Document:

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                                                                    EXHIBIT 10.2

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                         HUNTSMAN PACKAGING CORPORATION

                             STOCKHOLDERS' AGREEMENT

                            DATED AS OF MAY 31, 2000

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                                TABLE OF CONTENTS

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                                                                                                 PAGE

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ARTICLE I DEFINITIONS; RULES OF CONSTRUCTION........................................................1

    1.1       DEFINITIONS...........................................................................1
    1.2       RULES OF CONSTRUCTION.................................................................9

ARTICLE II ISSUANCES AND TRANSFERS OF SECURITIES....................................................9

    2.1       ISSUANCES AND TRANSFERS OF SECURITIES.................................................9
    2.2       CERTAIN TRANSFERS....................................................................10
    2.3       CO-SALE RIGHTS.......................................................................10
    2.4       RIGHT OF FIRST REFUSAL...............................................................11
    2.5       REQUIRED SALE IN CONNECTION WITH A SALE OF THE COMPANY...............................12

ARTICLE III RIGHTS TO SUBSCRIBE FOR SECURITIES.....................................................14

    3.1       GENERAL..............................................................................14
    3.2       EXCLUDED SECURITIES..................................................................15

ARTICLE IV BOARD...................................................................................16

    4.1       ELECTION OF DIRECTORS, VOTING........................................................16
    4.2       VOTING AGREEMENT.....................................................................18
    4.3       MEETINGS.............................................................................18
    4.4       NOTICE OF MEETINGS...................................................................18
    4.5       QUORUM FOR MEETINGS..................................................................18

ARTICLE V ADDITIONAL AGREEMENTS....................................................................19

    5.1       INFORMATION RIGHTS...................................................................19
    5.2       ACCESS TO RECORDS AND PROPERTIES.....................................................19
    5.3       CONFIDENTIAL INFORMATION.............................................................19
    5.4       CHANGE OF CONTROL....................................................................20
    5.5       REGULATORY MATTERS...................................................................20
    5.6       SPECIAL MEETINGS OF STOCKHOLDERS.....................................................20
    5.7       NOTICE REQUIREMENTS IN CONNECTION WITH ACTION BY WRITTEN CONSENT.....................20

ARTICLE VI SECURITIES LAW COMPLIANCE; LEGENDS......................................................21

    6.1       RESTRICTION ON TRANSFER AND UTAH BUSINESS CORPORATION ACT............................21
    6.2       RESTRICTIVE LEGENDS..................................................................21
    6.3       NOTICE OF TRANSFER...................................................................21
    6.4       REMOVAL OF LEGENDS, ETC..............................................................22
    6.5       ADDITIONAL LEGEND....................................................................22

ARTICLE VII AMENDMENT AND WAIVER...................................................................23

    7.1       AMENDMENT............................................................................23
    7.2       WAIVER...............................................................................23

ARTICLE VIII TERMINATION...........................................................................23

ARTICLE IX MISCELLANEOUS...........................................................................24

    9.1       SEVERABILITY.........................................................................24
    9.2       ENTIRE AGREEMENT.....................................................................24
    9.3       INDEPENDENCE OF AGREEMENTS, COVENANTS, REPRESENTATIONS AND WARRANTIES................24
    9.4       SUCCESSORS AND ASSIGNS...............................................................24
    9.5       COUNTERPARTS; FACSIMILE SIGNATURES; VALIDITY.........................................25
    9.6       REMEDIES.............................................................................25
    9.7       NOTICES..............................................................................25
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    9.8       GOVERNING LAW........................................................................26
    9.9       WAIVER OF JURY TRIAL.................................................................27
    9.10      CONSENT TO JURISDICTION..............................................................27
    9.11      FURTHER ASSURANCES...................................................................27
    9.12      CONFLICTING AGREEMENTS...............................................................27
    9.13      THIRD PARTY RELIANCE.................................................................27
    9.14      REPURCHASE RIGHT OF THE COMPANY......................................................28
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                                      (ii)

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                                        STOCKHOLDERS' AGREEMENT dated as of May
                                31, 2000, among HUNTSMAN PACKAGING CORPORATION,
                                a Utah corporation (the "Company"), and the
                                STOCKHOLDERS (as hereinafter defined).

                Each Stockholder currently owns (or has the right to acquire)
the number of shares of the Common Stock and/or the Common Stock Warrants
(collectively, the "Warrants") issued pursuant to the Warrant Agreement, in each
case, as set forth opposite the name of such Stockholder on Schedule I. The
parties hereto desire to provide for the terms with respect to certain matters
regarding the relationship between the Company and the Stockholders and the
relationship among the Stockholders.

                ACCORDINGLY, in consideration of the mutual covenants and
agreements contained in this Agreement, the sufficiency of which is hereby
acknowledged, the parties agree as set forth below.

                                   ARTICLE I

                       DEFINITIONS; RULES OF CONSTRUCTION

1.1     DEFINITIONS.

        The capitalized terms used in this Agreement have the meanings set forth
below.

                "Affiliate" means, with respect to any Person, a Person that
directly, or indirectly through one or more intermediaries, Controls, or is
Controlled by, or is under common Control with, such Person.

                "Approved Sale" has the meaning ascribed to it in Section
2.5(a).

                "Authorized Representative" has the meaning ascribed to it in
Section 5.2.

                "Board" unless otherwise specified, means the Board of Directors
of the Company.

                "Business Day" means any day that is not (a) Pioneer Day in the
State of Utah, (b) a Saturday, Sunday, or legal holiday or (c) a day on which
banks are not required to be open in New York, New York.

                "By-laws" means the By-laws of the Company, as amended,
modified, supplemented or restated and in effect from time to time.

                "Chase" means Chase Domestic Investments, L.L.C., a Delaware
limited liability company.

                "Closing Date" has the meaning given to such term in the
Recapitalization Agreement.

<PAGE>   5

                "Commission" means the Securities and Exchange Commission or any
other Federal agency at the time administering the Securities Act.

                "Common Stockholder" means, collectively, the Investor
Stockholders, the Trust Holders, the Warrantholders and the Management
Stockholders.

                "Common Stock" means, collectively, all of the common stock of
the Company, of any class and any other class of capital stock of the Company
hereafter authorized that is not limited to a fixed sum or percentage of par or
stated value with respect to the rights of the holders thereof to participate in
dividends and in the distribution of assets upon any liquidation, dissolution or
winding up of the Company.

                "Common Stock Equivalent" means, at any time, one share of
Common Stock or the right to acquire, whether or not such right is immediately
exercisable, one share of Common Stock, whether evidenced by an option, warrant,
convertible security or other instrument or agreement including, without
limitation, the Warrants.

                "Company" has the meaning ascribed to it in the Preamble.

                "Control" means, (including, with correlative meaning, the terms
"controlling," "controlled by" and "under common control with") with respect to
any Person, the possession, directly or indirectly, of the power to direct or
cause the direction of the management, policies or investment decisions of such
Person, whether through the ownership of voting securities, by contract or
otherwise.

                "Directors" has the meaning ascribed to it in Section 4.1(d).

                "Document(s)" means, individually or collectively, this
Agreement, the By-laws, the Registration Rights Agreement, the Restated Charter,
the Warrant Agreement and the Recapitalization Agreement.

                "Drag Notice" has the meaning ascribed to it in Section 2.5(b).

                "Equity Incentive Plan" means any Company option or similar plan
for the benefit of employees, officers, directors and/or consultants of the
Company (including, without limitation, the Company's 2000 Incentive Stock
Plan).

                "Excluded Securities" has the meaning ascribed to it in Section
3.2.

                "Excluded Stockholder Shares" means all shares of Common Stock
issued to Management Stockholders pursuant to the terms of the Restricted Stock
Agreements which have not been released from the Repurchase Option (as defined
in the Restricted Stock Agreements) on the date on which the calculation of
Stockholder Shares is being determined.

                "Fair Market Value" shall mean, with respect to any Stockholder
Share, as of any date of determination, the fair value of each Stockholder Share
(or, with respect to a warrant or option, the fair value of each Stockholder
Share obtainable upon exercise thereof net of the exercise price), determined in
accordance with the terms hereof. At any time that the Fair

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Market Value shall be required to be determined hereunder, the Board shall make
a good faith determination (the "Board's Determination") of the fair market
value of each Stockholder Share within thirty (30) days of the delivery by the
Company of the Repurchase Notice (without taking into account that the
Stockholder Shares may be "restricted securities" and without any discount for
the minority position represented by the Stockholder Shares) and shall provide
within such 30-day period to the Management Stockholder or its Permitted
Transferees with respect to whose Stockholder Shares such determination is being
made, a written notice thereof which notice shall set forth supporting data in
respect of such calculation (the "Determination Notice"). The Management
Stockholder or such Permitted Transferee shall have thirty (30) days following
receipt of the Determination Notice within which to deliver to the Company a
written notice (the "Objection Notice") of an objection, if any, to the Board's
Determination, which Objection Notice shall set forth the Management
Stockholder's or such Permitted Transferee's good faith determination (the
"Stockholder's Determination") of the fair value of each Stockholder Share. The
failure by the Management Stockholder and/or such Permitted Transferee, as
applicable, to deliver the Objection Notice within such 30-day period shall
constitute such Person's acceptance of the Board's Determination as conclusive.
In the event of the timely delivery of an Objection Notice, the Company and the
Management Stockholder (and/or the applicable Permitted Transferees) shall
attempt in good faith to arrive at an agreement with respect to the Fair Market
Value, which agreement shall be set forth in writing within fifteen (15) days
following delivery of the Objection Notice. If the Company and the Management
Stockholder (and/or the applicable Permitted Transferees) are unable to reach an
agreement within such 15-day period, the matter shall be promptly referred for
determination to a regionally or nationally recognized investment banking or
valuation firm (the "Valuer") reasonably acceptable to the Company and the
Management Stockholder (and/or the applicable Permitted Transferees). The
Company and the Management Stockholder (and/or the applicable Permitted
Transferees) will cooperate with each other in good faith to select such Valuer.
The Valuer may select the Board's Determination or the Stockholder's
Determination as the Fair Market Value or may select any other number or value
(determined without taking into account that the Stockholder Shares may be
"restricted securities" and without any discount for the minority position
represented by such Stockholder Shares). The Valuer's selection will be
furnished to the Company and the Management Stockholder (and/or the applicable
Permitted Transferees) in writing and will be conclusive and binding upon the
Company and the Management Stockholder (and/or the applicable Permitted
Transferees). The fees and expenses of the Valuer shall be borne equally by the
Company, on the one hand, and the Management Stockholder (and/or the applicable
Permitted Transferees), on the other.

                "First Refusal Offer" has the meaning ascribed to it in Section
2.4(b).

                "GAAP" means generally accepted accounting principles in the
United States, as in effect from time to time, consistently applied.

                "Initial Subscribing Stockholder" has the meaning ascribed to it
in Section 3.1(d).

                "Investor Directors" means the directors appointed by the
Requisite Investor Holders pursuant to Section 4.1(a), from time to time.

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                "Investor Stockholders" means, collectively, (a) the Persons
listed on Schedule I attached hereto under the heading "Investor Stockholders,"
(b) any Person who is or becomes a holder of Stockholder Shares and who is, at
the time of such Transfer, a Permitted Transferee of such Investor Stockholder,
(c) any successor to any Investor Stockholder and (d) any Person who becomes a
party to this Agreement as a Investor Stockholder pursuant to Sections 2.1 or
2.2(b).

                "Joinder Agreement" has the meaning ascribed to it in Section
2.1.

                "Management Directors" means the director(s) appointed pursuant
to Section 4.1(a), from time to time, who are not Investor Directors or Trust
Directors.

                "Management Stockholders" means, collectively, (a) the Persons
listed on Schedule I attached hereto under the heading "Management
Stockholders," (b) any Person who is or becomes a holder of Stockholder Shares
and who is, at the time of such Transfer, a Permitted Transferee of such
Management Stockholder, (c) any successor to any Management Stockholder and (d)
any Person who becomes a party to this Agreement as a Management Stockholder
pursuant to Sections 2.1 or 2.2(b).

                "New Investor" has the meaning ascribed to it in Section 3.1(c).

                "Observer" has the meaning ascribed to it in Section 4.3.

                "Offer" has the meaning ascribed to it in Section 2.4(b).

                "Offered Securities" has the meaning ascribed to it in Section
3.1(a).

                "Other Stockholders" has the meaning ascribed to it in Section
2.3(a).

                "Percentage Ownership" means with respect to any Stockholder,
the fraction, expressed as a percentage, the numerator of which is the total
number of Stockholder Shares held by such Stockholder and the denominator of
which is the total number of Stockholder Shares issued and outstanding at the
time of determination (excluding, in each case any options, warrants or similar
Securities and Excluded Stockholder Shares, but specifically including in such
determination the issued or unissued Warrant Shares).

                "Permitted Transfer" means (a) with respect to a Management
Stockholder, any Transfer by a Management Stockholder to (i) the spouse or any
lineal descendant (including adopted children) of such Management Stockholder,
(ii) any trust solely for the benefit of such Management Stockholder or the
spouse or lineal descendants (including adopted children) of such Management
Stockholder, (iii) a family trust, partnership or limited liability company
established solely for the benefit of such Management Stockholder or such
Management Stockholder's spouse or lineal descendants (including adopted
children) or for estate planning purposes provided such trust, family trust,
partnership or limited liability company remains under the Control of such
Management Stockholder, (iv) the estate of such Management Stockholder or (v)
any Transferee approved by the Requisite Common Holders, (b) with respect to a
Common Stockholder who is not a Management Stockholder any Transfer by such
Common Stockholder to (i) any Affiliates of such Stockholder or (ii) any
Transferee approved by the Requisite Common Holders, (c) with respect to a
Warrantholder, any Transfer made in compliance with

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Article II hereof and (d) with respect to Chase, any Transfer in connection with
its syndication of Stockholder Shares purchased on the Closing Date provided
such Transfer is executed within 120 days of the Closing Date; provided,
however, that, in each case, such Permitted Transfer must be made in accordance
with Section 2.2(b).

                "Permitted Transferee" means any Person to whom a Permitted
Transfer is made.

                "Person" shall be construed as broadly as possible and shall
include an individual or natural person, a partnership (including a limited
liability partnership), a corporation, an association, a joint stock company, a
limited liability company, a trust, a joint venture, an unincorporated
organization and a governmental authority.

                "Preemptive Offer Acceptance Notice" has the meaning ascribed to
it in Section 3.1(b).

                "Preemptive Offer Notice" has the meaning ascribed to it in
Section 3.1(a).

                "Preemptive Offer Period" has the meaning ascribed to it in
Section 3.1(a).

                "Proportionate Percentage" means with respect to any
Stockholder, the fraction, expressed as a percentage, the numerator of which is
the total number of Stockholder Shares held by such Stockholder and the
denominator of which is the total number of Stockholder Shares issued and
outstanding at the time of determination held by all Offerees (excluding, in
each case any options, warrants or similar Securities and Excluded Stockholder
Shares, but specifically including in such determination any issued or unissued
Warrant Shares).

                "Proposed Transferee" has the meaning ascribed to it in Section
2.4(b).

                "Public Offering" means the closing of a public offering of
Common Stock pursuant to a registration statement declared effective under the
Securities Act, except that a Public Offering shall not include an offering of
securities to be issued as consideration in connection with a business
acquisition or an offering of securities issuable pursuant to an employee
benefit plan.

                "Public Sale" means any sale, occurring simultaneously with or
after a Public Offering, of Securities to the public pursuant to an offering
registered under the Securities Act or to the public through a broker, dealer or
market maker (pursuant to the provisions of Rule 144 or otherwise).

                "Qualified Public Offering" means an underwritten Public
Offering of shares of Common Stock registered pursuant to the Securities Act
involving aggregate gross proceeds to the Company of at least $100 million and
which values all Common Stock Equivalents of the Company at a pre-money
valuation of at least $500 million.

                "Recapitalization Agreement" means the Recapitalization
Agreement, dated as of March 31, 2000, by and among the Company and the Persons
named therein, as such agreement may from time to time be amended, modified or
supplemented in accordance with its terms.

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                "Refused Securities" has the meaning ascribed to it in Section
3.1(c).

                "Registration Rights Agreement" means the Registration Rights
Agreement, dated as of the date hereof, among the Company, the Stockholders and
other parties named therein, as amended, modified or supplemented from time to
time in accordance with the terms therein.

                "Registration Statement" has the meaning given to such term in
the Registration Rights Agreement.

                "Repurchase Notice" means the written notice of the Company
notifying a Management Stockholder of the Company's, or its designees, intent to
exercise its rights under Section 9.14 and the number of Stockholder Shares to
be repurchased.

                "Requisite Common Holders" means, at any point in time, those
Common Stockholders who hold in the aggregate in excess of fifty percent (50%)
of the outstanding Common Stock Equivalents held by all Common Stockholders at
such time.

                "Requisite Investor Holders" means, at any point in time, those
Investor Stockholders who hold in the aggregate in excess of fifty percent (50%)
of the outstanding Common Stock Equivalents held by all Investor Stockholders at
such time.

                "Requisite Management Holders" means, at any point in time,
those Management Stockholders who hold in the aggregate in excess of fifty
percent (50%) of the outstanding Common Stock Equivalents held by all Management
Stockholders at such time.

                "Requisite Trust Holders" means, at any point in time, those
Trust Holders who hold in the aggregate in excess of fifty percent (50%) of the
outstanding Common Stock Equivalents held by all Trust Holders at such time.

                "Requisite Warrantholders" means, as of any date of
determination, Warrantholders holding Warrants or Warrant Shares representing at
least sixty percent (60%) of the Warrant Shares that are either (a) previously
issued and are then outstanding or (b) issuable upon exercise of Warrants then
outstanding.

                "Restated Charter" means the amended and restated certificate or
articles of incorporation of the Company, as in effect at the time in question,
including any certificates of designation or articles of amendment filed with
the Secretary of State of the State of Utah pursuant to the terms thereof.

                "Restricted Securities" means all Stockholder Shares, in each
case which have not theretofore been transferred in a Public Sale.

                "Restricted Stock Agreements" means, collectively, the
Restricted Stock Purchase Agreements dated as of the date hereof between the
Company and each of Richard P. Durham, Jack E. Knott, Scott K. Sorensen and
Ronald G. Moffitt, and any similar agreements executed and delivered by the
Company and any employee of the Company after the date hereof, as each such
agreement is amended, modified or supplemented from time to time in accordance
with the terms thereof.

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                "Rule 144" means Rule 144 (including Rule 144(k) and all other
subdivisions thereof) promulgated by the Commission under the Securities Act, as
such rule may be amended from time to time, or any similar or successor rule
then in force.

                "Sale Notice" has the meaning ascribed to it in Section 2.3(a).

                "Sale of the Company" means the sale of the Company (in one or a
series of transactions) to a third party or group of third parties, whether by
way of the sale of all or substantially all of the assets of the Company, sale
of Stockholder Shares (whether directly or indirectly or by way of merger,
consolidation, recapitalization, reorganization or otherwise) resulting in such
third party or parties acquiring voting Stockholder Shares which enable such
third party or parties to elect a majority of the Board.

                "Securities" means "securities" as defined in Section 2(1) of
the Securities Act and includes, with respect to any Person, such Person's
capital stock or other equity interests or any options, warrants or other
securities that are directly or indirectly convertible into, or exercisable or
exchangeable for, such Person's capital stock or other equity or equity-linked
interests, including phantom stock and stock appreciation rights. Whenever a
reference herein to Securities is referring to any derivative Securities, the
rights of a Stockholder shall apply to such derivative Securities and all
underlying Securities directly or indirectly issuable upon conversion, exchange
or exercise of such derivative securities.

                "Securities Act" means the Securities Act of 1933, as amended,
or any successor Federal statute, and the rules and regulations of the
Commission promulgated thereunder, all as the same shall be in effect from time
to time.

                "Senior Subordinated Notes" means the Senior Subordinated Notes
issued pursuant to that certain Indenture, dated as of May 31, 2000, among the
Company, the Note Guarantors listed therein, and The Bank of New York, as
Trustee (as amended, modified or supplemented from time to time, the
"Indenture").

                "Stockholder Shares" means (a) any Common Stock purchased or
otherwise acquired by any Stockholder, (b) any Warrants and Warrant Shares and
(c) any capital stock or other equity securities issued or issuable directly or
indirectly with respect to the securities referred to in clauses (a) and (b)
above by way of stock dividend or stock split or in connection with a
combination of shares, recapitalization, reclassification, merger, consolidation
or other reorganization. As to any particular shares constituting Stockholder
Shares, such shares shall cease to be Stockholder Shares when they have been (x)
effectively registered under the Securities Act and disposed of in accordance
with the registration statement covering them or (y) sold to the public through
a broker, dealer or market maker pursuant to Rule 144 (or any similar provision
then in force) under the Securities Act in a Public Sale.

                "Stockholders" means the holders of Common Stock Equivalents in
each case, who are parties hereto, and shall include any other Person who
hereafter becomes a party to this Agreement as a Stockholder pursuant to a
Joinder Agreement executed and delivered pursuant to Section 2.1 or 2.2(b).

                "Subscribing Stockholders" has the meaning ascribed to it in
Section 3.1(a).

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                "Subsidiary" means, at any time, with respect to any Person (the
"Subject Person"), (a) any Person of which either (x) more than fifty percent
(50%) of the Securities or other interests entitled to vote in the election of
directors or comparable Persons performing similar functions (excluding
Securities or other interests entitled to vote only upon the failure to pay
dividends thereon or other contingencies) or (y) more than a 50% interest in the
profits or capital of such Person, are at the time owned or controlled directly
or indirectly by the Subject Person or through one or more Subsidiaries of the
Subject Person or by the Subject Person and one or more Subsidiaries of the
Subject Person or (b) any Person whose assets, or portions thereof, are
consolidated with the assets of the Subject Person and are recorded on the books
of the Subject Person for financial reporting purposes in accordance with GAAP.

                "Tag-Along Notice" has the meaning ascribed to it in Section
2.3(b).

                "Transfer" of Securities shall be construed broadly and shall
include any issuance, sale, assignment, transfer, participation, gift, bequest,
distribution, or other disposition thereof, or any pledge or hypothecation
thereof, placement of a lien thereon or grant of a security interest therein or
other encumbrance thereon, in each case whether voluntary or involuntary or by
operation of law or otherwise. Notwithstanding anything to the contrary
contained herein, Transfer shall not include (a) an exchange of Warrants
effectuated in accordance with Section 4.2 of the Warrant Agreement, (b) the
exercise of the right to acquire Common Stock pursuant to the terms of any
option or other convertible security granted by the Company or (c) the sale or
transfer of Stockholder Shares by any Management Stockholder to the Company or
any of its designees hereunder or pursuant to any employment, option or
restricted stock purchase agreement (including, without limitation, a Restricted
Stock Purchase Agreement) between the Company and such Management Stockholder or
any plan relating to the foregoing.

                "Transferee" means a Person acquiring Securities through a
Transfer.

                "Transferor" means a Person Transferring Securities.

                "Transferring Stockholder" has the meaning ascribed to it in
Section 2.3(a).

                "Trust Directors" means the directors appointed by the Requisite
Trust Holders pursuant to Section 4.1(a), from time to time

                "Trust Holders" means, collectively, (a) the Persons listed on
Schedule I attached hereto under the heading "Trust Holders," (b) any Person who
is or becomes a holder of Stockholder Shares and who is, at the time of such
Transfer, a Permitted Transferee of such Trust Holder, (c) any successor to any
Trust Holder and, (d) any Person who becomes a party to this Agreement as a
Trust Holder pursuant to Sections 2.1 or 2.2(b).

                "Warrant Agreement" means the Warrant Agreement, dated as of the
date hereof, among the Company and the Stockholders named therein, as amended,
modified or supplemented from time to time in accordance with the terms therein.

                "Warrant Shares" has the meaning ascribed to such term in the
Warrant Agreement.

                                      -8-
<PAGE>   12

                "Warrantholders" means, collectively, (a) the Persons listed on
Schedule I attached hereto under the heading "Warrantholders," (b) any Person
who is or becomes a holder of Stockholder Shares and who is, at the time of such
Transfer, a Permitted Transferee of such Warrantholder, (c) any successor to any
Warrantholder and, (d) any Person who becomes a party to this Agreement as a
Warrantholder pursuant to Sections 2.1 or 2.2(b).

                "Warrants" has the meaning set forth in the Preamble to this
Agreement.

1.2     RULES OF CONSTRUCTION.

        The use in this Agreement of the term "including" means "including,
without limitation." The words "herein," "hereof," "hereunder" and other words
of similar import refer to this Agreement as a whole, including the schedules
and exhibits, as the same may from time to time be amended, modified,
supplemented or restated, and not to any particular section, subsection,
paragraph, subparagraph or clause contained in this Agreement. All references to
sections, schedules and exhibits mean the sections of this Agreement and the
schedules and exhibits attached to this Agreement, except where otherwise
stated. The title of and the section and paragraph headings in this Agreement
are for convenience of reference only and shall not govern or affect the
interpretation of any of the terms or provisions of this Agreement. The use
herein of the masculine, feminine or neuter forms shall also denote the other
forms, as in each case the context may require. Where specific language is used
to clarify by example a general statement contained herein, such specific
language shall not be deemed to modify, limit or restrict in any manner the
construction of the general statement to which it relates. The language used in
this Agreement has been chosen by the parties to express their mutual intent,
and no rule of strict construction shall be applied against any party. Unless
expressly provided otherwise, the measure of a period of one month or year for
purposes of this Agreement shall be that date of the following month or year
corresponding to the starting date, provided that if no corresponding date
exists, the measure shall be that date of the following month or year
corresponding to the next day following the starting date. For example, one
month following February 18 is March 18, and one month following March 31 is May
1.

                                   ARTICLE II

                      ISSUANCES AND TRANSFERS OF SECURITIES

2.1     ISSUANCES AND TRANSFERS OF SECURITIES.

        The Company shall not, without the prior written consent of the
Requisite Investor Holders, issue or sell, or otherwise permit or record the
Transfer of, any Stockholder Share to any Person (other than pursuant to a
Public Sale) unless such Person is already a party to this Agreement or first
executes and delivers to the Company a joinder agreement in substantially the
form attached hereto as Exhibit A (a "Joinder Agreement"), pursuant to which
such Person will thereupon become a party to, and be bound by and obligated to
comply with the terms and provisions of, this Agreement.

                                      -9-
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2.2     CERTAIN TRANSFERS.

                (a)     The provisions regarding Transfers of Securities
contained in this Article II shall apply to all Stockholder Shares now owned or
hereafter acquired by a Stockholder, including Stockholder Shares acquired by
reason of original issuance, dividend, distribution, exchange, conversion and
acquisition of outstanding Stockholder Shares from another Person, and such
provisions shall apply to any Stockholder Shares obtained by a Stockholder upon
the exercise, exchange or conversion of any option, warrant or other derivative
Security.

                (b)     Except for Transfers that constitute Public Sales, no
Stockholder shall Transfer any Stockholder Shares to a Person not already a
party to this Agreement as a Stockholder unless and until (i) such Person
executes and delivers to the Company a Joinder Agreement, pursuant to which such
Person will thereupon become a party to, and be bound by and obligated to comply
with the terms and provisions of, this Agreement, as a Stockholder hereunder and
(ii) such Transfer is a Permitted Transfer or is made in compliance with this
Article II. No Person who is not a Stockholder hereunder who acquires
Stockholder Shares in a Public Sale shall be permitted or required to execute a
Joinder Agreement.

                (c)     None of Richard P. Durham, Scott K. Sorensen or Ronald
G. Moffitt shall Transfer, or permit any Person to Transfer, other than in a
Permitted Transfer, any interest in Durham Capital, Ltd., Sorensen Capital, LLC,
Ronald G. Moffitt IRA (DLJ Securities Corp. Custodian) or Moffitt Capital, LLC,
respectively, unless such Transfer is consented to in writing by the Requisite
Investor Holders. Each of Richard P. Durham, Scott K. Sorensen and Ronald G.
Moffitt severally represent and warrant to the Company that he has the
respective ability to enforce the Transfer restrictions contained in this
Section 2.2(c).

                (d)     Notwithstanding anything to the contrary contained
herein, no Warrantholder shall Transfer any Warrants or Warrant Shares to any
Person who is not primarily a financial institution.

2.3     CO-SALE RIGHTS.

                (a)     After satisfying the obligations set forth in Section
2.4, if at any time a Stockholder (other than a Warrantholder, solely with
respect to the Warrants and Warrant Shares) proposes to Transfer, other than
pursuant to a Permitted Transfer, any Stockholder Shares (in each case, such
Stockholder shall be deemed, a "Transferring Stockholder"), then at least thirty
(30) days prior to the closing of such Transfer, such Transferring Stockholder
shall deliver a written notice (the "Sale Notice") to all holders of Stockholder
Shares (other than such Transferring Stockholder) (the "Other Stockholders")
offering such Other Stockholders the option to participate in such proposed
Transfer. Such Sale Notice shall specify in reasonable detail the identity of
the prospective Transferee and the terms and conditions of the Transfer.

                (b)     Any Other Stockholder may, within fifteen (15) days of
the receipt of a Sale Notice, give written notice (each, a "Tag-Along Notice")
to the Transferring Stockholder stating that such Other Stockholder wishes to
participate in such proposed Transfer and specifying the amount and class of
Stockholder Shares such Other Stockholder desires to include in such proposed
Transfer. Such Other Stockholder shall include, at such Other Stockholder's
option, (i)

                                      -10-
<PAGE>   14

Stockholder Shares of the same class of Stockholder Shares being transferred by
the Transferring Stockholder or (ii) if the Stockholder Shares described in the
Sale Notice are Common Stock Equivalents, then such Other Stockholders may
include Warrants held by such Other Stockholder and the Transferring Stockholder
shall use all commercially reasonable efforts to cause the Warrants to be
transferred without exercise thereof; provided that the consideration received
on such Transfer by such Other Stockholder will be net of any exercise price of
such Warrants.

                (c)     If none of the Other Stockholders gives the Transferring
Stockholder a timely Tag-Along Notice with respect to the Transfer proposed in
the Sale Notice, the Transferring Stockholder may thereafter Transfer the
Stockholder Shares specified in the Sale Notice on the same terms and conditions
set forth in the Sale Notice. If one or more Other Stockholders give the
Transferring Stockholder a timely Tag-Along Notice, then the Transferring
Stockholder shall use all reasonable efforts to cause the prospective
Transferee(s) to agree to acquire all Stockholder Shares identified in all
Tag-Along Notices that are timely given to the Transferring Stockholder, upon
the same terms and conditions as applicable to the Transferring Stockholder's
Stockholder Shares. If the prospective Transferee(s) are unwilling or unable to
acquire all Stockholder Shares proposed to be included in such sale upon such
terms, then the Transferring Stockholder may elect either to cancel such
proposed Transfer or to allocate the maximum number of Stockholder Shares that
each prospective Transferee is willing to purchase among the Transferring
Stockholder and the Stockholders giving timely Tag-Along Notices in proportion
to such Stockholders' Percentage Ownership.

                (d)     Each Transferring Stockholder shall cooperate in any
reasonable manner to allow any Other Stockholder to Transfer Warrants held by
such Other Stockholder pursuant to the Tag-Along Notice in lieu of Transferring
Common Stock pursuant to Section 2.3(b) hereof.

2.4     RIGHT OF FIRST REFUSAL.

                (a)     Except to the extent otherwise expressly permitted
herein, no Stockholder (other than a Warrantholder, solely with respect to the
Warrants and the Warrant Shares) shall Transfer, other than pursuant to a
Permitted Transfer, any Stockholder Shares except in compliance with the
procedures set forth in this Section 2.4 (and the other applicable provisions of
this Agreement).

                (b)     If any Stockholder shall receive a bona fide written
offer (an "Offer"), from a Person (a "Proposed Transferee") to purchase all or a
portion of the Stockholder Shares then owned by such Stockholder and such
Stockholder desires to accept the Offer, such Stockholder (the "Offeror") shall,
before accepting the Offer, first deliver to the Company and each of the other
Stockholders (other than the Offeror and any Stockholder owning less than ten
percent (10%) of the outstanding Common Stock (the "Offerees")) a written notice
(the "Notice of Offer"), which shall include all relevant terms of the Offer and
shall be irrevocable for a period of thirty (30) days after delivery thereof
(the "Offer Period"), offering (the "First Refusal Offer") to the Offerees all
of the Stockholder Shares proposed to be Transferred by the Offeror at the
purchase price and on the terms specified in the Offer. The Offeror shall also
furnish to the Offerees such additional information in the Offeror's possession
relating to the Offer as the Offerees may reasonably request. The Offerees shall
have the first right and option, for a period

                                      -11-
<PAGE>   15

of thirty (30) days after delivery of the Notice of Offer by the Offeror, (x) to
accept all, or any portion, of their respective Proportionate Percentages of the
Stockholder Shares so offered at the purchase price and on the terms stated in
the Notice of Offer and (y) to offer, in any written notice of acceptance, to
purchase any Stockholder Shares not accepted by the other Offerees, in which
case the Stockholder Shares not accepted by the other Offerees shall be deemed,
on the same terms and conditions, to be re-offered from time to time during such
thirty (30) day period to, and accepted by, the other Offerees who exercised
their option under this clause (y) pro rata in accordance with their respective
Proportionate Percentages (computed without including the other Offerees who
have not exercised their option to purchase Stockholder Shares under this clause
(y)), until all such Stockholder Shares are fully subscribed or until all such
other Offerees have subscribed for all such offered Stockholder Shares which
they desire to purchase.

                (c)     Transfers of Stockholder Shares under the terms of this
Section 2.4 shall be made at the offices of the Company on a mutually
satisfactory Business Day within fifteen (15) days after the expiration of the
Offer Period. Delivery of certificates or other instruments evidencing such
Stockholder Shares, duly endorsed for transfer and free and clear of all liens,
claims and other encumbrances, shall be made on such date against payment of the
purchase price therefor.

                (d)     If the Offerees shall not have accepted all of the
Stockholder Shares offered for sale pursuant to the Notice of Offer, then the
Offeror may Transfer to the Proposed Transferee that number of the Stockholder
Shares not accepted by the Offerees in accordance with the terms set forth in
the Notice of Offer, at any time within ninety (90) days after the expiration of
the First Refusal Offer required by Section 2.4(a). Any such Transfer shall be
in compliance with Section 2.2 and Section 2.3. In the event the Stockholder
Shares are not Transferred by the Offeror to the Proposed Transferee on such
terms during such 90-day period, the restrictions of this Section 2.4 shall
again become applicable to any Transfer of Stockholder Shares by the Offeror.

2.5     REQUIRED SALE IN CONNECTION WITH A SALE OF THE COMPANY.

                (a)     Option. Subject to the provisions of this Section 2.5,
if the Board approves a Sale of the Company (an "Approved Sale"), each
Stockholder shall consent to and raise no objections against the Approved Sale,
and if the Approved Sale is structured as a sale of the issued and outstanding
capital stock of the Company (whether by merger, recapitalization, consolidation
or sale or Transfer of Stockholder Shares or otherwise), then each Stockholder
shall waive any dissenters rights, appraisal rights or similar rights in
connection with such Sale of the Company and each Stockholder shall agree to
sell its Stockholder Shares on the terms and conditions approved by the Board.
Each Stockholder shall take all necessary and desirable actions in connection
with the consummation of the Approved Sale, including, but not limited to, the
execution of such agreements and instruments and other actions necessary to
provide the representations, warranties, indemnities, covenants, conditions,
escrow agreements and other provisions and agreements relating to such Approved
Sale. In the event that any Stockholder fails for any reason to take any of the
foregoing actions after reasonable notice thereof, he, she or it hereby grants
an irrevocable power of attorney and proxy to the Chairman of the Board of the
Company or an assignee of such Person to take all necessary actions and execute
and deliver all documents deemed by such Person to effectuate the terms of this
Section 2.5. The restrictions on

                                      -12-
<PAGE>   16

Transfers of Stockholder Shares set forth in Sections 2.1, 2.2, 2.3 and 2.4
shall not apply in connection with an Approved Sale. Notwithstanding anything to
the contrary contained herein, prior to the second anniversary of the date
hereof, a Sale of the Company that is not approved by all of the Investor
Directors and all of the Trust Directors shall not be deemed to be an "Approved
Sale."

                (b)     Procedure. The Company shall deliver written notice to
each Stockholder setting forth in reasonable detail the terms (including price,
time and form of payment) of any Approved Sale (the "Drag Notice"). Within
twenty (20) days following receipt of the Drag Notice, each of such Stockholders
shall deliver to the Company written notice setting forth such holders'
agreement to consent to and raise no objections against, or impediments to, the
Approved Sale (including, waiving all dissenter's and similar rights) and (ii)
if the Approved Sale is structured as a sale of stock, to sell its Stockholder
Shares on the terms and conditions set forth in the Drag Notice.

                (c)     Conditions to Obligation. The obligations of the
Stockholders to participate in any Approved Sale pursuant to this Section 2.5
are subject to the satisfaction of the following conditions:

                        (i)     (x) if any Stockholders are given an option as
        to the form and amount of consideration to be received with respect to
        shares in a class, all holders of shares of such class will be given the
        same option and (y) each Stockholder shall receive the same amount of
        consideration per Stockholder Share;

                        (ii)    subject to Section 2.5(d), as applicable, all
        holders of then-currently exercisable Common Stock Equivalents will be
        given an opportunity to either (A) exercise such rights prior to the
        consummation of an Approved Sale (but only to the extent such Common
        Stock Equivalents are then vested or would be vested on an accelerated
        basis pursuant to the Equity Incentive Plan or other relevant plan) and
        participate in such sale as Stockholders or (B) upon the consummation of
        the Approved Sale, receive in exchange for such currently exercisable
        Common Stock Equivalents consideration equal to the product of (x) the
        same amount of consideration per Stockholder Share (of the same class as
        that for which the Common Stock Equivalent is exercisable) received by
        the holders of such class of capital stock in connection with the
        Approved Sale (less the exercise price per Common Stock Equivalent) and
        (y) the number of Common Stock Equivalents (but only to the extent such
        Common Stock Equivalents are then vested);

                        (iii)   no Stockholder shall be obligated to pay more
        than his, her or its pro rata share (based upon the number of Common
        Stock Equivalents held by such Stockholder) of reasonable expenses
        incurred in connection with a consummated Approved Sale to the extent
        such expenses are incurred for the benefit of all Stockholders and are
        not otherwise paid by the Company or the acquiring party (expenses
        incurred by or on behalf of a Stockholder for its, her or his sole
        benefit not being considered expenses incurred for the benefit of all
        Stockholders); and

                                      -13-
<PAGE>   17

                        (iv)    in the event that the Stockholders are required
        to provide any representations or indemnities in connection with an
        Approved Sale (other than representations and indemnities on a several
        basis concerning each Stockholder's valid ownership of his, her or its
        Stockholder Shares and/or Common Stock Equivalents, free of all liens
        and encumbrances, enforceability and each Stockholder's authority,
        power, and right to enter into and consummate agreements relating to
        such Approved Sale without violating applicable law or any other
        agreement), then each Stockholder shall not be liable for more than his,
        her or its pro rata share (based upon the number of Common Stock
        Equivalents held by such Stockholder) of any liability for
        misrepresentation or indemnity (except in respect of such several
        representations and warranties) and such liability shall not exceed the
        total purchase price received by such Stockholder (net of broker fees)
        from such purchaser for his, her or its Stockholder Shares and/or Common
        Stock Equivalents (including the exercise price thereof), and, to the
        extent that an indemnification escrow has been established, such
        liability shall be satisfied solely out of any funds escrowed for such
        purpose prior to recourse against such Stockholder.

                (d)     Ability to Transfer Warrants. Each Stockholder shall
cooperate in any reasonable manner to allow any Stockholder to Transfer any
Warrants held by such Stockholder pursuant to the Drag Notice in lieu of
Transferring Common Stock; provided that the consideration received on such
Transfer by such Stockholder will be net of any exercise price of such Warrants.

                                  ARTICLE III

                       RIGHTS TO SUBSCRIBE FOR SECURITIES

3.1     GENERAL.

                (a)     Prior to the occurrence of a Qualified Public Offering,
in the event that the Company proposes to issue any equity Securities (the
"Offered Securities"), other than Excluded Securities, the Company shall deliver
to each holder of Stockholder Shares (collectively, the "Subscribing
Stockholders") a written notice (which notice shall state the number or amount
of the Offered Securities proposed to be issued, the purchase price therefor and
any other terms or conditions of the proposed issuance, including any linked or
grouped Securities which comprise Offered Securities) of such issuance (the
"Preemptive Offer Notice")) at least thirty (30) days prior to the date of the
proposed issuance (the "Preemptive Offer Period").

                (b)     Each Subscribing Stockholder shall have the option
(provided, however, that the Company may exclude for all purposes hereunder any
Subscribing Stockholder who is not an accredited investor (as such term is
defined in Rule 501 under the Securities Act)), exercisable at any time during
the Preemptive Offer Period by delivering written notice to the Company (a
"Preemptive Offer Acceptance Notice") (i) to subscribe for the number or amount
of such Offered Securities up to its Percentage Ownership of the total number or
amount of Offered Securities proposed to be issued and (ii) to offer to
subscribe (in cash and or such other terms and conditions set forth in the
Preemptive Offer Notice) for up to its Percentage Ownership of the Offered
Securities not subscribed for by other Subscribing Stockholders (as further
described below). Any Offered Securities not subscribed for by a Subscribing
Stockholder shall be

                                      -14-
<PAGE>   18

deemed to be re-offered to and accepted by the Subscribing Stockholders
exercising their options specified in clause (ii) of the immediately preceding
sentence with respect to the lesser of (A) the amount specified in their
respective Preemptive Offer Acceptance Notices and (B) an amount equal to their
respective Percentage Ownerships (computed without including Stockholders who
have not exercised their option specified in clause (ii) of the immediately
preceding sentence) with respect to such deemed re-offer. Such deemed re-offer
and acceptance procedures described in the immediately preceding sentence shall
be deemed to be repeated until either (x) all of the Offered Securities are
accepted by the Subscribing Stockholders or (y) no Subscribing Stockholders
desire to subscribe for more Offered Securities. The Company shall notify each
Subscribing Stockholder within five (5) days following the expiration of the
Preemptive Offer Period of the number or amount of Offered Securities which such
Subscribing Stockholder has subscribed to purchase.

                (c)     If Preemptive Offer Acceptance Notices are not given by
the Subscribing Stockholders for all the Offered Securities, the Company may
issue the part of such Offered Securities as to which Preemptive Offer
Acceptances Notices have not been given by the Subscribing Stockholders (the
"Refused Securities") to any Person (a "New Investor") in accordance with the
terms and conditions set forth in the Preemptive Offer Notice. Upon the closing,
the Subscribing Stockholders shall purchase from the Company, and the Company
shall sell to, the Subscribing Stockholders, the Offered Securities with respect
to which Preemptive Offer Acceptance Notices were delivered by the Stockholders,
at the terms specified in the Preemptive Offer Notice. In each case, any Refused
Securities not purchased by one or more New Investors in accordance with this
Section 3.1 within 120 days after the date of the Preemptive Offer Notice may
not be sold or otherwise disposed of until they are again offered to the
Subscribing Stockholders under the procedures specified in this Section 3.1.

                (d)     Notwithstanding anything to the contrary contained
herein, the Company may, in order to expedite the issuance of the Offered
Securities hereunder, issue all of the Offered Securities to one or more
Stockholders (the "Initial Subscribing Stockholders"), without complying with
the provisions of this Section 3.1, provided that the Initial Subscribing
Stockholders agree to offer to sell to the other Stockholders (who are
accredited investors (as such term is defined in Rule 501 under the Securities
Act)) their respective Percentage Ownerships of the Offered Securities on the
same terms and conditions as issued to the Initial Subscribing Stockholders. The
Initial Subscribing Stockholders shall offer to sell the Offered Securities to
the other Stockholders (who are accredited investors (as such term is defined in
Rule 501 under the Securities Act)) within thirty (30) days after the closing of
the purchase of the Offered Securities by the Initial Subscribing Stockholders.
The Initial Subscribing Stockholders shall offer to sell the Offered Securities
to the other Stockholders in a manner which provides such other Stockholders
with rights substantially similar to the rights outlined in Sections 3.1(b) and
3.1(c).

3.2     EXCLUDED SECURITIES.

        The rights of the Subscribing Stockholders under Section 3.1 shall not
apply to the following Securities issued by the Company (the "Excluded
Securities"):

                                      -15-
<PAGE>   19

                (a)     Securities of the Company issued or granted pursuant to
the Equity Incentive Plan;

                (b)     Securities of the Company issued upon the exercise,
conversion or exchange of any Common Stock Equivalents outstanding on the
Closing Date and other derivative Securities of the Company, in each case issued
in compliance with (or not otherwise in violation of) this Article III;

                (c)     Securities of the Company issued as a stock dividend or
distribution or upon any stock split, recapitalization or other subdivision or
combination of Common Stock;

                (d)     Securities of the Company issued to sellers in
connection with a Board-approved acquisition or merger by the Company;

                (e)     Securities of the Company issued in a Public Offering;
and

                (f)     Securities of the Company issued as a bona-fide "equity
kicker" to a lender or placement agent in connection with a debt financing.

                                   ARTICLE IV

                                      BOARD

4.1     ELECTION OF DIRECTORS, VOTING.

                (a)     Subject to the provisions of Section 4.1(c) hereof and
as otherwise stated herein, each holder of Stockholder Shares hereby covenants
and agrees to vote all of his, her or its Stockholder Shares to cause (i) the
number of directors constituting the Board to be seven (7) and (ii) the Company
to comply with all obligations under the Documents. At each annual meeting of
the holders of any class of Stockholder Shares, and at each special meeting of
the holders of any class of Stockholder Shares called for the purpose of
electing directors of the Company, and at any time at which holders of any class
of Stockholder Shares shall have the right to, or shall, vote for or consent in
writing to the election of seven (7) directors of the Company, then, and in each
such event, the holders of Stockholder Shares shall vote all of the Stockholder
Shares owned by them for, or consent in writing with respect to such shares in
favor of, the election of a Board constituted as follows:

                        (i)     four (4) representatives designated by the
        Requisite Investor Holders, the initial representatives of whom shall be
        Donald J. Hofmann, Jr., Timothy J. Walsh, John M. B. O'Connor and
        Richard D. Waters;

                        (ii)    two (2) representatives designated by the
        Requisite Trust Holders, the initial representatives of whom shall be
        Richard P. Durham and Scott K. Sorensen; and

                        (iii)   one (1) representative appointed by the Board,
        who shall be a member of the senior management of the Company, the
        initial representative of whom shall be Jack E. Knott.

                                      -16-
<PAGE>   20

At the request of the Requisite Investor Holders, the number of members
constituting the Board shall be increased to nine (9) in which event each holder
of Stockholder Shares hereby covenants and agrees to vote all of his, her or its
Stockholder Shares to cause (i) the number of directors constituting the Board
to be nine (9) and (ii) the Company to comply with all obligations under the
Documents. Thereafter, at each annual meeting of the holders of any class of
Stockholder Shares, and at each special meeting of the holders of any class of
Stockholder Shares called for the purpose of electing directors of the Company,
and at any time at which holders of any class of Stockholder Shares shall have
the right to, or shall, vote for or consent in writing to the election of nine
(9) directors of the Company, then, and in each such event, the holders of
Stockholder Shares shall vote all of the Stockholder Shares owned by them for,
or consent in writing with respect to such shares in favor of, the election of a
Board constituted as follows:

                        (i)     five (5) representatives designated by the
        Requisite Investor Holders;

                        (ii)    two (2) representatives designated by the
        Requisite Trust Holders; and

                        (iii)   (A) one (1) representative who shall be the
        Chief Executive Officer of the Company and (B) one (1) representative
        appointed by the other members of the Board, who shall be a member of
        the senior management of the Company.

Notwithstanding anything to the contrary contained herein, the number of members
constituting the Board may be increased from time to time, in accordance with
the Restated Charter and By-laws provided that at all times the Requisite
Investor Holders shall be entitled to designate a majority of the members of the
Board. At no time may any individual serve as an appointee of more than one
class of Stockholders hereunder.

                (b)     Any committee created by the Board shall have at least
one Investor Director as a member.

                (c)     The holders of Stockholder Shares shall vote their
shares (i) to remove any director whose removal is required by the party or
parties with the power to nominate such director and (ii) to fill any vacancy
created by the removal, resignation or death of a director, in each case for the
election of a new director designated, if approval is required, in accordance
with the provisions of this Section 4.1. Vacancies of the Board shall be filled
within thirty (30) days of the date such vacancy is created or immediately
before the first action to be taken by the Board after the date such vacancy is
created.

                (d)     The Company shall pay the reasonable out-of-pocket
expenses incurred by each of the Investor Directors, the Trust Directors and the
Management Directors (collectively the "Directors") in connection with (i)
attending the meetings of the Board and all committees thereof and (ii)
conducting any other Company business requested by the Company. So long as any
Director serves on the Board and for three (3) years thereafter, the Company
shall maintain directors and officers indemnity insurance coverage reasonably
satisfactory to the Directors, and the Company's Restated Charter and By-laws
shall provide for indemnification and exculpation of Directors to the fullest
extent permitted under applicable law.

                                      -17-
<PAGE>   21

4.2     VOTING AGREEMENT.

        Each Stockholder shall use all reasonable efforts to cause each Director
nominated by such Stockholder to vote for the election to the Board of all
individuals designated in accordance with Section 4.1.

4.3     MEETINGS.

        The Warrantholders shall have the right to have one representative
designated by the Requisite Warrantholders (the "Observer") present at all
meetings of the Board and all committees of the Board. The Company will give the
Observer reasonable prior notice (it being agreed that substantially the same
prior notice given to the members of the Board shall be deemed reasonable prior
notice) of the time and place of any proposed meeting of the Board or any
applicable committee thereof. The Company will deliver to the Observer copies of
all material documentation distributed from time to time to the members of the
Board or any applicable committee thereof, at such time as such documents are so
distributed to them, including copies of any written consent. The Company
reserves the right to withhold any information and to exclude the Observer from
any meeting or portion thereof if the Company reasonably determines in good
faith that (i) access to such information or attendance at such meeting could be
reasonably expected to adversely affect the attorney-client privilege between
the Company and its counsel or (ii) such disclosure is prohibited by an
agreement with a third party; provided that in the case of this clause (ii), the
Company will use commercially reasonable efforts to provide such information or
allow the Observer to attend such meeting, which requirement shall be satisfied
if the Observer is offered the opportunity to obtain such information or attend
such meeting by undertaking to be bound by the confidentiality restrictions on
substantially the same terms (including any standstill provisions) as are
applicable to the Company. Notwithstanding anything to the contrary contained in
this Agreement, the Observer may not use or disclose any information received by
the Observer, except on a confidential basis within the Observer's employer or
firm or to the extent required by law or unless and except to the extent that
such use or disclosure could have been made by a director of the Company in
compliance with all laws and duties applicable to a director as such under such
circumstances. The Company shall pay the reasonable out-of-pocket expenses
incurred by the Observer in connection with (i) attending the meetings of the
Board and all committees thereof and (ii) conducting any other Company business
requested by the Company.

4.4     NOTICE OF MEETINGS.

        Notice of any meeting of the Board shall be deemed to be effective at
the earliest of the following: (1) when received; (2) five (5) days after it is
mailed; (3) the date shown on the return receipt if sent by registered or
certified mail, return receipt requested, and the receipt is signed by or on
behalf of the director or (4) when it is sent (with confirmation of sending) to
the telecopier number or e-mail address provided by that Director to the
Company.

4.5     QUORUM FOR MEETINGS.

        A majority of the number of Directors prescribed by resolution (or if no
number is prescribed, the number in office immediately before the meeting
begins), shall constitute a

                                      -18-
<PAGE>   22

quorum for the transaction of business at any meeting of the Board of Directors,
unless the Restated Charter requires a greater number.

                                   ARTICLE V

                              ADDITIONAL AGREEMENTS

5.1     INFORMATION RIGHTS.

        Until the consummation of a Qualified Public Offering, the Company shall
furnish to each Stockholder holding in excess of ten percent (10%) of the
outstanding Stockholder Shares, simultaneously with the delivery to the holders
of the Company's Senior Subordinated Notes, all reports and documents prepared
for or delivered to such holders by the Company or any of its Authorized
Representatives under the Indenture.

5.2     ACCESS TO RECORDS AND PROPERTIES.

        Until the consummation of a Qualified Public Offering, the Company shall
permit any Stockholder (other than Management Stockholders) and his, her or its
employees, counsel and other authorized representatives, (collectively,
"Authorized Representatives") during normal business hours and upon reasonable
advance notice (which shall not be less than one-day's prior notice) to (a)
visit and inspect the assets and properties of the Company, (b) examine the
books of accounts and records of the Company and (c) make copies of such records
and (d) discuss all aspects of the Company with any officers, employees or
accountants of the Company; provided, however, that such investigation shall not
unreasonably interfere with the operations of the Company. The Company will
instruct its accountants to discuss such aspects of the financial condition of
the Company with any such holder and its Authorized Representatives as such
Stockholder may reasonably request, and to permit such holder and its Authorized
Representatives to inspect, copy and make extracts from such financial
statements, analyses, and other documents and information (including
electronically stored documents and information) prepared by the accountants
with respect to the Company as such holder may reasonably request. All costs and
expenses incurred by such Stockholder and its Authorized Representatives in
connection with exercising such rights of access shall be borne by such Persons,
and all out-of-pocket costs and expenses incurred by the Company in complying
with any extraordinary requests by such Persons and its representatives in
connection with exercising such access rights shall be borne by such Persons.

5.3     CONFIDENTIAL INFORMATION.

        Except as otherwise required by law, each Stockholder and Authorized
Representative shall hold in confidence all nonpublic information of the Company
provided or made available to such Stockholder and Authorized Representative
pursuant to this Article V until such time as such information has become
publicly available other than as a consequence of any breach by such Stockholder
or Authorized Representative of its confidentiality obligations hereunder
(provided that such information may be disclosed to any other Stockholder or
Authorized Representative who is bound by this provision) and shall not use such
information for any

                                      -19-
<PAGE>   23

purpose other than exercise of its rights as a holder of Stockholder Shares and
its rights under the Documents.

5.4     CHANGE OF CONTROL.

        The Company shall not, and the Stockholders shall insure that the
Company does not, effect a Change of Control (as defined in the Restated
Charter) until all requirements set forth in Section 3.3 (b)(iv) of the Restated
Charter have been satisfied or waived.

5.5     REGULATORY MATTERS.

                (a)     COOPERATION OF OTHER STOCKHOLDERS. Each Stockholder
agrees to cooperate with the Company in all reasonable respects in complying
with the terms and provisions of the letter agreement between the Company and
Chase, a copy of which is attached hereto as Exhibit B, regarding regulatory
matters (the "Regulatory Sideletter"), including without limitation, voting to
approve amending the Company's Restated Charter, the Company's by-laws or this
Agreement in a manner reasonably acceptable to the Stockholders and Chase or any
Affiliate of Chase entitled to make such request pursuant to the Regulatory
Sideletter in order to remedy a Regulatory Problem (as defined in the Regulatory
Sideletter). Anything contained in this Section 5.5 to the contrary
notwithstanding, no Stockholder shall be required under this Section 5.5 to take
any action that would adversely affect in any material respect such
Stockholder's rights under this Agreement or as a Stockholder of the Company.

                (b)     COVENANT NOT TO AMEND. The Company and each Stockholder
agree not to amend or waive the voting or other provisions of the Company's
Restated Charter, the Company's by-laws or this Agreement if such amendment or
waiver would cause Chase or any its Affiliates to have a Regulatory Problem (as
defined in the Regulatory Sideletter). Chase agrees to notify the Company as to
whether or not it would have a Regulatory Problem promptly after Chase has
notice of such amendment or waiver.

5.6     SPECIAL MEETINGS OF STOCKHOLDERS.

        Notwithstanding Section 16-10a-702 of the Utah Revised Business
Corporation Act, a special meeting of the stockholders may only be called in the
manner provided in the Bylaws of the Company or if the holders of Common Stock
representing at least ten (10%) of the Common Stock entitled to be cast on any
issue proposed to be considered at the proposed special meeting sign, date, and
deliver to the Company's secretary one or more written demands for the meeting,
stating the purpose or purposes for which it is held.

5.7     NOTICE REQUIREMENTS IN CONNECTION WITH ACTION BY WRITTEN CONSENT.

        Unless written consents of all shareholders entitled to vote on a matter
have been obtained, the Company shall give notice of any shareholder approval
without a meeting taken under Section 16-10a-704 of the Utah Revised Business
Corporation Action within ten (10) days of the taking of the corporate action by
written consent to:

                (1)     Those shareholders entitled to vote who have not
consented in writing; and

                                      -20-
<PAGE>   24

                (2)     those shareholders not entitled to vote and to whom the
Utah Revised Business Corporation Act requires notice be given.

        Such notice shall contain or be accompanied by the same material that
would have been required if a formal meeting had been called to consider the
action.

                                   ARTICLE VI

                       SECURITIES LAW COMPLIANCE; LEGENDS

6.1     RESTRICTION ON TRANSFER AND UTAH BUSINESS CORPORATION ACT.

        In addition to any other restrictions on the Transfer of any Stockholder
Shares contained in this Agreement, the Stockholders shall not Transfer any
Restricted Securities except in compliance with the conditions specified in this
Article VI. This Agreement is intended to be governed by Section 16-10a-627 and
Section 16-10a-732 of the Utah Business Corporation Act.

6.2     RESTRICTIVE LEGENDS.

        Each certificate for the Restricted Securities shall (unless otherwise
provided by the provisions of Section 6.4) be stamped or otherwise imprinted
with a legend in substantially the following terms:

        "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR
        INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
        SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES OR BLUE SKY
        LAWS. THESE SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF
        SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SAID ACT OR LAWS."

6.3     NOTICE OF TRANSFER.

        The holder of any Restricted Securities, by his, her or its acceptance
or purchase thereof, agrees, prior to any Transfer of any such Restricted
Securities (except pursuant to an effective Registration Statement), to give
written notice to the Company of such holder's intention to effect such Transfer
and agrees to comply in all other respects with the provisions of this Article
VI. Each such notice shall describe the manner and circumstances of the proposed
Transfer and, if reasonably requested by the Company, shall be accompanied by
the written opinion, addressed to the Company, of counsel for the holder of such
Restricted Securities (which counsel shall be reasonably satisfactory to the
Company and which counsel may be the in-house counsel of such holder), stating
that in the opinion of such counsel (which opinion shall be reasonably
satisfactory to the Company) such proposed Transfer does not involve a
transaction requiring registration of such Restricted Securities under the
Securities Act. Subject to complying with the other applicable provisions
hereof, such holder of Restricted Securities shall be entitled to consummate
such Transfer in accordance with the terms of the notice delivered by him, her
or it to the Company if the Company does not reasonably object (on the basis
that such Transfer violates the provisions of this Article VI) to such Transfer
within five (5) days after the delivery of such notice. Each certificate or
other instrument evidencing the Restricted Securities issued

                                      -21-
<PAGE>   25

upon the Transfer of any Restricted Securities (and each certificate or other
instrument evidencing any untransferred balance of such Restricted Securities)
shall bear the legend set forth in Section 6.2) unless (i) in such opinion of
such counsel registration of future transfer is not required by the applicable
provisions of the Securities Act or (ii) the Company shall have waived the
requirement of such legend.

6.4     REMOVAL OF LEGENDS, ETC.

        Notwithstanding the foregoing provisions of this Article VI, the
restrictions imposed by Sections 6.1, 6.2 and 6.3 upon the transferability of
any Restricted Securities shall cease and terminate when (a) such Restricted
Securities are sold or otherwise disposed of in accordance with the intended
method of disposition by the seller or sellers thereof set forth in a
Registration Statement or are sold or otherwise disposed of in a transaction
contemplated by Section 6.3 which does not require that the Restricted
Securities transferred bear the legend set forth in Section 6.2, or (b) the
holder of such Restricted Securities has met the requirement of Transfer of such
Restricted Securities pursuant to subparagraph (k) of Rule 144. Whenever the
restrictions imposed by Sections 6.1, 6.2 and 6.3 shall terminate, as herein
provided, the holder of any Restricted Securities shall be entitled to receive
from the Company, without expense, a new certificate not bearing the restrictive
legend set forth in Section 6.2 and not containing any other reference to the
restrictions imposed by Sections 6.1, 6.2 and 6.3.

6.5     ADDITIONAL LEGEND.

                (a)     Each certificate evidencing Stockholder Shares and each
certificate issued in exchange for or upon the Transfer of any Stockholder
Shares (if such shares remain Stockholder Shares as defined herein after such
Transfer) shall be stamped or otherwise imprinted with a legend in substantially
the following form:

        "THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A
        STOCKHOLDERS' AGREEMENT DATED AS OF MAY 31, 2000 (THE "AGREEMENT"),
        AMONG THE ISSUER OF SUCH SECURITIES (THE "COMPANY") AND CERTAIN OF THE
        COMPANY'S STOCKHOLDERS. THE TERMS OF SUCH STOCKHOLDERS' AGREEMENT
        INCLUDES, AMONG OTHER THINGS, RESTRICTIONS ON TRANSFERS. A COPY OF SUCH
        STOCKHOLDERS' AGREEMENT WILL BE FURNISHED WITHOUT CHARGE BY THE COMPANY
        TO THE HOLDER HEREOF UPON WRITTEN REQUEST. THE AGREEMENT IS INTENDED TO
        BE AN AGREEMENT GOVERNED BY SECTION 16-10a-732 AND SECTION 16-10a-627 OF
        THE UTAH BUSINESS CORPORATION ACT."

                (b)     The Company shall imprint such legends on certificates
evidencing shares outstanding prior to the date hereof. The legend set forth
above shall be removed from the certificates evidencing any shares which cease
to be Stockholder Shares in accordance with the terms of this Agreement.

                                      -22-
<PAGE>   26

                                  ARTICLE VII

                              AMENDMENT AND WAIVER

7.1     AMENDMENT.

        Except as expressly set forth herein, the provisions of this Agreement
may only be amended or waived with the prior written consent of (a) the Company,
(b) the Requisite Trust Holders and (c) the Requisite Investor Holders;
provided, however, that (i) any such amendment, modification, or waiver that
would adversely affect the rights hereunder of any Stockholder, in its capacity
as a Stockholder, without similarly affecting the rights hereunder of all
Stockholders of the same class, in their capacities as Stockholders of such
class, shall not be effective as to such Stockholder without its prior written
consent, (ii) any such amendment, modification, or waiver that would adversely
affect the rights hereunder of the Warrantholders as a class, without similarly
affecting the rights hereunder of other classes of Stockholders, shall not be
effective as to the Warrantholders without the prior written consent of the
Requisite Warrantholders, and (iii) Schedule I to this Agreement shall be deemed
to be automatically amended from time to time to reflect Transfers of Securities
made in compliance with Article II without requiring the consent of any party,
and the Company will, from time to time, distribute to the Stockholders a
revised Schedule I to reflect any such changes.

7.2     WAIVER.

        No course of dealing between the Company and the Stockholders (or any of
them) or any delay in exercising any rights hereunder will operate as a waiver
of any rights of any party to this Agreement. The failure of any party to
enforce any of the provisions of this Agreement will in no way be construed as a
waiver of such provisions and will not affect the right of such party thereafter
to enforce each and every provision of this Agreement in accordance with its
terms

                                  ARTICLE VIII

                                   TERMINATION

        The provisions of this Agreement, except as otherwise expressly provided
herein, shall terminate upon the first to occur of (a) the twentieth anniversary
of the date hereof, (b) the dissolution, liquidation or winding-up of the
Company, (c) the Sale of the Company or a Qualified Public Offering or (d) the
approval of such termination by (i) the Company, (ii) the Requisite Trust
Holders (iii) the Requisite Management Holders, (iv) the Requisite Investor
Holders and (v) the Requisite Warrantholders. Anything contained herein to the
contrary notwithstanding, as to any particular Stockholder, this Agreement shall
no longer be binding or of further force or effect as to such Stockholder,
except as otherwise expressly provided herein, as of the date such Stockholder
has Transferred all of such Stockholder's interest in the Stockholder Shares and
the Transferees of such Stockholder Shares have, if required by Section 2.2(b)
hereof, executed Joinder Agreements.

                                      -23-
<PAGE>   27

                                   ARTICLE IX

                                  MISCELLANEOUS

9.1     SEVERABILITY.

        It is the desire and intent of the parties hereto that the provisions of
this Agreement be enforced to the fullest extent permissible under the laws and
public policies applied in each jurisdiction in which enforcement is sought.
Accordingly, if any particular provision of this Agreement shall be adjudicated
by a court of competent jurisdiction to be invalid, prohibited or unenforceable
for any reason, such provision, as to such jurisdiction, shall be ineffective,
without invalidating the remaining provisions of this Agreement or affecting the
validity or enforceability of this Agreement or affecting the validity or
enforceability of such provision in any other jurisdiction. Notwithstanding the
foregoing, if such provision could be more narrowly drawn so as not to be
invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such
jurisdiction, be so narrowly drawn, without invalidating the remaining
provisions of this Agreement or affecting the validity or enforceability of such
provision in any other jurisdiction.

9.2     ENTIRE AGREEMENT.

        This Agreement and the other Documents or agreements referred to herein
and to be executed and delivered in connection herewith embody the entire
agreement and understanding among the parties hereto with respect to the subject
matter hereof and thereof and supersede and preempt any and all prior and
contemporaneous understandings, agreements, arrangements or representations by
or among the parties, written or oral, which may relate to the subject matter
hereof or thereof in any way. Other than this Agreement, the other Documents and
the other agreements or instruments referred to herein and to be executed and
delivered in connection herewith, there are no other agreements continuing in
effect relating to the subject matter hereof, including preemptive rights,
rights of first refusal, voting of capital stock of the Company or election of
members of the Board.

9.3     INDEPENDENCE OF AGREEMENTS, COVENANTS, REPRESENTATIONS AND WARRANTIES.

        All agreements and covenants hereunder shall be given independent effect
so that if a certain action or condition constitutes a default under a certain
agreement or covenant, the fact that such action or condition is permitted by
another agreement or covenant shall not affect the occurrence of such default,
unless expressly permitted under an exception to such initial agreement or
covenant. In addition, all representations and warranties hereunder shall be
given independent effect so that if a particular representation or warranty
proves to be incorrect or is breached, the fact that another representation or
warranty concerning the same or similar subject matter is correct or is not
breached will not affect the incorrectness of or a breach of a representation
and warranty hereunder. The exhibits and schedules attached hereto are hereby
made part of this Agreement in all respects.

9.4     SUCCESSORS AND ASSIGNS.

        Except as otherwise provided herein, this Agreement will bind and inure
to the benefit of and be enforceable by the Company and its successors and
assigns and the Stockholders and any

                                      -24-
<PAGE>   28

subsequent holders of Stockholder Shares and the respective successors and
assigns of each of them, so long as they hold Stockholder Shares. None of the
provisions hereof shall create, or be construed or deemed to create, any right
to employment in favor of any Person by the Company or any of its Subsidiaries.

9.5     COUNTERPARTS; FACSIMILE SIGNATURES; VALIDITY.

        This Agreement may be executed in any number of counterparts, and each
such counterpart hereof shall be deemed to be an original instrument, but all
such counterparts together shall constitute but one agreement. Facsimile
counterpart signatures to this Agreement shall be acceptable and binding. The
failure of any Stockholder to execute this agreement does not make it invalid as
against any other Stockholder.

9.6     REMEDIES.

                (a)     Each Stockholder shall have all rights and remedies
reserved for such Stockholder pursuant to this Agreement and all rights and
remedies which such holder has been granted at any time under any other
agreement or contract and all of the rights which such holder has under any law
or equity. Any Person having any rights under any provision of this Agreement
will be entitled to enforce such rights specifically, to recover damages by
reason of any breach of any provision of this Agreement and to exercise all
other rights granted by law or equity.

                (b)     The parties hereto agree that if any parties seek to
resolve any dispute arising under this Agreement pursuant to a legal proceeding,
the prevailing parties to such proceeding shall be entitled to receive
reasonable fees and expenses (including reasonable attorneys' fees and expenses)
incurred in connection with such proceedings.

                (c)     It is acknowledged that it will be impossible to measure
in money the damages that would be suffered by any party hereto if any Person
also party hereto fails to comply with any of the obligations imposed on it upon
them in this Agreement or in the Restated Charter or By-laws and that in the
event of any such failure, the aggrieved party will be irreparably damaged and
will not have an adequate remedy at law. Any such aggrieved party shall,
therefore, be entitled to equitable relief, including specific performance, to
enforce such obligations, and if any action should be brought in equity to
enforce any of the provisions of this Agreement, none of the parties hereto
shall raise the defense that there is an adequate remedy at law.

9.7     NOTICES.

        All notices, claims, requests, demands or other communications which are
required or otherwise delivered hereunder shall be deemed to be sufficient and
duly given if contained in a written instrument (a) personally delivered or sent
by telecopier, (b) sent by nationally-recognized overnight courier guaranteeing
next Business Day delivery or (c) sent by first class registered or certified
mail, postage prepaid, return receipt requested, addressed as follows:

                (a)     if to the Company, to:

                                      -25-
<PAGE>   29

                                 Huntsman Packaging Corporation
                                 500 Huntsman Way
                                 Salt Lake City, Utah 84108
                                 Telephone:  801-532-5200
                                 Telecopier:  801-584-5783
                                 Attention:  Chief Executive Officer

                      with copies to:

                                 Chase Domestic Investments, L.L.C.
                                 c/o Chase Capital Partners
                                 1221 Avenue of the Americas, 40th Floor
                                 New York, New York  10020
                                 Telephone:  212-899-3400
                                 Telecopier:  212-899-3401
                                 Attention:  Timothy J. Walsh

                                 and

                                 O'Sullivan Graev & Karabell, LLP
                                 30 Rockefeller Plaza, 41st Floor
                                 New York, New York 10112
                                 Telephone:  212-408-2400
                                 Telecopier:  212-728-5950
                                 Attention:  Ilan S. Nissan, Esq.;

                (b)     if to any Trust Holder or Management Holder, to it at
its address set forth on Schedule I attached hereto;

                (c)     if to any Investor Stockholder or Warrantholder, to it
at its address set forth on Schedule I attached hereto;

or to such other address as the party to whom notice is to be given may have
furnished to each other party in writing in accordance herewith. Any such notice
or communication shall be deemed to have been received (i) when delivered, if
personally delivered or sent by telecopier, (ii) on the first Business Day after
dispatch, if sent by nationally recognized, overnight courier guaranteeing next
Business Day delivery and (iii) on the third Business Day following the date on
which the piece of mail containing such communication is posted, if sent by
mail.

9.8     GOVERNING LAW.

        This Agreement shall be governed by and construed in accordance with the
domestic laws of the State of New York without giving effect to any choice or
conflict of law provision or rule that would cause the application of the laws
of any jurisdiction other than the State of New York, except that to the extent
this Agreement relates to the internal affairs of the Company which internal
affairs of the Company shall be governed by and construed in accordance with the
domestic laws of the State of Utah.

                                      -26-
<PAGE>   30

9.9     WAIVER OF JURY TRIAL.

        EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL
BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO
THIS AGREEMENT.

9.10    CONSENT TO JURISDICTION.

        Each of the parties hereto irrevocably submits to the exclusive
jurisdiction of (a) the Supreme Court of the State of New York, New York County
and (b) the United States District Court for the Southern District of New York,
for the purposes of any suit, action or other proceeding arising out of this
Agreement or the transactions contemplated hereby. Each of the parties hereto
further agrees that service of any process, summons, notice or document by U.S.
registered mail to such party's respective address set forth in Section 9.7
shall be effective service of process for any action, suit or proceeding in the
State of New York with respect to any matters to which it has submitted to
jurisdiction in this Section 9.10. Each of the parties hereto irrevocably and
unconditionally waives any objection to the laying of venue of any action, suit
or proceeding arising out of this Agreement or the transactions contemplated
hereby and thereby in (a) the Supreme Court of the State of New York, New York
County or (b) the United States District Court for the Southern District of New
York, and hereby and thereby further irrevocably and unconditionally waives and
agrees not to plead or claim in any such court that any such action, suit or
proceeding brought in any such court has been brought in an inconvenient forum.

9.11    FURTHER ASSURANCES.

        Each party hereto shall do and perform or cause to be done and performed
all such further acts and things and shall execute and deliver all such other
agreements, certificates, instruments, and documents as any other party hereto
reasonably may request in order to carry out the provisions of this Agreement,
the Documents and the consummation of the transactions contemplated hereby.

9.12    CONFLICTING AGREEMENTS.

        No Stockholder shall enter into any stockholder agreements or
arrangements of any kind with any Person with respect to any Stockholder Shares
on terms inconsistent with the provisions of this Agreement (whether or not such
agreements or arrangements are with other Stockholders or with Persons that are
not parties to this Agreement), including agreements or arrangements with
respect to the acquisition or disposition of Stockholder Shares in a manner
which is inconsistent with this Agreement.

9.13    THIRD PARTY RELIANCE.

        Anything contained herein to the contrary notwithstanding, except for
Section 5.4 hereof the covenants of the Company contained in this Agreement (a)
are being given by the Company as an inducement to the Stockholders to enter
into this Agreement and the other Documents (and the Company acknowledges that
the Stockholders have expressly relied thereon) and (b) are solely for the
benefit of the Stockholders. Accordingly, no third party (including, without
limitation, any holder of capital stock of the Company) or anyone acting on
behalf of any thereof

                                      -27-
<PAGE>   31

other than the Stockholders, shall be a third party or other beneficiary of such
covenants and no such third party shall have any rights of contribution against
the Stockholders or the Company with respect to such covenants or any matter
subject to or resulting in indemnification under this Agreement or otherwise.
The agreements set forth in Section 5.4 hereof shall be for the benefit of the
holders of the Company's Series A Cumulative Exchangeable Redeemable Preferred
Stock and, accordingly, the holders thereof shall be third party beneficiaries
of Section 5.4, entitled to fully enforce any failure of the parties hereto to
comply therewith, in accordance with the terms and provisions of this Agreement.

9.14    REPURCHASE RIGHT OF THE COMPANY.

                (a)     Unless otherwise covered in the Management Stockholder's
written employment agreement with the Company, in the event that a Management
Stockholder's employment with the Company is terminated for whatever reason, the
Company or its designee shall have the right (but not the obligation), upon
delivery of a Repurchase Notice to the Management Stockholder, to repurchase
from such Management Stockholder and (each of his or her Permitted Transferees)
all or any part of the Stockholder Shares owned by such Management Stockholder
(and each of his or her Permitted Transferees) at any time. The price per
Stockholder Share to be paid by the Company shall be the Fair Market Value as of
the last day of the calendar month ending on, or immediately before, the date
the Management Stockholder's employment with the Company is terminated. The
purchase price to be paid by the Company for any repurchase of Stockholder
Shares pursuant to this Section 9.14 shall be paid in cash.

                (b)     The purchasers of any Stockholder Shares pursuant to
this Section 9.14 will be entitled to require all of the sellers of Stockholder
Shares to provide representations and warranties from such seller regarding (i)
such seller's power, authority and legal capacity to enter into such sale and to
transfer valid right, title and interest in such Stockholder Shares, (ii) such
seller's ownership of such Stockholder Shares and the absence of any liens,
pledges, and other encumbrances on such Stockholder Shares and (iii) the absence
of any violation, default, or acceleration of any agreement or instrument
pursuant to which such seller or the assets of such seller are bound as the
result of such sale.

                (c)     Should the Company or any of its designees elect to
exercise the repurchase rights pursuant to this Section 9.14 and any seller
fails to deliver all of such Stockholder Shares in accordance with the terms
hereof, the purchaser of such Stockholder Shares hereunder may, at its option,
in addition to all other remedies it may have, deposit the repurchase price in
an escrow account administered by an independent third party (to be held for the
benefit of and payment over to such seller in accordance herewith), whereupon
the Company shall by written notice to such seller (i) cancel on its books the
certificates(s) representing such Stockholder Shares registered in the name of
such seller and (ii) issue to the purchaser, in lieu thereof, new certificate(s)
representing such Stockholder Shares registered in the purchaser's name, and all
of the seller's right, title, and interest in and to such Stockholder Shares
shall terminate in all respects.

                                   * * * * *

                                      -28-
<PAGE>   32

        IN WITNESS WHEREOF, the undersigned have duly executed this
Stockholders' Agreement as of the date first written above.

                                       HUNTSMAN PACKAGING
                                       CORPORATION

                                       By:
                                           /s/ SCOTT K. SORENSEN
                                           ---------------------------------
                                           Name:  Scott K. Sorensen
                                           Title: Chief Financial Officer

                                       CHASE DOMESTIC
                                       INVESTMENTS, L.L.C.

                                       By: Chase Capital Investments, L.P.,
                                           its sole Member

                                       By: Chase Capital Partners,
                                           as Investment Manager

                                       By:
                                           /s/ TIMOTHY J. WALSH
                                           ---------------------------------
                                           Name:  Timothy J. Walsh
                                           Title: General Partner

                                       THE CHRISTENA KAREN H. DURHAM
                                       TRUST

                                       By:
                                           /s/ MARK DRESCHLER
                                           ---------------------------------
                                           Name:  Mark Dreschler
                                           Title: Trustee

<PAGE>   33

                                       DURHAM CAPITAL, LTD.

                                       By:
                                           /s/ RICHARD P. DURHAM
                                           ---------------------------------
                                           Name:  Richard P. Durham
                                           Title:

                                       FIRST UNION CAPITAL PARTNERS, LLC

                                       By:
                                           /s/ ROBERT G. CALTON III
                                           ---------------------------------
                                           Name:  Robert G. Calton III
                                           Title: Senior Vice President

                                       SORENSEN CAPITAL, LLC

                                       By:
                                           /s/ SCOTT K. SORENSEN
                                           ---------------------------------
                                           Name:  Scott K. Sorensen
                                           Title:

                                       MOFFITT CAPITAL, LLC

                                       By:
                                           /s/ RONALD G. MOFFITT
                                           ---------------------------------
                                           Name:  Ronald G. Moffitt
                                           Title:

                                       RONALD G. MOFFITT IRA (DLJ
                                       SECURITIES CORP CUSTODIAN)

                                       By:
                                           /s/ RONALD G. MOFFITT
                                           ---------------------------------
                                           Name:  Ronald G. Moffitt
                                           Title:

<PAGE>   34

                                       NEW YORK LIFE CAPITAL PARTNERS, L.P.

                                       BY:  NYLCAP MANAGER LLC,
                                            ITS INVESTMENT MANAGER

                                       By:
                                           /s/ STEVE BENEVENTO
                                           ---------------------------------
                                           Name:  Steve Benevento
                                           Title: Its Authorized Representative

                                       THE NORTHWESTERN MUTUAL LIFE INSURANCE
                                       COMPANY

                                       By:
                                           /s/ RICHARD A. STRAIT
                                           ---------------------------------
                                           Name:  Richard A. Strait
                                           Title: Its Authorized Representative

                                       /s/ JACK E. KNOTT
                                       -------------------------------------
                                       Jack E. Knott

                                       /s/ RICHARD P. DURHAM
                                       -------------------------------------
                                       Richard P. Durham

                                       /s/ SCOTT K. SORENSEN
                                       -------------------------------------
                                       Scott K. Sorensen

                                       /s/ RONALD G. MOFFITT
                                       -------------------------------------
                                       Ronald G. Moffitt

<PAGE>   35

                                                                      SCHEDULE I

                                  STOCKHOLDERS

                                                              NUMBER OF
                                                             STOCKHOLDER
   NAME AND ADDRESS OF STOCKHOLDER                            SHARES(1)

INVESTOR STOCKHOLDERS

Chase Domestic Investments, L.L.C.                              317,306
c/o Chase Capital Partners
1221 Avenue of the Americas, 40th Floor
New York, New York  10020
Telephone:  212-899-3400
Telecopier:  212-899-3401
Attention:  Timothy Walsh

         with a copy to:

         O'Sullivan Graev & Karabell, LLP
         30 Rockefeller Plaza, 41st Floor
         New York, New York 10112
         Telephone:  212-408-2400
         Telecopier:  212-728-5950
         Attention:  Ilan S. Nissan, Esq.

--------------------------
(1) In addition to the Stockholder Shares, each of Chase Domestic Investments,
L.L.C., First Union Capital Partners, LLC, New York Life Capital Partners, L.P.
and The Northwestern Mutual Life Insurance Company own, respectively, 52,000
shares, 24,000 shares, 12,000 shares and 12,000 shares of the Company's Series A
Cumulative Exchangeable Redeemable Preferred Stock, no par value.

                                      -i-
<PAGE>   36

                                                              NUMBER OF
                                                             STOCKHOLDER
   NAME AND ADDRESS OF STOCKHOLDER                            SHARES(1)

First Union Capital Partners, LLC                                6,210
301 South College Street
One First Union Center, 5th Floor
Charlotte, NC  28288-0732
Telephone:  704-715-1481
Telecopier:  704-374-6711
Attention:  Robert G. Calton III

            with a copy to:

            Kennedy Covington Lobdell &
              Hickman, L.L.P.
            Bank of America Corporate Center, Suite 4200
            100 North Tryon Street
            Charlotte, North Carolina  28202-4006
            Attention:  J. Norfleet Pruden, III
            Telephone:  704--331-7442
            Telecopier:  704-331-7598

                                      -ii-
<PAGE>   37

                                                              NUMBER OF
                                                             STOCKHOLDER
   NAME AND ADDRESS OF STOCKHOLDER                            SHARES(1)

New York Life Capital Partners, L.P.                             12,419
51 Madison Avenue
Suite 3009
New York, New York  10010
Attention:  Steve Benevento
Telephone:  212-576-7000
Telecopier:  212-576-5591

         with a copy to:

         Office of the General Counsel
         New York Life Insurance Company
         51 Madison Avenue
         Suite 1104
         New York, New York  10010
         Attention:  Steve Benevento
         Telephone:  212-576-7000
         Telecopier:  212-576-8340

         and a copy to:

         Akin, Gump, Strauss, Hauer & Feld, L.L.P.
         590 Madison Avenue, 19th Floor
         New York, New York 10022
         Attention: Edward D. Sopher, Esq.
         Telephone: 212-872-1026
         Telecopier: 212-407-3226

                                     -iii-
<PAGE>   38

                                                              NUMBER OF
                                                             STOCKHOLDER
   NAME AND ADDRESS OF STOCKHOLDER                            SHARES(1)

The Northwestern Mutual Life Insurance Company                     6,210
720 East Wisconsin Avenue
Milwaukee, WI  53202
Attention:  Dave Barras
Telephone:  414-299-1618
Telecopier:  414-299-7124

         with a copy to:

         Akin, Gump, Strauss, Hauer & Feld, L.L.P.
         590 Madison Avenue, 19th Floor
         New York, New York 10022
         Attention: Edward D. Sopher, Esq.
         Telephone: 212-872-1026
         Telecopier: 212-407-3226

TRUST HOLDERS

The Christena Karen H. Durham Trust                              158,917
500 Huntsman Way
Salt Lake City, Utah  84108
Telephone:  801-584-5700
Telecopier: 801-584-5783
Attention: Richard P. Durham

      with a copy to:

      Winston & Strawn
      35 West Wacker Drive
      Chicago, Illinois 60601
      Telephone:  312-558-5600
      Telecopier:  312-558-5700
      Attention: John L. MacCarthy

MANAGEMENT STOCKHOLDERS

                                      -iv-
<PAGE>   39

                                                              NUMBER OF
                                                             STOCKHOLDER
   NAME AND ADDRESS OF STOCKHOLDER                            SHARES(1)

Durham Capital, Ltd. and Richard P. Durham                       42,789
500 Huntsman Way
Salt Lake City, Utah  84108
Telephone:  801-584-5700
Telecopier: 801-584-5783
Attention: Richard P. Durham

      with a copy to:

      Winston & Strawn
      35 West Wacker Drive
      Chicago, Illinois 60601
      Telephone:  312-558-5600
      Telecopier:  312-558-5700
      Attention: John L. MacCarthy

Jack E. Knott                                                     7,750
72 Brinker Road
Barrington Hills, Illinois 60010
Telephone:  847-382-0873

      with a copy to:

      Winston & Strawn
      35 West Wacker Drive
      Chicago, Illinois 60601
      Telephone:  312-558-5600
      Telecopier:  312-558-5700
      Attention: John L. MacCarthy

Sorensen Capital, LLC and Scott K. Sorensen                      14,173
3276 E. Walker Oaks Court
Salt Lake City, Utah  84121
Telephone:  801-943-4707
Attention:  Scott K. Sorensen

                                      -v-
<PAGE>   40

                                                              NUMBER OF
                                                             STOCKHOLDER
   NAME AND ADDRESS OF STOCKHOLDER                            SHARES(1)

      with a copy to:

      Winston & Strawn
      35 West Wacker Drive
      Chicago, Illinois 60601
      Telephone:  312-558-5600
      Telecopier:  312-558-5700
      Attention: John L. MacCarthy

Moffitt Capital, LLC and Ronald G. Moffitt                       4,882
6758 S. Vista Grande Drive
Salt Lake City, Utah  84121
Telephone:  801-942-2443
Attention:  Ronald G. Moffitt

      with a copy to:

      Winston & Strawn
      35 West Wacker Drive
      Chicago, Illinois 60601
      Telephone:  312-558-5600
      Telecopier:  312-558-5700
      Attention: John L. MacCarthy

Ronald G. Moffitt IRA (DLJ Securities Corp. Custodian)           1,700
6758 S. Vista Grande Drive
Salt Lake City, Utah  84121
Telephone: 801-942-2443
Attention:  Ronald G. Moffitt

      with a copy to:

      Winston & Strawn
      35 West Wacker Drive
      Chicago, Illinois 60601
      Telephone:  312-558-5600
      Telecopier:  312-558-5700
      Attention: John L. MacCarthy

                                      -vi-
<PAGE>   41

                                                              NUMBER OF
                                                             STOCKHOLDER
   NAME AND ADDRESS OF STOCKHOLDER                            SHARES(1)

WARRANTHOLDERS

Chase Domestic Investments, L.L.C.                               22,486
c/o Chase Capital Partners
1221 Avenue of the Americas, 40th Floor
New York, New York  10020
Telephone:  212-899-3400
Telecopier:  212-899-3401
Attention:  Richard D. Waters

         with a copy to:

         O'Sullivan Graev & Karabell, LLP
         30 Rockefeller Plaza, 41st Floor
         New York, New York 10112
         Telephone:  212-408-2400
         Telecopier:  212-728-5950
         Attention: Frederick M. Bachman, Esq.

First Union Capital Partners, LLC                                 5,189
301 South College Street
One First Union Center, 5th Floor
Charlotte, NC  28288-0732
Telephone:  704-715-1481
Telecopier:  704-374-6711
Attention:  Robert G. Calton III

            with a copy to:

            Kennedy Covingotn Lobdell &
              Hickman, L.L.P.
            Bank of America Corporate Center, Suite 4200
            100 North Tryon Street
            Charlotte, North Carolina  28202-4006
            Attention:  J. Norfleet Pruden, III
            Telephone:  704--331-7442
            Telecopier:  704-331-7598

                                     -vii-
<PAGE>   42

                                                              NUMBER OF
                                                             STOCKHOLDER
   NAME AND ADDRESS OF STOCKHOLDER                            SHARES(1)

New York Life Capital Partners, L.P.                            10,378
51 Madison Avenue
Suite 3009
New York, New York  10010
Attention:  Steve Benevento
Telephone:  212-576-7000
Telecopier:  212-576-5591

         with a copy to:

         Office of the General Counsel
         New York Life Insurance Company
         51 Madison Avenue
         Suite 1104
         New York, New York  10010
         Attention:  Steve Benevento
         Telephone:  212-576-7000
         Telecopier:  212-576-8340

         and a copy to:

         Akin, Gump, Strauss, Hauer & Feld, L.L.P.
         590 Madison Avenue, 19th Floor
         New York, New York 10022
         Attention: Edward D. Sopher, Esq.
         Telephone: 212-872-1026
         Telecopier: 212-407-3226

                                     -viii-
<PAGE>   43

                                                              NUMBER OF
                                                             STOCKHOLDER
   NAME AND ADDRESS OF STOCKHOLDER                            SHARES(1)

The Northwestern Mutual Life Insurance Company                   5,189
720 East Wisconsin Avenue
Milwaukee, WI  53202
Attention:  Dave Barras
Telephone:  414-299-1618
Telecopier:  414-299-7124

         with a copy to:

         Akin, Gump, Strauss, Hauer & Feld, L.L.P.
         590 Madison Avenue, 19th Floor
         New York, New York 10022
         Attention: Edward D. Sopher, Esq.
         Telephone: 212-872-1026
         Telecopier: 212-407-3226

                                      -ix-
<PAGE>   44

                                                                       EXHIBIT A

                                JOINDER AGREEMENT

                The undersigned is executing and delivering this Joinder
Agreement pursuant to the Stockholders' Agreement dated as of May 31, 2000 (as
the same may hereafter be amended, the "Stockholders' Agreement"), among
Huntsman Packaging Corporation, a Utah company (the "Company") and the
Stockholders named therein.

                By executing and delivering this Joinder Agreement to the
Company, the undersigned hereby agrees to become a party to, to be bound by, and
to comply with the provisions of the Stockholders' Agreement in the same manner
as if the undersigned were an original signatory to such agreement.

                The undersigned agrees that the undersigned shall be [a] [an]
[Investor Stockholder] [Management Stockholder] [Trust Holder] [Warrantholder],
as such term is defined in the Stockholders' Agreement.(2)

                Accordingly, the undersigned has executed and delivered this
Joinder Agreement as of the __ day of ______, _______.

                                             -----------------------------
                                                Signature of Stockholder

                                             -----------------------------
                                               Print Name of Stockholder

-----------------------------
(2) TYPE OF STOCKHOLDER SHALL BE THE SAME AS THE TRANSFEROR OF THE TRANSFERRED
COMMON STOCK.
<PAGE>   45

                                                                    EXHIBIT B

                                      REGULATORY
                                AGREEMENT dated as of May 31, 2000, by and
                                between CHASE DOMESTIC INVESTMENTS, L.L.C., a
                                Delaware limited liability company (the "the
                                Investor"), and HUNTSMAN PACKAGING CORPORATION,
                                a Utah corporation (the "Company")

       WHEREAS, the Investor is a regulated entity and an indirect subsidiary of
The Chase Manhattan Corporation and in connection therewith the Investor is
subject to various regulations that may impose restrictions on the type and
terms of the Investor's investment in the Company;

       NOW THEREFORE, in connection with the foregoing, the parties hereby agree
as set forth below.

      SECTION 1.  REGULATORY COOPERATION.

          (a) In the event that the Investor reasonably determines that it has a
Regulatory Problem, the Company agrees to take all such actions as are
reasonably requested by the Investor in order (i) to effectuate and facilitate
any transfer by the Investor of any securities of the Company then held by the
Investor to any Person designated by the Investor, (ii) to permit the Investor
(or any of its Affiliates) to exchange all or any portion of the voting
securities then held by such Person on a share-for-share basis for shares of a
class of non-voting securities of the Company, which non-voting securities shall
be identical in all respects to such voting securities, except that such new
securities shall be non-voting and shall be convertible into voting securities
on such terms as are requested by the Investor and reasonably acceptable to the
Company in light of regulatory considerations then prevailing and (iii) to grant
the Investor or its designee the reasonable equivalent of any voting rights
arising out of the Investor's ownership of voting securities and/or provided for
in the Stockholders Agreement that were diminished as a result of the transfers
and amendments referred to above. If the Investor elects to transfer securities
of the Company in order to avoid a Regulatory Problem to an Affiliate subject to
limitations on its voting or total ownership interest in the Company, the
Company and such Affiliate shall enter into such mutually acceptable agreements
as such Affiliate may reasonably request in order to assist such Affiliate in
complying with Laws to which it is subject. Such agreements may include
restrictions on the redemption, repurchase or retirement of securities of the
Company that would result or be reasonably expected to result in such Affiliate
holding more voting securities or total securities (equity and debt) than it is
permitted to hold under such laws and regulations.

          (b) In the event the Investor has the right to acquire any of the
Company's securities from the Company or any other Person (as the result of a
preemptive offer, pro rata offer or otherwise), and the Investor reasonably
determines that it has a Regulatory

<PAGE>   46

Problem, at the Investor's request the Company will offer to sell to the
Investor non-voting securities (or, if the Company is not the proposed seller,
will arrange for the exchange of any voting securities for non-voting securities
immediately prior to or simultaneous with such sale) on the same terms as would
have existed had the Investor acquired the securities so offered and immediately
requested their exchange for non-voting securities pursuant to Section 1(a).

          (c) In the event that any Affiliate of the Company ever offers to
issue any of its securities to the Investor, then the Company will cause such
Affiliate to enter into an agreement with the Investor substantially similar to
this Agreement.

      SECTION 2. CROSS MARKETING ACTIVITIES.

          (a) Neither the Company nor any of its subsidiaries (i) offers or
markets, directly or through any arrangement, any product or service of any
Depository Institution which the Company knows is owned by The Chase Manhattan
Corporation, or (ii) permits any of its products or services to be offered or
marketed, directly or through any arrangement, by or through any Depository
Institution which the Company knows is owned by The Chase Manhattan Corporation.

          (b) The Company shall give the Investor thirty (30) days prior notice
before taking any affirmative steps which would cause the representations and
warranties contained in this Section 2 to be untrue.

          (c) The Company shall use its best efforts to notify the Investor
promptly at any time in which the Company reasonably believes the
representations contained in this Section 2 to be untrue whether as a result of
the Company's affirmative action or otherwise.

      SECTION 3. LENDING ACTIVITIES.

        The Company will use reasonable efforts to notify the Investor if it or
any of its subsidiaries enters into a loan facility, credit facility, debt
financing, line of credit or any other extension of credit from any Depository
Institution which the Company knows is owned by The Chase Manhattan Corporation
at least 30 days prior thereto. Any failure by the Company to comply with this
Section 3 shall not be deemed to be a violation of, or default under, this
Section 3.

      SECTION 4. DEFINITIONS.

          "Affiliate" means, with respect to any Person, (a) a director or
executive officer of such Person or any Person identified in clause (c) below,
and (b) any other Person that, directly or indirectly through one or more
intermediaries, controls, is controlled by or is under common control with such
Person. When such term is used in the context of a Regulatory Problem, it also
has the meaning ascribed to it in any Law.

          "Law," with respect to any Person, means all provisions of all laws,
statutes, ordinances, rules, regulations, permits, certificates or orders of any
governmental

<PAGE>   47

authority applicable to such Person or any of its assets or property or to which
such Person or any of its assets or property is subject, and all judgments,
injunctions, orders and decrees of all courts and arbitrators in proceedings or
actions in which such Person is a party or by which it or any of its assets or
properties is or may be bound or subject.

          "Control" means, with respect to any Person, the possession, directly
or indirectly, of the power to direct or cause the direction of the management
or policies of a Person, whether through the ownership of voting securities, by
contract or otherwise.

          "Depository Institution" means an institution organized under the laws
of the United States, any State of the United States, the District of Colombia,
any territory of the United States, Puerto Rico, Guam, American Samoa, or the
Virgin Islands which both (i) accepts demand deposits or deposits that the
depositor may withdraw by check or similar means for payment to third parties or
others; and (ii) is engaged in the business of making commercial loans. The
Chase Manhattan Corporation is not a Depository Institution.

          "Person" shall be construed as broadly as possible and shall include
an individual or natural person, a partnership (including a limited liability
partnership), a corporation, an association, a joint stock company, a limited
liability company, a trust, a joint venture, an unincorporated organization and
a governmental authority.

          "Regulatory Problem" means any set of facts or circumstances in which
the Investor's ownership of securities issued by the Company (a) gives rise to a
material violation of Law by the Investor or any of its Affiliates, or gives
rise to a reasonable belief by the Investor that such a violation is likely to
occur or (b) gives rise to a limitation in Law that will impair materially the
ability of the Investor or any Affiliate to conduct its business or gives rise
to a reasonable belief by the that such a limitation is likely to arise.

          "Stockholders Agreement" means the Stockholders Agreement to be
entered into on the date of the Closing among the Company and certain
shareholders of the Company.

      SECTION 5.  AMENDMENTS; BENEFIT.

          The terms and provisions of this Agreement may not be modified or
amended, unless pursuant to a written agreement executed by each of the parties
hereof. This Agreement shall be for the benefit of the Investor and its
Affiliates and shall apply to each acquisition of securities issued by the
Company to the Investor or its Affiliates.

      SECTION 6.  COUNTERPARTS, FACSIMILE SIGNATURES.

          This Agreement may be executed in any number of counterparts,
including by means of facsimile, and each counterpart hereof shall be deemed
to be an original instrument, but all such counterparts together shall
constitute but one agreement.

                                    ********

<PAGE>   48

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

                                       CHASE DOMESTIC INVESTMENTS,
                                       L.L.C.

                                       By:  Chase Capital Investments, L.P.,
                                            as Sole Member

                                       By:  Chase Capital Partners,
                                            as Investment Manager

                                       By:
                                           ----------------------------------
                                           Name: Timothy J. Walsh
                                           Title: General Partner

                                       HUNTSMAN PACKAGING CORPORATION

                                       By:
                                           ----------------------------------
                                           Name:  Richard P. Durham
                                           Title: Chief Executive Officer and
                                                  President<PAGE>   1

                                                                    EXHIBIT 10.3

================================================================================

                         HUNTSMAN PACKAGING CORPORATION

                          REGISTRATION RIGHTS AGREEMENT

                                  MAY 31, 2000

================================================================================

<PAGE>   2

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                                               PAGE
                                                                                                               ----

<S>            <C>                                                                                             <C>
Section 1.          Definitions...................................................................................1

Section 2.          Required Registration.........................................................................7

Section 3.          Piggyback Registration........................................................................9

Section 4.          Registrations on Form S-3....................................................................10

Section 5.          Holdback Agreement...........................................................................11

Section 6.          Preparation and Filing.......................................................................12

Section 7.          Expenses.....................................................................................14

Section 8.          Indemnification..............................................................................14

Section 9.          Underwriting Agreement.......................................................................17

Section 10.         Suspension...................................................................................17

Section 11.         Information by Holder........................................................................18

Section 12.         Exchange Act Compliance......................................................................18

Section 13.         No Conflict of Rights........................................................................18

Section 14.         Termination..................................................................................18

Section 15.         Successors and Assigns.......................................................................18

Section 16.         Assignment...................................................................................18

Section 17.         Notices......................................................................................19

Section 18.         Modifications; Amendments; Waivers...........................................................20

Section 19.         Severability.................................................................................21

Section 20.         Counterparts and Facsimile Execution.........................................................21

Section 21.         Governing Law................................................................................21

Section 22.         Waiver of Jury Trial.........................................................................21

Section 23.         Consent to Jurisdiction......................................................................21

Section 24.         Entire Agreement.............................................................................22
</TABLE>

                                       i
<PAGE>   3

<TABLE>
<S>                 <C>                                                                                         <C>
Section 25.         Headings.....................................................................................22
</TABLE>

                                       ii
<PAGE>   4

                                                            REGISTRATION RIGHTS
                                                AGREEMENT (this "Agreement")
                                                dated as of May 31, 2000, among
                                                HUNTSMAN PACKAGING CORPORATION,
                                                a Utah corporation (the
                                                "Company"), the STOCKHOLDERS (as
                                                defined below) other than the
                                                NOTE WARRANTHOLDERS (as defined
                                                below), THE INITIAL PURCHASERS
                                                (as defined below), and THE BANK
                                                OF NEW YORK (solely for the
                                                purpose of receiving notices
                                                under Section 17).

       The Stockholders own, or have the right to purchase or otherwise acquire
(by the exercise, exchange or conversion of shares of the Company's capital
stock and/or warrants owned by the Stockholders that are exercisable or
exchangeable for or convertible into Common Stock (as hereinafter defined)
without regard to any restrictions on the ability of any Stockholder to exercise
such rights exercise, exchange or conversion), shares of the Common Stock
("Common Stock"), of the Company (or such other class of common stock of the
Company into which the Common Stock may be converted or reclassified, and all
references herein to the Common Stock shall include such other class of common
stock of the Company, if applicable). The Company and the Stockholders deem it
to be in their respective best interests to set forth the rights of the
Stockholders in connection with public offerings and sales of the capital stock
of the Company.

       The Initial Purchasers, the Company and the Note Guarantors have entered
into the Purchase Agreement (as hereinafter defined). As an inducement to the
Initial Purchasers to consummate the transactions contemplated by the Purchase
Agreement, and in satisfaction of a condition to the obligations of the Initial
Purchasers thereunder, the Company, for the benefit of the Note Warrantholders
(including the Initial Purchasers), agrees to the matters set forth herein.

       ACCORDINGLY, in consideration of the premises and mutual covenants and
obligations hereinafter set forth, the parties hereto hereby agree as set forth
below.

   Section 1.  Definitions.

       As used in this Agreement, the following terms shall have the following
meanings:

       "Affiliate" means, with respect to any Person, a Person that directly, or
indirectly through one or more intermediaries, controls, or is controlled by, or
is under common control with, such Person. For the purpose of this definition,
the term "control" (including, with correlative meaning, the terms
"controlling," "controlled by" and "under common control with"), as used with
respect to any Person, means the possession, directly or indirectly, of the
power to direct or cause the direction of the management, policies or investment
decisions of such Person, whether through the ownership of voting securities or
other ownership interests, by contract or otherwise.

<PAGE>   5

       "Board of Directors" means the board of directors of the Company.

       "Business Day" means any day that is not (a) Pioneer Day in the State of
Utah, (b) a Saturday, Sunday or legal holiday or (c) a day on which banks are
not required to be open in New York, New York.

       "Commission" means the Securities and Exchange Commission or any other
Governmental Authority at the time administering the Securities Act.

       "Common Stock" has the meaning given to it in the Preamble.

       "Common Stock Equivalent" means, at any time, one share of Common Stock
or the right to acquire, whether or not such right is immediately exercisable,
one share of Common Stock, whether evidenced by an option, warrant, convertible
security or other instrument or agreement, including, without limitation the
Warrants and the Note Warrants.

       "Company" has the meaning set forth in the caption.

       "Exchange Act" means the Securities Exchange Act of 1934, as amended, or
any successor Federal statute then in force, and the rules and regulations of
the Commission promulgated thereunder, all as the same shall be in effect from
time to time.

       "Excluded Shares" means all shares of Common Stock issued to Other
Holders pursuant to the terms of the Restricted Stock Agreements which have not
been released from the Repurchase Option (as defined in the Restricted Stock
Agreements) on the date on which the calculation of Registrable Shares is being
determined.

       "Governmental Authority" means any domestic or foreign government or
political subdivision thereof, whether on a federal, state or local level and
whether executive, legislative or judicial in nature, including any agency,
authority, board, bureau, commission, court, department or other instrumentality
thereof.

       "Indenture" means the Indenture dated as of May 31, 2000, between the
Company, the Note Guarantors and the Trustee, with respect to the Notes, as it
may be amended, modified or supplemented from time to time.

       "Information" has the meaning ascribed to such term in Section 6(i).

       "Initial Public Offering" means the initial underwritten Public Offering
of Common Stock for the account of the Company pursuant to a registration
statement effective under the Securities Act.

       "Initial Purchasers" means Chase Securities Inc. and Deutsche Bank
Securities Inc.

       "Inspectors" has the meaning ascribed to such term in Section 6(i).

                                     - 2 -
<PAGE>   6

       "Investor Stockholders" means, collectively, (a) the Persons listed as
Investor Stockholders on Schedule I attached to this Agreement for so long as
such Persons hold Restricted Securities and (b) any successor to, or permitted
assignee or transferee in accordance with the Stockholders' Agreement of
Restricted Securities originally held by a Person referred to in clause (a),
provided that such successor, assignee or transferee agrees in writing to be
treated as an Investor Stockholder hereunder and to be bound by and comply with
all of the applicable terms and provisions hereof.

       "Liquidity Event" means the consummation of the first to occur of the
following (a) the Initial Public Offering or (b) a Sale of the Company.

       "Material Transaction" means any material transaction in which the
Company or any of its subsidiaries proposes to engage or is engaged, including a
purchase or sale of assets or securities, financing, merger, tender offer or any
other transaction that would require disclosure pursuant to the Exchange Act,
and with respect to which the Board of Directors reasonably has determined in
good faith that compliance with this Agreement may reasonably be expected to
either materially interfere with the Company's or such subsidiary's ability to
consummate such transaction in a timely fashion or require the Company to
disclose material, non-public information prior to such time as it would
otherwise be required to be disclosed.

       "NASDAQ" means The Nasdaq Stock Market, Inc.

       "NMS" has the meaning ascribed to such term in Section 6(n).

       "Note Guarantors" shall have the meaning assigned to it in the Indenture.

       "Note Warrants" means the warrants to purchase Common Stock issued
pursuant to the Note Warrant Agreement.

       "Note Warrant Agent" means The Bank of New York, a New York banking
corporation, in its capacity as agent for the Note Warrantholders.

       "Note Warrant Agreement" means the Note Warrant Agreement dated as of May
31, 2000, between the Company and the Note Warrant Agent, as amended, modified
or supplemented from time to time.

       "Note Warrantholder" means any Person that holds Note Warrants, whether
on the Closing Date or at any time thereafter, for so long as such Person holds
Restricted Securities, and so long as each such Person agrees (whether pursuant
to the Note Warrant Agreement or otherwise) to be treated as a Note
Warrantholder and to be bound by and comply with all of the applicable terms and
provisions hereof.

       "Note Warrant Shares" has the meaning ascribed to such term in the Note
Warrant Agreement.

       "Other Holders" means those Persons holding Registrable Shares other than
the Investor Stockholders, the Warrantholders, the Note Warrantholders and the
Trust Holders.

                                     - 3 -
<PAGE>   7

       "Other Shares" means at any time those shares of Common Stock which do
not constitute Registrable Shares or Primary Shares.

       "Person" shall be construed as broadly as possible and shall include an
individual person, a partnership (including a limited liability partnership), a
corporation, an association, a joint stock company, a limited liability company,
a trust, a joint venture, an unincorporated organization and a Governmental
Authority.

       "Primary Shares" means, at any time, the authorized but unissued shares
of Common Stock or shares of Common Stock held in the treasury of the Company.

       "Prospectus" means the prospectus included in a Registration Statement,
including any amendment or prospectus subject to completion, and any such
prospectus as amended or supplemented by any prospectus supplement with respect
to the terms of the offering of any portion of the Registrable Shares and, in
each case, by all other amendments and supplements to such prospectus, including
post-effective amendments, and in each case including all material incorporated
by reference therein.

       "Public Offering" means the closing of a public offering of Common Stock
pursuant to a Registration Statement declared effective under the Securities
Act, except that a Public Offering shall not include an offering of securities
to be issued as consideration in connection with a business acquisition or an
offering of securities issuable pursuant to an employee benefit plan.

       "Purchase Agreement" means the Purchase Agreement dated as of May 25,
2000, among the Company, the Note Guarantors and the Initial Purchasers relating
to the Units, as amended, modified or supplemented from time to time.

       "Recapitalization Agreement" means the Recapitalization Agreement, dated
as of March 31, 2000, by and among the Company and the Persons named therein, as
such agreement may from time to time be amended in accordance with its terms.

       "Records" has the meaning ascribed to such term in Section 6(i).

       "Registrable Shares" means at any time, and with respect to any
Stockholder, the shares of Common Stock held by, or issuable to, such
Stockholder which constitute Restricted Securities other than the Excluded
Shares. As to any particular Registrable Shares, once issued, such Registrable
Shares shall cease to be Registrable Shares (a) when an offering of such
Registrable Shares has been registered under the Securities Act, the
Registration Statement in connection therewith has been declared effective and
such Registrable Shares have been disposed of pursuant to and in the manner
described in such effective Registration Statement, (b) when such Registrable
Shares are sold or distributed to the public, or eligible to be sold or
distributed, through a broker, dealer or market maker pursuant to Rule 144(k)
(in the case of Warrants, Note Warrants or other rights to acquire Common Stock,
assuming that such Warrants, Note Warrants or other rights to acquire Common
Stock are exercised through a "cashless exercise" provision) or (c) when such
Registrable Shares have ceased to be outstanding.

                                     - 4 -
<PAGE>   8

       "Registration Date" means the date upon which the Registration Statement
filed by the Company to effect its Initial Public Offering shall have been
declared effective by the Commission.

       "Registration Statement" means any registration statement of the Company
which covers an offering of any of the Registrable Shares, and all amendments
and supplements to any such Registration Statement, including post-effective
amendments, in each case including the Prospectus contained therein, all
exhibits thereto and all material incorporated by reference therein.

       "Representative" of a Person shall be construed broadly and shall include
such Person's partners, members, officers, directors, managers, investment
advisors, employees, agents, advisors, counsel, accountants and other
representatives.

       "Requesting Group" means, with respect to any Requesting Stockholder, all
members of the same class of Stockholders as the Requesting Stockholder.

       "Requesting Stockholders" means, on the date of determination, any of the
Persons requesting a registration pursuant to in Sections 2(a)(i), 2(a)(ii),
2(a)(iii) or 2(a)(iv).

       "Requisite Investor Stockholders" means, on the date of determination,
those Investor Stockholders who hold in the aggregate in excess of fifty percent
(50%) of the Restricted Securities held by all of the Investor Stockholders.

       "Requisite Note Warrantholders" means, on the date of determination,
those Note Warrantholders who hold in the aggregate in excess of sixty percent
(60%) of the Restricted Securities held by all of the Note Warrantholders.

       "Requisite Trust Holders" means, on the date of determination, those
Trust Holders who hold in the aggregate in excess of fifty percent (50%) of the
Restricted Securities held by all of the Trust Holders.

       "Requisite Warrantholders" means, on the date of determination, those
Warrantholders who hold in the aggregate in excess of sixty percent (60%) of the
Restricted Securities held by all of the Warrantholders.

       "Restricted Securities" means, at any time and with respect to any
Stockholder, the Common Stock, the Warrants and the Note Warrants and any other
securities received or receivable with respect to any such Common Stock,
Warrants (including Warrant Shares) and Note Warrants (including Note Warrant
Shares), which are held by such Stockholder and which theretofore have not been
sold to the public pursuant to an effective Registration Statement or pursuant
to Rule 144.

       "Restricted Stock Agreements" means, collectively, the Restricted Stock
Purchase Agreements dated as of the date hereof between the Company and each of
Richard P. Durham, Jack E. Knott, Scot K. Sorensen and Ronald G. Moffitt, and
any similar agreements executed and delivered by the Company and any employee of
the Company after the date hereof, as each such

                                     - 5 -
<PAGE>   9

agreement is amended, modified or supplemented from time to time in accordance
with the terms thereof.

       "Rule 144" means Rule 144 promulgated under the Securities Act or any
successor rule thereto.

       "Sale of the Company" means the sale of the Company (in one transaction
or a series of transactions) to a third party or parties, whether by way of the
sale of all or substantially all of the assets of the Company, sale of
securities (whether directly or indirectly or by way of merger, consolidation or
reorganization) resulting in such third party or parties acquiring voting
securities which enable such third party or parties to elect a majority of the
Board of Directors.

       "Securities Act" means the Securities Act of 1933, as amended, or any
successor Federal statute, and the rules and regulations of the Commission
promulgated thereunder, all as the same shall be in effect from time to time.

       "Stockholders" means each of the Investor Stockholders, the Trust
Holders, the Warrantholders, the Note Warrantholders and the Other Holders.

       "Stockholders' Agreement" means the Stockholders' Agreement dated as of
the date hereof among the Company, the Stockholders (other than the Note
Warrantholders) and the other Persons party thereto, as amended, modified or
supplemented from time to time.

       "Stockholders' Counsel" has the meaning ascribed to it in Section 6.

       "Suspension Period" means the meaning ascribed to it in Section 10.

       "Transfer" means any disposition of any Restricted Securities or of any
interest therein which would constitute a sale thereof within the meaning of the
Securities Act, other than any such disposition pursuant to a Registration
Statement and in compliance with all applicable state securities and "blue sky"
laws. Notwithstanding anything to the contrary contained herein, Transfer shall
not include an exchange of Warrants or Note Warrants, as applicable, effectuated
in accordance with (i) Section 4.2 of the Warrant Agreement or (ii) Section 3.4
of the Note Warrant Agreement.

       "Trust Holders" means, collectively, (a) the Persons listed as Trust
Holders on Schedule I attached to this Agreement for so long as such Persons
hold Restricted Securities and (b) any successor to, or permitted assignee or
transferee in accordance with the Stockholders' Agreement of Restricted
Securities originally held by a Person referred to in clause (a), provided that
such successor, assignee or transferee agrees in writing to be treated as a
Trust Holder hereunder and to be bound by and comply with all of the applicable
terms and provisions hereof.

       "Unit" shall have the meaning assigned to it in the Purchase Agreement.

       "Warrant Agreement" means the Warrant Agreement, dated as of the date
hereof, among the Company and the Stockholders named therein, as amended,
modified or supplemented from time to time in accordance with the terms thereof.

                                     - 6 -
<PAGE>   10

       "Warrantholders" means, collectively, (a) the Persons listed as
Warrantholders on Schedule I attached to this Agreement for so long as such
Persons hold Restricted Securities and (b) any successor to, or permitted
assignee or transferee of Restricted Securities originally held by a Person
referred to in clause (a), provided that such successor, assignee or transferee
agrees in writing to be treated as a Warrantholder hereunder and to be bound by
and comply with all of the applicable terms and provisions hereof.

       "Warrants" means the Common Stock Warrants issued pursuant to the Warrant
Agreement dated as of the date hereof by and among the Company and the
Stockholders party thereto.

       "Warrant Shares" has the meaning ascribed to such term in the Warrant
Agreement.

    SECTION 2. REQUIRED REGISTRATION.

        (a) (i)   If, at any time, the Company shall be requested by the
    Requisite Investor Stockholders to effect the registration under the
    Securities Act of an offering of Registrable Shares; or

            (ii)  if, at any time after sixty (60) days following the date upon
    which the Registration Statement used in the Initial Public Offering shall
    have been declared effective, the Company shall be requested by the
    Requisite Warrantholders to effect the registration under the Securities Act
    of an offering of Registrable Shares; or

            (iii) if, at any time after sixty (60) days following the date upon
    which the Registration Statement used in the Initial Public Offering shall
    have been declared effective, the Company shall be requested by the
    Requisite Note Warrantholders to effect the registration under the
    Securities Act of an offering of Registrable Shares; or

            (iv)  if, (A) a Liquidity Event has not occurred on or prior to the
    fifth anniversary of the date hereof and (B) after such date the Company
    shall be requested by the Requisite Trust Holders to effect the registration
    under the Securities Act of an offering of Registrable Shares,

then the Company shall promptly give written notice to the other Stockholders of
its requirement to so register such offering and, upon the written request,
delivered to the Company within thirty (30) days after delivery of any such
notice by the Company, of the other Stockholders to include in such registration
Registrable Shares (which request shall specify the number of Registrable Shares
proposed to be included in such registration), the Company shall, whether or not
any other Stockholders request to include any Registrable Shares in such
registration, subject to Section 2(b) below, promptly use its best efforts to
effect such registration under the Securities Act of an offering of the
Registrable Shares which the Company has been so requested to register for sale
in accordance with the method of distribution specified in the initiating
request.

       (b)    Anything contained in Section 2(a) to the contrary
notwithstanding, the Company shall not be obligated to effect pursuant to
Section 2(a) any registration under the Securities Act except in accordance with
the following provisions:

                                     - 7 -
<PAGE>   11

              (i)    the Company shall not be obligated to use its best efforts
to file and cause to become effective:

                   (A)    more than (w) two (2) registrations on Registration
       Statements on Form S-1 (or any successor form thereto) initiated by the
       Requisite Investor Stockholders pursuant to Section 2(a)(i) hereof, (x)
       one (1) registration on a Registration Statement on Form S-1 (or any
       successor form thereto) initiated by the Requisite Warrantholders
       pursuant to Section 2(a)(ii), (y) one (1) registration on a Registration
       Statement on Form S-1 (or any successor form thereto) initiated by the
       Requisite Note Warrantholders pursuant to Section 2(a)(iii) or (z) one
       (1) registration on a Registration Statement on Form S-1 (or any
       successor form thereto) initiated by the Requisite Trust Holders pursuant
       to Section 2(a)(iv) hereof; provided, however, if such Requesting
       Stockholders are unable to sell at least seventy-five percent (75%) of
       the Registrable Shares requested by such Requesting Stockholders to be
       included in any registration pursuant to Section 2(a) as a result of an
       underwriter's cutback pursuant to Section 2(b)(iii), then such
       registration shall not count as a requested registration for purposes of
       this clause (A) or

                   (B)    any Registration Statement during any period in which
       any other registration statement (other than on Form S-4 or Form S-8
       promulgated under the Securities Act or any successor forms thereto)
       pursuant to which Primary Shares are to be or were offered and sold has
       been filed and not withdrawn or has been declared effective within the
       prior 180 days;

              (ii)   the Company may delay the filing or effectiveness of any
Registration Statement for a period of up to ninety (90) days after the date of
a request for registration pursuant to Section 2(a) if at the time of such
request, the Company is engaged in a Material Transaction; provided, however,
the Company may not utilize this right more than once in any twelve-month
period; and

              (iii)  with respect to any registration pursuant to Section 2(a),
the Company may include in such registration any Registrable Shares, Primary
Shares or Other Shares; provided, however, that if the managing underwriter
advises the Company that the inclusion of all Registrable Shares, Primary
Shares, and Other Shares proposed to be included in such registration would
materially adversely affect the offering and sales (including pricing) of all
such securities, then the number of Registrable Shares, Primary Shares, and
Other Shares proposed to be included in such registration shall be included in
the following order:

                   (A)    first, the Registrable Shares owned by all members of
       the Requesting Group, pro rata based upon the number of Registrable
       Shares owned by each member of the Requesting Group at the time of such
       registration;

                   (B)    second, the Registrable Shares owned by all
       Stockholders (other than the members of the Requesting Group), pro rata
       based upon the

                                     - 8 -
<PAGE>   12

       number of Registrable Shares owned by each such Stockholder at the time
       of such registration;

              (C)    third, the Primary Shares; and

              (D)    fourth, the Other Shares.

       (c)    A requested registration under Section 2(a) may be rescinded at
least twenty (20) days prior to the filing of a Registration Statement by
written notice to the Company from the Requesting Stockholders holding a
majority of the Registrable Shares requested to be registered; provided,
however, that such rescinded registration shall not count as a requested
registration pursuant to Section 2(a) for purposes of Section 2(b)(i)(A) above
if the Company shall have been reimbursed (pro rata by the Requesting
Stockholders holding a majority of the Registrable Shares requested to be
registered or in such other proportion as such Requesting Stockholders or
Stockholders may agree) for all out-of-pocket expenses incurred by the Company
in connection with such rescinded registration.

    SECTION 3.  PIGGYBACK REGISTRATION.

       (a)    If the Company at any time proposes for any reason to register
Primary Shares or Other Shares under the Securities Act (other than on Form S-4
or Form S-8 promulgated under the Securities Act or any successor forms
thereto), it shall promptly give written notice to each Stockholder of its
intention so to register the Primary Shares or Other Shares and, upon the
written request, given within twenty (20) days after delivery of any such notice
by the Company, of any such Stockholder to include in such registration
Registrable Shares (which request shall specify the number of Registrable Shares
proposed to be included in such registration), the Company shall use its best
efforts to cause all such Registrable Shares requested to be included in such
registration on the same terms and conditions as the securities otherwise being
sold in such registration; provided, however, that if the managing underwriter
advises the Company that the inclusion of all Registrable Shares or Other Shares
proposed to be included in such registration would interfere with the successful
offering and sale (including pricing) of Primary Shares proposed to be offered
and sold by the Company, then the number of Primary Shares, Registrable Shares
and Other Shares proposed to be included in such registration shall be included
in the following order:

            (i)    first, the Primary Shares;

            (ii)   second, the Registrable Shares held by the Stockholders
     requesting their Registrable Shares be included in such registration
     pursuant to the terms of this Section 3, pro rata based upon the number of
     Registrable Shares owned by each such Stockholder at the time of such
     registration; and

            (iii)  third, the Other Shares.

       (b)    The number of requests permitted by the Stockholders pursuant to
this Section 3 shall be unlimited.

                                     - 9 -
<PAGE>   13

       (c)    Notwithstanding anything to the contrary contained herein, no
Other Holder shall have any rights under this Section 3 with respect to the
Initial Public Offering.

  SECTION 4.  REGISTRATIONS ON FORM S-3.

       (a)    Subject to Section 4(c), at such time as the Company shall have
qualified for the use of Form S-3 promulgated under the Securities Act or any
successor form thereto, each Stockholder shall have the right to request in
writing registrations on Form S-3, or such successor form, and to effect a
registration under the Securities Act of Registrable Shares in accordance with
this Section 4.

       (b)    If the Company shall be requested by any Stockholder to effect a
registration under the Securities Act of Registrable Shares in accordance with
this Section 4, then the Company shall promptly give written notice of such
proposed registration to all Stockholders and shall offer to include in such
proposed registration any Registrable Shares requested to be included in such
proposed registration by such Stockholders who respond in writing to the
Company's notice within thirty (30) days after delivery of such notice (which
response shall specify the number of Registrable Shares proposed to be included
in such registration). The Company shall promptly use its commercially
reasonable efforts to effect such registration on Form S-3 of the Registrable
Shares which the Company has been so requested to register.

       (c)    The Company shall not be obligated to effect any registration
under the Securities Act requested by the Stockholders under this Section 4
except in accordance with the following provisions:

          (i)       the Company shall not be obligated to effect any such
     registration initiated pursuant to this Section 4 if (A) the anticipated
     gross offering price of all Registrable Shares to be included therein would
     be less than $5,000,000 or (B) the Company shall have effected four (4) or
     more Registration Statements on Form S-3 pursuant to this Section 4 during
     the twelve month period prior to the date of such request for registration
     (unless the Company shall have waived such limitation);

          (ii)      the Company may delay the filing or effectiveness of any
     Registration Statement for a period not to exceed ninety (90) days after
     the date of a request for registration pursuant to this Section 4 if (A)
     the Company's Board of Directors has determined that such registration
     would have a material adverse effect upon the Company or its then current
     business plans or (B) at the time of such request the Company is engaged in
     a Material Transaction; provided, however, that the Company may not utilize
     this right more than once in any twelve-month period; and

          (iii)     with respect to any registration pursuant to this Section
     4, the Company may include in such registration any Registrable Shares,
     Primary Shares or Other Shares; provided, however, that if the managing
     underwriter advises the Company that the inclusion of all Registrable
     Shares, Primary Shares and Other Shares proposed to be included in such
     registration would materially adversely affect the offering or sale
     (including pricing) of all such securities, then the number of Registrable
     Shares, Primary

                                     - 10 -
<PAGE>   14

     Shares and Other Shares proposed to be included in such registration shall
     be included in the following order:

               (A)  first, the Registrable Shares, pro rata based upon the
          number of Registrable Shares owned by each Stockholder at the time of
          such registration;

               (B)  second, the Primary Shares; and

               (C)  third, the Other Shares.

     (d)  The number of requests permitted by the Stockholders pursuant to this
Section 4 shall be unlimited.

  SECTION 5.  HOLDBACK AGREEMENT.

     (a)  If the Company at any time shall register an offering and sale of
shares of Common Stock under the Securities Act in an underwritten offering (i)
pursuant to an Initial Public Offering or (ii) pursuant to any other
registration under the Securities Act (other than on Form S-4 or Form S-8
promulgated under the Securities Act or any successor forms thereto), the
Stockholders (other than the Note Warrantholders, unless the depositary or
depositaries and custodian or custodians for all Restricted Securities shall
provide written notice to the Company and the Note Warrantholders that such
depositary or depositaries and custodian or custodians is able to effectuate the
provisions of this Section 5) shall not sell, make any short sale of, grant any
option for the purchase of, or otherwise dispose of any Restricted Securities
(other than (A) those Registrable Shares included in such registration pursuant
to Sections 2, 3 or 4, (B) a transfer without consideration by a Stockholder
that is a limited liability company or limited partnership to its members,
partners or investment advisors or (C) subject to the consent of the
underwriters, a Permitted Transfer (as defined in the Stockholders' Agreement))
without the prior written consent of the Company for a period as shall be
determined by the managing underwriters, which period cannot begin more than
seven (7) days prior to the effectiveness of such Registration Statement and
cannot last more than ninety (90) days (180 days in the case of the Company's
Initial Public Offering) after the effective date of such Registration
Statement.

     (b)  If the Company at any time pursuant to Section 2 of this Agreement
shall register under the Securities Act an offering and sale of Registrable
Shares held by Stockholders for sale to the public pursuant to an underwritten
offering, the Company shall not, without the prior written consent of the lead
underwriters for such offering, effect any public sale or distribution of
securities similar to those being registered, or any securities convertible into
or exercisable or exchangeable for such securities, for such period as shall be
determined by the managing underwriters, which period shall not begin more than
seven (7) days prior to the effectiveness of the Registration Statement pursuant
to which such public offering shall be made and shall not last more than ninety
(90) days (180 days in the case of the Company's Initial Public Offering) after
the closing of sale of shares pursuant to such Registration Statement (except as
part of such underwritten registration or pursuant to registrations on Form S-8
or any successor form).

                                     - 11 -
<PAGE>   15

  SECTION 6.  PREPARATION AND FILING.

       If and whenever the Company is under an obligation pursuant to the
provisions of this Agreement to use its best efforts to effect the registration
of an offering and sale of any Registrable Shares, the Company shall, as
expeditiously as practicable:

     (a)  use its best efforts to cause a Registration Statement that registers
such offering of Registrable Shares to become and remain effective for a period
of 120 days or until all of such Registrable Shares have been disposed of (if
earlier);

     (b)  furnish, at least five (5) Business Days before filing a Registration
Statement that registers such Registrable Shares, a Prospectus relating thereto
and any amendments or supplements relating to such Registration Statement or
Prospectus, to one counsel selected by the Requesting Stockholders (the
"Stockholders' Counsel"), copies of all such documents proposed to be filed (it
being understood that such five-Business-Day period need not apply to successive
drafts of the same document proposed to be filed so long as such successive
drafts are supplied to such counsel in advance of the proposed filing by a
period of time that is customary and reasonable under the circumstances) and
shall use its reasonable best efforts to reflect in each such document, when so
filed with the Commission, such comments as the Stockholders whose Registrable
Shares are to be covered by such Registration Statement may reasonably propose;

     (c)  prepare and file with the Commission such amendments and supplements
to such Registration Statement and the Prospectus used in connection therewith
as may be necessary to keep such Registration Statement effective for at least a
period of 120 days or until all of such Registrable Shares have been disposed of
(if earlier) and to comply with the provisions of the Securities Act with
respect to the offering and sale or other disposition of such Registrable
Shares;

     (d)  notify the Stockholders' Counsel promptly in writing (A) of any
comments by the Commission with respect to such Registration Statement or
Prospectus, or any request by the Commission for the amending or supplementing
thereof or for additional information with respect thereto, (B) of the issuance
by the Commission of any stop order suspending the effectiveness of such
Registration Statement or Prospectus or any amendment or supplement thereto or
the initiation of any proceedings for that purpose and (C) of the receipt by the
Company of any notification with respect to the suspension of the qualification
of such Registrable Shares for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purposes;

     (e)  use its best efforts to register or qualify such Registrable Shares
under such other securities or blue sky laws of such jurisdictions as any seller
of Registrable Shares reasonably requests and do any and all other acts and
things which may be reasonably necessary or advisable to enable such seller of
Registrable Shares to consummate the disposition in such jurisdictions of the
Registrable Shares owned by such seller; provided, however, that the Company
will not be required to qualify generally to do business, subject itself to
general taxation or consent to general service of process in any jurisdiction
where it would not otherwise be required to do so but for this Section 6(e);

                                     - 12 -
<PAGE>   16

     (f)  furnish to each seller of such Registrable Shares such number of
copies of a summary Prospectus or other Prospectus, including a preliminary
Prospectus, in conformity with the requirements of the Securities Act, and such
other documents as such seller of Registrable Shares may reasonably request in
order to facilitate the public offering and sale or other disposition of such
Registrable Shares;

     (g)  use its best efforts to cause such offering and sale of Registrable
Shares to be registered with or approved by such other governmental agencies or
authorities as may be necessary by virtue of the business and operations of the
Company to enable the seller or sellers thereof to consummate the disposition of
such Registrable Shares;

     (h)  notify on a timely basis each seller of such Registrable Shares at any
time when a Prospectus relating to such Registrable Shares is required to be
delivered under the Securities Act within the appropriate period mentioned in
clause Section 6(b) of the happening of any event as a result of which the
Prospectus included in such Registration Statement, as then in effect, includes
an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances then existing and, at the request of
such seller, prepare and furnish to such seller a reasonable number of copies of
a supplement to or an amendment of such Prospectus as may be necessary so that,
as thereafter delivered to the offerees of such shares, such Prospectus shall
not include an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein
not misleading in light of the circumstances then existing;

     (i)  make available for inspection by any seller of such Registrable
Shares, any underwriter participating in any disposition pursuant to such
Registration Statement and any attorney, accountant or other agent retained by
any such seller or underwriter (collectively, the "Inspectors"), all pertinent
financial, business and other records, pertinent corporate documents and
properties of the Company (collectively, the "Records"), as shall be reasonably
necessary to enable them to exercise their due diligence responsibility, and
cause the Company's officers, directors and employees to supply all information
(together with the Records, the "Information") reasonably requested by any such
Inspector in connection with such Registration Statement (and any of the
Information which the Company determines in good faith to be confidential, and
of which determination the Inspectors are so notified, shall not be disclosed by
the Inspectors unless (A) the disclosure of such Information is necessary to
avoid or correct a misstatement or omission in the Registration Statement, (B)
the release of such Information is ordered pursuant to a subpoena or other order
from a court of competent jurisdiction, (C) such Information has been made
generally available to the public, and (D) the seller of Registrable Shares
agrees that it will, upon learning that disclosure of such Information is sought
in a court of competent jurisdiction, give notice to the Company and allow the
Company, at the Company's expense, to undertake appropriate action to prevent
disclosure of the Information deemed confidential);

     (j)  use its best efforts to obtain from its independent certified public
accountants a "cold comfort" letter in customary form and covering such matters
of the type customarily covered by cold comfort letters;

                                     - 13 -
<PAGE>   17

     (k)  use its best efforts to obtain, from its counsel, an opinion or
opinions in customary form (which shall also be addressed to the Stockholders
selling Registrable Shares in such registration);

     (l)  provide a transfer agent and registrar (which may be the same entity
and which may be the Company) for such Registrable Shares;

     (m)  issue to any underwriter to which any seller of Registrable Shares may
sell shares in such offering certificates evidencing such Registrable Shares;

     (n)  list such Registrable Shares on any national securities exchange on
which any shares of the Common Stock are listed or, if the Common Stock is not
listed on a national securities exchange, use its best efforts to qualify such
Registrable Shares for quotation on the automated quotation system of the
NASDAQ, National Market System ("NMS"), or such other national securities
exchange as the holders of a majority of such Registrable Shares included in
such registration shall request;

     (o)  otherwise use its best efforts to comply with all applicable rules and
regulations of the Commission, and make available to its security holders, as
soon as reasonably practicable but not later than eighteen (18) months after the
effective date, earnings statements which need not be audited covering a period
of twelve (12) months beginning within three (3) months after the effective date
of the Registration Statement, which earnings statements shall satisfy the
provisions of Section 11(a) of the Securities Act and Rule 158 thereunder; and

     (p)  use its best efforts to take all other steps necessary to effect the
registration of such Registrable Shares contemplated hereby.

   SECTION 7. EXPENSES.

       All expenses incurred by the Company in complying with Section 6,
including, without limitation, all registration and filing fees (including all
expenses incident to filing with the National Association of Securities Dealers,
Inc.), fees and expenses of complying with securities and blue sky laws,
printing expenses, fees and expenses of the Company's counsel and accountants
and fees and expenses of the Stockholders' Counsel shall be paid by the Company;
provided, however, that all underwriting discounts and selling commissions
applicable to the Registrable Shares and Other Shares shall not be borne by the
Company but shall be borne by the seller or sellers thereof, in proportion to
the number of Registrable Shares and Other Shares sold by such seller or
sellers.

   SECTION 8.  INDEMNIFICATION.

       (a)    In connection with any registration of any offering and sale of
Registrable Shares under the Securities Act pursuant to this Agreement, the
Company shall indemnify and hold harmless the seller of such Registrable Shares,
each underwriter, broker or any other Person acting on behalf of such seller,
each other Person, if any, who controls any of the foregoing Persons within the
meaning of the Securities

                                     - 14 -
<PAGE>   18

Act and each Representative of any of the foregoing Persons, against any losses,
claims, damages or liabilities, joint or several, to which any of the foregoing
Persons may become subject, whether commenced or threatened, under the
Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon an
untrue statement or alleged untrue statement of a material fact contained in the
Registration Statement under which such Registrable Shares were registered, any
preliminary Prospectus or final Prospectus contained therein, any amendment or
supplement thereto or any document incident to registration or qualification of
any offering and sale of any Registrable Shares, or arise out of or are based
upon the omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading
or, with respect to any Prospectus, necessary to make the statements therein in
light of the circumstances under which they were made not misleading, or any
violation by the Company of the Securities Act or state securities or blue sky
laws applicable to the Company and relating to action or inaction required of
the Company in connection with such registration or qualification under such
state securities or blue sky laws, and the Company shall promptly reimburse such
seller, such underwriter, such broker, such controlling Person or such
Representatives for any legal or other expenses incurred by any of them in
connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that the Company shall not be liable to
any such Person to the extent that any such loss, claim, damage or liability
arises out of or is based upon an untrue statement or alleged untrue statement
or omission or alleged omission made in said Registration Statement, preliminary
Prospectus, amendment thereto, or any document incident to registration or
qualification of any Registrable Shares in reliance upon and in conformity with
written information furnished to the Company through an instrument duly executed
by such Person, or a Person duly acting on their behalf, specifically for use in
the preparation thereof; provided, further, however, that the foregoing
indemnity agreement is subject to the condition that, insofar as it relates to
any untrue statement or allegedly untrue statement in, or omission or alleged
omission made in any preliminary Prospectus but eliminated or remedied in the
final Prospectus (filed pursuant to Rule 424 of the Securities Act), such
indemnity agreement shall not inure to the benefit of any indemnified party from
whom the Person asserting any loss, claim, damage, liability or expense
purchased the Registrable Shares which are the subject thereof, if a copy of
such final Prospectus had been timely made available to such indemnified person
and such final Prospectus was not delivered to such Person with or prior to the
written confirmation of the sale of such Registrable Shares to such Person.

       (b)    In connection with any registration of an offering and sale of
Registrable Shares under the Securities Act pursuant to this Agreement, each
seller of Registrable Shares shall indemnify and hold harmless (in the same
manner and to the same extent as set forth in Section 8(a)) the Company, each
underwriter or broker involved in such offering, each other seller of
Registrable Shares under such Registration Statement, each Person who controls
any of the foregoing Persons within the meaning of the Securities Act and any
Representative of the foregoing Persons with respect to any untrue statement or
allegedly untrue statement in or omission or alleged omission from such
Registration Statement, any preliminary Prospectus or final Prospectus contained
therein, any amendment or supplement thereto or any document incident to
registration or qualification of any such offering and sale of Registrable
Shares, if such statement or omission was made in reliance upon and in
conformity with written information furnished to the Company or such underwriter
through an instrument duly executed by such seller or a Person duly acting on
its behalf specifically for use in connection with the preparation of such
Registration Statement, preliminary Prospectus, final Prospectus, amendment or
supplement; provided, however, that the maximum amount of liability in respect
of such

                                     - 15 -
<PAGE>   19

indemnification shall be limited, in the case of each seller of Registrable
Shares, to an amount equal to the net proceeds actually received by such seller
from the sale of Registrable Shares effected pursuant to such registration.

       (c)    Promptly after receipt by an indemnified party of notice of the
commencement of any action involving a claim referred to in the preceding
paragraphs of this Section 8, such indemnified party will, if a claim in respect
thereof is made against an indemnifying party, give written notice to the latter
of the commencement of such action (provided, however, that an indemnified
party's failure to give such notice in a timely manner shall only relieve the
indemnification obligations of an indemnifying party to the extent such
indemnifying party is prejudiced by such failure). In case any such action is
brought against an indemnified party, the indemnifying party will be entitled to
participate in and to assume the defense thereof, jointly with any other
indemnifying party similarly notified to the extent that it may wish, with
counsel reasonably satisfactory to such indemnified party, and after notice from
the indemnifying party to such indemnified party of its election so to assume
the defense thereof, the indemnifying party shall not be responsible for any
legal or other expenses subsequently incurred by the indemnified party in
connection with the defense thereof; provided, however, that if any indemnified
party shall have reasonably concluded that there may be one or more legal or
equitable defenses available to such indemnified party which are in addition to
or conflict with those available to the indemnifying party, or that such claim
or litigation involves or could have an effect upon matters beyond the scope of
the indemnity agreement provided in this Section 8, the indemnifying party shall
not have the right to assume the defense of such action on behalf of such
indemnified party and such indemnifying party shall reimburse such indemnified
party and any Person controlling such indemnified party for that portion of the
fees and expenses of any one lead counsel (plus appropriate special and local
counsel) retained by the indemnified party which are reasonably related to the
matters covered by the indemnity agreement provided in this Section 8.

       (d)    If the indemnification provided for in this Section 8 is held by a
court of competent jurisdiction to be unavailable to an indemnified party with
respect to any loss, claim, damage or liability referred to herein, then the
indemnifying party, in lieu of indemnifying such indemnified party hereunder,
shall contribute to the amounts paid or payable by such indemnified party as a
result of such loss, claim, damage or liability in such proportion as is
appropriate to reflect the relative fault of the indemnifying party on the one
hand and of the indemnified party on the other hand in connection with the
statements or omissions which resulted in such loss, claim, damage or liability
as well as any other relevant equitable considerations; provided, however, that
the maximum amount of liability in respect of such contribution shall be
limited, in the case of each seller of Registrable Shares, to an amount equal to
the net proceeds actually received by such seller from the sale of Registrable
Shares effected pursuant to such registration. The relative fault of the
indemnifying party and of the indemnified party shall be determined by reference
to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission to state a material fact relates to information
supplied by the indemnifying party or by the indemnified party and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission. No Person guilty of fraud shall be entitled
to indemnification or contribution hereunder.

                                     - 16 -
<PAGE>   20
       (e)    The indemnification and contribution provided for under this
Agreement will remain in full force and effect regardless of any investigation
made by or on behalf of the indemnified party and will survive the transfer of
Registrable Shares.

    SECTION 9.  UNDERWRITING AGREEMENT.

       (a)    Notwithstanding the provisions of Sections 5, 6 and 8, to the
extent that the Stockholders selling Registrable Shares in a proposed
registration shall enter into an underwriting or similar agreement, which
agreement contains provisions covering one or more issues addressed in such
Sections of this Agreement, the provisions contained in such Sections of this
Agreement addressing such issue or issues shall be of no force or effect with
respect to such registration, but this provision shall not apply to the Company
if the Company is not a party to the underwriting or similar agreement.

       (b)    If any registration pursuant to Section 2 or Section 4 is
requested to be an underwritten offering, the Company shall negotiate in good
faith to enter into a reasonable and customary underwriting agreement with the
underwriters thereof. The Company shall be entitled to receive indemnities from
lead institutions, underwriters, selling brokers, dealer managers and similar
securities industry professionals participating in the distribution, to the same
extent as provided above with respect to information so furnished in writing by
such Persons specifically for inclusion in any Prospectus or Registration
Statement and to the extent customary given their role in such distribution.

       (c)    No Stockholder may participate in any registration hereunder that
is underwritten unless such Stockholder agrees to (i) sell such Stockholder's
Registrable Shares proposed to be included therein on the basis provided in any
underwriting arrangements acceptable to the Company in the case of an offering
of Primary Shares, or, in the case of an offering pursuant to Section 2 hereof,
the Company and the Requesting Stockholders and (ii) as expeditiously as
possible, notify the Company of the occurrence of any event concerning such
Stockholder as a result of which the Prospectus relating to such registration
contains an untrue statement of a material fact or omits to state a material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading.

    SECTION 10. SUSPENSION.

       Anything contained in this Agreement to the contrary notwithstanding, the
Company may (not more than once with respect to each registration and not more
than once in any twelve-month period), by notice in writing to each holder of
Registrable Shares to which a Prospectus relates, require such holder to
suspend, for up to 90 days (the "Suspension Period"), the use of any Prospectus
included in a Registration Statement filed under Sections 2, 3 or 4 if a
Material Transaction exists that would require an amendment to such Registration
Statement or supplement to such Prospectus (including any such amendment or
supplement made through incorporation by reference to a report filed under
Section 13 of the Exchange Act). The period during which such Prospectus must
remain effective shall be extended by a period equal to the Suspension Period.
The Company may (but shall not be obligated to) withdraw the effectiveness of
any Registration Statement subject to this provision.

                                     - 17 -
<PAGE>   21

     SECTION 11. INFORMATION BY HOLDER.

       Each holder of Registrable Shares to be included in any registration
shall furnish to the Company and the managing underwriter such written
information regarding such holder and the distribution proposed by such holder
as the Company or the managing underwriter may reasonably request in writing and
as shall be reasonably required in connection with any registration,
qualification or compliance referred to in this Agreement.

     SECTION 12. EXCHANGE ACT COMPLIANCE.

       From and after the Registration Date or such earlier date as a
registration statement filed by the Company pursuant to the Exchange Act
relating to any class of the Company's securities shall have become effective,
the Company shall comply with all of the reporting requirements of the Exchange
Act (whether or not it shall be required to do so) and shall comply with all
other public information reporting requirements of the Commission which are
conditions to the availability of Rule 144 for the sale of the Common Stock. The
Company shall cooperate with each Stockholder in supplying such information as
may be necessary for such Stockholder to complete and file any information
reporting forms presently or hereafter required by the Commission as a condition
to the availability of Rule 144.

     SECTION 13. NO CONFLICT OF RIGHTS.

       The Company represents and warrants to the Stockholders that the
registration rights granted to the Stockholders hereby do not conflict with any
other registration rights granted by the Company. The Company shall not, after
the date hereof, grant any registration rights which conflict with or impair, or
have any priority over, the registration rights granted hereby. In any
underwritten public offering, the managing underwriter shall be a nationally
recognized investment banking firm selected by the Company, and, to the extent
applicable, reasonably acceptable to the Requesting Stockholders holding a
majority of Registrable Shares requested to be registered.

     SECTION 14. TERMINATION.

       This Agreement shall terminate and be of no further force or effect when
there shall not be any Restricted Securities; provided, however, that Sections 7
and 8 shall survive the termination of this Agreement.

     SECTION 15. SUCCESSORS AND ASSIGNS.

       This Agreement shall bind and inure to the benefit of the Company and the
Stockholders and, subject to Section 16, their respective successors and
assigns.

     SECTION 16. ASSIGNMENT.

       Each Stockholder may assign its rights hereunder to any purchaser from
such Stockholder of Restricted Securities; provided, however, that, in the case
of an assignment by any Stockholder other than a Note Warrantholder, any such
purchaser shall purchase such Restricted Securities from such Stockholder in
accordance with the Stockholders' Agreement;

                                     - 18 -
<PAGE>   22

provided, further, however, that such purchaser shall, as a condition to the
effectiveness of such assignment, be required to execute a counterpart to this
Agreement agreeing to be treated as a Stockholder hereunder (of the same class
(i.e., Investor Stockholder, Trust Holder, Warrantholder or Other Holder) as the
transferor Stockholder), as applicable, whereupon such purchaser shall have the
benefits of, and shall be subject to the restrictions contained in, this
Agreement. Each transferee of a Note Warrantholder is an intended third party
beneficiary of this Agreement and shall have the benefits of this Agreement upon
such transfer, without any further action on its part.

     SECTION 17. NOTICES.

       All notices, requests, consents and other communications hereunder to any
party shall be deemed to be sufficient if contained in a written instrument and
shall be deemed to have been duly given when delivered in Person, by telecopy,
by overnight courier, or by first class registered or certified mail, postage
prepaid, addressed to such party at the address set forth below or such other
address as may hereafter be designated in writing by the addressee to the
sender:

     (a)    if to the Company, to:

            Huntsman Packaging Corporation
            500 Huntsman Way
            Salt Lake City, Utah 84108
            Telephone:  801-532-5200
            Telecopier:  801-584-5783
            Attention:  Chief Executive Officer

       with copies to:

            Chase Domestic Investments, L.L.C.
            c/o Chase Capital Partners
            1221 Avenue of the Americas, 40th Floor
            New York, New York  10020
            Telephone:  212-899-3400
            Telecopier:  212-899-3401
            Attention:  Timothy J. Walsh;

            and

            O'Sullivan Graev & Karabell, LLP
            30 Rockefeller Plaza, 41st Floor
            New York, New York 10112
            Telephone:  212-408-2400
            Telecopier:  212-728-5950
            Attention:  Ilan S. Nissan, Esq.;

                                     - 19 -
<PAGE>   23

              (b)    if to any Trust Holder, to it at its address set forth on
Schedule I attached hereto;

              (c)    if to any Warrantholder, to it at its address set forth on
Schedule I attached hereto;

              (d)    if to any Investor Stockholder, to it at its address set
forth on Schedule I attached hereto;

              (e)    if to any Note Warrantholder, to the agent under the Note
Warrant Agreement:

                        The Bank of New York
                        101 Barclay Street, Floor 21W
                        New York, NY  10286
                        Attention:  Corporate Trust Department

              (f)    if to the Initial Purchasers, to:

                        Chase Securities Inc.
                        270 Park Avenue
                        New York, NY  10017
                        Attention:  Legal Department

or to such other address as the party to whom notice is to be given may have
furnished to each other party in writing in accordance herewith. Any such notice
or communication shall be deemed to have been received (a) when delivered, if
personally delivered or sent by telecopier, (b) on the first Business Day after
dispatch, if sent by nationally recognized, overnight courier guaranteeing next
Business Day delivery and (c) on the third Business Day following the date on
which the piece of mail containing such communication is posted, if sent by
mail.

     SECTION 18. MODIFICATIONS; AMENDMENTS; WAIVERS.

              The terms and provisions of this Agreement may not be modified or
amended, nor may any provision applicable to the Stockholders be waived, except
pursuant to a writing signed by (a) the Company (b) the Requisite Investor
Stockholders, and (c) the Requisite Trust Holders; provided, however, that (i)
any such amendment, modification, or waiver that would adversely affect the
rights hereunder of any Stockholder, in its capacity as a Stockholder, without
similarly affecting the rights hereunder of all Stockholders of such class
(i.e., Investor Stockholders, Trust Holder, Warrantholder, Note Warrantholder or
Other Holder), in their capacities as Stockholders of such class, shall not be
effective as to such Stockholder without its prior written consent, (ii) any
such amendment, modification, or waiver that would adversely affect the rights
hereunder of the Warrantholders as a class, without similarly affecting the
rights hereunder of the other classes of Stockholders as a class, shall not be
effective as to the Warrantholders without the prior written consent of the
Requisite Warrantholders, (iii) any such amendment, modification, or waiver that
would adversely affect the rights hereunder of the Note Warrantholders as a
class

                                     - 20 -
<PAGE>   24

shall not be effective as to the Note Warrantholders without the prior written
consent of the Requisite Note Warrantholders, and (iv) assuming compliance with
Section 16 hereof, Schedule I to this Agreement shall be deemed to be
automatically amended from time to time to reflect the addition to this
Agreement of any Person identified in clause (b) of the definitions of Investor
Stockholder, Trust Holders or Warrantholders, as the case may be, and the
Company will, from time to time, distribute to the Stockholders a revised
Schedule I to reflect any such changes.

     SECTION 19. SEVERABILITY.

              It is the desire and intent of the parties that the provisions of
this Agreement be enforced to the fullest extent permissible under the law and
public policies applied in each jurisdiction in which enforcement is sought.
Accordingly, if any provision of this Agreement would be held in any
jurisdiction to be invalid, prohibited or unenforceable for any reason, such
provision, as to such jurisdiction, shall be ineffective, without invalidating
the remaining provisions of this Agreement or affecting the validity or
enforceability of such provision in any other jurisdiction. Notwithstanding the
foregoing, if such provision could be more narrowly drawn so as not to be
invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such
jurisdiction, be so narrowly drawn, without invalidating the remaining
provisions of this Agreement or affecting the validity or enforceability of such
provision in any other jurisdiction.

     SECTION 20. COUNTERPARTS AND FACSIMILE EXECUTION.

              This Agreement may be executed in two or more counterparts, all of
which shall be considered one and the same agreement and shall become effective
when one or more counterparts have been signed by each of the parties and
delivered (by facsimile or otherwise) to the other party, it being understood
that all parties need not sign the same counterpart. Any counterpart or other
signature to this Agreement that is delivered by facsimile shall be deemed for
all purposes as constituting good and valid execution and delivery by such party
of this Agreement.

     SECTION 21. GOVERNING LAW.

              This Agreement shall be governed by and construed in accordance
with the domestic laws of the State of New York without giving effect to any
choice or conflict of law provision or rule that would cause the application of
the laws of any jurisdiction other than the State of New York.

     SECTION 22. WAIVER OF JURY TRIAL.

              EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO
TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR
RELATING TO THIS AGREEMENT.

     SECTION 23. CONSENT TO JURISDICTION.

              Each of the parties hereto irrevocably submits to the exclusive
jurisdiction of (a) the Supreme Court of the State of New York, New York County
and (b) the United States District Court for the Southern District of New York,
for the purposes of any suit, action or other

                                     - 21 -
<PAGE>   25

proceeding arising out of this Agreement or the transactions contemplated
hereby. Each of the parties hereto further agrees that service of any process,
summons, notice or document by U.S. registered mail to such party's respective
address set forth in Section 17 shall be effective service of process for any
action, suit or proceeding in the State of New York with respect to any matters
to which it has submitted to jurisdiction in this Section 23. Each of the
parties hereto irrevocably and unconditionally waives any objection to the
laying of venue of any action, suit or proceeding arising out of this Agreement
or the transactions contemplated hereby and thereby in (a) the Supreme Court of
the State of New York, New York County or (b) the United States District Court
for the Southern District of New York, and hereby and thereby further
irrevocably and unconditionally waives and agrees not to plead or claim in any
such court that any such action, suit or proceeding brought in any such court
has been brought in an inconvenient forum.

     SECTION 24. ENTIRE AGREEMENT.

              This Agreement and the other documents, certificates, instruments,
writings and agreements referred to herein or delivered pursuant hereto contain
the entire understanding of the parties with respect to the subject matter
hereof and supersede in their entirety any and all prior agreements and
understandings between the parties hereto with respect to subject matter hereof,
all of which are hereby terminated in their entirety and of no further force or
effect.

     SECTION 25. HEADINGS.

              The headings of the various sections of this Agreement have been
inserted for convenience of reference only and shall not be deemed to be a part
of this Agreement.

                                     *******

                                     - 22 -
<PAGE>   26

              IN WITNESS WHEREOF, the undersigned have duly executed this
Registration Rights Agreement as of the date first written above.

                                   HUNTSMAN PACKAGING
                                   CORPORATION

                                   By: /s/ RONALD G. MOFFITT
                                      -------------------------------
                                      Name: Ronald G. Moffitt
                                      Title: Executive Vice President,
                                             Secretary and General Counsel

                                   CHASE DOMESTIC
                                   INVESTMENTS, L.L.C.

                                   By: Chase Capital Investments, L.P.,
                                       its sole Member

                                   By: Chase Capital Partners,
                                       as Investment Manager

                                   By: /s/ TIMOTHY J. WALSH
                                      -------------------------------
                                      Name: Timothy J. Walsh
                                      Title: General Partner

                                   FIRST UNION CAPITAL PARTNERS, LLC

                                   By: /s/ ROBERT G. CALTON III
                                      -------------------------------
                                      Name: Robert G. Calton III
                                      Title: Senior Vice President

                                   NEW YORK LIFE CAPITAL PARTNERS, L.P.

                                   By:  NYLCAP Manager LLC,
                                        its Investment Manager

                                   By: /s/ STEVE BENEVENTO
                                      -------------------------------
                                      Name: Steve Benevento
                                      Title: Its Authorized Representative

<PAGE>   27

                                   THE NORTHWESTERN MUTUAL LIFE
                                   INSURANCE COMPANY

                                   By: /s/ RICHARD A. STRAIT
                                      -------------------------------
                                      Name: Richard A. Strait
                                      Title: Its Authorized Representative

                                   THE CHRISTENA KAREN H. DURHAM
                                   TRUST

                                   By: /s/ MARK DRESCHLER
                                      -------------------------------
                                      Name: Mark Dreschler
                                      Title: Trustee

                                   DURHAM CAPITAL, LTD.

                                   By: /s/ RICHARD P. DURHAM
                                      -------------------------------
                                      Name: Richard P. Durham
                                      Title:

                                   SORENSEN CAPITAL, LLC

                                   By: /s/ SCOTT K. SORENSEN
                                      -------------------------------
                                      Name: Scott K. Sorensen
                                      Title:

                                   MOFFITT CAPITAL, LLC

                                   By: /s/ RONALD G. MOFFITT
                                      -------------------------------
                                      Name: Ronald G. Moffitt
                                      Title:

<PAGE>   28

                                   RONALD G. MOFFITT IRA (DLJ
                                   SECURITIES CORP CUSTODIAN)

                                   By: /s/ RONALD G. MOFFITT
                                      -------------------------
                                      Name: Ronald G. Moffitt
                                      Title:

                                   /s/ RICHARD P. DURHAM
                                   ----------------------------
                                   Richard P. Durham

                                   /s/ JACK E. KNOTT
                                   ----------------------------
                                   Jack E. Knott

                                   /s/ SCOTT K. SORENSEN
                                   ----------------------------
                                   Scott K. Sorensen

                                   /s/ RONALD G. MOFFITT
                                   ----------------------------
                                   Ronald G. Moffitt

                                   CHASE SECURITIES INC.

                                   By: /s/ DAVID LYNCH
                                      -------------------------------
                                      Name: David Lynch
                                      Title: Vice President

                                   DEUTSCHE BANK SECURITIES INC.

                                   By: /s/ CHARLES DENNISON
                                      -------------------------------
                                      Name: Charles Dennison
                                      Title: Managing Director

<PAGE>   29

                             Solely for the purpose of receiving notices under
                             Section 17:
                             THE BANK OF NEW YORK

                             By:  /s/ MICHELE L. RUSSO
                                 ---------------------------------------
                                 Name: Michele L. Russo
                                 Title: Assistant Vice President

<PAGE>   30

                                   SCHEDULE I

                              INVESTOR STOCKHOLDERS

Chase Domestic Investments, L.L.C.
c/o Chase Capital Partners
1221 Avenue of the Americas, 40th Floor
New York, New York  10020
Telephone:  212-899-3400
Telecopier:  212-899-3401
Attention:  Timothy J. Walsh

         with a copy to:

         O'Sullivan Graev & Karabell, LLP
         30 Rockefeller Plaza, 41st Floor
         New York, New York 10112
         Telephone:  212-408-2400
         Telecopier:  212-728-5950
         Attention:  Ilan S. Nissan, Esq.

First Union Capital Partners, LLC
301 South College Street
One First Union Center, 5th Floor
Charlotte, NC  28288-0732
Telephone:  704-715-1481
Telecopier:  704-374-6711
Attention:  Robert G. Calton III

          With a copy to:

          Kennedy Covington Lobdell & Hickman, L.L.P.
          Bank of America Corporate Center, Suite 4200
          100 North Tryon Street
          Charlotte, North Carolina 28202-4006
          Attention:  J. Norfleet Pruden, III
          Telephone:  704-331-7442
          Telecopier:  704-331-7598

New York Life Capital Partners, L.P.
51 Madison Avenue
Suite 3009
New York, New York  10010
Attention:  Steve Benevento

<PAGE>   31

Telephone:.  212-576-7000
Telecopier:  212-576-5591

         With a copy to:

         Office of the General Counsel
         New York Life Insurance Company
         51 Madison Avenue
         Suite 1104
         New York, New York  10010
         Attention:  Steve Benevento
         Telephone No.  212-576-7000
         Telecopier:  212-576-8340

         and a copy to:

         Akin, Gump, Strauss, Hauer & Feld, L.L.P.
         590 Madison Avenue, 19th Floor
         New York, New York 10022
         Attention: Edward D. Sopher, Esq.
         Telephone: 212-872-1026
         Telecopier: 212-407-3226

The Northwestern Mutual Life Insurance Company
720 East Wisconsin Avenue
Milwaukee, WI  53202
Attention:  Dave Barras
Telephone:  414-299-1618
Telecopier:  414-299-7124

         with a copy to:

         Akin, Gump, Strauss, Hauer & Feld, L.L.P.
         590 Madison Avenue, 19th Floor
         New York, New York 10022
         Attention: Edward D. Sopher, Esq.
         Telephone: 212-872-1026
         Telecopier: 212-407-3226

<PAGE>   32

                                  TRUST HOLDERS

The Christena Karen H. Durham Trust
c/o Richard P. Durham
500 Huntsman Way
Salt Lake City, Utah  84108
Telephone:  801-584-5700
Telecopier: 801-584-5783
Attention:   Richard P. Durham

            with a copy to:

            Winston & Strawn
            35 West Wacker Drive
            Chicago, Illinois 60601
            Telephone:  312-558-5600
            Telecopier:  312-558-5700
            Attention: John L. MacCarthy

                                 WARRANTHOLDERS

Chase Domestic Investments, L.L.C.
c/o Chase Capital Partners
1221 Avenue of the Americas, 40th Floor
New York, New York  10020
Telephone:  212-899-3400
Telecopier:  212-899-3401
Attention:  Richard D. Waters

<PAGE>   33

         with a copy to:

         O'Sullivan Graev & Karabell, LLP
         30 Rockefeller Plaza, 41st Floor
         New York, New York 10112
         Telephone:  212-408-2400
         Telecopier:  212-728-5950
         Attention:  Frederick M. Bachman, Esq.

First Union Capital Partners, LLC
301 South College Street
One First Union Center, 5th Floor
Charlotte, NC  28288-0732
Telephone:  704-715-1481
Telecopier:  704-374-6711
Attention:  Robert G. Calton III

          With a copy to:

          Kennedy Covington Lobdell & Hickman, L.L.P.
          Bank of America Corporate Center, Suite 4200
          100 North Tryon Street
          Charlotte, North Carolina 28202-4006
          Attention:  J. Norfleet Pruden, III
          Telephone:  704-331-7442
          Telecopier:  704-331-7598

New York Life Capital Partners, L.P.
51 Madison Avenue
Suite 3009
New York, New York  10010
Attention:  Steve Benevento
Telephone:  212-576-7000
Telecopier:  212-576-5591

         With a copy to:

         Office of the General Counsel
         New York Life Insurance Company
         51 Madison Avenue
         Suite 1104
         New York, New York  10010
         Attention:  Steve Benevento
         Telephone:  212-576-7000
         Telecopier:  212-576-8340

<PAGE>   34

         and a copy to:

         Akin, Gump, Strauss, Hauer & Feld, L.L.P.
         590 Madison Avenue, 19th Floor
         New York, New York 10022
         Attention: Edward D. Sopher, Esq.
         Telephone: 212-872-1026
         Telecopier: 212-407-3226

The Northwestern Mutual Life Insurance Company
720 East Wisconsin Avenue
Milwaukee, WI  53202
Attention:  Dave Barras
Telephone:  414-299-1618
Telecopier:  414-299-7124

         with a copy to:

         Akin, Gump, Strauss, Hauer & Feld, L.L.P.
         590 Madison Avenue, 19th Floor
         New York, New York 10022
         Attention: Edward D. Sopher, Esq.
         Telephone: 212-872-1026
         Telecopier: 212-407-3226

                                  OTHER HOLDERS

Durham Capital, Ltd. and Richard P. Durham
500 Huntsman Way
Salt Lake City, Utah  84108
Telephone:  801-584-5700
Telecopier: 801-584-5783
Attention:  Richard P. Durham

            with a copy to:

            Winston & Strawn
            35 West Wacker Drive
            Chicago, Illinois 60601
            Telephone:  312-558-5600
            Telecopier:  312-558-5700
            Attention: John L. MacCarthy

<PAGE>   35

Jack E. Knott
72 Brinker Road
Barrington Hills, Illinois 60010
Telephone:  847-382-0873

            with a copy to:

            Winston & Strawn
            35 West Wacker Drive
            Chicago, Illinois 60601
            Telephone:  312-558-5600
            Telecopier:  312-558-5700
            Attention: John L. MacCarthy

Sorensen Capital, LLC and Scott K. Sorensen
3276 E. Walker Oaks Court
Salt Lake City, Utah  84121
Telephone:  801-943-4707
Attention:  Scott K. Sorensen

            with a copy to:

            Winston & Strawn
            35 West Wacker Drive
            Chicago, Illinois 60601
            Telephone:  312-558-5600
            Telecopier:  312-558-5700
            Attention: John L. MacCarthy

Moffitt Capital, LLC and Ronald G. Moffitt
6758 S. Vista Grande Drive
Salt Lake City, Utah  84121
Telephone:  801-942-2443
Attention: Ronald G. Moffitt

            with a copy to:

            Winston & Strawn
            35 West Wacker Drive
            Chicago, Illinois 60601
            Telephone:  312-558-5600
            Telecopier:  312-558-5700
            Attention: John L. MacCarthy

<PAGE>   36

Ronald G. Moffitt IRA (DLJ Securities Corp. Custodian)
6758 S. Vista Grande Drive
Salt Lake City, Utah  84121
Telephone:  801-942-2443
Attention: Ronald G. Moffitt

            with a copy to:

            Winston & Strawn
            35 West Wacker Drive
            Chicago, Illinois 60601
            Telephone:  312-558-5600
            Telecopier:  312-558-5700
            Attention: John L. MacCarthy

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