Document:

<PAGE>

                             EMPLOYMENT AGREEMENT
                             --------------------

     THIS EMPLOYMENT AGREEMENT ("Agreement") is entered into as of the 1st day
of June, 2001, by and between SourcingLink.net, Inc., a Delaware corporation
(the "Company") and Dan Rawlings (hereinafter "Employee").

                             W I T N E S S E T H:
                             - - - - - - - - - -

     In consideration of the mutual covenants and obligations herein set forth,
the parties hereto agree as follows:

     1.  Engagement; Nature of Duties; Reporting.  Company has engaged Employee,
         ---------------------------------------
for the period hereinafter set forth, to serve as and hold the offices of Chief
Executive Officer and President of the Company, and to perform the duties and
exercise the powers of such offices as currently provided in the Bylaws of the
Company.  Employee has agreed to serve in such capacity and to continue to serve
hereunder and to do and perform the services, acts, or things necessary to carry
out the duties of such offices, and such other duties, not inconsistent with
such office and Employee's position as Chief Executive Officer and President of
the Company, as Company and Employee may mutually agree. Employee shall report
only to the Board of Directors of the Company.

     2.  Term.  The term of employment pursuant to this Agreement shall be for a
         ----
period commencing on June 1, 2001 through and including May 31, 2002, unless
sooner terminated in accordance with the provisions hereof.

     3.  Performance of Duties.  Employee shall devote such time and attention
         ---------------------
to Employee's duties as may be reasonably necessary to perform and carry out
such duties.  Except for such activities and other business dealings as do not,
in the reasonable judgment of the Board of Directors of the Company,
unreasonably interfere with the performance of Employee's duties hereunder,
Employee's services shall be exclusive to the Company while employed by the
Company, and Employee shall not accept any other employment or position, of any
nature, without the prior written consent of Company.

     Employee shall perform his duties hereunder primarily in the Company's
principal executive offices in San Diego, California, or where otherwise
relocated in San Diego County, and shall, other than customary travel incident
to performance of his duties hereunder, not be required to perform such duties
at any other location. Employee shall not be required to relocate outside of San
Diego County, California without his consent.
<PAGE>

     4.   Compensation.
          ------------

          (a) Base Salary.  Company shall pay to Employee a base salary in the
amount of Two Hundred Sixty-five Thousand Dollars ($265,000) per year, payable
in periodic installments in accordance with Company's prevailing policy for
compensating personnel, but not less often than semi-monthly.  Employee's base
salary will be reviewed and be subject to adjustment, on an annual basis, in
good faith by the Board of Directors of the Company; provided, however, such
base salary may not be reduced without Employee's consent.

          (b) Cash Bonus.  In addition to the foregoing base salary, and any and
all other compensation, profit-sharing participation, benefits or other amounts
due to or receivable by Employee pursuant to this Agreement or any plan or
program maintained by the Company, Employee shall receive a cash bonus in an
amount determined and payable at such time as set forth on Schedule A attached
hereto.  The foregoing bonus shall be payable within thirty (30) days following
the end of the month in which each incremental $1,000,000 in revenue is achieved
by the Company.  The final bonus payment for the fiscal year ending March 31,
2002 shall be paid following completion of the Company's audit.  The final bonus
payment shall be an amount that is determined on a prorated basis to the extent
the Company's revenue for such fiscal year exceeds $7,000,000.  The Company
shall pay Employee such final bonus amount determined on a prorated basis by
taking the targeted incremental revenue bonus amount under the heading
"Noncumulative Additional Cash Bonus Paid for Fiscal Year 2002" on Schedule A
multiplied by the fraction the numerator of which is the revenue in excess of
the last $1,000,000 target revenue amount exceeded and the denominator is
$1,000,000.

          (c) Withholding.  Employee acknowledges and agrees that the Company
may withhold from any amounts payable under this Agreement any amounts required
to be so withheld pursuant to applicable state or federal law, or the
regulations of any state or federal governmental unit or taxing authority.

     5.  Stock Options.  The Company's Board of Directors shall meet to approve
         -------------
the grant and issuance to Employee Options to purchase Three Hundred Fifty
Thousand (350,000) shares of the common stock of the Company (the "Shares") at
an exercise price equal to the fair market value of such stock as of the date
Employee commences his employment hereunder.  The Company shall grant Employee
additional Options following the attainment of any listed revenue target set
forth below.  Such additional options shall be granted at the end of any quarter
during which an incremental revenue target was achieved as reflected in the
Company's quarterly financial statements, with the incremental options granted
on the date thirty (30) days after the end of such quarter with a purchase price
equal to the fair market value of the Company's common stock as determined by
the closing price of such stock on the date such Options are granted.  The
revenue targets for the Company for the fiscal year ending March 31, 2002 are as
follows:

                                       2
<PAGE>

                                              Incremental Additional Options
             Revenue of Company                            Granted
             ------------------                             ------
                 $8,000,000                                 10,000
                 $9,000,000                                 10,000
                $10,000,000                                 10,000
                $11,000,000                                 10,000
            $12,000,000, or more                            10,000

          As the Company's revenue during the period ended March 31, 2002
exceeds the cumulative revenue amounts above, the options shall be granted
quarterly, and if the revenue of the Company on a year to date basis through and
including March 31, 2002 exceeds $10,000,000, Employee shall be granted Options
to purchase the shares listed above, provided, however, to be granted the
incremental Options for exceeding the $10,000,000, $11,000,000, or $12,000,000
revenue targets, the Company must have achieved net operating margins on all
revenue over $10,000,000 of fifty percent (50%), or more, after subtracting
Employee's bonus as provided in Section 4(b) above for the revenue increments
exceeding $10,000,000.

     6.   Expense Reimbursement.
          ---------------------

          (a) Business Expenses.  The services required of Employee by this
Agreement shall include the responsibility and duty of entertaining business
associates and others with whom Company is, desires to be, or may become engaged
in business or with whom it seeks, now or in the future, to develop or expand
business relationships, or with whom it is otherwise to the benefit of the
Company to establish or maintain communications.  It may also be necessary for
Employee to travel from time to time on behalf of and for the benefit of the
Company, or in furtherance of the Company's business.  It is Company's belief
that the performance of the Employee's duties in such travel and entertainment
activities will be productive of the maximum benefits which Company expects to
derive from Employee's services.  Accordingly, Company shall pay, or if Employee
shall have paid, shall reimburse to Employee, any and all reasonable expenses
incurred by him or for his account in the performance of his duties hereunder,
including expenses for business, entertainment, promotion, professional
association dues and travel by Employee, subject to Employee providing
appropriate documentation for such expenses, and to any written policies of the
Company.

          (b) Relocation Expenses.  In addition to the customary expense
reimbursements provided herein, in the event Employee moves his principal
residence to San Diego County, California during the twenty-four (24) month
period ending May 31, 2003, the Company shall reimburse Employee up to $20,000
for the cost and expense of moving Employee's personal property from his then
existing principal residence to his new residence in San Diego County upon
delivery of appropriate documentation for such expense.

                                       3
<PAGE>

     7.   Medical and Life Insurance; Pension Benefits.  Employee shall have the
          --------------------------------------------
right to participate in any and all group, life, disability income, health,
dental or accident insurance programs applicable to other executive management
personnel of Company, and in effect at any time during the period of Employee's
employment hereunder, subject only to any eligibility restrictions of such
programs in accordance with the Company's policy for its employees then in
effect.  The Company shall pay all premiums for Employee, and Employee's spouse
and dependents, for full coverage under all such health insurance programs.  The
Company shall acquire for the benefit of Employee term life insurance payable to
the beneficiary designated by Employee in a benefit amount of $1,000,000 and
Company shall pay the premiums annually for such policy for so long as Employee
continues in the employment of the Company; subject to Employee being able to
pass an appropriate health physical for the acquisition of a life insurance
policy on reasonable terms, and which policy shall exclude appropriate
preexisting conditions.  Employee shall also have the right to participate in
any and all employee retirement benefits plan or profit-sharing plan which
Company maintains for its personnel, and in effect at any time during the period
of Employee's employment hereunder, on a basis at least as favorable as for any
other executive management personnel of the Company, subject to any eligibility
or governmental restrictions of such plans.  In particular, Employee shall
participate in the Company's Simple Individual Retirement Account Plan and have
the opportunity to receive matching contributions from the Company of up to
$6,000 per year.

     8.   Vacation.  During each twelve month period of employment during the
          --------
term of employment as provided in Section 2 hereof, and thereafter, so long as,
Employee continues in the employment of the Company, Employee shall be entitled
to a vacation of up to three (3) weeks, without deduction of salary.  Such
vacation shall be taken at such time or times during the applicable year as may
be mutually determined by Employee and Company.  Any accrued and unused vacation
as of the anniversary date of employment may be carried over to the following
year; provided, however, that Employee may not carry over more than two weeks of
vacation.

     9.   Termination.
          -----------

          (a) This Agreement may be terminated by Company for Good Cause.  As
used herein, "Good Cause" shall mean:

              1.  Employee has been grossly negligent, or has been guilty of
material misconduct in violation of the Company's rules and policies, in the
performance of Employee's duties hereunder, which violations cause substantial
harm to the Company the Company may thereafter terminate Employee immediately
upon written notice; or

              2.  Employee's conviction of a felony or similar crime; or

              3.  Employee makes an intentional and improper disclosure of the
Company's confidential or proprietary information in breach of Employee's
Confidentiality Agreement with the Company.

              4.  Employee has failed to demonstrate the ability to meet annual
performance standards established by the Board and agreed to by Employee.

                                       4
<PAGE>

              5.  Employee has committed materially fraudulent or dishonest
acts with respect to the Company.

          (b) Employee shall have the right to terminate this Agreement for Good
Reason.  As used herein, "Good Reason" shall mean:

              1.   A material reduction or adverse change in Employee's title,
position, duties or compensation as Chief Executive Officer, as set forth
herein, without Employee's prior express written consent;

              2.  A relocation of Employee's place of employment outside of San
Diego County, California, without Employee's prior express written consent; or

              3.  Any other material breach by the Company of its obligations
hereunder, which breach remains uncured for thirty (30) days following written
notice to the Company of such breach, which notice specifies in reasonable
detail the nature of such breach.

     A termination by Employee of his employment hereunder for "Good Reason"
shall have the same effect hereunder as, a termination of such employment by the
Company without "Good Cause."

          (c) In addition, this Agreement shall automatically terminate upon
Employee's death or permanent disability.  As used herein, "permanent
disability" shall mean Employee's complete inability to perform Employee's
duties hereunder, as determined by Employee's physician, which inability
continues for more than Ninety (90) consecutive days; provided, however, that in
the event any disability income policy maintained by the Company pursuant to
Section 7 hereof contains a definition of "permanent disability" which requires
a greater period of continuous inability to perform services, such definition
shall control.

     10.  Severance.  Unless this Agreement is terminated by the Company for
          ---------
"Good Cause" as defined above, or this Agreement is terminated by Employee's
voluntary termination, Employee shall be entitled to receive, in addition to the
amount of any accrued and unpaid salary then due to Employee, and the value of
any accrued and unused vacation, the following additional amounts:

          (a) Continuation of base salary payments at the Employee's then-
current base salary for six months from termination (the "Severance Period").
Such continuation of base salary shall be paid monthly on a pro rata basis.

          (b) So long as Employee elects continuation coverage under COBRA the
Company shall pay the premiums for the Severance Period.

          (c) In the event that this Agreement expires, is terminated or is
otherwise not renewed (other than a termination by the Company for Good Cause or
voluntary termination by Employee) at least six months after Employee's
employment commences hereunder and prior to the end of any fiscal year, Employee
shall be entitled to a bonus, proportional to the cash bonus

                                       5
<PAGE>

which would have been earned by Employee for such fiscal year under Section 4(b)
herein determined on the revenue of the Company recognized during the Severance
Period, and shall be payable as otherwise provided in Section 4(b); provided the
Company's revenue and, if applicable, net operating margins are determined in
accordance with generally accepted accounting principles, meet the levels set
out in Section 4(b).

          (d) Following the termination of this Agreement for all other
purposes, the Company shall pay Employee under this Section 10(a)-(c) if
Employee's employment is terminated for reasons other than for Good Cause or
voluntary termination by Employee during the period from June 1, 2002 through
November 30, 2002 as provided in this Section 10(a)-(c) for six months and if
Employee's employment is terminated thereafter for reasons other than for Good
Cause or voluntary termination by Employee then the Company shall pay Employee
under Section 10(a)-(c) for three months rather than for six months.

     The Company expressly agrees and acknowledges that, with respect to such
payments and other consideration, Employee shall have no duty or obligation to
seek or accept other employment, or otherwise mitigate Employee's damages
resulting from such termination. Employee agrees and acknowledges that, in the
event Employee does obtain other employment following such termination and
during the Severance Period, the Company shall be entitled to reduce the amounts
payable to Employee hereunder as a result of any compensation paid to Employee
with respect to such new employment payable for other employment during the
Severance Period.  Provided, however, if Employee is employed by a Competitor of
the Company as defined in Section 11(b) during the Severance Period, the Company
shall pay Employee no further amounts under this Agreement.

     In the event Employee voluntarily terminates this Agreement, then Employee
shall be entitled to receive accrued, but unpaid salary, cash bonus and accrued
vacation pay, but no other amounts.

     11.  Confidential Information and Non-Competition.
          --------------------------------------------

          (a) Confidentiality.  Employee acknowledges that he will have access
to certain confidential or proprietary information of the Company, including
information developed by Employee in the course of his employment.  Employee
expressly acknowledges and agrees that such confidential or proprietary
information is solely the property of the Company, and that the Company derives
material benefits to its business by maintaining the confidentiality of such
information.  Employee expressly agrees that he will not, during the term hereof
or at any time thereafter, directly or indirectly, disclose or use for his own
benefit any confidential or proprietary information of the Company, except,
                                                                    ------
only, (i) to the extent required by valid legal process, such as civil
----
discovery, (ii) with the prior express written consent of the Company, or (iii)
to the extent such information has become known or available to the public other
than as a result of a breach of this Section 11 by Employee or by a third person
wrongfully disclosing such information and Employee knows of such wrongful
disclosure.  If requested by the Company, Employee agrees to execute and deliver
a confidentiality and/or invention assignment agreement, not inconsistent with
this Section 11.

                                       6
<PAGE>

          (b) Non-Competition.  During the period of Employee's employment
hereunder, Employee shall not, directly or indirectly, without the prior written
consent of the Company, provide consultative services or otherwise provide
services to (whether as an employee or a consultant, with or without pay), own,
manage, operate, join, control, participate in or be connected with (as a
stockholder, partner or otherwise), any business, individual, partner, firm
corporation or other entity that is then a competitor of the Company, including
any entity engaged in the design, manufacturer and/or distribution of network
service systems or software that offer comparable capabilities and features to
the retail industry or otherwise competes with the systems that are designed,
manufactured, or distributed by the Company or any direct or indirect subsidiary
of Company (each such competitor "a Competitor of the Company"), provided,
however, that the "beneficial ownership" by Employee, either individually or as
a member of a "group," as such terms are used in Rule 13d of the General Rules
and Regulations under the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), of not more than one percent (1%) of the voting stock of any
publicly held corporation shall not alone constitute a violation of this
Agreement.  It is further expressly agreed that the Company will or would suffer
irreparable injury if Employee were to compete with the Company or any
subsidiary or affiliate of the Company in violation of this Agreement and that
the Company would by reason of such competition be entitled to injunctive relief
in a court of appropriate jurisdiction, and, the provisions of Section 19
notwithstanding, Employee further consents and stipulates to the entry of such
injunctive relief in such a court prohibiting Employee from competing with the
Company or any subsidiary or affiliate of the Company in violation of this
Agreement.

          (c) Non-Solicitation of Customers and Suppliers.  During the period of
Employee's employment hereunder, Employee shall not, directly or indirectly,
influence or attempt to influence customers or suppliers of the Company or any
of its subsidiaries or affiliates, to divert their business to any Competitor of
the Company.

          (d) Non-Solicitation of Employees.  Employee recognizes that he
possesses and will possess confidential information about other employees of the
Company relating to their education, experience, skills, abilities, compensation
and benefits and interpersonal relationships with customers of the Company.
Employee recognizes that the information he possesses and will possess about
these other employees is not generally known, is of substantial value to the
Company in developing its business and in securing and retaining customers, and
has been and will be acquired by him because of his business position with the
Company.  Employee agrees that, during the period of Employee's employment
hereunder and for a period of one (1) year thereafter, he will not, directly or
indirectly, solicit or recruit any employee of the Company for the purposes of
being employed by him or by any Competitor of the Company or by any company of
which he is employed or has any ownership interest on whose behalf he is acting
as an agent, representative or employee and that he will not convey any such
confidential information or trade secrets about other employees of the Company
to any other person.

     12.  Notices.  Any and all notices which are required or permitted to be
          -------
given by any party to any other party hereunder shall be given in writing, sent
by registered or certified mail, electronic communications (including telegram,
facsimile or E-mail) followed by a confirmation letter sent by registered or
certified mail, postage prepaid, return receipt requested, or delivered

                                       7
<PAGE>

by hand or messenger service, with the charges therefor prepaid, addressed to
such party as follows:

          (a)  Notices to the Employee:

               Dan Rawlings
               _____________

               With copy to:

               _____________
               _____________
               _____________
               _____________

          (b)  Notices to the Company:

               SourcingLink.net, Inc.
               16855 West Bernardo Drive, Suite 260
               San Diego, CA  92127
               Attn: Board of Directors

          With copy to:

               Bruce Feuchter, Esq.
               Stradling, Yocca, Carlson & Rauth
               660 Newport Center Drive
               Suite 1600
               Newport Beach, California 92660-6441

or to such other address as the parties shall from time to time give notice of
in accordance with this Section 12.  Notices sent in accordance with this
Section 12 shall be deemed effective (i) the first business day following the
date of dispatch, if sent by telegram, facsimile or E-mail, and (ii) the actual
date of delivery, if sent by registered or certified mail, and an affidavit of
mailing or dispatch, executed under penalty of perjury, shall be deemed
presumptive evidence of the date of dispatch.

     13.  Entire Agreement and Modifications.  This Agreement, including the
          ----------------------------------
exhibits hereto and the agreements expressly referred to herein, constitutes the
entire understanding between the parties pertaining to the subject matter hereof
and supersedes all prior agreements, understandings, negotiations and
discussions, whether oral or written.  There are no warranties, representations
or other agreements between the parties, in connection with the subject matter
hereof, except as specifically set forth herein.  No supplement, modification,
waiver or termination of this Agreement shall be binding unless made in writing
and executed by the party thereto to be bound which expressly states that such
writing amends this Agreement.

                                       8
<PAGE>

     14.  Waivers.  No term, condition or provision of this Agreement may be
          -------
waived except by an express written instrument to such effect signed by the
party to whom the benefit of such term, condition or provision runs.  No such
waiver of any term, condition or provision of this Agreement shall be deemed a
waiver of any other term, condition or provision, irrespective of similarity, or
shall constitute a continuing waiver of the same term, condition or provision,
unless otherwise expressly provided.  No failure or delay on the part of any
party in exercising any right, power or privilege under any term, condition or
provision of this Agreement shall operate as a waiver thereof, nor shall a
single or partial exercise thereof preclude any other or further exercise of any
other right, power or privilege.

     15.  Survival of Agreement Provisions.  All terms, conditions, provisions,
          --------------------------------
covenants, agreements, representations and warranties made herein shall survive
the performance by the parties hereto of their obligations hereunder, and the
termination or expiration of this Agreement.

     16.  Severability.  In the event any one or more of the terms, conditions
          ------------
or provisions contained in this Agreement should be found in a final award or
judgment rendered by any court or arbitrator or panel of arbitrators of
competent jurisdiction to be invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining terms, conditions and
provisions contained herein shall not in any way be affected or impaired
thereby, and this Agreement shall be interpreted and construed as if such term,
condition or provision, to the extent the same shall have been held invalid,
illegal, or unenforceable, had never been contained herein, provided that such
interpretation and construction is consistent with the intent of the parties as
expressed in this Agreement.

     17.  Headings.  The headings of the Articles and Sections contained in this
          --------
Agreement are included herein for reference purposes only, solely for the
convenience of the parties hereto, and shall not in any way be deemed to affect
the meaning, interpretation or applicability of this Agreement or any term,
condition or provision hereof.

     18.  Applicable Law.  This Agreement shall be governed by and construed in
          --------------
accordance with the laws of the State of California, notwithstanding the fact
that one or more counterparts hereof may be executed outside of the state, or
one or more of the obligations of the parties hereunder are to be performed
outside of the state.

     19.  Arbitration.  The parties hereby agree that all disputes or claims
          -----------
arising hereunder shall be submitted to arbitration in accordance with the
Employment Dispute Resolution Rules of the American Arbitration Association.
The parties expressly agree and acknowledge that any award rendered in such
arbitration shall be final, binding and conclusive, and judgment may be entered
in any court of competent jurisdiction upon any such award.  Notwithstanding the
foregoing, in the event of an actual or threatened breach of Section 11 hereof,
the Company shall be entitled to injunctive relief to enjoin or prevent such
breach.

     20.  Attorneys' Fees.  In the event that any party to this Agreement shall
          ---------------
commence any arbitration or other proceeding to interpret this Agreement, or
determine or enforce any right or obligation created hereby, including but not
limited to any action for rescission of this Agreement or for a determination
that this Agreement is void or ineffective ab initio, the
                                           -- ------

                                       9
<PAGE>

prevailing party in such arbitration or other proceeding shall recover such
party's costs and expenses incurred in connection therewith, including
attorney's fees and costs of appeal, if any. Any arbitrator or panel of
arbitrators shall, in making any award in any such arbitration or other
proceeding, in addition to any and all other relief awarded to such prevailing
party, include in such award such party's costs and expenses as provided in this
Section 20.

     21.  Execution and Counterparts.  This Agreement may be executed in any
          --------------------------
number of counterparts, each of which when so executed and delivered shall be
deemed an original, and such counterparts together shall constitute only one
instrument.  Any or all of such counterparts may be executed within or outside
the State of California.  Any one of such counterparts shall be sufficient for
the purpose of proving the existence and terms of this Agreement, and no party
shall be required to produce an original or all of such counterparts in making
such proof.  A binding and valid signature by Employee or the Company may be
submitted by facsimile.

     22.  Covenant of Further Assurances.  All parties to this Agreement shall,
          ------------------------------
upon request, perform any and all acts and execute and deliver any and all
certificates, instruments and other documents that may be necessary or
appropriate to carry out any of the terms, conditions and provisions hereof or
to carry out the intent of this Agreement.

     23.  Authorization to Work.  Employee hereby represents and warrants to the
          ---------------------
Company, which representation and warranty Employee acknowledges constituted a
material inducement to the Company to enter into this Agreement, that Employee
has authorization to work in the United States, and shall, at the request of the
Company, provide documentation of such authorization as provided in the
Immigration Reform and Control Act of 1986, and the regulations thereunder.

     24.  Binding Effect.  Subject to the restrictions in Section 29 hereof
          --------------
respecting assignments, this Agreement shall inure to the benefit of and be
binding upon all of the parties hereto and their respective executors,
administrators, successors and permitted assigns.

     25.  Compliance with Laws.  Nothing contained in this Agreement shall be
          --------------------
construed to require the commission of any act contrary to law, and whenever
there is a conflict between any term, condition or provision of this Agreement
and any present or future statute, law, ordinance or regulation contrary to
which the parties have no legal right to contract, the latter shall prevail, but
in such event the term, condition or provision of this Agreement affected shall
be curtailed and limited only to the extent necessary to bring it within the
requirement of the law, provided that such construction is consistent with the
intent of the parties as expressed in this Agreement.

     26.  Gender.  As used in this Agreement, the masculine, feminine or neuter
          ------
gender, and the singular or plural number, shall be deemed to include the others
whenever the context so indicates.

     27.  No Third Party Benefit.  Nothing contained in this Agreement shall be
          ----------------------
deemed to confer any right or benefit on any person who is not a party to this
Agreement.

                                       10
<PAGE>

     28.  Construction; Representation by Counsel.  The parties hereby represent
          ---------------------------------------
that they have each been advised by independent counsel with respect to their
rights and obligations hereunder.  This Agreement shall be construed and
interpreted in accordance with the plain meaning of its language, and not for or
against either party, and as a whole, giving effect to all of the terms,
conditions and provisions hereof.

     29.  Assignment.  Neither party may assign this Agreement, or any rights
          ----------
hereunder, without the prior express consent of the other party.

                                       11
<PAGE>

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

                                 "Company"

                                 SourcingLink.net, Inc., a Delaware corporation

                                 By:  /s/ Marcel van Heesewijk
                                      -----------------------------
                                    Its:    Chairman
                                         --------------------------

                                 "Employee"

                                 /s/ Daniel B. Rawlings
                                -----------------------------------
                                Dan Rawlings

                                       12<PAGE>

                                              [CONFIDENTIAL TREATMENT REQUESTED]

**Confidential portions of this Exhibit have been omitted pursuant to the Rules
and Regulations of the Securities and Exchange Commission.  The symbol "[+++++]"
has been used to identify information which is the subject of a Confidential
Treatment Request.

                            TIOXIDE EUROPE LIMITED

                                      And

                       IMPERIAL CHEMICAL INDUSTRIES plc
                             trading as ICI Paints

                              PURCHASE AGREEMENT

                                 Page 1 of 27
<PAGE>

                                              [CONFIDENTIAL TREATMENT REQUESTED]

                                   AGREEMENT

This Agreement is dated              day of                 2001 and is between:

1.   Imperial Chemical Industries plc trading as ICI Paints whose registered
     office is at 9 Millbank, London SW1P 3JF (hereafter referred to as "ICI");

     and

2.   Tioxide Europe Ltd whose registered office is Haverton Hill Road,
     Billingham, TS23 1PS (hereafter referred to as "Huntsman Tioxide")

     The purpose of this agreement (the "Agreement") is to set-out the terms on
     which the ICI Paints Users in the specified Territories will purchase
     titanium dioxide from Huntsman Tioxide and Huntsman Tioxide will supply
     titanium dioxide to the ICI Paints Users and is entered into in recognition
     of the economies and benefits that derive from ICI's position as Huntsman
     Tioxide's largest customer.

     This agreement supersedes and replaces the agreement between the parties
     dated 3rd July 1997, and all subsequent amendments and additions thereto.

DEFINITIONS AND INTERPRETATION
------------------------------

     In this Agreement the following words shall have the following meanings:

     "ICI Paints User/s"  means any company in which ICI has a shareholding of
                          more than 50% involved in the manufacture of surface
                          coatings in any of the Territories

     "Territory/ies"      means the countries set out in Schedule 1 hereto or
                          any of them

     "TiO2"               means rutile Titanium Dioxide in accordance with the
                          grades and specifications set out in Appendix 1

     "Contract Year"      means a period of 12 consecutive months beginning on
                          1st January in any year

     "Quarter"            means a period of 3 consecutive calendar months
                          starting on the 1st January, the 1st April, the 1st
                          July or the 1st October of any year

                                 Page 2 of 27
<PAGE>

                                              [CONFIDENTIAL TREATMENT REQUESTED]

     "Region"             means the areas of the world set out below containing
                          the Territories listed:

                          North America:
                          containing United States of America, Canada, Puerto
                          Rico and Mexico

                          Europe:
                          containing United Kingdom, Ireland, France, Germany,
                          Spain, Italy and Holland

                          Asia:
                          containing India, Pakistan, Sri Lanka, Malaysia,
                          Singapore, Thailand, Vietnam, Indonesia and The
                          Peoples Republic of China

                          and any reference to North America, Asia or Europe
                          shall mean the Territories so listed and no others.

"[+++++++]"**             [+++++]

"On Time and In Full"     means delivery within the agreed lead-time and in the
                          full and accurate quantity ordered

"[+++++++]                [+++++]
[+++++++]"                [+++++].

Headings to clauses in this Agreement are for the purpose of information and
identification only and shall not be construed as forming part of this
Agreement.

                                 Page 3 of 27
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                                              [CONFIDENTIAL TREATMENT REQUESTED]

1.  TERRITORIES
    -----------

    1.1  A list of the countries governed by this Agreement is attached as
         Schedule 1.

         Where during the term of this Agreement a new business for the
         manufacture of surface coatings is established or acquired by ICI in
         which it holds more than a 50% interest:

         1.1.1  if such new business is located in one of the Territories sales
                of TiO2 made to such business shall be subject to this
                Agreement;

         1.1.2  if such new business is not located in any of the Territories,
                sales of TiO2 made to such business shall not be subject to
                this Agreement unless otherwise agreed in writing such
                agreement not to be unreasonably withheld.

2.  TERM
    ----

    Subject to Clause 17, this Agreement shall commence on 1st day of July 2001
    and shall continue until terminated by either party giving the other at
    least 12 months notice in writing such notice to expire on the 30th June or
    31st December of any Contract Year.  Notwithstanding the foregoing but
    subject to Clause 17 notice may not be given to expire before 31st December
    2003.

3.  VOLUME
    ------

    3.1  During the period from 1st July 2001 to 31st December 2002 Huntsman
         Tioxide shall make available for supply to ICI and ICI shall use
         reasonable endeavours to buy [+++++] metric tonnes of TiO2 from
         Huntsman Tioxide.

         Offtake of volumes shall be as set out below although the Parties
         agree that at ICI's request a variance of [+++++] shall be permissible
         within these Regional numbers subject to the forecasting mechanism set
         out in Clause 5.

KTE                      Sulphate          Chloride          Total
---                      --------          --------          -----
North America            [+++++]            [+++++]          [+++++]
Europe                   [+++++]            [+++++]          [+++++]
Asia                     [+++++]            [+++++]          [+++++]
Total                    [+++++]            [+++++]          [+++++]

                                  Page 4 of 27
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                                              [CONFIDENTIAL TREATMENT REQUESTED]

    3.2  During the period from 1st January 2003 to 31st December 2003 Huntsman
         Tioxide shall make available for supply to ICI and ICI shall use its
         reasonable endeavours to buy [+++++] metric tonnes of TiO2 from
         Huntsman Tioxide.

         Offtake of volumes shall be as set out below although the Parties
         agree that a variance of [+++++] shall be permissible within these
         Regional numbers subject to the forecasting mechanism set out in
         Clause 5.

KTE                   Sulphate           Chloride         Total
---                   --------           --------         -----
North America         [+++++]            [+++++]          [+++++]
Europe                [+++++]            [+++++]          [+++++]
Asia                  [+++++]            [+++++]          [+++++]
Total                 [+++++]            [+++++]          [+++++]

    3.3  From [+++++] it is intended that all volumes purchased in Asia under
         this Contract shall be [+++++] metric tonnes of TiO2 as set out in
         Appendix 1.

    3.4  From [+++++] and thereafter Huntsman Tioxide shall make available for
         supply to ICI and ICI shall use its reasonable endeavours to buy
         [+++++] per annum of TiO2 from Huntsman Tioxide save that, at ICI's
         choice, the said volume may be increased by up to [+++++] per Contract
         Year from the volume purchased in the preceding Contract Year.

4.  COMMITMENT TO SUPPLY
    --------------------

    4.1 Malaysia and Canada

        Huntsman Tioxide shall supply [+++++] ICI Paints Users in Malaysia and
        Canada provided these requirements are forecast according to the
        mechanism stipulated in Clause 5.

    4.2 Latin America, Taiwan & Poland

        It is agreed between the Parties that the terms of this Agreement will
        not cover supply to all territories in the latin America region or to
        the territories of Taiwan and Poland. Should either Party wish to
        commence supply/receipt of TiO2 within these territories then the
        Parties shall meet to discuss such supply in good faith and the terms
        including rebates under which it may be made.

                                  Page 5 of 27
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                                              [CONFIDENTIAL TREATMENT REQUESTED]

5.  FORECASTING
    -----------

    5.1 One month before the end of each Quarter ICI will provide to Huntsman
        Tioxide a demand forecast for the following four Quarters. This forecast
        shall detail the quantities and grades of Huntsman Tioxide TiO2 expected
        to be required by each ICI Paints User in each Territory by Quarter for
        the period.

    5.2 The grades and volumes indicated in these demand forecasts must be
        consistent with the grades, volumes and growth in volume set out in
        Clause 3.

    5.3 Provided that the forecast for total demand under the terms hereof is no
        more than [+++++] of the global quantity supplied or the final agreed
        forecast whichever is the lower for the corresponding Quarter of the
        preceding year, the forecast in any Region may be up to [+++++] of the
        quantity supplied or the final agreed forecast which ever is the lower
        in the corresponding Quarter of the preceding year.

    5.4 ICI undertakes that a forecast in respect of any Quarter shall not be
        varied in respect of each Region in subsequent forecasts relating to the
        same Quarter by more than [+++++], or by more than [+++++] in
        consecutive forecasts.

    5.5 Subject to clause 5.2, 5.3 and 5.4 Huntsman Tioxide undertakes to supply
        in each Quarter the volumes indicated in the most recent agreed forecast
        for that Quarter. ICI undertakes to use all reasonable endeavours to
        purchase from Huntsman Tioxide in each Quarter the volumes indicated in
        the most recent agreed forecast for that Quarter.

6.  PRICE
    -----

    6.1  [+++++].

    6.2  Huntsman Tioxide shall maintain a file confirming the basis upon which
         the prices set out in Clause 6.1 have been calculated. This file shall
         contain documented evidence of all prices and price changes, necessary
         to make the price calculations referred to in Clause 6.1 and also
         including retro-active credits or other price adjustments where
         applicable. ICI Paints shall be entitled to have this file inspected by
         an independent auditor appointed by ICI in order to confirm the
         veracity of the price calculations. In the event that the independent
         auditor appointed by ICI confirms the veracity of the price
         calculations then ICI shall pay the costs of the independent auditor.
         In the event that the independent auditor finds that the price
         calculations are in error then a correcting payment shall be

                                  Page 6 of 27
<PAGE>

                                              [CONFIDENTIAL TREATMENT REQUESTED]

         made immediately by the party benefiting from the error to the other
         party and Huntsman Tioxide shall pay the costs of the independent
         auditor.

         The independent auditor shall keep confidential any information
         submitted to him by Huntsman Tioxide and shall not disclose such
         information to ICI or to any other party.

     6.3 Huntsman Tioxide's usual small delivery surcharges applying to its
         other customers in a Territory shall also apply to ICI Paints Users in
         that Territory.

     6.4 For the avoidance of doubt the volume of any TiO2 supplied in slurry
         form pursuant to this Agreement shall, for the purpose of price and
         rebate calculations, be calculated by reference to the dry weight of
         such TiO2.

7.  PAYMENT
    -------

    7.1  A schedule of agreed payment terms is attached as Schedule II.  These
         terms may only be varied by written agreement between the parties.

    7.2  ICI shall ensure that payment is received by Huntsman Tioxide on or
         before the relevant due date specified by Schedule II.

    7.3  Huntsman Tioxide reserve the right to charge the relevant ICI Paints
         User interest in respect of the late payment of any sums due under this
         Agreement (as well after as before judgement) at the rate of 2% above
         LIBOR with respect to sales in Europe; at 2% above the US base lending
         rate with respect to sales in North America; and at 2% above the
         Malaysian base lending rate with respect to sales to Asia from the due
         date therefor until payment.

    7.4  All prices are exclusive of any applicable value added or any other
         sales tax, for which ICI shall be additionally liable.

8.  [+++++]

    8.1  [+++++].

    8.2  [+++++].

    8.3  [+++++].

    8.4  [+++++]

                                  Page 7 of 27
<PAGE>

                                              [CONFIDENTIAL TREATMENT REQUESTED]

     8.5

         [+++++]                  [+++++]
         [+++++]                  [+++++]
         [+++++]                  [+++++]
         [+++++]                  [+++++]
         [+++++]                  [+++++]
         [+++++]                  [+++++]
         [+++++]                  [+++++]

     8.5 [+++++].

9.  VALUE CREATION
    --------------

    9.1 The parties jointly commit to the principle of implementing a programme
        of vendor managed inventory (VMI) in all Territories where it is
        practicable and cost effective for both parties to do so. Joint project
        teams will be set up in each Region to evaluate the possibilities and
        plan and implement the programme.

    9.2 In each Region, the Huntsman Tioxide regional coatings technical service
        and product development teams and ICI Paints Users will maintain regular
        contact with each other in that Region.

    9.3 Huntsman Tioxide's central research and Technology surface coatings
        team and their designated opposite numbers in ICI will also maintain
        regular contact.

    9.4 Through these contacts, ICI's technical requirements will be taken into
        account by Huntsman Tioxide in setting up its global and local research
        programmes.

    9.5 A formal technical review of matters arising from these contacts, and
        appropriate actions, will be arranged between the parties at least once
        a year.

    9.6 Huntsman Tioxide will give ICI the first customer appraisal prior to
        disclosure to any other party of any relevant new developments it makes
        relating to TiO2 in surface coatings provided that such development has
        not been initiated by another of Huntsman Tioxide's customers. Upon
        Huntsman Tioxide presenting ICI with information concerning a new
        development in reasonably sufficient detail for ICI to make a reasonable
        and meaningful assessment of the new development, ICI will report back
        to Huntsman Tioxide within 90 days of receiving such information from

                                  Page 8 of 27
<PAGE>

                                              [CONFIDENTIAL TREATMENT REQUESTED]

        Huntsman Tioxide on its views on such developments and pending such
        report Huntsman Tioxide will not disclose such development to any other
        party. The parties may extend such period by agreement.

    9.7 When a new product is developed by Huntsman Tioxide for the surface
        coatings market, with material technical co-operation from ICI, then ICI
        shall enjoy an exclusive lead time from the date when its surface
        coating containing the new product is brought to market - the length of
        lead time to be agreed on a case by case basis. During that lead time
        Huntsman Tioxide will not supply or sample such new product to any other
        party. Such new product shall be added to the list of grades and
        specifications appearing at Appendix 1.

    9.8 There may occasionally be a need for local funding by Huntsman Tioxide
        of technical costs incurred by ICI Paints Users eg in reformulation to a
        Huntsman Tioxide grade. Such funding will be a matter of a local
        negotiation between the ICI Paints User and Huntsman Tioxide.

10. CHANGE IN CIRCUMSTANCES
    -----------------------

     The parties will consult with one another in the event of any significant
     change in circumstances in their business affecting this Agreement.

11.  SERVICE AND DELIVERY
     --------------------

     11.1 Huntsman Tioxide shall use its best endeavours to supply all accepted
          orders "On Time and In Full".

     11.2 Delivery of TiO2 shall occur and title to and risk of loss of or
          damage to TiO2 supplied hereunder shall occur at the delivery points
          set out in Appendix 2, subject to any variation by separate VMI
          agreement.

12. GRADE AVAILABILITY
    ------------------

    Huntsman Tioxide's TiO2 is  manufactured to globally consistent
    specifications as set out in Appendix 1, but not all grades are made or
    available in all Regions.  The parties shall agree from time to time which
    grades shall be offered to ICI Paints Users in each Region.

13.  CONFIDENTIALITY
     ---------------

     13.1 Each of the parties hereby undertakes to the other to:

                                  Page 9 of 27
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                                              [CONFIDENTIAL TREATMENT REQUESTED]

          13.1.1 keep confidential all information (written or oral) concerning
                 the business and affairs of the other that it shall have
                 obtained or received as a result of the discussions leading up
                 to or the entering into or performance of this Agreement (`the
                 Information')

          13.1.2 not without the other's written consent disclose the
                 Information in whole or in part to any other person save those
                 of its employees or agents involved in the performance of this
                 Agreement and who have a need to know the same;

          13.1.3 use the Information solely in connection with the performance
                 of this Agreement and not for its own benefit or the benefit of
                 any third party.

     13.2 The provisions of clause 13.1 above shall not apply to the whole or
          any part of the Information to the extent that it is;

          13.2.1 trivial or obvious

          13.2.2 already in the other's possession on the date of its
                 disclosure; or

          13.2.3 in the public domain other than as a result of a breach of
                 this clause.

     13.3 Each of the parties hereby undertakes to the other to make all
          relevant employees and agents aware of the confidentiality of the
          Information and the provisions of this clause 13 without limitation to
          the foregoing to take all such steps as shall from time to time be
          necessary to ensure compliance by its employees and agents with the
          provisions of this clause 13

     13.4 The terms of this Clause 13 shall remain effective for the duration
          of this Agreement and for a further period of two years following
          termination of this Agreement.

14.  FORCE MAJEURE
     -------------

     14.1 Neither party shall be liable to the other or be deemed to be in
          breach of this Agreement or results by reason of any delay in
          performing, or any failure to perform, any of its obligations under
          this Agreement, if the delay or failure was due to any cause beyond
          its reasonable control or results from the disposal of, or cessation
          or suspension in the operation of, any facility where it is producing
          any or using any quantity of TiO2 deliverable hereunder (a "Force
          Majeure Event").  Without prejudice to

                                 Page 10 of 27
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                                              [CONFIDENTIAL TREATMENT REQUESTED]

          the generality of the foregoing the following shall be regarded
          without limitation as causes beyond a party's reasonable control:

          14.1.1 Act of God, explosion, flood, tempest, fire or accident;

          14.1.2 war or threat of war, sabotage, insurrection, civil
                 disturbance or requisition;

          14.1.3 acts, restrictions, regulations, bye-laws, prohibitions or
                 measures of any kind on the part of any Governmental or Local
                 Authority;

          14.1.4 import or export regulations or embargoes;

          14.1.5 strikes lock-outs or other industrial actions or trade
                 disputes whether involving employees of third parties or of the
                 parties to this Agreement provided that in the latter case the
                 party affected shall demonstrate to the reasonable satisfaction
                 of the unaffected party that the circumstance in question
                 giving rise to a claim of Force Majeure is a bona fide dispute.
                 For the avoidance of doubt a refusal to accede to the demands
                 of its employees shall not be interpreted as something that is
                 within the control of the affected party;

          14.1.6 difficulties in obtaining raw materials, fuel, parts or
                 machinery;

          14.1.7 power failure or breakdown in machinery.

                 If either party is unable to perform its duties and obligations
                 under this Agreement as a result of a Force Majeure Event such
                 party shall give written notice to the other of such inability
                 stating the cause in question and the date on which such cause
                 commenced. The operation of this Agreement relating to the
                 Force Majeure Event shall be suspended during the period (and
                 only during the period) in which the cause continues to have
                 effect. Forthwith upon the cause ceasing to have effect the
                 party relying upon it shall give written notice thereof to the
                 other.

     14.2 In the event that a Force Majeure Event results in a shortage of TiO2
          Huntsman Tioxide will treat ICI equitably in apportioning available
          product among its customers to whom it has a contractual commitment to
          supply.

     14.3 In the event that ICI is forced to purchase TiO2 from alternative
          suppliers as a result of Huntsman Tioxide's notifying a Force Majeure
          Event then the volumes of TiO2 purchased by ICI from any such
          alternative suppliers in substitution for the TiO2 that Huntsman
          Tioxide was committed to supply but was unable to supply during the
          period of the Force Majeure

                                 Page 11 of 27
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                                              [CONFIDENTIAL TREATMENT REQUESTED]

          Event shall be included in the calculation of the appropriate rebate
          level to be paid under Clause 8 but no discount or rebate shall be
          paid upon these volumes themselves.

     14.4 If a Force Majeure Event occurs such that Huntsman Tioxide is
          prevented from delivering or supplying in accordance with this
          Agreement, Huntsman Tioxide shall use its reasonable endeavours but
          shall not be obliged to make up any shortfall of TiO2 not supplied on
          account of such Force Majeure Event.

15. APPLICABLE LAW
    --------------

    This Agreement shall be governed by and construed in accordance with
    English law and the parties irrevocably submit to the non-exclusive
    jurisdiction of the High Court of Justice in London for all purposes
    connected with it.

16. LIABILITY AND WARRANTY
    ----------------------

    16.1 All TiO2 sold by Huntsman Tioxide to ICI pursuant to this Agreement
         shall conform in all respects to its specification at the time of
         delivery.  Huntsman Tioxide makes no other representation or warranty
         of any kind, express or implied, as to reasonable quality,
         merchantability or fitness for purpose or any other matter with
         respect to TiO2 sold pursuant to this Agreement.

    16.2 Any claim by ICI which is based on the failure of TiO2 delivered
         under this Agreement to correspond with its specification shall
         (whether or not delivery is refused by ICI) be notified to Huntsman
         Tioxide within 90 days from the date of usage. If delivery is not
         refused, and ICI does not notify Huntsman Tioxide in accordance with
         this Clause 16.2, ICI shall not be entitled to reject the goods and
         Huntsman Tioxide shall have no liability, and ICI shall be bound to
         pay the price as if the goods had been delivered in accordance with
         this Agreement.

    16.3 Other than as expressly set out in Clauses 16.1 and 16.2 above and
         except in respect of death or personal injury caused by Huntsman
         Tioxide's negligence, Huntsman Tioxide shall not be liable to ICI by
         reason of any representation (unless fraudulent), or any implied
         warranty, condition or other term, or any duty at common law for any
         costs, expenses or other claims for compensation whatsoever (whether
         caused by negligence of Huntsman Tioxide, its employees or agents or
         otherwise) which arise out of or in connection with the supply of TiO2
         or their use or resale by ICI, and the entire liability of Huntsman
         Tioxide under or in connection with this Agreement shall not exceed
         [+++++] for each incident giving rise to a

                                 Page 12 of 27
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                                              [CONFIDENTIAL TREATMENT REQUESTED]

         claim and shall in any event not exceed [+++++] aggregate in respect of
         incidents occurring in any Contract Year.

    16.4 Each party acknowledges that, in entering into this Agreement, it
         does not do so on the basis of or rely on any representation, warranty
         or other provision except as expressly provided in this Agreement, and
         accordingly all conditions, warranties or other terms implied by
         Statute or Common Law are hereby excluded to the fullest extent
         permitted by law.

17.  TERMINATION
---  -----------

     17.1 This Agreement may be terminated;

          17.1.1 forthwith by either party if the other commits any material
                 breach of any term of this and which (in the case of a breach
                 capable of being remedied) shall not have been remedied within
                 28 days of a written request to remedy the same; and

          17.1.2 forthwith by either party if the other shall convene a meeting
                 of its creditors or if a proposal shall be made for a voluntary
                 arrangement within Part I of the Insolvency Act 1986 or a
                 proposal for any other composition scheme or arrangement with
                 (or assignment for the benefit of) its creditors or if the
                 other shall be unable to pay its debts within the meaning of
                 section 123 of the Insolvency Act 1986 or if a trustee receiver
                 administrative receiver or similar officer is appointed in
                 respect of all or any part of the business or assets of the
                 other party or if a petition is presented or a meeting is
                 convened for the purpose of considering a resolution or other
                 steps are taken for the winding up of the other party or for
                 the making of an administration order (otherwise than for the
                 purpose of an amalgamation or reconstruction).

18.  ASSIGNMENT
     ----------

     18.1 Neither party shall be entitled to assign this Agreement nor all or
          any of their rights and obligations hereunder without the prior
          written consent of the other.

     18.2 Huntsman Tioxide shall be entitled to perform any of the obligations
          undertaken by it and to exercise any of the rights granted to it under
          this Agreement through any other company which at the relevant time is
          its holding company or subsidiary (as defined by Section 736 of the
          Companies Act 1985, as amended) or the subsidiary of any such holding
          company.

                                 Page 13 of 27
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                                              [CONFIDENTIAL TREATMENT REQUESTED]

19.  NOTICES
------------

     19.1   Any notice to be given under this Agreement shall be either
            delivered personally or sent by first class recorded delivery post
            (airmail if overseas) or by fax. The address for service of each
            party is its registered office or any other address for service
            previously notified to the other party. A notice is deemed to have
            been served as follows:

            19.1.1  if personally delivered, at the time of delivery;

            19.1.2  if posted, at the expiration of 48 hours or (in the case of
                    airmail) 7 days after the envelope containing it is
                    delivered into the custody of the postal authorities.

            19.1.3  if sent by fax at the time it is despatched.

     19.2   In proving service it is sufficient to prove that personal delivery
            was made, or that the envelope containing the notice was properly
            addressed and delivered into the custody office of the postal
            authority as a prepaid first class recorded delivery or airmail
            letter (as appropriate) or in the case of fax by production of a
            transmission report confirming uninterrupted transmission.

20.  INVALIDITY
---------------

     If any provision of this Agreement shall be found by any court or
     administrative body of competent jurisdiction to be invalid or
     unenforceable the invalidity or unenforceability of such provision of this
     Agreement and all provisions not affected by such invalidity or
     unenforceability shall remain in full force and effect.  The parties
     hereby agree to attempt to substitute for any invalid or unenforceable
     provision a valid or enforceable provision which achieves to the greatest
     extent possible the economic legal and commercial objectives of the invalid
     or unenforceable provision.

21.  WAIVER
-----------

     The waiver by either party of a breach or default of any of the provisions
     of this Agreement by the other party shall not be construed as a waiver of
     any succeeding breach of the same or other provisions nor shall any delay
     or omission on the part of either party to exercise or avail itself of any
     right power or privilege that it has or may have hereunder operate as a
     waiver of any breach or default by the other party.

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                                              [CONFIDENTIAL TREATMENT REQUESTED]

22.  ENTIRE AGREEMENT
---------------------

     This Agreement contains the entire agreement between the parties with
     respect to the subject matter hereof, supersedes all previous Agreements
     and understandings between the parties with respect thereto, and may not be
     modified except by an instrument in writing signed by the duly authorised
     representative of the parties.

23.  COUNTERPARTS
-----------------

This Agreement may be executed in more than one counterpart and shall come into
force once each party has executed such a counterpart in identical form and
exchanged the same with the other party.

Signed for and on behalf of
TIOXIDE EUROPE LIMITED .....................................

Name in Full ............/s/ Douglas A. L. Coombs.............................

Position: ...............President & CEO......................................

In the  presence of
Witness ................../s/ Johnathan Dean..................................

Signed for and on behalf of
IMPERIAL CHEMICAL INDUSTRIES plc
trading as ICI Paints.........................................................

Name in Full ................../s/ Steven Cannam..............................

Position: .....................S.V.P. Procurement and Logistics...............

In the presence of
Witness ......................./s/ D.R. Pale....../s/ D.J. Brittan............

                                 Page 15 of 27
<PAGE>

                                              [CONFIDENTIAL TREATMENT REQUESTED]

                                  SCHEDULE I
                                  ----------

                              LIST OF TERRITORIES
                              -------------------

United Kingdom     (UK)
Ireland
Germany
France
Spain
Italy
Holland

United States of America     (USA)
Canada
Puerto Rico
Mexico

Malaysia
Singapore
Thailand
Indonesia
Peoples Republic of China
Vietnam
Pakistan
India
Sri Lanka

                                 Page 16 of 27
<PAGE>

                                              [CONFIDENTIAL TREATMENT REQUESTED]

                                  SCHEDULE II

                             AGREED PAYMENT TERMS

         Territory                                      Term
--------------------------------------------------------------------------------
United Kingdom                      20th of the month following month of invoice
--------------------------------------------------------------------------------
Ireland                             20th of the month following month of invoice
--------------------------------------------------------------------------------
Germany                             30 days net 2% discount for payment within
                                    14 days
--------------------------------------------------------------------------------
Holland                             60 days from date of invoice
--------------------------------------------------------------------------------
France                              30 days from end of month of invoice 1%
                                    discount for payment on 10th of following
                                    month
--------------------------------------------------------------------------------
Italy                               60 days from month end
--------------------------------------------------------------------------------
Spain                               90 days net
--------------------------------------------------------------------------------
USA                                 60 days net 1% discount for payment within
                                    30 days
--------------------------------------------------------------------------------
Canada                              60 days net 1% discount for payment within
                                    30 days
--------------------------------------------------------------------------------
Puerto Rico                         60 days net - 1% discount for payment within
                                    30 days
--------------------------------------------------------------------------------
Malaysia                            60 days from month end
--------------------------------------------------------------------------------
Singapore                           60 days from month end
--------------------------------------------------------------------------------
Thailand                            90 days from date of bill of lading
--------------------------------------------------------------------------------
Peoples Republic of China           90 days from date of bill of lading
--------------------------------------------------------------------------------
Vietnam                             90 days from date of bill of lading
--------------------------------------------------------------------------------
Indonesia                           90 days from date of bill of lading
--------------------------------------------------------------------------------
Pakistan                            120 days from date of bill of lading
--------------------------------------------------------------------------------
India                               90 days from date of bill of lading
--------------------------------------------------------------------------------
Sri Lanka                           90 days from date of bill of lading
--------------------------------------------------------------------------------

                                 Page 17 of 27
<PAGE>

                                              [CONFIDENTIAL TREATMENT REQUESTED]

                                  APPENDIX 1

                  GRADES AND SPECIFICATIONS ARE AS FOLLOWS:-

                                    [+++++]
                                    [+++++]
                                    [+++++]
                                    [+++++]
                                    [+++++]
                                    [+++++]

                                 Page 18 of 27
<PAGE>

                                              [CONFIDENTIAL TREATMENT REQUESTED]

                               Specification for
                                TIOXIDE [+++++]

COMPANY          :   ICI                 ICI            ICI PAINTS

LOCATION         :   [+++++]             [+++++]        [+++++]

SPECIFICATION NO :                       [+++++]        [+++++]

ICI REFERENCE    :                       M2551

COMPANY          :   ICI DULUX PAINTS    [+++++]

LOCATION         :   [+++++]             [+++++]

SPECIFICATION NO :   [+++++]             [+++++]

DATE             :   10.03.1999

------------------------------------------------------------------------------
PROPERTY                 TEST METHOD             SPECIFICATION
[+++++]                                            [+++++]
[+++++]                    [+++++]                 [+++++]
[+++++]                    [+++++]                 [+++++]
[+++++]                    [+++++]                 [+++++]
[+++++]                    [+++++]                 [+++++]
[+++++]                    [+++++]                 [+++++]
[+++++]                    [+++++]                 [+++++]
[+++++]                    [+++++]                 [+++++]
[+++++]                    [+++++]                 [+++++]
[+++++]                    [+++++]                 [+++++]
[+++++]                    [+++++]                 [+++++]
[+++++]                    [+++++]                 [+++++]
------------------------------------------------------------------------------

S.A.M.M. = TIOXIDE STANDARD ANALYTICAL METHOD
S.P.T.M. = TIOXIDE STANDARD PIGMENT TEST METHOD
# = VS TIOXIDE REFERENCE STANDARD

For ICI                         For Tioxide Europe
-------                         ------------------

Approved by:                    Approved by: John G Balfour

Position:                       Position:    Quality Assurance Officer
                                Technical Service Department (Coatings)

                                Address : West Site, Haverton Hill Road,
                                Billingham TS23 1PS
                                England
Date:                           Date:
Signature:                      Signature:

                                 Page 19 of 27
<PAGE>

                                              [CONFIDENTIAL TREATMENT REQUESTED]

This specification supersedes all previous signed or unsigned specifications and
must remain confidential between ICI and Tioxide.  This specification is only
valid when signed by representatives of both Tioxide Europe Limited and ICI.

                                                                    TEMS/TSD/04C
                                                                           REV.2
                               Specification for
                               TIOXIDE R-[+++++]

COMPANY               :   ICI              ICI       ICI PAINTS

LOCATION              :   [+++++]          [+++++]   [+++++]

SPECIFICATION NO      :   [+++++]          [+++++]   [+++++]

ICI REFERENCE         :   M2536

COMPANY               :   ICI DULUX PAINTS [+++++]

LOCATION              :   [+++++]          [+++++]

SPECIFICATION NO      :   [+++++]          [+++++]

DATE                  :   09.03.1999

------------------------------------------------------------------------------
PROPERTY              TEST METHOD             SPECIFICATION
[+++++]                                           [+++++]
[+++++]                 [+++++]                   [+++++]
[+++++]                 [+++++]                   [+++++]
[+++++]                 [+++++]                   [+++++]
[+++++]                 [+++++]                   [+++++]
[+++++]                 [+++++]                   [+++++]
[+++++]                 [+++++]                   [+++++]
[+++++]                 [+++++]                   [+++++]
[+++++]                 [+++++]                   [+++++]
[+++++]                 [+++++]                   [+++++]
[+++++]                 [+++++]                   [+++++]
[+++++]                 [+++++]                   [+++++]
[+++++]
----------------------------------------------------------------------

S.A.M.M. = TIOXIDE STANDARD ANALYTICAL METHOD
S.P.T.M. = TIOXIDE STANDARD PIGMENT TEST METHOD
# = VS TIOXIDE REFERENCE STANDARD

For ICI                             For Tioxide Europe
-------                             ------------------
Approved  by:                       Approved by: John G Balfour

Position:                           Position:     Quality Assurance Officer
                                    Technical Service Department (Coatings)

                                    Address : West Site, Haverton Hill Road,
                                    Billingham TS23 1PS
                                    England

                                 Page 20 of 27
<PAGE>

                                              [CONFIDENTIAL TREATMENT REQUESTED]

Date:                               Date:

Signature:                          Signature:

This specification supersedes all previous signed or unsigned specifications and
must remain confidential between ICI and Tioxide.  This specification is only
valid when signed by representatives of both Tioxide Europe Limited and ICI.

                                 Page 21 of 27
<PAGE>

                                              [CONFIDENTIAL TREATMENT REQUESTED]

                               Specification for
                                TIOXIDE [+++++]

COMPANY:                  ICI              ICI

LOCATION:              [+++++]           [+++++]

SPECIFICATION No:      [+++++]           [+++++]

ICI REFERENCE:         [+++++]

DATE:                  01.01.1998

PROPERTY               TEST METHOD       SPECIFICATION
[+++++]                                     [+++++]
[+++++]                  [+++++]            [+++++]
[+++++]                  [+++++]            [+++++]
[+++++]                  [+++++]            [+++++]
[+++++]                  [+++++]            [+++++]
[+++++]                  [+++++]            [+++++]
[+++++]                  [+++++]            [+++++]
[+++++]                  [+++++]            [+++++]

S.A.M.M. = TIOXIDE STANDARD ANALYTICAL METHOD
S.P.T.M. = TIOXIDE STANDARD PIGMENT TEST METHOD

For ICI                             For Tioxide Europe
-------                             ------------------

Approved  by:                       Approved by:  John G Balfour

Position:                           Position:  Quality Assurance Officer
                                    Technical Service Department (Coatings)

                                    Address: West Site, Haverton Hill Road,
                                    Billingham TS23 1PS
                                    England

Date:                               Date:

Signature:                          Signature:

This specification supersedes all previous signed or unsigned specifications and
must remain confidential between ICI and Tioxide.  This specification is only
valid when signed by representatives of both Tioxide Europe Limited and ICI.

                                 Page 22 of 27
<PAGE>

                                              [CONFIDENTIAL TREATMENT REQUESTED]

                             Specification [+++++]
                                TIOXIDE [+++++]

CLIENT:                [+++++]

VILLE:                 [+++++]

SPECIFICATION No:      [+++++]

DATE:                  01.01.1998

PROPRIETE                       METHODE DE TEST                 SPECIFICATION
[+++++]                         [+++++]                         [+++++]
[+++++]                         [+++++]                         [+++++]
[+++++]                         [+++++]                         [+++++]
[+++++]                         [+++++]                         [+++++]
[+++++]                         [+++++]                         [+++++]
[+++++]                         [+++++]                         [+++++]
[+++++]                         [+++++]                         [+++++]
[+++++]                         [+++++]                         [+++++]
[+++++]                         [+++++]                         [+++++]

S.A.M.M. = STANDARD ANALYTICAL METHODS MANUAL
S.P.T.M. = STANDARD PIGMENT TEST METHOD
# VS TIOXIDE REFERENCE STD

Pour Compagnie des Vernis Valentine                   Pour Tioxide Europe
-----------------------------------           ---------------------------------
Approuve:                                     Approuve:  John G Balfour
Fonction:                                     Fonction:  Quality Assurance
                                              Officer
                                              Technical Service Department
                                              (Coatings)
                                              Addresse:  West Site,
                                              Haverton Hill Road, Billingham,
                                              England TS23 1PS
Date:                                         Date:
Signature:                                    Signature:

Cette specification annule et remplace toutes specifications precedentes,
signees ou proposees, et doit rester confidentielle entre Compagnie des Vernis
Valentine et Tioxide.

                                 Page 23 of 27
<PAGE>

                                              [CONFIDENTIAL TREATMENT REQUESTED]

                               Specification for
                                TIOXIDE [+++++]

Company:       [+++++]

Specification Reference [+++++]        Date: January 12, 1995

Property              Test Method               Limits

[+++++]               [+++++]                   [+++++]

[+++++]               [+++++]                   [+++++]

[+++++]               [+++++]                   [+++++]

[+++++]               [+++++]                   [+++++]

[+++++]               [+++++]                   [+++++]

[+++++]               [+++++]                   [+++++]

[+++++]               [+++++]                   [+++++]

[+++++]               [+++++]                   [+++++]

                  For Customer   For Tioxide

Approved by:      ___________    A F Vignini
                                 Coating Manager
Position:         ___________    Technical Service Department

Date:             ___________    ________________________

Signature:        ___________    ________________________

                                 Page 24 of 27
<PAGE>

                                              [CONFIDENTIAL TREATMENT REQUESTED]

                               Specification for
                                TIOXIDE [+++++]
                                   ([+++++])

Company:       [+++++]

Specification Reference [+++++]      Date:  April 1991

Property         Test Method        Limits

[+++++]          [+++++]            [+++++]

[+++++]          [+++++]            [+++++]

[+++++]          [+++++]            [+++++]

[+++++]          [+++++]            [+++++]

[+++++]          [+++++]            [+++++]

[+++++]          [+++++]            [+++++]

[+++++]          [+++++]            [+++++]

[+++++]          [+++++]            [+++++]
                                    [+++++]

[+++++]          [+++++]            [+++++]

[+++++]          [+++++]            [+++++]
                                    [+++++]

              Quality Assurance data to be collated by Tioxide TSD

* Tioxide Standard Analytical Methods
+ Tioxide Standard Test Methods

                  Customer         Tioxide

Accepted by:      _____________    ____________

Position:         _____________    ____________

Date:             _____________    ____________

                                 Page 25 of 27
<PAGE>

                                              [CONFIDENTIAL TREATMENT REQUESTED]

                               Specification for
                                TIOXIDE [+++++]

Company:       [+++++]

Specification Reference [+++++]      Date:  January 12, 1995

Property            Test Method         Limits

[+++++]             [+++++]             [+++++]

[+++++]             [+++++]             [+++++]

[+++++]             [+++++]             [+++++]

[+++++]             [+++++]             [+++++]

[+++++]             [+++++]             [+++++]

[+++++]             [+++++]             [+++++]

[+++++]             [+++++]             [+++++]

[+++++]             [+++++]             [+++++]

[+++++]             [+++++]             [+++++]

 . Tioxide Standard Analytical Methods
 . Tioxide Standard Test Methods

                  For Customer       For Tioxide

Approved by:      ____________       A F Vignini
                                     Coating Manager
Position:         ____________       Technical Service Department

Date:             ____________       _______________________

Signature:        ____________       _______________________

                                 Page 26 of 27
<PAGE>

                                              [CONFIDENTIAL TREATMENT REQUESTED]

                                  Appendix II

                                Delivery Points

Territory                           Delivery Term
---------                           -------------
United Kingdom                      Delivered Site
Ireland                             Delivered Site
Germany                             Delivered Site
France                              Delivered Site
Netherlands                         Delivered Site
Italy                               Delivered Site
Spain                               Delivered Site
USA                                 Delivered Site
Canada                              Delivered Site
Puerto Rico                         Delivered Site
Malaysia                            Delivered Site
Singapore                           Delivered Site
Thailand                            CIF Bangkok Port
Peoples Republic of China           CIF Ghangzhou Port / CIF Shanghai
Vietnam                             CIF Ho Chi Ming
Indonesia                           CIF Jakarta
Pakistan                            CIF Karachi
India                               CIF ICD New Delhi / CIF ICD Hyderabad / CIF
                                    Nava Shiva
Sri Lanka                           CIF Colombo

                                 Page 27 of 27

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