Exhibit 4.1

# MASTER PURCHASE AND SALEAGREEMENT

# between

# Clariant International
AG

# and

# MADIONOVA GmbH

# as of September 26, 2002

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## Table of Contents

|1.    |  | Definitions                                                     |  | 6  | 
|----- |  | --------------------------------------------------------------- |  | -- | 
|2.    |  | Sale and Purchase of Business, Consideration                    |  | 16 | 
|2.1   |  | Sale of the Business                                            |  | 16 | 
|2.1.1 |  | Sale of Shares                                                  |  | 16 | 
|2.1.2 |  | Sale of Business by Seller and by Selling Subsidiaries          |  | 17 | 
|2.2   |  | Total Purchase Price and the Total Net Purchase Price           |  | 19 | 
|2.3   |  | Adjustment of Total Net Purchase Price                          |  | 20 | 
|2.3.1 |  | Purchase Price Reduction and Purchase Price Increase            |  | 20 | 
|2.3.2 |  | Computation of Closing Date Net Working Capital Amount          |  | 20 | 
|2.3.3 |  | Procedure                                                       |  | 20 | 
|2.3.4 |  | Payment of Purchase Price Increase and Purchase Price Reduction |  | 22 | 
|     
|3.    |  | Closing                                                         |  | 23 | 
|3.1   |  | Closing Date of Transaction / Drop Dead Date                    |  | 23 | 
|3.2   |  | Conditions Precedent to Closing                                 |  | 23 | 
|3.2.1 |  | EU-Merger Control                                               |  | 23 | 
|3.2.2 |  | Material Adverse Change                                         |  | 24 | 
|3.2.3 |  | Waiver                                                          |  | 24 | 
|3.3   |  | Action at Closing                                               |  | 24 | 
|3.3.1 |  | Sellers Actions                                                |  | 24 | 
|3.3.2 |  | Purchasers Actions                                             |  | 25 | 
|3.4   |  | Simultaneous Closing of Local Agreements                        |  | 25 | 
|3.5   |  | Right to Rescind the Agreement                                  |  | 25 | 
|     
|4.    |  | Representations and Warranties of Seller                        |  | 26 | 
|4.1   |  | Organization and Qualification                                  |  | 26 | 
|4.2   |  | Capital Structure                                               |  | 27 | 
|4.3   |  | Ownership                                                       |  | 27 | 
|4.4   |  | Financial Information                                           |  | 27 | 
|4.5   |  | Absence of Adverse Changes                                      |  | 28 | 
|4.6   |  | Assets                                                          |  | 29 | 
|4.7   |  | Approvals, Permits and Authorizations                           |  | 30 | 
|4.8   |  | Claims and Litigation                                           |  | 30 | 
|4.9   |  | Taxes                                                           |  | 30 | 
|4.10  |  | Agreements with Third Parties                                   |  | 31 | 
|4.11  |  | Intellectual Property/Know-how                                  |  | 32 | 
|4.12  |  | Pensions/Social Security Payments                               |  | 32 | 
|4.13  |  | Compliance with the Law                                         |  | 33 | 
|4.14  |  | Environmental Matters                                           |  | 33 | 
|4.15  |  | Warranty Claims and Product Liability                           |  | 33 | 
|4.16  |  | Insurance                                                       |  | 33 | 
|4.17  |  | Assets and Liabilities of Clariant Emulsion Holding AB and      |  |    | 

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|      |  | Clariant Emulsion Norden AB                               |  | 34 | 
|----- |  | --------------------------------------------------------- |  | -- | 
|4.18  |  | Stay-On Incentives                                        |  | 34 | 
|4.19  |  | Information Provided/Absence of Breach                    |  | 34 | 
|4.20  |  | No Further Warranties                                     |  | 34 | 
|     
|5.    |  | Remedies                                                  |  | 35 | 
|5.1   |  | Term of Warranties and Representations                    |  | 35 | 
|5.2   |  | Notification and Arbitration                              |  | 35 | 
|5.3   |  | Damages                                                   |  | 35 | 
|5.4   |  | Limitations                                               |  | 36 | 
|5.4.1 |  | De Minimis                                                |  | 36 | 
|5.4.2 |  | Maximum Amount                                            |  | 36 | 
|5.4.3 |  | Exempt Representations and Warranties                     |  | 36 | 
|5.4.4 |  | Exclusion of Liability                                    |  | 37 | 
|5.5   |  | Procedure with Third Parties and Authorities              |  | 38 | 
|5.6   |  | Sale of Receivables                                       |  | 38 | 
|5.7   |  | No Application to Indemnities and Covenants               |  | 39 | 
|     
|6.    |  | Indemnities                                               |  | 39 | 
|6.1   |  | Environmental Indemnification                             |  | 39 | 
|6.1.1 |  | Management of Environmental Issues                        |  | 39 | 
|6.1.2 |  | Indemnification of Purchaser                              |  | 39 | 
|6.1.3 |  | Indemnification of Seller                                 |  | 40 | 
|6.1.4 |  | Shared Liability                                          |  | 41 | 
|6.1.5 |  | Undeterminable Contamination                              |  | 41 | 
|6.1.6 |  | Conditions                                                |  | 41 | 
|6.1.7 |  | Maximum Amount                                            |  | 43 | 
|6.2   |  | Tax Indemnification                                       |  | 43 | 
|6.2.1 |  | Indemnification                                           |  | 43 | 
|6.2.2 |  | Right to Participate in Tax Audits                        |  | 43 | 
|6.3   |  | Indemnification regarding Transferred Employees           |  | 44 | 
|6.3.1 |  | Indemnification of Purchaser                              |  | 44 | 
|6.3.2 |  | Indemnification of Seller                                 |  | 45 | 
|6.3.3 |  | Employees Inventions                                     |  | 45 | 
|6.4   |  | Indemnification for Excluded Liabilities                  |  | 45 | 
|6.5   |  | Indemnification for Borvi S.A                             |  | 45 | 
|     
|7.    |  | Product Liability / Liability Insurance                   |  | 46 | 
|     
|8.    |  | Covenants                                                 |  | 47 | 
|8.1   |  | Covenants not to compete                                  |  | 47 | 
|8.1.1 |  | Covenant of Seller                                        |  | 47 | 
|8.1.2 |  | Covenant of Purchaser                                     |  | 48 | 
|8.1.3 |  | Obligation to pass on non-compete covenants               |  | 49 | 
|8.2   |  | Transfer of Distribution Rights and Distribution Know-how |  | 49 | 

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|8.2.1 |  | Transfer of Distribution Know-how and Information                  |  | 49 | 
|----- |  | ------------------------------------------------------------------ |  | -- | 
|8.2.2 |  | Transfer of Distribution Rights                                    |  | 50 | 
|8.2.3 |  | Sellers Indemnity                                                 |  | 51 | 
|8.2.4 |  | Agency Agreements                                                  |  | 51 | 
|8.3   |  | Actions of Seller before/on Closing                                |  | 52 | 
|8.3.1 |  | Termination of Agreements between the Companies and Seller         |  | 52 | 
|8.3.2 |  | Conclusion of Service, Toll Manufacturing, Lease and IT Agreements |  | 52 | 
|8.3.3 |  | Information of Employees                                           |  | 53 | 
|8.4   |  | Sale of Clariant Emulsion Norden AB                                |  | 53 | 
|8.5   |  | Conduct of Business                                                |  | 53 | 
|8.6   |  | Supply of PVOH                                                     |  | 54 | 
|8.7   |  | VAM                                                                |  | 54 | 
|8.8   |  | Future use of DBM                                                  |  | 54 | 
|8.9   |  | Amendments of existing supply agreements                           |  | 55 | 
|8.10  |  | Good faith cooperation                                             |  | 55 | 
|     
|9.    |  | Intellectual Property                                              |  | 55 | 
|9.1   |  | Licenses                                                           |  | 55 | 
|9.1.1 |  | Grant of License regarding emulsion applications to Seller for     |  |    | 
|      |  | the use of the Transferred Intellectual Property                   |  | 55 | 
|9.1.2 |  | Licenses regarding Emulsion Powder                                 |  | 56 | 
|9.2   |  | Trademarks                                                         |  | 57 | 
|9.2.1 |  | Interim Use of Transferred Trademarks by Seller                    |  | 57 | 
|9.2.2 |  | Name and Trademark Clariant                                        |  | 57 | 
|     
|10.   |  | Transfer of Management Responsibility and Directors                |  | 58 | 
|10.1  |  | Transfer of Management Responsibility                              |  | 58 | 
|10.2  |  | Resignations of Directors                                          |  | 58 | 
|     
|11.   |  | Relation to Local Agreements                                       |  | 59 | 
|     
|12.   |  | Miscellaneous                                                      |  | 59 | 
|12.1  |  | Taxes/Notarial Fees/VAT                                            |  | 59 | 
|12.2  |  | Costs                                                              |  | 60 | 
|12.3  |  | Notice                                                             |  | 60 | 
|12.4  |  | No Waiver                                                          |  | 61 | 
|12.5  |  | Entire Agreement                                                   |  | 61 | 
|12.6  |  | Binding on Successors                                              |  | 61 | 
|12.7  |  | Confidentiality / Announcements                                    |  | 61 | 
|12.8  |  | Severability                                                       |  | 62 | 
|12.9  |  | Subordinated Liabilities                                           |  | 62 | 
|     
|13.   |  | Governing Law and Arbitration                                      |  | 62 | 
|13.1  |  | Governing Law                                                      |  | 62 | 

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|13.2 |  | Arbitration |  | 62 | 
|---- |  | ----------- |  | -- | 

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# MASTER PURCHASE
AGREEMENT

between

Clariant International AG, Rothausstrasse 61, 4132 Muttenz, Switzerland

Seller

and

MADIONOVA GmbH, Frankfurter Strasse
111, 61476 Kronberg / TS, Germany

Purchaser

WHEREAS, Seller through its
Affiliated Companies is active in the emulsion and the  emulsion powder business;

WHEREAS, Purchaser
intends to acquire Sellers European, U.S. and Canadian emulsion business
and Sellers worldwide emulsion powder business, excluding Japan (the
Business as defined below in detail);

WHEREAS,
Purchaser, in a due diligence review, has analyzed certain Due Diligence
Material disclosed by Seller to Purchaser relating to the Business;

WHEREAS, the
transaction will be structured partly as a share deal, partly as an asset deal:
Purchaser will, according to the terms and conditions of this Agreement,
purchase in a share deal all the shares of Clariant Emulsion Holding AB and
72,87 % of the quotas of Clariant Polisinteza d.o.o. Purchaser will according to
the terms and conditions set forth in this Agreement take over the emulsion and
emulsion powder Business conducted by Clariant GmbH and Clariant Iberica S.A.
and also the emulsion and emulsion powder related sales activities of
Sellers Affiliated Companies in the United Kingdom, in France,
Switzerland, Belgium, Italy, Austria and Greece (the Selling
Subsidiaries). For these asset deals the Selling Subsidiaries will
conclude local purchase agreements (Local

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7

Agreements) with Purchaser and/or certain subsidiaries of Purchaser
(Purchasing Subsidiaries).

NOW,
THEREFORE, the Parties have come to the following agreement.

# ARTICLE 1Definitions

As used in this
Agreement, the following terms have the following meaning unless the context
requires otherwise:

Accounting
Expert shall mean the firm of accountants appointed by the Parties pursuant to
art. 2.3.3 of this Agreement.

Acrylic
Technology shall mean water based emulsions containing polymers made
of combinations of acrylate esters and/or styrene polymers as developed prior to
Closing by Clariant Polymers KK, including the patents listed in Schedule
1.0.

Affiliated
Companies shall mean all companies in which Seller (or a company that
controls directly or indirectly 50 % or more of the voting rights in Seller) or,
as the case may be, Purchaser (or a company that controls directly or indirectly
50 % or more of the voting rights in Purchaser) controls directly or indirectly
50 % or more of the voting rights.

Agreementshall mean this Agreement and its Schedules as amended from time to time
pursuant to art. 12.5 of this Agreement.

Assumed
Contractsshall mean, with the exception of the Excluded Contracts,
all the contracts and contract offers, whether oral or written which the Seller
or the Selling Subsidiaries have concluded or made and pertain to the
Transferred Assets or the Business on

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the Closing Date. The Assumed
Contracts include but are not limited to contracts listed in
Schedule 1.1.

Assumed
Liability shall mean except for Excluded Liabilities, all liabilities
and obligations of any kind whether liquidated or unliquidated, known or
unknown, fixed or contingent, accrued or unaccrued, whether or not reflected or
reserved for in the Financial Statement and whether presently in existence or
arising hereafter relating to or arising out of (i) the operations, affairs and
conduct of the Business by the Selling Subsidiaries or (ii) the Transferred
Assets. Assumed Liabilities include, but are not limited to:

| |  | all liabilities and obligations arising under the Assumed Contracts to the
extent they relate to the Business or the Transferred Assets including without
limitation any liabilities and obligation arising from or relating to the
performance or non-performance of the Assumed Contracts by the Selling
Subsidiaries before the Closing Date;
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | subject
to art. 6.3 of this Agreement, all liabilities and obligations in respect of Transferred
Employees;
|- |  | -----------------------------------------------------------------------------------------------------------

| |  | all
liabilities and obligations in respect of accounts payable or similar  obligations
(whether billed or accrued)  relating  to the Business conducted by the Selling
Subsidiaries;
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | liabilities
relating to down-payments on orders the Business conducted by the Selling Subsidiaries
has received;
|- |  | ----------------------------------------------------------------------------------------------------------------

Business
shall mean (i) the business conducted by the Companies and (ii) the emulsion

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powder business as conducted on the
Closing Date by the Selling Subsidiaries and (iii) any business opportunities for non-TLP
emulsions in the United States and Canada and (iv) the emulsion business as conducted on
the Closing Date by the Selling Subsidiaries except for (a) TLP and (b) emulsion business
based on Acrylic Technology or Ink Jet Paper Coating Technology. The emulsion and emulsion
powder business as described above shall include without limitation the purchase of raw
material, the production of emulsions and emulsion powder on the basis of such raw
material, the sale of emulsions and emulsion powder and related research, development,
technical assistance and quality assurance activities. The emulsion business and business
opportunities for emulsions as described above shall only be transferred under this
Agreement in relation to Europe, to the United States and to Canada,
respectively.

Business
Day shall mean any day other than Saturday, Sunday or any other day
for which commercial banks in Basel, Switzerland, or Frankfurt, Germany, are
required by applicable law to remain closed.

CHFshall mean Swiss Francs, being the lawful currency of Switzerland.

Chinashall mean the Peoples Republic of China.

Closing shall
mean the consummation of the transactions described in art. 2 of this Agreement in
accordance with art. 3 of this Agreement.

Closing Date shall
mean the date defined in art. 3.1 of this Agreement.

Closing Date Net
Working Capital Amount shall mean the amount of net working capital of
the Business existing at the Closing Date calculated in accordance with
Schedule 1.2.

Companiesshall mean Clariant Emulsion Holding AB, Clariant Emulsion Norden AB

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and Clariant Polisinteza d.o.o.

Disputed Matter shall have the meaning defined in art. 2.3.3 of this Agreement.

Due Diligence
Materialshall mean the material listed in Schedule 1.3 which
has been submitted to Purchaser for the due diligence review including the
written answers provided to Purchasers information requests, provided that
any document submitted in the Slovenian, Greek or Japanese language without
translation into German or English shall not be deemed Due Diligence Material.
The Due Diligence Material shall be stored with Baker&McKenzie, Zurich,
until September 30, 2004.

Employment
Contracts shall mean all rights and obligations arising from all
employment relationships with Transferred Employees on the Closing Date, whether
or not based on a written contract.

Environmental
Liabilities shall mean any costs and expenses, including
attorneys fees and expenses as well as fines, penalties and the costs of
coming into compliance (provided and to the extent that (i) the conditions in
art. 6.1.6 are met and (ii) the issue concerned has not been specifically
identified in Schedule 1.3.a, liabilities, losses, or damages of any
nature whatsoever which arise as a result of or relate to

|(a) |  | any spill, release, threatened release or presence of any substance, material or
any other emission into or in the environment, into or in buildings, part of
buildings or facilities or on or under real estate, or
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | any activity or condition not in compliance with applicable laws or regulations
in force at the date hereof or coming into force within 5 years after the date
hereof pertaining in any way to the environment, health, worker safety or plant
safety, including, without limitation the failure to obtain, maintain in effect
or comply with any permit, license, consent, applicable law or regulation
pertaining to the environment,
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | provided
that changes in the  applicable law or regulation that have become effective after the
date hereof shall be  disregarded if and to the extent the change in law or regulation
relates to the activities  of the Business as conducted on or after the Closing Date or
relate to any other activity  that the Purchaser, the Purchasing Subsidiaries, the
Companies or a third party may elect  to perform on the sites transferred on or after the
Closing Date.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Europe
shall mean the countries listed in Schedule 1.4.; Purchaser is aware of
the fact that Portugal is not included in such list.

Excluded
Assets shall in relation to the Business conducted by the Selling
Subsidiaries mean:

| |  | cash
on hand or in banks, cash equivalents and financial investments;
|- |  | ---------------------------------------------------------------------

| |  | all original documents
and records relating to the Business as far as the Selling Subsidiaries are required to
retain such books and records pursuant to applicable law (Seller shall, however, upon
request of Purchaser provide copies free of cost);
|- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | all claims for Tax
refunds or other tax assets relating to Taxes paid or caused before the Closing Date and
not included as receivables in the calculation of the Closing Date Net Working Capital
Amount;
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | the land used by the
Business at the Tarragona site for conventional emulsions and the land used by the
Business at the Höchst site;
|- |  | ------------------------------------------------------------------------------------------------------------------------------------

| |  | all rights and claims
against third parties (including any rights under insurance contracts against insurance
companies) pertaining to any Excluded Assets or Excluded Liabilities;
|- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| |  | all participations in
other companies including but not limited to, Clariant GmbHs participation in InfraServ
GmbH & Co. Höchst KG;
|- |  | ------------------------------------------------------------------------------------------------------------------------------------

| |  | all claims relating to
discounts on raw material purchased before the Closing Date such as in particular the
Vinyl Acetate Monomer and Acrylate Esters turnover discounts, provided that such discounts
are not included in the calculation of the Closing Date Net Working Capital
Amount.
|- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Excluded
Contracts shall in relation to the Business mean all the contracts
listed in Schedule 1.5 and any contracts relating to Excluded Assets and
Excluded Liabilities.

Excluded
Liabilitiesshall in relation to the Business conducted by the Selling
Subsidiaries mean the following liabilities and obligations:

| |  | all
liabilities  or  obligations  for any Taxes  arising  from or with  respect to the
Transferred  Assets and the Business  conducted by the Selling Subsidiaries prior to the
Closing Date;
|- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | all
liabilities and obligations related to Excluded Assets or to Excluded Contracts;
|- |  | ------------------------------------------------------------------------------------

| |  | all
financial debt;
|- |  | -------------------

| |  | all
Environmental Liabilities existing at the date hereof, except to the extent assumed by
Purchaser according to art. 6.1;
|- |  | ---------------------------------------------------------------------------------------------------------------------------

| |  | all loans towards the
Seller or any affiliate of Clariant AG, Muttenz, except to the extent fairly reflected in
the Financial Statement or the computation of the Closing Date Net Working Capital
Amount;
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| |  | all liabilities and
obligations related to products produced and sold by the Companies or the Selling
Subsidiaries prior to the Closing Date and based on an occurance prior to the Closing
Date, unless such liabilities and obligations entitles Seller or Sellers Affiliated
Companies to a claim against Purchaser or Purchasers Affiliated Companies under
applicable law or supply contracts;
|- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | all liabilities and
obligations arising from or related to litigation, arbitration or other adversarial civil
procedures arising from or relating to the Business conducted by the Selling Subsidiaries
or any Transferred Assets as far as such procedures commenced before the Closing
Date;
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | all liabilities and
obligations arising from or related to Sellers or its Affiliated Companies
operation or cessation of operations of any plant sites closed prior to the Closing Date,
including but not limited to plants in Austria;
|- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | With the exception of
employees invention for which Purchaser according to art. 6.3.3 is liable, all
liabilities and obligations relating to personnel that are not transferred in the course
of the transaction contemplated by this Agreement.
|- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Financial
Debt shall mean the financial debt and unfunded pension liabilities as
of December 31, 2001 and listed in Schedule 1.5.a.

Financial
Statements shall mean the consolidated balance sheet and the
consolidated profit and loss statement of the Business for the fiscal year
having ended December 31, 2001 and the consolidated profit and loss statement
covering the period from January 1, 2002, to June 30, 2002, all as reviewed by
PricewaterhouseCoopers and attached as Schedule 1.6.

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Ink Jet Paper
Coatings Technology shall mean water based emulsions for the surface
coating of glossy ink jet paper on the basis of copolymers of acrylate esters
and styrene monomers as developed prior to Closing by Clariant Polymers KK.

Local
Agreement shall mean the agreements to be concluded between the
Selling Subsidiaries and the Purchasing Subsidiaries substantially with the
terms and in the form as set forth in Schedule 1.7.

Material Adverse
Change shall mean any event  other than changes related to
regulation of residual VAM, pricing of raw materials and war or terror related
activities  which at the date hereof can not have been foreseen and had or
is reasonably expected to have a direct adverse effect on the fair value of any
Transferred Asset or on the Business as a whole in excess of CHF 20 million.

Notice of disagreement
shall have the meaning defined in art. 2.3.3. of this Agreement.

Party or
Partiesshall mean one or both parties to this Agreement.

Purchase Price Increase
shall have the meaning defined in art. 2.3.1 (ii) of this Agreement.

Purchase Price
Reduction shall have the meaning defined in art. 2.3.1 (i) of this
Agreement.

Purchasing
Subsidiaries shall mean the subsidiaries of Purchaser which act as purchasers
under the Local Agreements.

Resolution Period shall
have the meaning defined in art. 2.3.3 of this Agreement.

Seller
shall mean Clariant International AG, Rothausstrasse 61, 4132 Muttenz.

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Sellers
best knowledge shall mean the knowledge of any of the persons listed
in Schedule 1.7a and shall include the knowledge such person should have
after having made due inquiries with the persons directly reporting to them with
respect to the issues that fall within the responsibility of these reporting
persons.

Selling Subsidiaries
shall mean Clariant GmbH, Clariant Iberica S.A., Clariant Benelux SA, Clariant France SA,
Clariant Austria GmbH, Clariant UK Limited, Clariant Hellas S.A. and Clariant Italia
SpA.

Sharesshall mean all of the shares outstanding of Clariant Emulsion Holding AB,
i.e. 20000 shares of Clariant Emulsion Holding AB with a nominal value of SEK
100 each, and a quota of 72,87 % of the outstanding quotas of Clariant
Polisinteza d.o.o. with a total nominal value of SIT 168,840,000.

Signing
Date shall mean the date on which both Parties sign this Agreement. If
the Parties sign this Agreement on different dates, the later of such dates
shall be the Signing Date.

Site shall mean
Höchst and Tarragona as further described in Schedule 1.8

Taxesshall mean all tax liabilities whether actual or deferred in respect of
income taxes, sales taxes, VAT, any turnover or cost related taxes, withholding
taxes, stamp duties and any other transfer duties, payroll taxes, and property
taxes and all other levies and taxes.

Total Purchase
Price shall mean the purchase price defined in art. 2.2 of this Agreement for
the whole Business before deduction of the Financial Debt as stipulated in art. 2.2 and
before the adjustment as stipulated in art. 2.3 of this Agreement.

Total Net
Purchase Price shall mean the Total Purchase Price after the deduction
of the

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16

Financial Debt as stipulated in art
2.2, but before the adjustment as stipulated in art. 2.3 of this Agreement.

TLP
shall mean any chemicals (including intermediates) for applications designed for
or requested by the textile, paper or leather industries regardless whether such
chemicals are currently existing or will be developed in the future. Emulsions
for VAE non-woven textiles shall be explicitly excluded from TLP.

Transferred
Assets shall mean with the exception of the Excluded Assets (i) all
assets owned by Clariant GmbH and Clariant Iberica S.A. which are used for the
Business as conducted on the Sites on the Closing Date, (ii) the assets owned by
the other Selling Subsidiaries as listed in Schedule 1.9, (iii) the
Transferred Intellectual Property Rights.

Schedule 1.10
reflects the status of the Transferred Assets as of December 31, 2001. Any
assets listed in Schedule 1.10 which have been disposed of by the Selling
Subsidiaries between December 31, 2001 and the Closing Date are not part of the
Transferred Assets. Any assets acquired by the Selling Subsidiaries with respect
to the Business between December 31, 2001 and the Closing Date in the ordinary
course of business or any replacement of assets listed in Schedule 1.10
are part of the Transferred Assets.

Transferred
Employees shall mean employees who are by more than 75% engaged by the
Selling Subsidiaries for the Business on the Closing Date as listed in
Schedule 1.11. Schedule 1.11 reflects the status of the
Transferred Employees as of September 24, 2002. If the Employment Contracts of
employees listed in Schedule 1.11 are terminated before the Closing Date
such employees shall not be considered as Transferred Employees. If the Selling
Subsidiaries between September 25, 2002, and the Closing Date in the ordinary
cause of business and in compliance with this Agreement conclude new employment
contracts with employees, who are exclusively or predominantly engaged in the
Business such employees will be considered as Transferred Employees.

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17

Transferred
Intellectual Property Rights shall mean the trademarks, trademark
applications, patents, patent applications, industrial design patents and domain
names set forth in Schedule 1.12a and all rights in respect of technical
knowledge, know-how, technical and commercial secrets, processes and formulae
used in or otherwise belonging to the Business as existing on the date of this
Agreement or as invented or developed until the Closing Date,. Transferred
Intellectual Property Rights shall specifically include any patent and patent
applications for Portugal as well as the entire patent base for VAE Emulsions
worldwide.

United States means
the United States of America.

VAE
Emulsionsshall mean emulsion containing vinyl acetate and ethylene,
alone or among other monomers.

# ARTICLE 2Sale and Purchase of
Business,Consideration

|2.1 |  | Sale
of the  Business.
|--- |  | ----------------------

|2.1.1 |  | Sale of Shares.
Subject to the terms and conditions defined herein Seller hereby agrees to sell (or have
one of Sellers Affiliated Companies sell) to Purchaser and Purchaser agrees to buy
from Seller (or from one of Sellers Affiliated Companies) 20000 shares of Clariant
Emulsion Holding AB with a nominal value of SEK 100 each and one quota of Clariant
Polisinteza d.o.o. with a nominal value of 168,840,000 SIT. If Seller until the Closing
Date is able to purchase further quotas in Clariant Polisinteza d.o.o. such quota shall be
sold together with the other shares and for the purpose of this Agreement be considered as
part of the Shares.
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

18

|2.1.2 |  | Sale of Business by Seller and by Selling Subsidiaries. Subject to the
terms and conditions defined herein Seller shall either sell itself or cause the
Selling Subsidiaries to sell the Business conducted by them and to transfer the
Transferred Assets, the Assumed Contracts, the Assumed Liabilities and the
Transferred Employees to the Purchasing Subsidiaries in accordance with this
Agreement and the Local Agreements.For such purpose the
Parties shall cause the Selling Subsidiaries and the Purchasing Subsidiaries to
sign the Local Agreements as soon as possible after this Agreement has been
signed.
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | If
an Assumed  Contract  pertains  to the  Business  sold and at the same time also to the
business  retained by the Selling  Subsidiary,  such contract  shall not be treated as an
Assumed  Contract in its entirety but shall be split  between  Selling  Subsidiary and
Purchasing Subsidiary and shall be regarded partially as Assumed Contract,  partially as
Excluded Contract. If  such split is not  possible  the  contract  shall be retained by
the Selling  Subsidiary  and the  benefits and costs of such  contract shall be split
internally between the Selling Subsidiary and the Purchasing Subsidiary.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | If,
after the Closing Date,  either  Purchaser or Seller,  as the case may be,  receives any
amounts in part or in full to be  paid under the Assumed  Contracts or the Excluded
Contracts,  as the case may be, which should, in accordance with the terms  of this
Agreement and, in particular with this art. 2.1.2,  have been paid to the other Party,
then the Party having received  such amount shall forward any such amount, which it has
incorrectly received, to the other Party as follows:
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | Each
of Seller and Purchaser shall, by the end of each month, for a period of  twelve (12)
months after the Closing Date provide to each other monthly  statements showing the
amounts owed to, or to be claimed from, the other Party  as a result of any such
incorrect payment.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

19

| |  |  | Any
such amounts shall be set off against each other immediately after receipt  of the
respective monthly statements by each Party and the net amount owed by  any Party shall
become due and payable no later than on the fifth (5th) Business  Day of the subsequent
calendar month.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | Should
Seller and Purchaser, after having received the relevant monthly  statements, disagree as
to the amounts to be paid by any Party and to be set  off, Seller and Purchaser shall
jointly appoint an independent firm of  accountants pursuant to the rules defined in art.
2.3.3 which shall, with  binding effect for both Parties, determine any amount which
would be payable by  either Seller or Purchaser after the relevant set-off.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | If
and to the extent the transfer of any Transferred Assets, Assumed Liabilities, and Assumed
Contracts to Purchaser requires the consent of a third party or is subject to any other
condition, Seller and Purchaser shall after the Closing Date use their best efforts to
obtain such consent or satisfy such condition without undue delay. As far as Assumed
Liabilities have to be paid within 90 days after the Closing Date the Parties will,
however, not try to obtain the creditors consent but Purchaser will discharge such
Assumed Liabilities.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Parties shall, for the period after the Closing Date until the necessary consent has been
obtained or the necessary condition satisfied or if it is impossible or impracticable to
obtain the consent of a third party or satisfy a condition required for the effective sale
and assignment of a Transferred Asset, the assumption of an Assumed Liability or the entry
into an Assumed Contract, for the purposes of their internal relationship, conduct
themselves in such a way as if the transfer or entry had taken place on the Closing Date.
In these cases, Seller will, in respect of its external relationships, remain the owner of
the relevant Transferred Asset, remain the debtor of the relevant Assumed Liability and
remain the party to the relevant Assumed Contract but will act so for the account of
Purchaser. Purchaser shall at its own cost perform all obligations
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

20

| | under
all Assumed Contracts held by Seller for the account of Purchaser, pursuant to this art.
2.1.2 and Seller shall assign all the rights from such contracts to the Purchaser.
Purchaser shall, furthermore, satisfy at its own cost all Assumed Liabilities for which
Seller, pursuant to this art. 2.1.2, externally remains the debtor.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
case that any of the Transferred Assets, Assumed Contracts or Transferred Employees should
not belong to the Business, the Parties agree that such contract, asset or employee shall
remain with or transferred back to Seller and the Selling Subsidiaries without an
adjustment of the Total Purchase Price.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2.2 |  | Total Purchase Price
and the Total Net Purchase Price. The Total Purchase Price for the Business sold in
accordance with art. 2.1 of this Agreement amounts to CHF 213,500,000 (in words: CHF
twohundredthirteenmillionfivehundredthousand.). After the deduction of the Financial Debt,
the Total Net Purchase Price, subject to adjustment after Closing in accordance with art.
2.3 of this Agreement, amounts to CHF 179,193,000. (in words: CHF
onehundredseventyninemilliononehundredninetythreethousand). Such Total Net Purchase Price
shall be attributed to the various objects of the sale in accordance with Schedule 2.2;
according to such attribution the price of the Shares sold according to art. 2.1.1 of this
Agreement and the consideration for covenants and other performances of Seller under this
Agreement shall in total amount to CHF 99,613,000. , whereas the price to be paid
under the Local Agreements to the Selling Subsidiaries shall amount to a total of CHF
79,580,000.. Such price excludes VAT, if applicable which shall be charged
separately to the Purchasing Subsidiary concerned. Any Purchase Price Increase or Purchase
Price Decrease shall be attributed to the various objects of the sale in accordance with
the causes of such adjustment.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Should
Seller with the prior written consent of the Purchaser purchase before the Closing Date
additional quotas in Clariant Polisinteza d.o.o. which pursuant to art. 2.1.1 of this
Agreement are sold to the Purchaser, the Purchase Price shall be in-
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

21

| | creased
by the price paid by Seller for such quotas.
| | ----------------------------------------------------

|2.3 |  | Adjustment
of Total Net Purchase Price
|--- |  | --------------------------------------

|2.3.1 |  | Purchase Price
Reduction and Purchase Price Increase. The Total Net Purchase Price shall be adjusted
after the Closing as follows:
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------

| | (i) |  | if the Closing Date
Net Working Capital Amount is less than CHF 12,875,000. the Total Net Purchase Price
shall be reduced by the difference between the Closing Date Net Working Capital Amount and
CHF 12,875,000. (the Purchase Price Reduction).
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) |  | if the Closing Date
Net Working Capital Amount exceeds CHF 12,875,000. the Total Net Purchase Price
shall be increased by the difference between the Closing Date Net Working Capital Amount
and CHF 12,875,000. (the Purchase Price Increase).
| | ---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Any
payments made on the basis of net working capital  adjustments/clauses  set forth in
Local  Agreements shall be pooled in  order to assure a uniform execution of (i) and (ii)
in a consolidated view as provided for in art. 11 of this Agreement.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2.3.2 |  | Computation of
Closing Date Net Working Capital Amount.The Closing Date Net Working Capital
Amountshall be computed in accordance with Schedule 1.2. In determining the
Closing Date Net Working Capital Amount the conversion cost as part of the finished goods
inventory shall be taken into account only up to CHF 5,833,000.
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2.3.3 |  | Procedure.
Seller shall in close cooperation with the Companies and in particular with the
personnel up to then responsible for the accounting of and within the Business and in
accordance with Schedule 1.2 compute the Closing Date Net Working Capital Amount
within 60 calendar days after the Closing Date. Such computation shall be
|----- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

22

| | based
on the foreign exchange rates  in effect on the Closing Date and shall be computed using
the same accounting methods as  those used for the preparation of the Financial
Statements and as warranted in art. 4.4.  After such calculation has been completed it
shall be reviewed by Sellers present  auditors.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Parties shall cooperate with each other in facilitating the computation and review of the
Closing Date Net Working Capital Amount and the Purchaser shall furnish such access to the
Business books and employees after the Closing Date as the Seller and the auditors
may reasonably request for such task.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Within
10 days after the Sellers calculation of the Closing Date Net Working Capital Amount
has been reviewed, the Seller shall furnish such computation to the Purchaser together
with a notice explaining in reasonable detail the computation of the Closing Date Net
Working Capital Amount (Sellers Computation). Such computation shall
become final and binding upon the Parties unless the Purchaser gives written notice
(Notice of Disagreement) to the Seller within 30 calendar days following
receipt of the computation of the Closing Date Net Working Capital Amount. The Notice of
Disagreement shall relate solely to the computation of the Closing Date Net Working
Capital Amount and shall specify in reasonable detail the nature of any disagreements so
asserted.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | During
the period of 30 calendar days (the Resolution Period) following the receipt
by the Seller of the Notice of Disagreement, the Parties shall attempt to resolve any
differences which they may have with respect to any matters specified in the Notice of
Disagreement. If at the end of the Resolution Period the parties have failed to reach
written agreement with respect to all of such matters, then all such matters as specified
in the Notice of Disagreement as to which such written agreement has not been reached (the
Disputed Matters) shall be submitted to and reviewed by an Accounting Expert
which shall be an accounting firm with an international reputation having an office in
Switzerland and having no other material relationship with either Party.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

23

| | If
within 30 calendar days following the expiration of the Resolution Period, the Parties
have failed to agree in writing on the selection of the Accounting Expert or any
Accounting Expert selected by them has not agreed to perform the services called for
hereunder, the Accounting Expert shall thereupon be selected by the president of the
Commercial Court of the Canton of Zurich (Handelsgericht) with it being a
requirement that the president of the Handelsgericht shall select an accounting firm with
an international reputation having an office in Switzerland and having no other material
relationship with either Party.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Accounting Expert shall compute the Closing Date Net Working Capital Amount and its
decision with respect to the Closing Date Net Working Capital Amount shall be final and
binding upon the Parties (Schiedsgutachten). With the exception of Disputed
Matters, the Accounting Experts computation shall, however, be based on Sellers
computation (for all elements of Sellers computation not mentioned in the Notice of
Disagreement) or on written settlements reached by the Parties (for all Disputed Matters
on which the Parties before the examination by the Accounting Expert have agreed upon).
The fees and expenses of the Accounting Expert in connection with the determination of any
Disputed Matter shall be borne one half by the Seller and one half by the
Purchaser.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2.3.4 |  | Payment of Purchase Price Increase and Purchase Price Reduction.The
Seller shall pay in cash to the Purchaser (or a company designated by the Purchaser) or
the Purchaser shall pay in cash to the Seller (or a company designated by the Seller) an
amount equal to the Purchase Price Reduction or the Purchase Price Increase, as the case
may be, with addition of interest equal to 6 % p.a. from the Closing Date to the date
of effective payment in CHF by wire transfer of same day funds within 7 calendar days
after the computation of the Closing Date Net Working Capital Amount has become final and
binding upon the Parties.
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

24

# ARTICLE 3Closing

|3.1 |  | Closing Date of
Transaction / Drop Dead Date. Unless agreed otherwise by the Parties the transaction
described in this Agreement shall be consummated at the offices of Seller or such location
mutually agreed between the Parties at the end of the last calendar day of the month in
which the conditions precedent set forth in art. 3.2 of this Agreement have been met,
provided that if the condition precedent are met in the month of December 2002, the
closing shall take place 7 Business Days after the conditions precedent have been met, at
the latest, however, on December 31, 2002 ("Closing Date").
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
case the  transaction  cannot be consummated  within nine months after the date hereof
because the condition  precedent in  art. 3.2.1 has not been met,  either Party shall
have the right to terminate  this  Agreement by providing  written notice to  the other
Party.  Such  termination  shall be without any consequences for either of the Parties
and the Parties shall not be  obliged to consummate the transaction as described in this
Agreement.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.2 |  | Conditions
Precedent to Closing. The transaction  contemplated herein shall be consummated if all of
the following conditions  have been met:
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------

|3.2.1 |  | EU-Merger
Control. The authorization of the EU-merger control authority in Brussels has been
granted.
|----- |  | -----------------------------------------------------------------------------------------------------

| | Purchaser
and Seller shall take all steps necessary to procure the satisfaction of the above
conditions and, in particular, make all the necessary filings with the competent
authorities. Seller and Purchaser shall fully cooperate in the pertinent procedures and,
in particular, provide the necessary information on the Parties and on the Business for
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

25

| | filings
to be made. Each Party  shall carry its own internal and external costs in this
connection.
| | ---------------------------------------------------------------------------------------------------

|3.2.2 |  | Material
Adverse Change. The Business has not been affected by a Material Adverse Change
|----- |  | ----------------------------------------------------------------------------------------

|3.2.3 |  | Waiver.
Purchaser, but not Seller, shall be entitled to waive in writing the condition precedent
described in art. 3.2.2 above.
|----- |  | -------------------------------------------------------------------------------------------------------------------------------

|3.3 |  | Action
at Closing
|--- |  | -----------------

|3.3.1 |  | Sellers
Actions
|----- |  | ----------------

|3.3.1.1 |  | With respect to the
transfer of the Shares, the following actions shall be performed by Seller and the Selling
Subsidiaries.
|------- |  | ----------------------------------------------------------------------------------------------------------------------------

| | On
the Closing Date Seller shall deliver to Purchaser and/or cause certain of its Affiliated
Companies to deliver:
| | ------------------------------------------------------------------------------------------------------------------

| |  |  | The
Shares
| | - |  | ----------

| |  |  | All
documents necessary to effect the valid transfer of the ownership of the Shares,
including, but not limited to, the documents listed in Schedule 3.3.1
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------

|3.3.1.2 |  | Furthermore, Seller
shall repay by wire transfer all the intercompany loans (principal amounts plus accrued
interest) that the Companies have granted to Seller or Sellers Affiliated Companies
and that exist on the Closing Date (the cash repaid shall be taken into account in the
computation of the Closing Date Net Working Capital Amount). Any amount not repaid on the
Closing Date shall be repaid as soon as possible thereafter, and shall accrue interest
equal to 6 % p.a. from the
|------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

26

| | Closing
Date.
| | -------------

|3.3.2 |  | Purchasers
Actions
|----- |  | -------------------

| | Purchaser
shall transfer to Seller (by wire transfer to a bank account to be notified by Seller to
Purchaser) the Total Net Purchase Price of CHF 179,193,000., to be credited and
available for Seller on Sellers bank account on 11 a.m., Swiss time, on the Closing Date.
Furthermore Purchaser shall repay by wire transfer the intercompany loans Seller and
Sellers Affiliated Companies have granted to the Companies as listed in
Schedule  3.3.2 (such loans shall be taken into account as  financial debt in the
calculation of the Closing Date Net Working Capital Amount).  Any amount not repaid on
the Closing Date  shall be repaid as soon as possible thereafter, and shall accrue
interest equal to 6 % p.a. from the Closing Date.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.4 |  | Simultaneous Closing of Local Agreements.The Parties shall
cause the Selling Subsidiaries and the Purchasing Subsidiaries to (i) consummate
all Local Agreements simultaneously with this Agreement on the Closing Date in
accordance with the provisions on closing defined in this Agreement and such
agreements and (ii) execute the agreements in accordance with art. 8.3.2 on the
Closing Date.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.5 |  | Right
to Rescind the Agreement. If the Total Net Purchase Price is not paid on the Closing
Date to Seller as provided for in art. 3.3.2 of this Agreement the rules set forth in art.
103 to 106 of the Swiss Code of Obligation (hereinafter CO) apply without any
further notice being necessary pursuant to art. 102 CO. As an alternative to the
enforcement of the contract Seller may  if the purchase price has not been paid
within 7 Business Days after the Closing Date  at any time after the expiry of such
grace period rescind this Agreement by providing Purchaser with written notice
(Sellers Rescission Notice).
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | If
Clariant GmbH or Clariant Iberica S.A.  have failed to comply with their closing
| | -----------------------------------------------------------------------------------

---

27

| | obligations defined
in the Local Agreements, the rules set forth in art. 103 to 106 CO apply without any
further notice being necessary pursuant to art. 102 CO. As an alternative to the
enforcement of the contract Purchaser may - if Clariant GmbH or Clariant Iberica S.A. have
not complied with all their closing obligations defined in the Local Agreements within 7
Business Days after the Closing Date - at any time after the expiring of such grace period
rescind this Agreement by providing Seller with written notice (Purchasers
Rescission Notice).
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | If
this Agreement is rescinded pursuant to this art. 3.5 all the Local Agreements are
automatically rescinded. Such rescission shall be Sellers or Purchasers sole remedy, if
Seller provides the Sellers Rescission Notice, or if Purchaser provides Purchasers
Rescission Notice, as applicable.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ARTICLE 4Representations and
Warranties of Seller

Seller represents and
warrants for the Business (i.e. for the Companies and the Business sold by the
Selling Subsidiaries in accordance with the Local Agreements) as of the Closing
Date as follows:

|4.1 |  | Organization
and Qualification. The Companies are duly organized and validly existing under the
laws under which they have been incorporated and have full right and authority to own and
to operate their properties and to engage in the business in which they are now engaged.
Schedule 4.1 contains the articles of incorporation of the Companies as in force on
the Closing Date.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Seller and the Selling Subsidiaries are corporations duly organized and validly existing
and in good standing under the laws under which they have been incorporated and have full
right and authority to enter into this Agreement and the Local
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

28

| | Agreements
respectively and  to consummate such agreements; subject only to art.3.2.
| | ------------------------------------------------------------------------------------

|4.2 |  | Capital
Structure. As of the Closing Date, the Companies have the capital set forth in
Schedule 4.2. No further capital, voting or non-voting stock, convertible
securities or similar rights in the Companies have been or will by the Closing Date be
created or issued or agreed to be issued. All the Shares sold pursuant to art. 2.1 of this
Agreement have been validly issued and fully paid in.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.3 |  | Ownership. On
the Closing Date Seller, or as the case may be, Sellers Affiliated Companies transferring
such Shares have full right and capacity to transfer and sell complete title to the Shares
on the Closing Date. On the Closing Date the Selling Subsidiaries have full right and
capacity to transfer and sell complete title to the Transferred Assets.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Upon
the delivery of the Shares provided for in art. 3.3 of this Agreement, Purchaser will
receive good and valid title to the Shares, free and clear of all liens, encumbrances or
other rights of third parties. With the exception of Transferred Assets held in trust for
the Purchasing Subsidiaries by the Selling Subsidiaries or by third parties pursuant to
the Local Agreements the Purchasing Subsidiaries will receive on the Closing Date good and
valid title to the Transferred Assets free and clear of all liens and encumbrances or
other rights of third parties other than retention of title agreed in the normal cause of
business in supply situations, and other than liens or encumbrances or other rights of
third parties created with the Purchasers prior written consent.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.4 |  | Financial
Information. The Financial Statements set forth in Schedule 1.6 have been
prepared in accordance with the carve out principles and the procedures described in the
Notes to the Financial Statements on the basis of accounting records which have been
maintained in accordance with International Accounting Standards and applied on a
consistent basis. The Financial Statements in accordance with such procedures
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

29

| | and
principles reflect in all material respects the financial position of the Business as  of
December 31, 2001 and of the operating results of the Business for the year ended on
December 31, 2001. The Seller is not aware of any facts or events which would require a
significant change to the Financial Statements if they had been known at the time the
Financial Statements were prepared.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Schedule
1.2 has been set-up in accordance with the principles  applied to the Financial
Statements and has been reviewed by  PricewaterhouseCoopers.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------

|4.5 |  | Absence of Adverse
Changes. Seller represents and warrants that in the period between December 31, 2001,
and the Closing Date the Business:
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | has been conducted in
its ordinary course and no tangible or intangible assets that are part of the Business
have been assigned, transferred, pledged or encumbered (other than in the ordinary course
of business). The conduct of the business is considered to be ordinary if the value of the
assets concerned is below the amount of CHF 100,000 individually or CHF 1,000,000 in
total;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | has not suffered any
material damage, destruction or loss by fire or other casualty which is not compensated by
insurance payments under insurance policies made to the Companies and/or the
Business;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | has not hired or made
binding offers towards employees with an annual salary exceeding CHF 100,000, unless
listed in Schedule 4.5.1;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------

| |  |  | The investments listed
in Schedule 4.5.2 have been made or are reserved for as listed in Schedule
4.5.2.
| | - |  | --------------------------------------------------------------------------------------------------------

| | Seller,
furthermore, represents and warrants that the Companies in the period between December 31,
2001 and the Closing Date have not paid dividends other than those set
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

30

| | forth in Schedule
4.5.3
| | -----------------------

| | Any
transactions made in compliance with art. 8 and art. 9 are exempt from such warranty.
| | -----------------------------------------------------------------------------------------

|4.6 |  | Assets. After
the transfer of the Transferred Assets pursuant to the Local Agreements the Purchasing
Subsidiaries, with the exception of the cash necessary to carry on the Business, will own
all the assets which  together with the land leased pursuant to art. 8.3.2 of this
Agreement and other equipment leased under the Assumed Contracts  are necessary to
carry on the Business as it has been carried on prior to the Closing Date. The Companies
own  or have valid leases to use  all the assets which are necessary to carry
on their Business as it has been carried on prior to the Closing Date. Except as
explicitly set out in this Agreement or any lease agreement or license agreement to be
entered into pursuant to this Agreement, the Business does not use or require any assets
(other than the Transferred Assets) or intellectual property rights (other than the
Transferred Intellectual Property Rights) owned by the Seller or Affiliated Companies of
Seller. For the avoidance of doubt, the Clariant WINS platform shall be excluded from this
art. 4.6.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
fixed assets transferred under the Local Agreement and the fixed assets owned by the
Companies are in good operating condition and repair and are adequate to carry on the
Business in the ordinary course of business and in the same fashion and manner as prior to
the Closing Date.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
inventory transferred pursuant to the Local Agreements and the inventory owned by the
Companies consists only of raw material which meets the agreed or otherwise applicable
product specification and which is in a condition to be processed in the Business and of
end products or intermediate products which  as the case may be  meet the
agreed or otherwise applicable specifications and are in a quality to be sold to customers
or to be further processed in the Business. The Parties agree that all
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

31

| | quality
downgrades necessary on the inventory as of the Closing Date as well as any  warranty
claims regarding raw material supplied by Purchaser and Affiliated Companies of
Purchaser will be properly reflected in the computation of the Closing Date Net Working
Capital Amount.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | On
the receivables transferred pursuant to the Local Agreements and the receivables owned by
the Companies the amount which is reflected in the computation of the Closing Date Net
Working Capital Amount can be collected on the applicable due date, subject to art. 5.6 of
this Agreement.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.7 |  | Approvals, Permits
and Authorizations. On the Closing Date the Companies and the Selling Subsidiaries
respectively are in possession of all business permits
(Realkonzessionen) and personal permits
(Personalkonzessionen) or otherwise required permits or governmental
licenses (the Business Permits) which are necessary for carrying out the
Business. Such Business Permits are accurate, in full force and effect and no revocation,
limitation or amendment of any such permit is pending or has been threatened. Purchaser
acknowledges the fact that after the transfer of the Business the Purchasing Subsidiaries
must obtain certain new personal permits in their own name, such personal permits to be
replaced by the Purchaser being listed in Schedule 4.7.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.8 |  | Claims
and Litigation. Except as set forth in Schedule 4.8 as of the Closing Date,
there are no action, order, suit arbitration, governmental inquiry (including criminal
investigation) or investigation, administrative procedure or any other proceeding with a
litigious value in excess of CHF 100,000. pending or threatened in writing by or against
the Seller, the Companies and/or the Selling Subsidiaries with respect to the Business,
the Transferred Assets, the Assumed Liabilities and/or the Assumed Contracts.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.9 |  | Taxes.As of
the Closing Date, the Companies have filed on a timely basis all tax
|--- |  | --------------------------------------------------------------------------------

---

32

| | returns
for all Taxes required by law to have been filed and all such tax returns are complete and
accurate. Seller, thus, is liable for all Taxes to be paid by the Companies due to any
reassessments for tax periods before the Closing Date. Seller is also liable for any Taxes
to be paid on constructive dividends paid by the Companies to Seller or to third parties
before the Closing Date and for any Taxes to be paid because the Companies before the
Closing Date have violated agreements they have concluded with tax
authorities.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Financial Statements set forth in Schedule 1.6 contain provisions to cover all
Taxes caused by profits realized or business transacted by the Companies before December
31, 2001, if such Taxes have not yet been paid before such date. The Closing Date Net
Working Capital Amount contains provisions to cover all Taxes caused by profits realized
or business transacted by the Companies from January 1, 2002 until the Closing Date to the
extent included in Schedule 1.2, if such Taxes have not yet been paid before such
date.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.10 |  | Agreements with
Third Parties. On the Closing Date the Companies are not in default under any material
agreements to which they are a party. On the Closing Date the Seller and the Selling
Subsidiaries are not in default under any material Assumed Contract. Furthermore, the
Seller, the Selling Subsidiaries and the Companies have, to Sellers best knowledge,
performed and complied with all obligations under any agreement that was or is material to
the Business, including, without limitation, under any material Assumed Contract, except
for occasional late payments and/or late deliveries not exceeding 60 calendar days after
the respective due date. Until the Closing Date Seller, the Selling Subsidiaries and the
Companies have done everything in consistence with past practice and in the ordinary
course of business in view of obligations under the Assumed Contracts and material
agreements of the Companies existing as of the Closing Date, but to be fulfilled after the
Closing Date. They have not received a notice of termination, and there is - to the
exception of change of control provisions as disclosed in Schedule 4.10 - no issue
that entitles either party to termi-
|---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

33

| | nation
for cause, with respect to any agreement that is  material to the Business.
| | ----------------------------------------------------------------------------------

|4.11 |  | Intellectual
Property/Know-how. Subject to art. 9 of this Agreement the Companies own or have
sufficient rights to use at the Closing Date all the know-how and all patents, trademarks,
copyrights and other intellectual property rights which they use for the conduct of their
business as it is conducted prior to the Closing. Subject to art. 9 of this Agreement the
Purchasing Subsidiaries will with the Transferred Intellectual Property have at the
Closing Date all the know-how, patents, trademarks, copyrights and other intellectual
property rights which the Selling Subsidiaries use for the conduct of the Business as it
is conducted prior to the Closing. Purchaser acknowledges the fact that the software
licenses set forth in Schedule 4.11 expire at the Closing Date and that the
Companies and the Purchasing Subsidiaries need to obtain at their cost new licenses if
they intend to continue to use the software concerned.
|---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | To
Sellers best knowledge the Business does not violate any intellectual property
rights of third parties.
| | -----------------------------------------------------------------------------------------------------------

|4.12 |  | Pensions / Social
Security Payments.As of December 31, 2001 all accrued pension liabilities towards the
Business employees calculated as set forth in Schedule 4.12 are covered by
funds of special foundations, by insurance contracts or provisions that have specifically
been established for such purpose in the Financial Statement. All the accrued pension
liabilities towards the Business employees for the period from January 1, 2002,
until the Closing Date are taken into account in the computation of the Closing Date Net
Working Capital Amount and the amount of such funds has been calculated using the same
assumptions as listed in Schedule 4.12.
|---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Seller,
furthermore,  warrants that the Companies have complied with all applicable social
security and pension  regulations  and have made when due all the deductions and payments
required to be made under such regulations until the Closing Date.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

34

|4.13 |  | Compliance
with the Law. To Sellers best knowledge, the Companies and the Selling
Subsidiaries with regard to the Business do not violate and have not violated any
applicable laws (including tax laws), ordinances, regulations, decrees or orders of any
government entity.
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Seller,
in particular, warrants that to Sellers best knowledge the Companies and their
plants, real estate and equipment and the Transferred Assets comply and have complied with
all applicable labor and occupational health and safety laws, regulations, decrees and
orders and that the competent authorities have not informed the Companies or the Selling
Subsidiaries in writing that they will issue any orders with which the Business does not
yet comply as of the Closing Date.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.14 |  | Environmental
Matters. To Sellers best knowledge, the Transferred Assets and all properties
and facilities that are operated by the Companies comply and have complied with all
applicable environmental laws, regulations, decrees and orders and that no authority or
governmental agency has expressly informed the Seller, the Companies and the Selling
Subsidiaries that they intend or consider to issue any order or to change any provision of
an existing license or permit with which the Business does not yet comply.
|---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.15 |  | Warranty
Claims and Product Liability. Seller warrants that third parties have not raised
within the last 3 years claims against the Companies and the Selling Subsidiaries in
connection with any products delivered or services rendered by the Companies or the
Selling Subsidiaries before the Closing Date which exceed CHF 100,000 in each individual
case, whereby series of claims arising from the same or similar alleged defects are
considered as one case, except as listed in Schedule 4.15.
|---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.16 |  | Insurance. Seller
has maintained for the products of the Business sold before the Closing Date insurance
which applies the claims made principle. Seller has no knowledge of claims
having occurred prior to the Closing Date which have not been
|---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

35

| | notified to the
appropriate insurance company.
| | ----------------------------------------------

|4.17 |  | Assets
and Liabilities of Clariant Emulsion Holding AB and Clariant Emulsion Norden AB. As of
the Closing Date the only assets of Clariant Emulsion Holding AB are 10000 shares of
Clariant Emulsion Norden AB with a nominal value of SEK 1,000 each. As of the Closing Date
Clariant Emulsion Holding AB has  other than debts listed in Schedule 4.17 
no debts or other liabilities (including contingent liabilities). Until the Closing Date
Clariant Emulsion Holding AB has not exercised any activities other than to own shares of
Clariant Emulsion Norden AB.
|---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.18 |  | Stay-On
Incentives. Seller has concluded agreements providing for stay-on incentives with each
of the key employees identified in Schedule 4.18.
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------

|4.19 |  | Information
Provided/Absence of Breach.The information provided in the Due Diligence Material, in
the information memorandum dated June 2002, in the written material distributed to
Purchaser upon the occasion of the management presentation on July 11, 2002, or in the
written information provided in the course of the negotiation of this Agreement is true
and correct in all material respects and fairly represents all material elements required
for a reasonable purchaser for the assessment of the value of the Business. Furthermore,
to Sellers best knowledge, no representation and warranty set forth under this art.
4 is breached at the date hereof.
|---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.20 |  | No Further
Warranties. Except as expressly provided in this art. 4, Seller makes no
representation or warranty with respect to the Shares or to the Business.
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------

---

36

# ARTICLE 5Remedies

|5.1 |  | Term
of Warranties and Representations. The representations and warranties set forth in
art. 4 of this Agreement shall continue in effect until June 30, 2004. The representations
and warranties set forth in art. 4.9 of this Agreement shall, however, continue in effect
until six months after the statute of limitation on the tax claims concerned has expired
and those set forth in art. 4.4 until May 31, 2005. The representations and warranties set
forth in art. 4.3, 4.6 and 4.11 shall continue in effect until the seventh anniversary of
the Closing Date.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5.2 |  | Notification
and Arbitration. The Parties waive the notification and examination requirements of
art. 201 of the Swiss Code of Obligations. However, Purchaser has to notify Seller within
60 calendar days after Purchaser has detected a breach of warranties triggering the
threshold of art. 5.4.1 (i), describing in reasonable details such breach. If Purchaser
has notified Seller of a breach of representations and warranties, Purchaser has to
commence arbitration in accordance with art. 13.2 of this Agreement within 12 months after
such notification has been made, unless the claim raised by Purchaser is either settled
before the expiry of such deadline or the Parties agree in writing on an extension of such
deadline. If Purchaser fails to meet such deadline, the claim concerned shall be forgone
and unenforceable.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5.3 |  | Damages. In
case of a breach of a warranty or representation by Seller, Seller shall within the
limitations set forth in art. 5.4 of this Agreement either remedy the breach within 60
calendar days after having been notified of the breach or pay to Purchaser damages, if and
in the amount Purchaser is entitled to under this art. 5, or, at the election of the
Purchaser, pay such amount to the Companies or the Purchasing Subsidiaries. Any
representation or warranty given by Seller under this Agreement shall be for the benefit
of the Purchaser, the Companies and the Purchasing Subsidiaries, and the
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

37

| | Purchaser
shall be entitled to assign to a Company or a Purchasing Subsidiary any individual claim
it may have against Seller under this Agreement or any agreement entered in the context of
the transaction contemplated by this Agreement. Any other remedy and, in particular, the
rescission of the Agreement is excluded, to the extent permissible under applicable Swiss
law.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5.4 |  | Limitations
|--- |  | -----------

|5.4.1 |  | De
Minimis. Seller shall have no obligation to pay any amounts under art. 5.3 of this
Agreement unless:
|----- |  | -------------------------------------------------------------------------------------------------------

| | (i) |  | the
amount to be paid as indemnification exceeds CHF 75,000. (such amount not to be
deducted from Purchasers total indemnity claim under this art. 5) for each
individual breach, whereby various breaches arisen from a similar matter having the same
cause or the same matter shall be aggregated and count as one individual breach,
and
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) |  | the
aggregate amount  of the amounts described in (i) above exceeds CHF 2 million (such
amount not to be  deducted from Purchasers total indemnity claim under this art. 5).
| | ---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5.4.2 |  | Maximum Amount. Any
payments of the Seller for breaches of representations and warranties set forth in this
Agreement, but including payments under art. 6, shall be limited to CHF 100 million (in
words: CHF onehundredmillion).
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5.4.3 |  | Exempt
Representations and Warranties. None of the limitations described in art. 5.4.1 and 5.4.2
shall apply to the representations and warranties set forth in art. 4.1, 4.2, 4.3 and 4.9
of this Agreement or to any obligation to transfer title free and clear of encumbrances or
rights of third parties.
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

38

|5.4.4 |  | Exclusion of
Liability. Seller shall not be liable in respect of a claim of Purchaser for breach of
warranties and representations:
|----- |  | -----------------------------------------------------------------------------------------------------------------------------------

| | (i) |  | if
and to the extent that any provision, reserve, debt or expense for the matter giving rise
to the claim was specifically taken into account in the Financial Statement, in the
computation of the Closing Date Net Working Capital Amount or in Schedule
1.3a;
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) |  | if
and to the extent that the matter giving rise to a claim under art. 4, except for a claim
brought under art. 4.13 or 4.14, was disclosed in one of the Schedules attached to this
Agreement, in the Due Diligence Material, in the information memorandum dated June 2002,
in the written material distributed to Purchaser upon the occasion of the management
presentation on July 11, 2002, or in the written information provided in the course of the
negotiation of this Agreement, all to the extent the issue was fairly addressed in such
written document disclosed by Seller to Purchaser;
| | ---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) |  | if
and to the extent that Purchaser, the Purchasing Subsidiaries or the Companies are
entitled to claim compensation of any loss or damages suffered by them under the terms of
any insurance policy issued to or for the benefit of the Seller or one of the Selling
Subsidiaries or from any other third party; such defense may, however, be raised only if
the Purchaser, the Purchasing Subsidiaries or the Companies are actually compensated by
the insurance company or the third party concerned within 60 days after the claim has been
notified to such insurance company or third party. After the expiry of such 60 days
deadline Seller may not raise such defense if the Purchaser, the Purchasing Subsidiaries
or the Companies have assigned to Seller the claim against the insurance company or the
third party.
| | ----- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iv) |  | if
and to the extent that any Tax for which Purchaser, the Purchasing Subsidiaries
| | ---- |  | ----------------------------------------------------------------------------------

---

39

| | or
the Companies are liable is reduced (taking into consideration the compensation payment by
Seller) as a result of any matter giving rise to a claim of Purchaser under the above
representations and warranties;
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (v) |  | if
and to the extent that any damage or loss was caused on or after the Closing Date by any
act or omission of Purchaser or the Purchasing Subsidiaries or by the fact that Purchaser,
or the Purchasing Subsidiaries have failed to take the necessary steps to mitigate the
damage caused by a breach of a representation or warranty.
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5.5 |  | Procedure with
Third Parties and Authorities.If a breach of a representation or of warranty exists
because any authorities or third parties raise claims against the Companies, or the
Purchasing Subsidiaries or if the Companies or the Purchasing Subsidiaries in connection
with such a breach have to enforce any rights or claims against authorities or third
parties, such negotiations and proceedings shall be carried on in accordance with the
reasonable instructions of Seller who if Seller has fully compensated Purchaser may also
take over such negotiations and proceedings or, the Companies or the Purchasing
Subsidiaries against such claim conduct them himself for the account of the Companies. The
Companies in any event may not settle any such claims without Sellers consent, which
shall not be unreasonably withheld or delayed.
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5.6 |  | Sale of
Receivables. If and to the extent that any of the receivables acknowledged in the
computation of the Closing Date Net Working Capital Amount cannot be collected by the
Purchaser within 90 calendar days after their respective due dates, the Purchaser shall at
any time have the right to sell such receivables to the Seller, and the Seller shall
purchase such receivables from the Purchaser, for a consideration equal to their
respective face value less the pro-rated portion of the reserves for doubtful receivables
(plus interest thereon at a rate of 6 % from the due date to the date of payment by
Seller). Such consideration and interest shall be payable in cash, upon (Zug um
Zug) the assignment of the receivables, on the fifth Business Day after
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

40

| | the
Purchaser has requested the sale. The limitations contained in art. 5.4 shall not apply to
the Purchasers rights under this art 5.6.
| | -----------------------------------------------------------------------------------------------------------------------------------------

|5.7 |  | No Application to
Indemnities and Covenants. Subject to art. 5.4.2, this art. 5 is not applicable to the
indemnities set forth in art. 6 and art. 8 of this Agreement.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ARTICLE 6Indemnities

|6.1 |  | Environmental
Indemnification
|--- |  | -----------------------------

|6.1.1 |  | Management of
Environmental Issues.Certain environmental issues (including certain preexisting
contamination of soil and ground water) of the Höchst site are managed by InfraServ
GmbH & Co. Höchst KG. Certain environmental issues (including any preexisting
contamination of soil and ground water of the Tarragona site (for conventional emulsions)
are managed by Clariant. Through rent and infrastructure service charges Purchaser will
participate in the costs of the ongoing environmental management of these two sites. At
the sites owned by the Companies and the Tarragona site for VAE emulsions the Purchaser or
the Purchasing Subsidiary concerned are responsible for the management of any
environmental issues (including any preexisting contamination of soil and ground water)
after the Closing Date, subject to the provisions of this article 6.
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.1.2 |  | Indemnification of
Purchaser. Under no circumstances shall Purchaser be responsible for
Geschäftsbereichsaltlasten of Clariant (as such term is used in the
articles of association of InfraServ GmbH & Co. Höchst KG) existing on the
Closing Date, and Clariant GmbH shall indemnify the Purchaser against any claim relating
to Geschäftsbereichsaltlasten at the Höchst site. Furthermore,
Seller shall indemnify and hold harmless Purchaser, the Purchasing Subsidiaries and the
Companies with
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

41

| | regard
to the Business from and against any Environmental Liabilities resulting from any acts,
omissions or circumstances caused or existing prior to the Closing Date, provided,
however, that such indemnification and hold harmless in relation to Spain and Germany is
not given by Seller, but shall be given by Clariant Iberica S.A. and Clariant GmbH,
respectively, and Seller warrants that such indemnification will be paid. Any
environmental contamination caused by or relating to substances connected to the Business
(including Zersetzungsprodukte) and that have not been used or
generated on the respective facilities or other premises transferred by this Agreement on
or after the Closing Date, as demonstrated by the Purchaser, shall be deemed as having
occurred or existed prior to the Closing Date. At the request of the Seller, such
demonstration shall include an affidavit of the person responsible for the management of
such facility or premises. Certain environmental management costs of the Höchst site
and the Tarragona site charged to Purchaser and Purchasing Subsidiaries or  as the
case may be  borne by the Companies as described in art. 6.1.1 (but not
Geschäftsbereichsaltlasten) and further defined in Schedule 6.1.2
are exempt from such indemnification. No indemnity shall, furthermore, be paid if and to
the extent that any provision, reserve, debt or expense for the specific matter giving
rise to a claim was specifically taken into account in the Financial Statement, in the
computation of the Closing Date Net Working Capital Amount or in Schedule
1.3a.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | If
any  building,  machine or other piece of  equipment  used in the Business is required to
be modified or replaced due to a  change of law or regulation  after the Closing Date,
all costs,  expenses and losses  associated  therewith shall be borne by  Purchaser.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.1.3 |  | Indemnification of
Seller. Purchaser shall indemnify and hold harmless Seller and/or Sellers
Affiliated Companies from and against any Environmental Liabilities to the extent Seller
has proven that they are a result from any acts, omissions or circumstances caused on or
after the Closing Date in connection with the Business (and not already caused or existing
prior to the Closing Date).
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

42

|6.1.4 |  | Shared
Liability. With respect to Environmental Liabilities resulting both from (i) acts,
omissions and circumstances caused or existing prior to the Closing Date and (ii) acts,
omissions and circumstances caused or existing on or after the Closing Date, Seller and
Purchaser shall bear the respective liability prorated in relation to the degree of
Environmental Liabilities which was caused or existing (a) prior to or (b) on or after the
Closing Date.
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.1.5 |  | Undeterminable
Contamination. If it cannot be proven by either Party that the respective liability
results from an act, omission or circumstances for which, pursuant to art. 6.1.2 and
6.1.3, the other Party is responsible, or if it cannot be proven for which degree the
respective other party is responsible pursuant to art. 6.1.4, then the respective
Environmental Liability shall be prorated between Seller and Purchaser as
follows:
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Year of Discovery after theClosing Date |  | Share of Seller |  | Share of Purchaser | 
|--------------------------------------- |  | --------------- |  | ------------------ | 
|                                       
|0 - 2                                   |  | 100%            |  | 0%                 | 
|3 - 4                                   |  | 80%             |  | 20%                | 
|5 - 6                                   |  | 60%             |  | 40%                | 
|7 - 8                                   |  | 40%             |  | 60%                | 
|9 - 10                                  |  | 20%             |  | 80%                | 
|11 and after                            |  | 0%              |  | 100%               | 

|6.1.6 |  | Conditions. The
indemnification by Seller provided for in art. 6.1 of this Agreement is subject to the
following conditions:
|----- |  | ----------------------------------------------------------------------------------------------------------------------------

| | 6.1.6.1 |  | The Environmental
Liabilities (i) are a result of (1) regulations that were actually enforced, (2) judicial
or administrative orders, or (3) judgments arising out of actions brought by any
governmental agency or any other person against the Purchaser, the Companies, or the
Purchasing Subsidiaries, and
| | ------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

43

| | Purchaser
has provided Seller with notice of such actions and has allowed Seller the right, at
Sellers own election, to participate in the defense against such claim or action or
(ii) (1) are the result of a negotiated judicial or administrative consent agreement,
decree, permit, or remedial plan, or (2) are voluntarily incurred for environmental
remedial actions, reasonably necessary to prevent a judicial or administrative obligation
that is otherwise threatened to be actually enforced, provided that before the Purchaser,
the Companies or the Purchasing Subsidiaries voluntarily enters into such agreement or
order pursuant to (ii) (1) or (2) Purchaser has provided Seller with written notice of
the  need for such actions and obtained Sellers consent in writing (such consent
not to  be withheld or delayed unreasonably) or (iii) are the result of any actions of
Purchaser  to avert an imminent danger. Notwithstanding the above, the obligation of the
Parties to  mitigate damages shall always apply.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.1.6.2 |  | In the event of an
indemnification under this art. 6.1 for which Sellers share of the Environmental
Liability is fifty (50) % or more, Purchaser shall allow Seller, upon Sellers
request, to conduct and control the remedial actions, unless Purchaser has reasonable
ground to conduct the remediation himself. In any event, Seller and Purchaser shall
cooperate in the activities described in art. 6.1 and shall not unreasonably withhold or
delay their consent or any other action reasonably required.
| | ------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.1.6.3 |  | Purchaser, the
Companies and/or the Purchasing Subsidiaries have not provoked an order, decree or similar
act of competent authorities by undertaking any digging or drilling on the premises used
by them without sound business reasons applying the same principles as used for the
conduct of Purchasers other business.
| | ------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.1.6.4 |  | The conditions in this
art. 6.1.6 shall, vice versa, also apply to any indemnification by Purchaser provided for
in art. 6.1.3 of this Agreement.
| | ------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------

---

44

|6.1.7 |  | Maximum Amount.
The total indemnity to be paid by Seller or Purchaser respectively under this art. 6.1,
but including payments under art. 4 and art. 5, shall be limited to CHF 100 million (in
words: CHF onehundredmillion).
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.2 |  | Tax
Indemnification
|--- |  | -------------------

|6.2.1 |  | Indemnification.
Seller shall indemnify and hold harmless, the Purchasing Subsidiaries from all Taxes in
connection with the Business conducted by the Selling Subsidiary which relate to the time
period prior to the Closing Date and any damages and expenses arising from the non-payment
of such Taxes prior to such date. No indemnity has to be paid if and to the extent that
any provision, reserve, debt or expense for such Taxes has been taken into account in the
Financial Statement or in the calculation of the Closing Date Net Working Capital
Amount.
|----- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Seller
shall, furthermore, indemnify Purchaser for any Swedish income taxes that become due
because Clariant Emulsion Norden AB and Clariant Emulsion Holding AB are merged after
January 1, 2003 but before December 31, 2004 including any taxes that are caused by the
fact that before the Closing Date certain shares of Clariant Emulsion Norden AB have been
transferred to Clariant Emulsion Holding AB. No payment is due under this indemnity for
taxes due according to chapter 37 section 27 of the Swedish Income Tax Act
(1999.1229).
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.2.2 |  | Right to
Participate in Tax Audits. Seller has the right to participate in all audits
concerning Taxes relating to the Business and the time prior to the Closing Date. Seller
shall participate through an auditor or tax advisor who shall exercise Sellers
rights. Seller shall furthermore have the right to request  at Sellers own
expense  the filing of appeals against the assessment of Taxes, which result from
such audits, if and to the extent such tax assessment relates to the time prior to the
Closing Date. In the event that Seller elects to exercise such right, Purchaser shall make
available to
|----- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

45

| | Seller
or cause to be made available all relevant documentation reasonably  necessary for any
instructions on the filing of appeals. Purchaser shall furthermore  ensure that the
Purchasing Subsidiaries assist Seller free of charge in any tax procedures  relating to
the Business and the time prior to the Closing, it being understood that any  external
costs reasonably incurred by Purchaser, the Companies or a Purchasing  Subsidiaries in
this connection shall be reimbursed by Seller.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.3 |  | Indemnification regarding Transferred Employees. The Transferred
Employees are transferred from the Selling Subsidiaries to the Purchasing
Subsidiaries in accordance with the Local Agreements and with applicable law.
With regard to such employees the parties grant each other the following
indemnifications:
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.3.1 |  | Indemnification of Purchaser. Unless the Personalvertrag set forth
in Schedule 6.3.1 provides for a different solution with regard to the
employees transferred by Clariant GmbH, Seller shall indemnify Purchaser and the
Purchasing Subsidiaries for any claims of the Transferred Employees relating to
periods before the Closing Date including (i) any claims for any vacation and
overtime accrued before the Closing Date and (ii) any claims for a prorated
portion (January 1, 2002 until the Closing Date) of any year end bonus and
similar payments for the year 2002 to be paid to Transferred Employees. Seller
or the Sellers Affiliated Companies shall, either directly pay or
indemnify Purchaser and the Purchasing Subsidiaries for 100 % of the stay-on
bonuses described in Schedule 4.18and any further stay-on bonuses
granted by Seller, the Selling Subsidiaries or the Companies until the Closing
Date. Seller shall, furthermore, indemnify Purchaser, the Companies or the
Purchasing Subsidiaries for any claims of Transferred Employees who object to
their employment agreement being transferred to the Purchasing Subsidiaries and,
therefore, according to applicable law, are not transferred to the Purchasing
Subsidiaries concerned.
|----- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
indemnity shall not be paid if and to the extent that any provision, reserve, debt or
expense for the matter giving rise to a claim was taken into account in the Financial
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

46

| | Statement or in the
computation of the Closing Date Net Working Capital Amount.
| | -------------------------------------------------------------------------------

|6.3.2 |  | Indemnification of
Seller. Purchaser shall indemnify Seller and the Selling Subsidiaries for any claims
of Transferred Employees relating to periods after the Closing Date and for any claims for
year end bonuses and similar payments for the year 2002 for which Seller, pursuant to art.
6.3.1 of this Agreement, is not liable.
|----- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.3.3 |  | Employees
Inventions. Certain jurisdictions as, in particular, Germany provide for special
compensation to be paid to employees for inventions, such compensation to be paid during
the time the invention is used. Seller or, as the case may be the Selling Subsidiary
concerned shall be responsible for such compensation accrued due to use of employees
inventions before the Closing Date, whereas Purchaser or, as the case may be the
Purchasing Subsidiary shall be responsible for such compensation accrued due to use of
employees inventions after the Closing Date, independent of whether or not such
employees are transferred to Purchaser. The Parties shall indemnify each other if and to
the extent a Transferred Employee raises against one Party a claim for which the other
Party is responsible under this art. 6.3.3.
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.4 |  | Indemnification for
Excluded Liabilities. Seller shall indemnify and hold harmless Purchaser, the
Purchasing Subsidiaries and the Companies from all Excluded Liabilities. For product
liability claims involving Mowilith products outside Europe, the United States and Canada
or within Europe but involving TLP products, Seller will immediately assume defense of any
cases and will defend, indemnify and hold harmless Purchaser, the Purchasing Subsidiaries
and the Companies until Seller proves that Purchaser, the Purchasing Subsidiaries or the
Companies produced and/or sold after the Closing Date the product at issue.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.5 |  | Indemnification for
Borvi S.A.Seller shall indemnify and hold harmless Purchaser, the Purchasing
Subsidiaries and the Companies for any claim (net of tax effect) based
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

47

| | on
the activities  of Borvi S.A., unless and to the extent the matter giving raise to the
claim was taken  into account in any provision, reserve, debt or expense in the financial
statements of  Clariant Emulsion AB.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ARTICLE 7Product Liability / Liability Insurance

| | Seller
shall indemnify and hold harmless Purchaser, the Purchasers Affiliated Companies and
the Companies from any claim related to products produced and sold by the Companies or the
Selling Subsidiaries prior to the Closing Date and that are based on an occurance prior to
the Closing Date, unless such liabilities and obligations entitles Seller or Sellers
Affiliated Companies to a claim against Purchaser or Purchasers Affiliated Companies
under applicable law or supply contracts. In case of a warranty claim falling within the
responsibility of the Seller under this art. 7, the Parties shall cooperate in good faith
and the Purchaser and the Purchasing Subsidiaries shall endeavor to settle such claims by
delivering a replacement product or re-processing the product to be charged to Seller at
manufacturing cost plus 8%.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Purchaser,
the Companies and the Purchasing Subsidiaries shall be fully responsible for adequate
insurance coverage on and after the Closing Date. Seller shall provide for an adequate
insurance for the benefit of the Purchaser, the Purchasers Affiliated Companies and
the Companies covering claims related to the products of the Business sold before the
Closing Date and that are based on an occurance prior to the Closing Date but are claimed
within 2 years after the Closing Date. Any amount paid under such insurance policies to
the Purchaser, the Purchasers Affiliated Companies or the Companies shall be
deducted from any claims Purchaser may have under this Agreement against Seller with
regard to the damage concerned.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | For
a period of 2 years after the Closing Date Seller shall indemnify any director or
| | -------------------------------------------------------------------------------------

---

48

| | officer who holds
such position in a Company or is transferred with the Business to the Purchaser,
Purchasers Affiliated Companies or the Companies with respect to any act or omission
that occurred prior to the Closing Date, including any covered activity that such person
may be held responsible for in the context of the transaction contemplated by this
Agreement, provided that such act or omission would be covered by a standard appropriate
D&O insurance; provided, however, that such indemnity shall be limited to an overall
amount of CHF 500,000 and shall not be applicable to any claims of Purchaser, the
Purchasers Affiliated Companies and the Companies against such director or
officer.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ARTICLE 8Covenants

|8.1 |  | Covenants
not to  compete
|--- |  | -------------------------

|8.1.1 |  | Covenant of Seller. Seller is prohibited for a
period of 3 (three) years for Europe and 5 (five) years for the United States
and Canada after the Closing Date to directly or indirectly through Affiliated
Companies (in particular, without limitation, through the Affiliated Companies
listed in Schedule 8.1.1 which own emulsion manufacturing equipment),
manufacture, have manufactured by third parties, or sell (including resale)
within Europe, the United States and Canada emulsions for any applications
outside TLP. Seller, furthermore, is prohibited for a period of 3 (three) years
for Europe and 5 (five) years for the United States and Canada after the Closing
Date to directly or indirectly, manufacture, have manufactured by third parties
or sell (including resale) emulsion powder for any application on a worldwide
basis (excluding Japan, China, Vietnam, South Korea and Malaysia).
|----- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
following activities, however, are exempt from such non-compete covenant:
| | -----------------------------------------------------------------------------

---

49

| | (i) |  | The current or future business of Seller and of Sellers Affiliated
Companies in emulsions for applications in TLP, Acrylic Technology and Ink Jet Paper
Coating Technology.
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (ii) |  | The current or future business of Seller and of Sellers Affiliated
Companies relating to emulsions outside Europe, the United States or Canada.
| | ---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------

| | (iii) |  | The acquisition of
other companies or mergers with other companies which as a side line manufacture and/or
sell emulsions and/or emulsion powders, provided that such competing business does not
exceed 25% of the annual revenues of the acquired or merged entity.
| | ----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (iv) |  | Any activities that
are required in the context of agency, distribution or toll manufacturing agreements
concluded with Purchaser or Purchasers Affiliated Companies.
| | ---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.1.2 |  | Covenant
of Purchaser. Purchaser is prohibited for a period of 2 (two) years after
the Closing Date to directly or indirectly through Affiliated Companies manufacture, have
manufactured by third parties or sell (including resale) within Japan, Vietnam, South
Korea and Malaysia, (i) emulsions for any applications (a) based on Acrylic Technology or
Ink Jet Paper Coating Technology or (b) emulsions that are transferred under this
Agreement or manufactured using Transferred Intellectual Property Rights and (ii) emulsion
powder that are transferred under this Agreement or manufactured using Transferred
Intellectual Property Rights for any application.
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
following activities, however, are exempt from such non-compete covenant:
| | -----------------------------------------------------------------------------

| | (i) |  | The acquisition of
other companies or merger with other companies which has a side line manufacture and/or
sell emulsions and/or emulsion powders provided
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------

---

50

| | that
such competing business does not  exceed 25% of the annual revenues of the acquired or
merged entity.
| | ----------------------------------------------------------------------------------------------------------

| | (ii) |  | Any activities that
are required in the context of agency, distribution or toll manufacturing agreements
concluded with Seller or Sellers Affiliated Companies.
| | ---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.1.3 |  | Obligation
to  pass on non-compete covenants
|----- |  | --------------------------------------------

| | Seller
and Purchaser herewith undertake to pass on the covenants of non-compete as stipulated in
art. 8.1.1 and 8.1.2, respectively, to a potential purchaser of all or part of the
Business (for Purchaser) or a potential purchaser of all or part of Clariant Polymers KK
or Clariant (Mexico) S.A. de C.V. or their respective assets (for Seller).
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.2 |  | Transfer
of  Distribution Rights and Distribution Know-how
|--- |  | ----------------------------------------------------------

|8.2.1 |  | Transfer of
Distribution Know-how and Information.Seller shall transfer or cause certain of its
Affiliated Companies to transfer to Purchaser or to a company designated by Purchaser all
the know-how and information Seller and its Affiliated Companies (other than Selling
Subsidiaries) have relating to their sale and distribution activities regarding (i)
emulsions within Europe, the United States and Canada limited to applications other than
(a) TLP and (b) Ink Jet Paper Coating Technology and (ii) emulsion powder on a worldwide
basis (excluding Japan, China, Vietnam, South Korea and Malaysia). Any know-how and
information relating to activities being exempt from the covenant not to compete as per
art. 8.1 of this Agreement shall, however, not be transferred. The know-how and
information to be transferred shall include in particular:
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | Data on
emulsion/emulsion powder;
| | - |  | ---------------------------------

| |  |  | Correspondence
with customers on orders of emulsion /emulsion powders
| | - |  | ---------------------------------------------------------------------

---

51

| | (such
obligation to be limited to  correspondence exchanged in the last three years before the
Closing Date plus any older  documentation, if still of legal relevance);
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | All documents on the
sale and the distribution of emulsion /emulsion powders as available on the Closing
Date.
| | - |  | --------------------------------------------------------------------------------------------------------------

|8.2.2 |  | Transfer of
Distribution Rights.Without limiting Sellers obligation to transfer the
Business as elsewhere provided for in this Agreement, Seller shall cause all its
Affiliated Companies listed in Schedule 8.2.2 to transfer as of the Closing Date
the distribution and/or agency rights for (i) emulsions for Europe, the United States and
Canada other than (a) TLP and (b) Ink Jet Paper Coating Technology and (ii) emulsion
powder on a worldwide basis (excluding Japan, China, Vietnam, South Korea and Malaysia) to
the Purchaser or to a company designated by Purchaser.
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
particular, and without limiting Sellers non-compete-obligations pursuant to art.
8.1, Seller shall ensure that its Affiliated Companies listed in Schedule
8.2.2:
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | cease
to sell and distribute as of the Closing Date any emulsions and emulsion powders, unless
and to the extent (i) the Affiliated Company concerned has concluded a valid agency
agreement with Purchaser pursuant to art. 8.2.5 of this Agreement, (ii) or Purchaser
otherwise in writing has authorized the Affiliated Company concerned to distribute and/or
sell emulsions and/or emulsion powders or (iii) the Affiliated Company concerned does not
violate art. 8.1 of this Agreement with such activity;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | transfer
on the Closing Date to Purchaser or to a company designated by Purchaser all the orders
for emulsion powders on a worldwide basis (excluding Japan, China, Vietnam, South Korea
and Malaysia) and emulsions (for Europe as far as they do not exclusively relate to
applications in the TLP and Ink Jet Paper Coating Technology) that have not been fulfilled
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

52

| | on
the Closing Date (combined orders are split); the Purchaser assumes full responsibility
for the fulfillment of such orders.
| | ------------------------------------------------------------------------------------------------------------------------------

|8.2.3 |  | Sellers
Indemnity. Seller shall hold harmless Purchaser and the Purchasing Subsidiaries from
any claims, which may be made by Sellers Affiliated Companies or any third party in
connection with the transfer of know-how and information described in art. 8.2.1 of this
Agreement.
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Seller
shall indemnify and hold harmless Purchaser, the Companies and the Purchasing Subsidiaries
from any liabilities in connection with the distribution and agency rights of
Sellers Affiliated Companies listed in Schedule 8.2.2 relating to the period
prior to Closing Date, including but not limited to criminal or administrative fines or
civil suits relating to alleged violations of anti-trust laws or regulations or laws
against corruption, bribery or the like. Seller represents and warrants that the Business
to Sellers best knowledge is not and has not been involved in any such unlawful
activity. Purchaser shall not assume any outstanding liabilities or obligations (including
contingent liabilities and obligations) against Seller or Sellers Affiliated
Companies under the transferred distribution rights.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.2.4 |  | Agency Agreements.Purchaser may  at its choice  upon the Closing Date enter into agency
agreements with Sellers Affiliated Companies listed in Schedule 8.2.4a in the
form set forth in Schedule 8.2.4b. Purchaser, Purchasers Affiliated Companies
or the Companies shall buy at DDP (Incoterms) at the location of the inventory within 30
days after the Closing Date from the Affiliated Companies listed in Schedule 8.2.4a
the existing stock of products of the Business purchased by such Affiliated Companies in
the ordinary course of business. Purchaser shall conclude with Seller the agency agreement
set forth in Schedule 8.2.4.c that enables Seller and Sellers Affiliated
Companies to sell emulsions for VAE non-woven manufactured by Purchaser for three years
after the Closing Date.
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

53

|8.3 |  | Actions
of Seller  before/on Closing
|--- |  | ------------------------------------

|8.3.1 |  | Termination of
Agreements between the Companies and Seller.Except as otherwise provided by this
Agreement, on the Closing Date all agreements existing between (i) the Business on one
hand and (ii) Seller or any Affiliated Companies of Seller on the other hand shall be
automatically terminated. The termination of such agreements shall not oblige the
Purchaser, the Companies or the Purchasing Subsidiaries to make any payments in
compensation of the termination such as for example severance payments or any payment for
a notification period extending beyond the Closing Date.
|----- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.3.2 |  | Conclusion of
Service, Toll Manufacturing, Lease and IT Agreements. Seller and the Selling
Subsidiaries shall on the Closing Date conclude with the Purchaser, the Purchasing
Subsidiaries and the Companies the service, toll manufacturing, and lease agreements
substantially in the form and with the terms as set forth in Schedule 8.3.2a.
Purchaser and Seller shall enter into a service agreement related to IT substantially
based on the terms as set forth in
Schedule 8.3.2aa. If it should become foreseeable that the target date of
January 1, 2003, for the implementation of the project as described in Schedule
8.3.2aawill not be achieved, or if the Closing takes place prior to that
target date, the Parties will agree in good faith on an interim solution that
allows the continuation of the Business.
|----- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Purchaser
is aware that the Purchasing Subsidiary which takes over the facilities at the Höchst site
will have to enter into a long-term lease agreement for the land used by the Business at
the Höchst site as set forth in Schedule 8.3.2b substantially at the same terms as
in effect for the Business immediately before the Closing Date and must contract with
InfraServ GmbH & Co. Höchst KG at least for the mandatory site services listed in
Schedule 8.3.2c.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Purchaser
is aware that the Purchasing Subsidiary that takes over the facility at the
| | -------------------------------------------------------------------------------------

---

54

| | Tarragona
site  will have to enter into a long-term lease agreement for the land it uses on the
Tarragona  Site for the production of conventional emulsions as set forth in Schedule
8.3.2d substantially at the same terms as in effect for the Business immediately
before the  Closing Date and must contract with Clariant Iberica S.A. at least for the
mandatory site  services listed in Schedule 8.3.2e.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Seller represents and warrants (except regarding InfraServ GmbH & Co. Höchst KG) that
these agreements will be offered on or immediately after the Closing Date at substantially
the same terms as applicable prior to the Closing Dates, and indemnify Purchaser, the
Purchasing Subsidiaries or the Companies against any negative impact (cost or otherwise),
if and to the extent such unchanged terms are not offered to Purchaser, the Purchasing
Subsidiaries or the Companies.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.3.3 |  | Information of
Employees. Seller shall comply and represents and warrants that the Selling
Subsidiaries comply before the Closing Date with all legal requirements regarding
information of and consultation with the Transferred Employees. Seller shall inform
Purchaser on such requirements and on the form and content of the information to be
disclosed to the employees and shall coordinate such information with the
Purchaser.
|----- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.4 |  | Sale of Clariant
Emulsion Norden AB. Purchaser shall ensure that Clariant Emulsion Norden AB is not
sold by Clariant Emulsion Holding AB before January 1, 2003.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.5 |  | Conduct
of Business. Seller represents and warrants that from the date hereof until
the Closing Date without prior written approval of Purchaser:
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | no action and decision
regarding the employment of managers or other key employees which could have a material
effect on the Business shall be taken by itself or by the Companies;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

55

| |  |  | no new employee is
engaged for and no current employee of Seller or Sellers Affiliated Companies is
transferred to the Business, except for employees with an annual salary not exceeding CHF
100,000. which are necessary to carry on the Business;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | no new investment in
fixed assets is made as far as such investment on an individual basis exceeds the amount
of CHF 500,000..
| | - |  | -------------------------------------------------------------------------------------------------------------------------------

| | The
transactions made in compliance with art. 8 and art. 9 are exempt from this
provision.
| | ------------------------------------------------------------------------------------------

|8.6 |  | Supply of PVOH.
Purchaser undertakes that Purchaser, the Purchasing Subsidiaries and the Companies will
purchase PVOH needed for the Business for a period of up to 4 years from the Closing Date
substantially on the terms set forth in the agreement attached as Schedule
8.6.
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.7 |  | VAM. The
Parties undertake to negotiate in good faith an agreement regarding the use of the
technology to produce emulsions below 100 ppm residual VAM in accordance with the key
terms listed in Schedule 8.7.
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.8 |  | Future
use of DBM. Seller will pay to Purchaser an amount of EURO 8
million in case (i) a change in legislation would become effective either in the EU or in
the Netherlands within 3 years from the date hereof, which change would no longer permit
the utilization of DBM for polymer emulsions for cheese coatings and (ii) a process to
manufacture alternative polymer emulsions for cheese coatings without DBM should not be
developed and such emulsions manufactured by Purchaser on commercial scale manufacturing
equipment are not validated by at least 2 commercial customers within 3 years from the
Closing Date, despite diligent development, scale up and marketing efforts (including
reasonable, necessary investments).
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

56

|8.9 |  | Amendments
of existing supply agreement. The Parties shall amend the
existing supply agreements for acetic acid and acetic anhydride so that, inter alia, their
term is extended until December 31, 2006.
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.10 |  | Good
Faith Cooperation. The Parties shall use all reasonable good faith efforts
before and after the Closing Date to take all actions and to do all things necessary,
proper and advisable to consummate the transaction contemplated in this
Agreement.
|---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ARTICLE 9Intellectual Property

|9.1 |  | Licenses
|--- |  | --------

|9.1.1 |  | Grant of License
regarding emulsion applications to Seller for the use of the Transferred Intellectual
Property. Purchaser herewith grants or ensures that Purchasers Affiliated Companies
grant Seller a royalty free, perpetual, sole (unless stated otherwise herein) and
exclusive license to use the Transferred Intellectual Property and any intellectual
property and know-how owned by the Companies for applications and in the territories as
set forth hereafter (this license is not applicable to trademarks to which art. 9.2 of
this Agreement applies). This license entitles Seller and its Affiliated Companies to use
such know-how for its emulsion business outside Europe, the United States and Canada and
for emulsions for TLP worldwide, it being understood that to the extent the license is
based on VAE technology such license shall encompass only the use of VAE Emulsions for TLP
and shall specifically exclude any right to manufacture VAE Emulsions regardless of
whether this manufacturing pertains to emulsions for their use within TLP or to emulsions
for their use outside TLP. This license encompasses the right to grant sublicenses and
have toll
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

57

| | manufacturers
produce products for Seller and its Affiliated Companies. Seller  understands that this
license shall be (i) a sole and exclusive license regarding TLP and  (ii) an exclusive
but not a sole license outside TLP, i.e. that Purchaser, the Companies,  the Purchasing
Subsidiaries and any of Purchasers Affiliated Companies shall be free  in their use
of the Transferred Intellectual Property and any intellectual property and  know-how in
any non-TLP area of application and in any territory of the world with the  exception of
the countries listed in Schedule 9.1.1. Purchaser is aware of the fact  that a
sublicense will, in particular, be granted to Resiquimica Ltda for the territory of
Portugal only, and that such license will not include a license regarding any trademark
transferred or licensed under this Agreement.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Seller
shall, however, not use the Transferred Intellectual Property and the intellectual
property and know-how owned by the Companies within Europe, United States and Canada, for
the scope the emulsion business in Europe, United States and Canada for emulsion
applications that are part of the Business and shall cause its Affiliated Companies not to
use such intellectual property and know-how within these territories, unless otherwise
provided for in this Agreement.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9.1.2 |  | Licenses regarding
Emulsion Powder.Purchaser herewith grants Seller a royalty free, perpetual, sole and
exclusive license to use the Transferred Intellectual Property to use such know-how for
its emulsion powder business within Japan, China, Vietnam, South Korea and Malaysia. This
license encompasses the right to grant sub-licenses and the right to transfer the
license.
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Seller
herewith grants Purchaser a royalty free, perpetual, sole and exclusive license to use any
intellectual property and know-how developed by Clariant Polymers KK prior to the Closing
Date to use such know-how for its emulsion powder business worldwide with the exception of
Japan, Vietnam, South Korea and Malaysia. This license encompasses the right to grant
sub-licenses and the right to transfer the license.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

58

| | The
licenses as per the previous two paragraphs of this art. 9.1.2 shall be sole and exclusive
for the first two years after the Closing Date and exclusive thereafter.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9.2 |  | Trademarks.The
Trademarks listed in Schedule 9.2 are transferred to Purchaser or the Purchasing
Subsidiaries as part of the Transferred Intellectual Property and may be used by them in
the territories for which such trademarks are registered.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9.2.1 |  | Interim Use of
Transferred Trademarks by Seller. Seller and Sellers Affiliated Companies shall
cease to use the trademarks listed in Schedule 9.2 for any activities in the
territories listed in such Schedule within six months after the Closing Date; Purchaser,
the Companies and Purchasers Affiliated Companies shall cease to use the trademarks
that are owned by Seller and Sellers Affiliated Companies and not listed in
Schedule 9.2, i.e. MOWILITH, MOWITON and SENSITAC for any activities no later than
six months after the Closing Date, except to the extent permitted by any other written
agreement or understanding.
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9.2.2 |  | Name and
Trademark Clariant. Purchaser shall ensure that the Companies and the
Purchasing Subsidiaries cease to use the Name and Trademark Clariant within
three months after the Closing Date. They shall in particular cease to use such name on
any document (including but not limited to stationery, promotional material, invoices,
etc. irrespective of whether in paper or electronic form) within such period. The
Purchaser shall also ensure that the Companies within three months after the Closing Date
change their names by deleting the word Clariant and make the appropriate
filing with the competent authorities. As far as the Companies own domain names containing
the word Clariant the Purchaser shall cause the Companies to transfer such
domain names within three months after the Closing Date free of charge to Seller. For the
right to use the trademark Clariant during such transition period the
Purchaser shall pay 2 % on the turnover achieved by the Business during such three months
period. Such license fee shall be deemed included in the Total Net Purchase Price and
consequently shall  on the basis of an estimate of such turnover  be
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

59

| | taken into account in
the allocation of the Total Net Purchase Price pursuant to art. 2.2 of this
Agreement.
| | ------------------------------------------------------------------------------------------------------------

| | Seller
acknowledges and agrees that it is the intent of the Purchaser to discontinue the use of
the trademark Clariant on products, literature, as part of company names etc. as soon as
practically possible. Practical solutions, etc. the use of stickers covering the trademark
"Clariant" on literature etc. will be instituted. However, Purchaser shall have
no obligation to repackage the product or reprint literature prior to depletion of
inventory.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ARTICLE 10Transfer of Management Responsibility and Directors

|10.1 |  | Transfer of
Management Responsibility. At the Closing, Purchaser takes over full responsibility
for the management and operations of the Business.
|---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------

|10.2 |  | Resignations of
Directors. At the Closing Date Seller shall remit to Purchaser resignations of the
Companies directors listed in Schedule 10.2 and Purchaser accepts such
resignation as of the Closing Date.
|---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Purchaser
agrees to hold an extraordinary shareholders meeting of the Companies immediately
after the Closing Date and to elect new directors at such meeting. Purchaser agrees to
grant complete discharge to the present directors at the next shareholders meeting where
such discharge would normally be an agenda item, and provided applicable law allows such
discharge. The consent of Purchaser to the Companies financial statements and the
discharge of the directors in a shareholders meeting does not operate as a waiver of
Purchasers claims under art. 4, 5 and 6 of this Agreement.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

60

# ARTICLE 11Relation to Local Agreements

If there is any conflict
between this Agreement and the Local Agreements this Agreement takes precedence
over the Local Agreements.

Only the representations,
warranties and indemnities contained in this Agreement are applicable to the
sale of the Business described in this Agreement. These representations,
warranties and indemnities take precedence over and exclude the application of
any explicit or implied warranties, representations and indemnities contained in
the Local Agreements. Purchaser and the Purchasing Subsidiary shall not raise
against Seller and/or the Selling Subsidiaries any claims on the basis of the
Local Agreements.

The Local Agreements
contain certain price adjustment clauses. The relevant adjustment shall be equal
to the adjustment calculated pursuant to art. 2.3 of this Agreement and
attributed to the respective Local Agreement pursuant to art. 2.2 of this
Agreement.

# ARTICLE 12Miscellaneous

|12.1. |  | Taxes / Notarial
Fees / VAT. Seller and the Selling Subsidiaries shall be liable for any Taxes assessed
on the capital gain realized (i) in the sale of the Shares or (ii) in the sale of the
Transferred Assets. Of the Swiss stamp taxes, the notarial fees for the notarization of
this Agreement, if any, and any Local Agreement that requires notarization, and the costs
of the transfer of the Transferred Assets Purchaser (or the Purchasing Subsidiaries) and
Seller (or the Selling Subsidiaries) shall each pay 50%, except for the Swiss stamp tax
payable in connection with the sale of the shares of
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

61

| | Clariant
Emulsion Holding AB.
| | -----------------------------

| | The
Prices to be paid under the Local Agreements do not include VAT. If and to the extent VAT
is due on such transactions, such tax shall be charged to the Purchaser or the Purchasing
Subsidiary concerned, in addition to the price to be paid under the Local Agreements as
further described in the pertinent Local Agreements.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12.2 |  | Costs. Each
Party bears the fees or other costs and expenses of its counsel and advisors.
|---- |  | -----------------------------------------------------------------------------------------

|12.3 |  | Notice. Any
notice, request, instruction or other document deemed by either Party to be necessary or
desirable to be given to the other Party, shall be in writing and shall be telefaxed and
confirmed by registered mail or courier and addressed as follows:
|---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | If to Purchaser:
Celanese AG
Attn. General Counsel
Frankfurter Strasse 111
61476 Kronberg / TS
Germany
Fax: +49 69 / 305 - 827 31 |  | Copy:
Bruce A. Bennett
Vice President of Celanese Ltd.
1601 W. LBJ Freeway
Dallas, TX 75234
United States
Fax: +1 972 443 8554
| | --------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------

| | If to Seller:
Clariant International AG
Attn. General Counsel
Rothausstrasse 61
CH-4132 Muttenz 1
Switzerland
Fax: +41 61 469 65 08
| | -----------------------------------------------------------------------------------------------------------------------------------

---

62

| | Each
Party may at any time change its address by giving notice to the other party in the
manner described above.
| | ----------------------------------------------------------------------------------------------------------------

|12.4 |  | No
Waiver. The failure of any of the Parties to enforce a provision of this Agreement or
any rights with respect thereto shall in no way be considered as a waiver of such
provisions or rights or in any way to affect the validity of this Agreement. The waiver of
any claim for breach of this Agreement by a Party hereto shall not operate as a waiver of
any claim pertaining to another, prior or subsequent breach.
|---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12.5 |  | Entire
Agreement. This instrument embodies the entire agreement between the Parties hereto
with respect to the transaction contemplated herein and there have been and are no
agreements or warranties between the Parties other than those set forth or provided for
herein. This Agreement may be amended only in writing through a document signed by all the
Parties hereto.
|---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12.6 |  | Binding
on Successors. All of the terms, provisions and conditions of this Agreement shall be
binding upon and inure to the benefit of the Parties hereto and their respective heirs,
successors and assigns.
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12.7 |  | Confidentiality/Announcements. Seller
and Purchaser shall issue mutually agreed press releases after the Signing Date. None of
the Parties shall before such release is issued issue any press releases, or otherwise
make any public statements or any statements to the Business employees or to third parties
(other than each Parties advisors) with respect to this Agreement without the prior
written approval of the other Party.
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | This
provision shall not hinder a party to comply with any statutory or stock market related
disclosure obligations. If a Party has to make such disclosure it shall  if possible
 notify the other Party prior to such disclosure.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

63

|12.8 |  | Severability.
If for any reason any provision of this Agreement shall be declared void or
unenforceable, the remaining provisions shall remain valid. The parties shall replace the
invalid or unenforceable provision by a valid and enforceable one, which as far as legally
possible implements their commercial intent. The same shall apply in the event that the
Agreement contains any omissions.
|---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|12.9 |  | Subordinated
Liabilities. Clariant AG herewith irrevocably and unconditionally warrants to cause
the Seller and Selling Subsidiaries to comply with their obligations under this Agreement.
Celanese AG herewith irrevocably and unconditionally warrants to cause the Purchaser, the
Purchasing Subsidiaries and the Companies to comply with their obligations under this
Agreement.
|---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ARTICLE 13Governing Law and Arbitration

|13.1 |  | Governing Law.
This Agreement shall be subject to and governed by Swiss Law.
|---- |  | ----------------------------------------------------------------------------

|13.2 |  | Arbitration.
All disputes arising out of this Agreement or in connection with this Agreement shall be
solely and finally settled by a court of arbitration consisting of three arbitrators in
accordance with the international arbitration rules of the Zurich Chamber of Commerce. The
place of arbitration shall be Zurich. The court of arbitration shall conduct the
proceedings in the English Language (except to the extent the Parties may agree otherwise)
and all awards shall be rendered in the English language.
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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64

IN WITNESS WHEREOF, the
parties thereto have executed this Agreement as of the date and year first above
written.

|Seller:
 |  | Purchaser:

|---------------------- |  | -------------------------

Agreed with respect to the obligation in art. 12.9:

|Clariant AG |  | Celanese AG
|------------------------- |  | -------------------------