)

                                        6<PAGE>

                                                                   Exhibit 10.45

                                 LOAN AGREEMENT

           THIS LOAN AGREEMENT (the "Agreement") is made and entered into as of
January ___, 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 (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. The Borrower is currently party to that certain $100,000,000 Loan
and Security Agreement dated March 31, 2000, by and among the Borrower, Fleet
Capital Corporation, as agent for the various Lenders party thereto, and the
various Lenders party thereto, as the same was subsequently amended prior to the
filing of the Case, and as the same was modified subsequent to the filing of the
Case by that certain Agreed Final Order Authorizing Debtor: (A) To Use Cash
Collateral; (B) To Incur Post-Petition Debt; and (C) To Grant Adequate
Protection And Provide Security To Fleet Capital Corporation, As Agent, which
was issued by the Court on July 11, 2001 (the "Final Order") and by the Interim
Orders (as so amended and modified, the "Fleet DIP Facility").

           B. The Borrower has requested that the Lender provide the Borrower
with a credit facility of up to $10,000,000.

           C. The Lender has access to funds sufficient to fund this Agreement
by virtue of its being the holder of that certain Demand Note dated November 30,
1987 in the original principal amount of $37,500,000, which was executed and
delivered to the Lender by Borden, Inc.

           D. On December 12, 2001, the Borrower, as a debtor and
debtor-in-possession, and the other debtor and debtor-in-possession in the Case,
filed with the Court their Amended Motion of Debtors and Debtors In Possession
for Entry of Interim and Final Orders Authorizing Secondary Postpetition
Financing Pursuant to Section 364(b) of the Bankruptcy Code and Rule 4001 of the
Federal Rules of Bankruptcy Procedure (the "Motion"). After a hearing on the
Motion on December 20, 2001, the Court entered that certain 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 (the "Interim Secondary DIP Order"). This Agreement is the
Loan Agreement defined in the Interim Secondary DIP Order. A final order
approving this Agreement is contemplated following the Final Hearing (as defined
in the Interim Secondary DIP Order), which is currently scheduled to be held on
January 16, 2002.

           E. Based upon the foregoing, the Lender has agreed to extend the
foregoing credit to the Borrower upon the terms and conditions hereinafter set
forth.

<PAGE>

                                    Agreement

SECTION 1. DEFINITIONS

           1.1 Defined Terms. In addition to the other terms defined herein, the
terms set forth below shall have the meanings indicated below. To the extent
that capitalized terms are used but not defined herein, such terms shall have
the meanings given such terms in the Fleet DIP Facility (certain of which were
modified by the Interim Orders and the Final Order) and, where the definitions
of such defined terms make reference to other defined terms, such other defined
terms shall also have the meanings given such terms in the Fleet DIP Facility.

           Borrowing means a borrowing hereunder consisting of any Loan or Loans
made to the Borrower by the Lender.

           Borrowing Date means any Business Day upon which a Borrowing occurs.

           Business Day means a day other than a Saturday, Sunday or other day
on which commercial banks in Ohio are authorized or required by law to close.
Periods of days referred to in this Agreement shall be counted in calendar days
unless Business Days are expressly prescribed.

           Code means U.S.C. Title 11, as amended from time to time.

           Commitment means the commitment of the Lender to make Loans to the
Borrower pursuant to Section 2.1 hereof in the amounts referred to therein, as
such commitment may be terminated pursuant to Section 2.4 hereof.

           Commitment Period means the period from and including the date on
which the conditions to the initial Loans under Section 3 hereof have been
satisfied or waived to but excluding the Maturity Date.

           Default means any event or condition which constitutes an Event of
Default or which upon notice, lapse of time or both would, unless cured or
waived, become an Event of Default.

           Default Rate means 2.0% per annum plus the non-default interest rate
otherwise payable hereunder.

           Dollars and "$" means dollars in lawful currency of the United States
of America.

           Event(s) of Default has the meaning set forth in Section 4 hereof.

           Excess Cash Flow means all cash received by the Borrower, regardless
of source, on any calendar day, which cash is not necessary to make a payment
reasonably estimated by the Borrower to be payable on the following Business
Day. Notwithstanding the foregoing, an aggregate maximum amount of $500,000 may
be maintained by the Borrower at all times across its various bank accounts, in
order to comply with certain minimum balance requirements and for other
immediate cash needs, and cash received into such bank accounts shall not
constitute "Excess Cash Flow" hereunder to the extent that the Borrower's bank
accounts have an aggregate balance below such amount.

           Loan Documents means this Agreement, the Note, and all other written
agreements, instruments, certificates, and documents, and all other writings
which are now or hereafter executed by or on behalf of the Borrower and
delivered to the Lender in connection with or as related to this Agreement

                                      -2-

<PAGE>

or the transactions arising herefrom, and as now in effect or as at any time
hereafter amended, modified, supplemented or restated.

           Loans has the meaning set forth in Section 2.1 hereof.

           Maturity Date means the earliest of (a) March 31, 2002, (b) such
earlier date as the Lender's obligation to make Loans hereunder shall otherwise
terminate as provided herein, (c) the date of the confirmation of a plan of
reorganization under the Case or (d) the date upon which the sale of
substantially all of the Borrower's assets has been completed.

           Note has the meaning set forth in Section 2.2(a) hereof.

           Obligations means, as of any date, the Loans, and all debts,
liabilities, covenants, duties, obligations of, and amounts owing from, the
Borrower to the Lender of every kind and description arising out of or in
connection with the Loan Documents, howsoever arising, whether now in existence
or hereafter incurred or arising, absolute or contingent, joint or several,
matured or unmatured, direct or indirect, and all interest, charges and
expenses.

           Payment Date means the first day of each calendar month after the
date hereof.

           Responsible Officer means, as to the Borrower, the President, Chief
Executive Officer, Chief Financial Officer or Senior Vice President - Commercial
of such entity.

           1.2 Other Definitional Provisions. Unless otherwise specified,

               (a) All terms defined in this Agreement, whether or not in this
Section 1 or by reference to the Fleet DIP Facility, have the defined meanings
provided herein when used herein, in the Notes, or in any other Loan Documents,
or any other certificate, instrument or other document made or delivered
pursuant hereto or thereto, unless otherwise defined therein. The definition of
any document or instrument includes all schedules, attachments and exhibits
thereto and all renewals, extensions, supplements, restatements and amendments
thereof.

               (b) "Hereunder," "herein," "hereto," "this Agreement" and words
of similar import refer to this entire document; "including" is used by way of
illustration and not by way of limitation, unless the context clearly indicates
the contrary; the singular includes the plural and conversely, and any action
required to be taken by the Borrower is to be taken promptly, unless the context
clearly indicates the contrary.

SECTION 2. AMOUNT AND TERMS OF COMMITMENT

               2.1 Commitment. Subject to the terms and conditions of this
Agreement, the Lender agrees to make loans to the Borrower from time to time
during the Commitment Period in an aggregate principal amount at any one time
outstanding not to exceed the aggregate amount of $10,000,000. The Borrower
shall use the proceeds of loans made pursuant to the Commitment for working
capital and other general corporate purposes, for other purposes for which the
Borrower is otherwise permitted to incur Postpetition Debt pursuant to the Final
Order or for making payments from time to time on the Fleet DIP Facility if and
to the extent necessary to result in there existing at each such time no more
than $1 of Positive Borrowing Availability. Following the payment in full of the
Fleet DIP Facility, and so long as no Default or Event of Default then exists,
the Borrower may use the Commitment by borrowing, prepaying the loans made
thereunder in whole or in part, and reborrowing

                                      -3-

<PAGE>

such loans, all in accordance with the terms and conditions hereinafter set
forth. The loans made to the Borrower by the Lender pursuant to this Section 2.1
shall be referred to herein as "Loans".

           2.2  Notes.

                (a) The Loans made by the Lender pursuant to Section 2.1 hereof
shall be evidenced by a promissory note in the form of Exhibit A hereto made by
the Borrower payable to the order of the Lender in the original principal amount
of $10,000,000 (the "Note"). The Note shall evidence the obligations of the
Borrower to pay the Lender, or any subsequent holder(s) of the Note, the
aggregate unpaid principal amount of the Loans made by the Lender and evidenced
thereby, together with interest thereon as prescribed herein.

                (b) The Note shall (i) be dated as of the date hereof, (ii) be
stated to mature, with respect to the aggregate principal amount of all of the
Loans evidenced thereby, on the Maturity Date, and (iii) bear interest for the
period from the date thereof on the unpaid principal amounts of each of the
Loans from time to time outstanding at the applicable interest rates per annum
determined as provided herein. Interest on the unpaid principal balances of each
of the Loans evidenced by the Note shall be payable as specified herein.

           2.3  Procedure for Borrowing. The Borrower may borrow under the
Commitment during the Commitment Period on any Business Day. Notices by the
Borrower to the Lender of Borrowings of Loans shall be irrevocable and shall be
effective only if received by the Lender not later than 11:00 a.m., Ohio time,
on the day of such Borrowing. Each such notice of Borrowing shall specify the
aggregate amount of the requested Borrowing, the requested Borrowing Date (which
shall be a Business Day), the location and number of the Borrower's account to
which funds are to be disbursed and shall include with such notice a
fully-completed and executed certificate of a Responsible Officer substantially
in the form of Exhibit B attached hereto. The Lender shall make funds available
to the Borrower, subject to the satisfaction of the terms and conditions of this
Agreement, including subsection 3.2(e), by transferring immediately available
funds to the Borrower's account in the amount of any such Borrowing on the
requested date of Borrowing.

           2.4  Termination of Commitment Period. Unless earlier terminated
pursuant to the terms of this Agreement, the Commitment shall, without notice to
the Borrower, terminate at close of business on the last day of the Commitment
Period.

           2.5  Repayment of Loans. The Borrower hereby promises to pay the
outstanding principal amount of any Loans and any other Obligations outstanding
in full on the Maturity Date.

           2.6  Prepayments of Loans. Following the indefeasible payment in full
of the Fleet DIP Facility, the Borrower shall prepay the Loans, in whole or in
part, as applicable, with all Excess Cash Flow, on or prior to the date(s) that
is/are the Business Day immediately following the date such Excess Cash Flow is
received by the Borrower. In the case of any prepayment hereunder, whether in
part or in full, the payment received shall be applied in the order set forth in
the Note.

           2.7  Interest Rates; Computation.

                (a) The Borrower hereby promises to pay to the Lender interest
on the unpaid principal amount of each Loan made by the Lender for the period
from and including the date of such Loan to but excluding the date such Loan
shall be paid in full, at a fluctuating rate of interest equal to the Alternate
Base Rate plus 2.75%. Notwithstanding the foregoing, the Borrower hereby
promises to pay to the Lender (upon written notification from the Lender)
interest at the applicable Default Rate:

                                      -4-

<PAGE>

                (i)  on any principal of any Loan or any other Obligation that
            shall not be paid in full when due (whether at stated maturity, by
            acceleration, by mandatory prepayment or otherwise), for the period
            from and including the due date thereof to but excluding the date
            the same is paid in full; and

                (ii) during any period when any Event of Default shall have
            occurred and for so long as such Event of Default shall be
            continuing.

                (b)  Accrued and unpaid interest on each Loan shall be payable
monthly in arrears on each Payment Date, and upon the payment thereof, except
that interest payable at the Default Rate shall be payable from time to time on
demand.

                (c)  Interest on all Loans and other Obligations shall be
calculated on the basis of a 365 or 366, as appropriate, day year for the actual
number of days elapsed.

            2.8 Payments.

                (a)  Payment of all principal of, and accrued but unpaid
interest on, the Loans shall be made not later than 12:00 Noon, Ohio time, on
the date when due, in immediately available funds, to the Lender at its address
as set forth in Section 5.2 hereof. Whenever any payment of principal of, or
interest on, the Loans shall be due on a day which is not a Business Day, the
date for payment thereof shall be extended to the next succeeding Business Day.
If the date for any payment of principal is extended by order of the Court,
operation of law or otherwise, interest thereon shall be payable for such
extended time period unless the Court otherwise specifies.

                (b)  All payments of principal and interest with respect to
Loans shall be made in Dollars without setoff or counterclaim.

SECTION 3.  CONDITIONS PRECEDENT

            3.1 Conditions to Initial Loans. The obligation of the Lender to
make the initial Loans to the Borrower hereunder is subject to the full
satisfaction, in the opinion of the Lender, of the following conditions
precedent on or prior to the first Borrowing Date:

                (a)  This Agreement, the Note and the other Loan Documents. The
Lender shall have received this Agreement, the Note and all other Loan Documents
reasonably required by the Lender, duly executed and delivered by a Responsible
Officer of the Borrower.

                (b)  Approvals; Court Orders. All governmental and third-party
approvals necessary in connection with the execution of this Agreement, the
consummation of the transactions contemplated hereby, and the continuing
operations of the Borrower, including without limitation the order of the Court
(i) that the Borrower may incur the debt contemplated by this Agreement pursuant
to Section 364(b) of the Code with the protection afforded by Section 364(e) of
the Code, (ii) that such debt shall constitute the debt of the Borrower and not
a contribution of capital into the Borrower by the Lender and (iii) that the
Obligations shall constitute an allowed administrative expense under Section
503(b)(1)(A) of the Code, shall have been obtained and be in full force and
effect and all applicable waiting periods shall have expired without any action
being taken or threatened by any competent authority which would restrain,
prevent or otherwise impose adverse conditions on the transactions contemplated
hereby.

                                       -5-

<PAGE>

                  (c)  No Default or Event of Default. No Default or Event of
Default shall have occurred and be continuing hereunder after giving effect to
the making of the initial Loans.

              3.2 Conditions to All Loans. The obligation of the Lender to
make any Loans hereunder on any date, including without limitation the initial
Loans, is subject to the full satisfaction, in the opinion of the Lender, of the
following conditions precedent as of the Borrowing Date for such Loan:

                  (a)  Representations and Warranties. The representations and
warranties made by the Borrower in this Agreement or any other Loan Document,
and any representations and warranties made by the Borrower which are contained
in any certificate, document or financial or other statement or Loan Document
furnished at any time under or in connection herewith or therewith, shall be
true and correct in all material respects on and as of the Borrowing Date of
such Loan as if made on and as of such date other than representations and
warranties that by their terms refer to a specific date.

                  (b)  No  Default or Event of Default. No Default or Event of
Default shall have occurred and be continuing on such Borrowing Date or after
giving effect to the Loan to be made on such Borrowing Date, unless the same is
expressly waived by the Lender.

                  (c)  No Availability Under Fleet DIP Facility. There shall be
no Positive Borrowing Availability under the Fleet DIP Facility at the date and
time the request for such Borrowing is made (after giving effect to borrowings
under the Fleet DIP Facility requested contemporaneously therewith).

                  (d)  No Revocation of Prior Court Orders. Except with the
written consent of the Lender, no order of the Court relating to this Agreement
or the Fleet DIP Facility shall have been revoked, rescinded, vacated or
modified in any manner and there shall be pending no motions from any party
seeking such revocation, rescission, vacation or modification.

                  (e)  Lender's Determination of Continued Feasibility of Exit
Strategy. The Lender (i) shall have determined, in its reasonable discretion
based upon its review of such information as it may reasonably require, that the
Borrower's previously announced exit strategy remains achievable and sufficient
to indefeasibly pay in full the Obligations and all amounts senior thereto, if
any, or (ii) shall have determined, in its sole discretion as to any requested
Borrowing, to waive its rights under the foregoing clause (i).

                  Each Borrowing by the Borrower under this Agreement shall
constitute a representation and warranty by the Borrower as of the date of such
Borrowing that the conditions contained in the foregoing paragraphs (a), (b),
(c) and (d) of this Section 3.2 have been fully satisfied.

SECTION 4.    EVENTS OF DEFAULT AND REMEDIES

              Upon the occurrence of any of the following events (each an "Event
of Default"):

                  (1)  the  Borrower (a) shall fail to pay any principal on any
Loan when such amount becomes due in accordance with the terms hereof; or (b)
shall fail to pay any interest on any Loan or any other Obligation within three
days of the date when such amount becomes due in accordance with the terms
hereof or thereof; or

                  (2)  the Borrower shall (a) default in the observance or
performance of any covenant or agreement set forth in any Loan Document; (b)
fail to deliver or cause to be delivered the

                                      -6-

<PAGE>

information, notices or other items specified in this Agreement, or under the
Note or any other Loan Document when due; or

                   (3)  any representation or warranty made by the Borrower
herein, or in the Note or in any other Loan Document, or which is contained in
any certificate, document or financial or other statement or other Loan Document
furnished at any time under or in connection herewith or therewith, shall prove
to have been incorrect in any material respect on or as of the date made;

                   (4)  the Case is either dismissed or converted to Chapter
7 of the Code; or

                   (5)  the Agent (a) provides written notice to the
Borrower that an Event of Default (as defined in the Fleet DIP Facility) has
occurred and is continuing, or (b) without giving notice, exercises a right or
remedy available upon the occurrence of an Event of Default (as defined in the
Fleet DIP Facility).

then, and in any such event: (i) the Lender may, by written notice to the
Borrower, declare its obligation to make Loans hereunder to be immediately
terminated, whereupon such obligation shall immediately terminate, and (ii) the
Lender may, by written notice of default to the Borrower, declare the Loans
hereunder (with accrued interest thereon) and all other Obligations to be
immediately due and payable, and upon the giving of such notice of default, all
such amounts immediately shall become due and payable without further demand,
notice or protest of any kind; the giving of any such further demand, notice or
protest being hereby expressly waived by the Borrower, and all other Persons
directly or indirectly liable for the payment and/or performance of the
Obligations; and thereupon, the Lender may proceed to exercise any and all
remedies that are provided to it under this Agreement, the Note, the other Loan
Documents, applicable law or by order of the Court.

SECTION 5.    MISCELLANEOUS

              5.1  Amendments and Waivers. Unless prohibited from doing so by
order of the Court, the Lender and the Borrower may, from time to time, enter
into written amendments, supplements or modifications for the purpose of adding
any provisions to this Agreement, the Note or any other Loan Documents, or
changing in any manner the rights of the Lender or the Borrower hereunder or
thereunder, and the Lender may execute and deliver to the Borrower a written
instrument waiving, on such terms and conditions as the Lender may specify in
such instrument, any of the requirements of this Agreement, the Note or any
other any Loan Document, or any Default or Event of Default and its
consequences.

               5.2  Notices. All notices required or permitted hereunder shall
be in writing and shall be deemed to be properly given when personally delivered
to any officer or designated representative of the party entitled to receive the
notice, or when sent by certified or registered first class mail or nationally
recognized overnight courier, postage prepaid, by facsimile transmission (if
provided for below) or by e-mail (if provided for below), when properly
addressed or sent to the party entitled to receive such notice at the address
stated below:

              If to the Borrower, to:

              Borden Chemicals and Plastics Operating Limited Partnership
              Highways 73 & 30
              Geismar, Louisiana  70734
              Attn:  Chief Financial Officer
              Fax:  225.673.0626

                                      -7-

<PAGE>

                   If to the Lender, to:

                   BCP Management, Inc.
                   c/o Borden, Inc.
                   180 East Broad Street
                   Columbus, Ohio  43215
                   Attn:  Gerald F. Mann, Director, Treasury Operations
                   e-mail:  manngf@bordenchem.com

                   Either party may change its address for purposes of notice
hereunder by delivering written notice of such change to the other party.

                   5.3 No Waiver; Cumulative Remedies. No failure to exercise
and no delay in exercising, on the part of the Lender, any right, remedy, power
or privilege hereunder shall operate as a waiver thereof; nor shall any single
or partial exercise of any right, remedy, power or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right,
remedy, power or privilege. The rights, remedies, powers and privileges herein
provided are cumulative and not exclusive of any rights, remedies, powers and
privileges provided by law.

                   5.4 Survival of Representations and Warranties. All
representations and warranties made hereunder and in any document, certificate
or statement delivered pursuant hereto or in connection herewith shall survive
the execution and delivery of this Agreement and the Note.

                   5.5 Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the Borrower, the Lender and their respective
successors and assigns permitted hereby. Notwithstanding the foregoing, the
rights and obligations of Borrower hereunder may not be assigned or transferred
by Borrower without the prior written consent of Lender.

                   5.6 Counterparts; Effective Date. This Agreement may be
executed by one or more of the parties to this Agreement on any number of
separate counterparts and all of said counterparts taken together shall be
deemed to constitute one and the same instrument. A set of the copies of this
Agreement signed by all the parties shall be lodged with Borrower and the
Lender. This Agreement shall become effective upon the receipt by the Lender of
executed counterparts of this Agreement by each of the parties hereto. The
parties agree that facsimile counterpart signatures shall be sufficient to bind
a party hereto.

                   5.7 Governing Law. This Agreement, and the Note, and the
rights and obligations of the parties hereunder and thereunder, 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 Agreement and the forum for any action relating hereto
shall be the Court.

                   5.8 Supersession and Headings. Except as specified in Section
5.10 hereof, this Agreement, the Notes and the other Loan Documents contain the
entire agreement between the Borrower and the Lender with respect to the subject
matter hereof, and replace any prior or contemporaneous understandings and
agreements, oral or written, between the Borrower, and the Lender with respect
to the subject matter hereof, including any commitment, oral or written, of the
Lender previously issued. No representation, warranty, modification, alteration
or agreement shall affect this Agreement, unless made in writing and executed
with the same formalities as this Agreement. The paragraph headings do not

                                      -8-

<PAGE>

form a part of this Agreement, but are for convenience only, and shall not limit
or affect in any way the meaning of its provisions.

                   5.9  No Joint Venture. The Lender, by entering into this
Agreement or by any action taken pursuant hereto, shall not be deemed to be a
partner or joint venturer with the Borrower and the Borrower hereby indemnifies
and holds the Lender harmless from and against any and all claims, demands,
losses, damages and expenses made or incurred, resulting from or arising out of
any such construction or alleged construction of any agreement between the
Borrower and the Lender, either individually or collectively.

                   5.10 Incorporation of Interim Secondary DIP Order. The
Interim Secondary DIP Order is hereby incorporated in its entirety into this
Agreement by this reference. Anything to the contrary contained in this
Agreement notwithstanding, and pursuant to the terms of the Interim Secondary
DIP Order, the Commitment referenced in Section 2.1 hereof shall only be in the
amount of $5,000,000 until such time, if at all, that this Agreement is approved
by the Court following the Final Hearing (as defined in the Interim Secondary
DIP Order).

                   5.11 Effect of Court Orders. Subject to the terms of the
following sentence, if any provision of this Agreement or any other Loan
Document conflicts with the Final Order, the Interim Secondary DIP Order any
final or other order of the Court relating to this Agreement or any other order
of the Court, the provisions of such order shall control and this Agreement or
such other Loan Document shall automatically, without the execution of further
documentation, be deemed modified to comply with such order. Notwithstanding the
foregoing, no order of the Court shall have the effect of postponing the
Maturity Date beyond March 31, 2002 without the prior written consent of the
Lender, which may be withheld in the Lender's sole discretion.

            [The remainder of this page is intentionally left blank.]

                                      -9-

<PAGE>

           IN WITNESS WHEREOF, the parties hereto have caused this Agreement 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:__________________________________________________
                             William H. Carter
                             Chairman of the Board

                                      -10-

<PAGE>

                                    Exhibit A

                                 [Form of Note]

                                      NOTE

$10,000,000                                                     January __, 2002

           FOR VALUE RECEIVED, the undersigned ("Borrower") promises to pay to
the order of BCP Management, Inc., a Delaware corporation ("Lender"), at the
office of Lender, c/o Borden, Inc., 180 East Broad Street, Columbus, Ohio 43215,
Attn: Director, Treasury Operations, or at such other place as the holder hereof
may, from time to time, in writing designate, the principal sum of Ten Million
Dollars ($10,000,000) (or so much thereof as may be disbursed to, or for the
benefit of, Borrower and remain unpaid) in lawful money of the United States of
America and in immediately available funds, together with interest and payable
at such interest rates and for such periods and in such manner, time(s) and
place(s) as are specified in the Loan Agreement hereinafter defined.

           This note ("Note") is the Note identified in the Loan Agreement dated
as of January __, 2002 (as the same shall be amended, modified or supplemented
from time to time, the "Loan Agreement") between Borrower and Lender, and the
Loan Agreement is hereby incorporated into this Note and made a part hereof.
Capitalized terms used but not defined herein shall have the meanings ascribed
thereto in the Loan Agreement.

           Principal and interest shall be payable as set forth in the Loan
Agreement. Anything to the contrary contained herein or therein notwithstanding,
all principal, accrued but unpaid interest and other amounts payable in
connection herewith shall be due and payable in full on the Maturity Date.

           Lender's records of the principal, accrued interest and other charges
due hereunder, as well as applicable interest rates and periods are, absent
manifest error, conclusive as to and binding upon all Persons.

           Upon occurrence of an Event of Default, the whole or any part of the
unpaid indebtedness evidenced hereby shall, at once or at any time thereafter,
at the option of the holder or holders hereof, become due and payable without
notice or demand therefor, the same being expressly waived. A failure of the
holder thereof to insist upon strict compliance with the terms hereof or to
assert any right hereunder shall not be a waiver of any default and shall not be
deemed to constitute a modification of the terms hereof or to establish any
claim or defense.

           All payments received under the terms of this Note will be applied by
the Lender first to any sums due under this Note other than interest and
principal, second to any accrued but unpaid interest hereunder, third to any
principal due hereunder.

           This Note shall bind Borrower and its successors and assigns, and
shall inure to the benefit of the Lender and its successors and assigns.
Notwithstanding the foregoing, the obligations of Borrower hereunder may not be
assigned or transferred by Borrower without the prior written consent of Lender.

<PAGE>

           No delay or omission on the part of the holder in exercising any
right hereunder shall operate as a waiver of such right or of any other right
under this Note. A waiver on any one occasion shall not be construed as a bar to
or waiver of any such right and/or remedy on any future occasion.

           All persons now or hereafter liable, primarily or secondarily, for
the payment of the indebtedness evidenced hereby or any part thereof, do hereby
expressly waive presentment for payment, notice of dishonor, protest and notice
of protest, and agree that the time for payment or payments of any part of the
indebtedness evidenced hereby may be extended without releasing or otherwise
affecting their liability hereon.

           Borrower agrees that the laws of the State of Ohio shall govern its
rights and duties hereunder and the construction and effect hereof. However, if
any provision hereof is or becomes invalid or unenforceable under any law of
mandatory application, it is the intent of Borrower, Lender and all parties
primarily or secondarily liable hereunder, that such provision will be deemed
severed and omitted herefrom, the remaining portions hereof to remain in full
force and effect as written.

           IN WITNESS WHEREOF, Borrower has executed this Note 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

                                       2

<PAGE>

                                    Exhibit B

                         [Form of Borrowing Certificate]

                       [Letterhead of Borden Chemicals and
                     Plastics Operating Limited Partnership]

                                                     _____________________, 200_

BCP Management, Inc.

___________________
___________________
___________________

           The undersigned, a Responsible Officer of Borden Chemicals and
Plastics Operating Limited Partnership, a Delaware limited partnership
("Borrower"), gives this certificate to BCP Management, Inc. ("Lender") in
accordance with the requirements of subsection 2.3 of that certain Loan
Agreement dated December __, 2001 by and between Borrower and Lender (the "Loan
Agreement"). Capitalized terms used in this Certificate, unless otherwise
defined herein, shall have the meanings ascribed to them in the Loan Agreement.

           1. Borrower hereby requests that Lender make a Loan to Borrower in
the amount of $________________ on _________, 200_ by wiring funds to the
following account: _______ ______________________________________________.

           2. No Default exists on the date hereof, other than: _______________
___________________________________________________________ [if none, so state].

           3. No Event of Default exists on the date hereof, other than
_____________ _____________________________________________ [if none, so state].

           4. There is no Positive Borrowing Availability under the Fleet DIP
Facility.

           5. All other conditions precedent to Lender's obligation to make the
requested Loan, as set forth in Section 3 of the Loan Agreement, have been
satisfied.

                                          Very truly yours,

                                         _______________________________________
                                         Title: __________________

                                        3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00040-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00040-of-00352.parquet"}]]