Document:

equ10k-022808ex412.htm

    EXHIBIT
4.12

    
 

    RECEIVABLES
SALE AGREEMENT

    

    Dated as
of December 20, 2007

    

    among

    

    LYONDELL
CHEMICAL COMPANY,

    EQUISTAR
CHEMICALS, LP

    and

    HOUSTON
REFINING LP,

    

    as
Sellers

    
      

       

      

    

    LYONDELLBASELL
RECEIVABLES I, LLC,

    

    as the
Buyer

    
      

       

      

    

    LYONDELL
CHEMICAL COMPANY,

    

    as the
Buyer’s Servicer

    
      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    

    TABLE
OF CONTENTS

    

    
      	 	
              Page

            
	 	 
	 	 
	
              ARTICLE
      I Definitions

            	
              1

            
	 	 
	 	
              Section
      1.01

            	
              Certain
      Defined Terms.

            	
              1

            
	 	 	 	 
	 	
              Section
      1.02

            	
              Other
      Terms.

            	
              5

            
	 	 	 	 
	 	
              Section
      1.03

            	
              Computation
      of Time Periods.

            	
              6

            
	 	 	 	 
	
              ARTICLE
      II SALE AND PURCHASE OF RECEIVABLE ASSETS

            	
              6

            
	 	 
	 	
              Section
      2.01

            	
              Sale
      and Purchase of Seller Receivable Assets

            	
              6

            
	 	 	 	 
	 	
              Section
      2.02

            	
              Payment
      for Purchases.

            	
              7

            
	 	 	 	 
	 	
              Section
      2.03

            	
              General
      Settlement Procedures

            	
              9

            
	 	 	 	 
	 	
              Section
      2.04

            	
              Payments
      and Computations, Etc.

            	
              10

            
	 	 	 	 
	 	
              Section
      2.05

            	
              Buyer's
      Servicer Fee

            	
              10

            
	 	 	 	 
	
              ARTICLE
      III REPRESENTATIONS AND WARRANTIES

            	
              11

            
	 	 	 	 
	 	
              Section
      3.01

            	
              Representations
      and Warranties of Each Seller

            	
              11

            
	 	 	 	 
	

              ARTICLE
      IV GENERAL COVENANTS OF EACH SELLER

            	
              16

            
	 	 	 	 
	 	
              Section
      4.01

            	
              Affirmative
      Covenants of Each Seller

            	
              16

            
	 	 	 	 
	 	
              Section
      4.02

            	
              Reporting
      Requirements of Each Seller

            	
              19

            
	 	 	 	 
	 	
              Section
      4.03

            	
              Negative
      Covenants of Each Seller

            	
              23

            
	 	 	 	 
	

              ARTICLE V ADMINISTRATION
      AND COLLECTION

            	
              24

            
	 	 	 	 
	 	
              Section
      5.01

            	
              Designation
      of Buyer's Servicer

            	
              24

            
	 	 	 	 
	 	
              Section
      5.02

            	
              Rights
      of the Buyer and the Agent

            	
              24

            
	 	 	 	 
	 	
              Section
      5.03

            	
              Responsibilities
      of the Sellers

            	
              26

            
	 	 	 	 
	 	
              Section
      5.04

            	
              Further
      Actions Evidencing Purchases

            	
              26

            
	 	 	 	 
	

              ARTICLE
      VI INDEMNIFICATION

            	
              27

            
	 	 	 	 
	 	
              Section
      6.01

            	
              Indemnities
      by the Sellers

            	
              27

            
	 	 	 	 
	

              ARTICLE
      VII ADDITION AND TERMINATION OF SELLERS

            	
              30

            
	 	 	 	 

    

    
      	 	
              Section
      7.01

            	
              Addition of
      Sellers

            	
              30

            
	 	 	 	 
	 	
              Section
      7.02

            	
              Conditions
      Precedentto the Addition of a Seller

            	
              30

            
	 	 	 	 
	 	
              Section
      7.03

            	
              Termination
      of a Seller

            	
              32

            

    

    
      	 	 	 	 
	
              ARTICLE
      VIII MISCELLANEOUS

            	
              33

            
	 	 
	 	
              Section
      8.01

            	
              Amendments,
      Etc.

            	
              33

            
	 	 	 	 
	 	
              Section
      8.02

            	
              Notices,
      Etc.

            	
              33

            
	 	 	 	 
	 	
              Section
      8.03

            	
              Binding
      Effect; Assignability

            	
              34

            
	 	 	 	 
	 	
              Section
      8.04

            	
              Costs,
      Expenses and Taxes

            	
              34

            
	 	 	 

    

    
      	 	
              Section
      8.05

            	
              Non-Business
      Days

            	
              35

            

      
        	 	 	 

      

    

    
      	 	
              Section
      8.06

            	
              Confidentiality

            	
              35

            

      
        	 	 	 

      

    

     

    

    
      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

    

    

    TABLE
OF CONTENTS

    (continued)

    

    
      	 	 	 	
              Page

            
	 	 	 	 
	 	 	 	 
	 	
              Section
      8.07

            	
              Governing
      Law

            	
              36

            
	 	 	 	 
	 	
              Section
      8.08

            	
              Consent
      to Jurisdiction

            	
              36

            
	 	 	 	 
	 	
              Section
      8.09

            	
              Execution
      in Counterparts

            	
              37

            
	 	 	 	 
	 	
              Section
      8.10

            	
              Entire
      Agreement

            	
              37

            
	 	 	 	 
	 	
              Section
      8.11

            	
              Severability
      of Provisions

            	
              37

            
	 	 	 	 
	 	
              Section
      8.12

            	
              Waiver
      of Jury Trial

            	
              37

            
	 	 	 	 
	 	
              Section
      8.13

            	
              No
      Proceedings

            	
              38

            
	 	 	 	 
	
              EXHIBITS

            	
               

            
	 	 
	EXHIBIT
      A 	
              Form
      of subordinated Note

            	
               

            
	 	 	 	 
	EXHIBIT
      B 	
              Form
      of Additional Seller Supplement

            	
               

            
	 	 	 	 
	
              SCHEDULES

            	
               

            
	 	 
	SCHEDULE
      I	
              Lock-Box
      Banks and Lock-Box Accounts

            	
               

            
	 	 	 	 
	SCHEDULE
      II	
              Credit
      and Collection Policy

            	
               

            
	 	 	 	 
	SCHEDULE
      III	
              Jurisdiction
      of Incorporation, Organizational Identification Number, and Location of
      Principal Place of Business, Chief Executive Office and Office Where
      Records are Kept

            	
               

            
	 	 	 	 
	SCHEDULE
      IV	
              Financing
      Statements

            	
               

            
	 	 	 	 

    

    

    
      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

    

    

    RECEIVABLES
SALE AGREEMENT

     

    RECEIVABLES
SALE AGREEMENT dated as of December 20, 2007 (this “Agreement”) among
LYONDELL CHEMICAL COMPANY, a Delaware corporation (“Lyondell”), EQUISTAR
CHEMICALS, LP, a Delaware limited partnership (“Equistar”), HOUSTON
REFINING LP (“HRLP”) such other
wholly owned subsidiaries or affiliates of Lyondell added  from time
to time pursuant to Section 7.01,
as sellers (together with Lyondell, Equistar and HRLP the “Sellers”, and each a
“Seller”),
LYONDELLBASELL RECEIVABLES I, LLC, a Delaware limited liability company, as
Buyer (the “Buyer”), and
Lyondell, as the Buyer’s Servicer.

     

    PRELIMINARY
STATEMENTS:

     

    (1)           Each
Seller in the ordinary course of business generates, and will generate from time
to time, Receivables (as defined in the Receivables Purchase Agreement, as
defined below) from time to time owing to it.

     

    (2)           Each
Seller wishes to sell to the Buyer from time to time hereunder all present and
future Receivables (each such Receivable being a “Seller Receivable”),
together with the Related Security and Collections (as hereinafter defined) with
respect thereto.

     

    (3)           The
Buyer wishes concurrently to sell interests, to the extent of the Receivable
Interests (as defined in the Receivables Purchase Agreement referred to below)
sold from time to time by it to the Purchasers (as defined in the Receivables
Purchase Agreement referred to below), in each of the present and future Seller
Receivables, together with the Related Security and Collections with respect
thereto, pursuant to the Receivables Purchase Agreement dated as of December 20,
2007 (the “Receivables
Purchase Agreement”) among the Buyer, Lyondell, as the Servicer
thereunder, the Purchasers party thereto, and Citibank, N.A., as asset agent and
administrative agent (the “Agent”).

     

    NOW,
THEREFORE, in consideration of the premises, the parties hereto agree as
follows:

     

    ARTICLE
I

     

    DEFINITIONS

     

    SECTION
1.01.   Certain Defined
Terms.

     

    Terms
defined in the Receivables Purchase Agreement and not otherwise defined herein
are used in this Agreement as defined in the Receivables Purchase
Agreement.  In addition, as used in this Agreement and unless
otherwise stated herein, the following terms shall have the following
meanings:

     

    “Agent” has the
meaning specified in Preliminary Statement (3).

     

    “Buyer’s Servicer” has
the meaning specified in Section 5.01.

     

    “Buyer’s Servicer Fee”
has the meaning specified in Section 2.05.

     

    “Closing Date” means
December 20, 2007

     

    “Collections” means,
with respect to any Seller Receivable, all cash collections and other cash
proceeds of such Seller Receivable, including (i) all cash proceeds of the
Related Security with respect to such Seller Receivable and (ii) any amounts in
respect of such Seller Receivable deemed to have been received, and actually
paid, pursuant to Section 2.03(a).

     

    “Company” means Basell
AF S.C.A. (to be renamed LyondellBasell Industries AF S.C.A.), a company
existing under the laws of the Grand Duchy of Luxembourg.

     

    “Contract” means an
agreement between any Seller and an Obligor, in any written form acceptable to
such Seller, or, in the case of any open account agreement, as evidenced by an
invoice (x) setting forth the amount payable, the payment due date and other
relevant terms of payment and a description, in reasonable detail, of the goods
or services covered thereby or (y) otherwise approved by the Agent in its
Discretion from time to time (which approval shall not be unreasonably
withheld), in each case pursuant to or under which such Obligor shall be
obligated to pay for goods or services from time to time.

     

    “Credit and Collection
Policy” means those credit and collection policies and practices in
effect on the date hereof relating to Contracts and Seller Receivables and
attached as Schedule II hereto, as modified from time to time in compliance with
Section 4.02(c).

     

    “Indemnified Amounts”
has the meaning specified in Section 6.01.

     

    “Indemnified Party”
means any or all of the Buyer, the Agent, each Purchaser and each of their
respective Affiliates and successors and assigns, and each of the directors,
officers, employees, agents, representatives, attorneys, consultants and
advisors of or to any of the foregoing.

     

    “Legal Reservation”
means:

     

    (a)           the
principle that equitable remedies may be granted or refused at the discretion of
a court;

     

    (b)           the
limitation of enforcement by laws relating to insolvency, reorganization,
penalties and other laws generally affecting the rights of
creditors;

     

    (c)           the
time barring of claims under the statutes of limitation;

     

    (d)           the
possibility that an undertaking to assume liability for or indemnify a person
against non-payment of UK stamp duty may be void;

     

    (e)           defenses
of set-off or counterclaim; and

     

    (f)           principles
which are set out in the qualifications as to matters of law in any legal
opinion delivered on the Closing Date in connection with this
Agreement.

     

    “Mandatory Seller Termination
Date” has the meaning specified in Section 7.03(a).

     

    “Material Adverse
Effect” means  (a) a material adverse effect on the business,
operations, assets, liabilities (actual or contingent) or financial condition of
the Company and its Restricted Subsidiaries, taken as a whole, (b) material
impairment of the ability of the Transaction Parties to perform any of their
obligations under the Transaction Documents, (c) material impairment of the
collectibility of the Seller Receivables generally or of any material portion of
the Seller Receivables or the ability of the Buyer’s Servicer (if the Buyer’s
Servicer is Lyondell or an Affiliate or Subsidiary of Lyondell) to collect
Seller Receivables or (d) material impairment of the rights of or benefits
available to the Agent or the Purchasers under the Transaction Documents; provided, however, that a
downgrade in any debt rating of any Transaction Party shall not, by itself,
constitute a Material Adverse Effect.

     

    “Other Taxes” has the
meaning specified in Section 8.04(b).

     

    “Permissive Seller
Termination” has the meaning specified in Section 7.03(b).

     

    “Permissive Seller
Termination Date” has the meaning specified in Section
7.03(b).

     

    “Purchase Price” has
the meaning specified in Section 2.01(d).

     

    “Receivable Assets”
means, at any time, all Seller Receivables sold or contributed to the Buyer
hereunder, the Related Security relating to such Seller Receivables, all
Collections with respect to such Seller Receivables, and all proceeds of the
foregoing.

     

    “Receivables Activity
Report” means a report prepared by the Seller, in form and substance
reasonably satisfactory to the Buyer and the Agent, pursuant to Section
2.03(b).

     

    “Receivables Purchase
Agreement” has the meaning specified in Preliminary Statement
(3).

     

    “Related Security”
means with respect to any Seller Receivable:

     

    (i)           all
of the applicable Seller’s right, title and interest in, under and to all
security agreements and other Contracts that relate to such Seller
Receivable;

     

    (ii)           all
of the applicable Seller’s interest in the goods (including returned goods), if
any, relating to the sale which gave rise to such Seller
Receivable;

     

    (iii)           all
other security interests or liens and property subject thereto from time to time
purporting to secure payment of such Seller Receivable, whether pursuant to the
Contract relating to such Seller Receivable or otherwise, together with all
financing statements signed or authenticated by an Obligor describing any
collateral securing such Seller Receivable;

     

    (iv)           all
rights, if any, in respect of (A) lock-boxes to which Collections are sent or
deposited, and (B) all Restricted Accounts, and, in each case, all funds and
investments therein;

     

    (v)           all
letter of credit rights, guaranties, insurance and other agreements or
arrangements of whatever character from time to time supporting or securing
payment of such Seller Receivables whether pursuant to the Contract relating to
such Seller Receivable or otherwise;

     

    (vi)           all
Records relating to such Seller Receivable (subject, in the case of Records
consisting of computer programs, data processing software and other intellectual
property under license from third parties, to restrictions imposed by such
license on the sublicensing or transfer thereof); and

     

    (vii)           all
proceeds of any and all of the foregoing.

     

    “Required Discount”
has the meaning specified in Section 2.01(d).

     

    “Restricted
Subsidiary” has the meaning specified in the Senior Facility Credit
Agreement.

     

    “Seller Receivable”
has the meaning specified in Preliminary Statement (2); provided that the
Buyer and the Sellers may, by execution and delivery of a written instrument
with the express consent of the Agent subscribed thereon, elect to exclude from
Seller Receivables, Receivables as to which the sole Obligor is a Person named
in such instrument (an “Excluded
Obligor”).  The Agent shall not consent to any such instrument
unless (i) after giving effect thereto, there are no more than fifteen Excluded
Obligors and (ii) after giving effect thereto, the sum of (A) the daily average
outstanding balance of all Receivables due from such newly designated Excluded
Obligor over the preceding twelve calendar months plus (B) the daily average
outstanding balance of all Receivables from each other previously designated
Excluded Obligor, if any, calculated in each case over the twelve calendar
months preceding the effectiveness of the exclusion of the Receivables of such
previously designated Excluded Obligor, does not exceed
$100,000,000.  Upon the execution and delivery of such an instrument,
any and all Receivables from such Excluded Obligor thereafter arising shall not
constitute Seller Receivables unless and until such instrument is amended or
terminated with the express written consent of the Agent.  Buyer and
Sellers acknowledge collections in respect of any Receivables so excluded may
not be deposited in any Lock Box Account.  Should any collections on
Receivables so excluded nevertheless be deposited in a Lock Box Account, as soon
as practicable following such deposit, such collections shall be removed from
such Lock Box Account.

     

    “Subordinated Note”
means a subordinated promissory note, in substantially the form of Exhibit A
hereto, executed by the Buyer to the order of any Seller.

     

    “Transaction
Documents” means this Agreement, the Receivables Purchase Agreement, each
Subordinated Note, the Undertaking, the Lock-Box Agreements, the Consent and
Agreement, and each additional security or control documentation delivered or
required to be delivered to evidence the interests of the Buyer (and its
assigns) in and to the Restricted Accounts, Seller Receivables, Related
Security, Collections and proceeds thereof.

     

    “Transaction Party”
means each Seller, the Buyer and the Buyer’s Servicer.

     

    “Transfer Agreement”
has the meaning specified in Section 7.02 (b).

     

    “Yield Payment Date”
means each Payment Date on which Yield is, or required to be, paid under the
Receivables Purchase Agreement.

     

    SECTION
1.02.   Other
Terms.

     

    (a) All
accounting terms not specifically or completely defined herein shall be
construed in conformity with, and all financial data (including financial ratios
and other financial calculations) required to be submitted pursuant to this
Agreement shall be prepared in accordance with, GAAP, except as otherwise
specifically prescribed herein.  Unless otherwise stated herein and
except with respect to Section 4.03, references to a Person with respect to
accounting terms or items that appear in such Person’s financial statements
shall be deemed a reference to that Person and its subsidiaries on a
consolidated basis, except for references to the Company and its Restricted
Subsidiaries, which will be deemed references to the Company and its Restricted
Subsidiaries on a consolidated basis.

     

    (b) Except
where the context requires otherwise, the definitions in Section 1.01 shall
apply equally to the singular and plural forms of the terms
defined.  Whenever the context may require, any pronoun shall include
the corresponding masculine, feminine and neuter forms.  The words
“include”,
“includes” and
“including”
shall be deemed to be followed by the phrase “without
limitation”.  Unless otherwise stated, references to Sections,
Articles, Schedules and Exhibits made herein are to Sections, Articles,
Schedules or Exhibits, as the case may be, of this Agreement.  “Writing”, “written” and
comparable terms refer to printing, typing and other means of reproducing words
in a visible form.  References to any agreement or contract are to
such agreement or contract as amended, modified or supplemented from time to
time in accordance with the terms hereof and thereof.  References to
any Person include the successors and permitted assigns of such
Person.

     

    (c)           All
terms used in Article 9 in the UCC in the State of New York and not specifically
defined herein are used herein as defined in such Article 9.

     

    SECTION
1.03.   Computation of Time
Periods.

     

    Unless
otherwise stated in this Agreement, in the computation of a period of time from
a specified date to a later specified date, the word “from” means “from and including,”
each of the words “to” and “until” means “to but excluding” and
the word “through” means “through and
including.”

     

    ARTICLE
II     

     

     

    SALE
AND PURCHASE OF RECEIVABLE ASSETS

     

    SECTION
2.01.   Sale and Purchase of Seller
Receivable Assets.

     

    (a) On the
terms and conditions hereinafter set forth (including, with respect to Sellers
other than Lyondell, the provisions of Section 2.02(f) below, the Buyer agrees
to purchase from each Seller, and each Seller agrees to sell to the Buyer, all
Seller Receivables of such Seller existing as of the opening of business on the
Closing Date or, in the case of any Seller other than Lyondell, the initial
purchase date for such Seller, as applicable, together with all Related Security
relating to such Seller Receivables and all Collections with respect to, and
other proceeds of, such Seller Receivables.  Subject to the
satisfaction of the conditions to purchase set forth and referred to in this
Article II, on each Business Day after the Closing Date or such other initial
purchase date, as applicable, until the occurrence of the Termination Date, the
Buyer agrees to purchase from each Seller, and each Seller agrees to sell to the
Buyer, all Seller Receivables existing as of the close of business on the
immediately preceding Business Day which have not been previously purchased
hereunder, together with all Related Security relating to such Seller
Receivables and all Collections with respect to such Seller
Receivables.

     

    (b) It is the
intention of the parties hereto that each purchase by the Buyer, and each sale
by a Seller, of Receivable Assets to be made hereunder shall be absolute and
irrevocable and will provide the Buyer with the full risks and benefits of
ownership of such Receivable Assets so purchased and shall constitute a “sale of
accounts,” as such term is used in Article 9 of the UCC, and not a loan secured
by such Receivable Assets.  If, notwithstanding such intention, the
conveyance of the Receivable Assets from a Seller to the Buyer shall ever be
recharacterized as a secured loan and not as a sale, it is the intention of the
parties hereto that this Agreement shall constitute a security agreement under
applicable law, and that such Seller shall be deemed to have granted to the
Buyer, and hereby grants to the buyer, a duly perfected first priority security
interest in all of such Seller’s right, title and interest in, to and under the
Receivable Assets, free and clear of any Liens, to secure loans deemed to have
been made by the Buyer to such Seller.  Each sale of Receivable Assets
by a Seller to the Buyer is made without recourse; provided, however, that (i)
each Seller shall be liable to the Buyer for all representations, warranties and
covenants made by such Seller hereunder and (ii) such sale does not constitute
and is not intended to result in an assumption by the Buyer or any assignee
thereof of any obligation of such Seller or any other Person arising in
connection with the Seller Receivables, the Related Security and the related
Contracts, or any other obligations of such Seller.  In view of the
intention of the parties hereto that the purchases and transfers of Receivable
Assets to be made hereunder shall constitute a sale of such Receivable Assets
rather than a loan secured by such Receivable Assets, each Seller agrees to note
on its financial statements that such Receivable Assets have been sold to the
Buyer.

     

    (c) In
connection with the foregoing sales, transfers and assignments, each Seller
irrevocably authorizes the Buyer to record and file, at such Seller’s expense,
proper financing statements (and proper continuation statements with respect to
such financing statements when applicable) with respect to the Receivable Assets
now and hereafter from time to time acquired by the Buyer under this Agreement,
in such manner and in such jurisdictions as are necessary to perfect the sales,
transfers and assignments of the Receivable Assets to the Buyer and the Agent on
or prior to the initial Purchase under the Receivables Purchase
Agreement.  Such financing statements shall name such Seller as
debtor/seller, the Buyer as secured party/buyer and the Agent as
assignee.

     

    (d) The
purchase price for each purchase of Receivable Assets by the Buyer under this
Agreement (the “Purchase Price”)
shall be an amount equal to the product obtained by multiplying (a) one minus
the Required Discount (defined below) as of the date of such purchase by (b) the
Outstanding Balance of the Seller Receivables purchased.  The “Required Discount”
shall be such percentage as may be determined from time to time (but no less
frequently then semiannually) by mutual agreement between a Seller and the Buyer
based on their respective assessments of the prevailing cost of funds, recent
performance history of the Seller Receivables being sold hereunder (including
write-offs and rate of collection) and other costs of ownership, all determined
on an arm’s length basis as though such determinations were not made by
Affiliates.

     

    SECTION
2.02.   Payment for
Purchases.

     

    (a) The
Purchase Price for each purchase of Receivable Assets by the Buyer shall be
payable in full in cash (except as provided in Section 2.02(d) below), by the
Buyer to the applicable Seller, in each case on the date of each such purchase;
except that the Buyer may, with respect to any purchase, offset against such
Purchase Price any amounts owed by such Seller to the Buyer hereunder and which
remain unpaid.  Unless all of the Sellers and the Buyer shall have
otherwise agreed, cash payments of Purchase Price shall be allocated, first, to
the Purchase Price in respect of the Receivable Assets sold by Sellers (if any)
other than Lyondell, ratably, and second, to the Purchase Price in respect of
the Receivable Assets sold by Lyondell.

     

    (b) It shall
be a condition precedent to the Buyer’s obligation to make the initial purchase
of Receivable Assets on the Closing Date that all conditions precedent set forth
in Section 3.1 of the Receivables Purchase Agreement shall have been satisfied
or waived.  In addition, it shall be a condition precedent to the
Buyer’s obligation to make any purchase of Receivable Assets hereunder
(including the initial purchase of Receivable Assets on the Closing Date) that
(i) the representations and warranties of the applicable Seller contained in
Section 3.01 are correct in all material respects as to it and as to the
Receivable Assets purchased from it on and as of such day as though made on and
as of such date and (ii) no event has occurred and is continuing, or would
result from such purchase, which constitutes an Event of Termination or
Potential Event of Termination.  Each Seller, by accepting the
proceeds of the Purchase Price for a purchase of Receivable Assets hereunder,
shall be deemed to have certified to the Buyer the satisfaction of the
conditions precedent described in the immediately preceding
sentence.

     

    (c) Upon the
payment of the Purchase Price for any purchase of Receivable Assets hereunder
(whether in cash or by an increase in the principal balance under the applicable
Subordinated Note pursuant to Section 2.02(d)) or, in the case of Lyondell, the
contribution of Receivable Assets to the Buyer pursuant to Section 2.02(d),
title to the Seller Receivables and other Receivable Assets included in such
purchase shall vest in the Buyer, whether or not the conditions precedent to
such purchase described in Section 2.02(b) above were in fact satisfied; provided, however, that the
Buyer shall not be deemed to have waived any claim it may have under this
Agreement for the failure by the applicable Seller in fact to satisfy any such
condition precedent.

     

    (d) To the
extent the Buyer shall have insufficient available cash to pay the Purchase
Price payable to a Seller on the date of each purchase of Receivable Assets from
such Seller, the balance of the Purchase Price then owing shall be paid by an
increase to the principal amount of the Subordinated Note issued by the Buyer to
such Seller; provided that, unless
all of the Sellers and the Buyer shall have otherwise agreed, increases to the
principal amounts of the Subordinated Notes issued to Sellers (if any) other
than Lyondell shall be made to the fullest extent necessary to pay the Purchase
Price of Receivable Assets sold by such Sellers before any increase shall be
made to the principal amount of the Subordinated Note issued to Lyondell that is
necessary to pay the Purchase Price of Receivable Assets sold by Lyondell; provided, however, that the
Buyer may not pay the Purchase Price by means of an increase to the principal
amount of any Subordinated Note to the extent that, as a result thereof (and
after giving effect thereto), the Buyer’s net worth (calculated after giving
effect to all such purchases and all increases to the principal amount of any
Subordinated Note to be made on such date) would be less than 6.0% of the
aggregate Outstanding Balance of all Seller Receivables purchased or purported
to be purchased by the Buyer hereunder.  To the extent that the Buyer
shall at any time be unable to pay the Purchase Price in respect of a purchase
of Receivable Assets from Lyondell as set forth in the preceding sentence, then
Lyondell shall be automatically deemed to have made a capital contribution to
the Buyer of the Receivable Assets which are the subject of such purchase to the
extent that the Purchase Price for such Receivable Assets is not paid for in
cash or by means of an increase in the aggregate outstanding balance under the
Subordinated Note issued to Lyondell.

     

    (e) The
indebtedness of the Buyer under each Subordinated Note shall be subordinated to
the prior right and payment in full of the aggregate outstanding Capital and any
other obligations of the Buyer arising under the Receivables Purchase
Agreement.  On each Yield Payment Date, each Seller shall determine
the net increase or the net reduction in the outstanding principal amount of the
Subordinated Note issued to such Seller occurring during the immediately
preceding calendar month and shall account for such net increase or net
reduction in its books and records.

     

    (f) Notwithstanding
anything to the contrary herein, with respect to any Seller other than Lyondell,
such Seller will distribute to Lyondell all Receivable Assets that such Seller
would otherwise sell to the Buyer, and Lyondell will sell or contribute, as
applicable, those Receivable Assets to the Buyer in accordance with the
provisions hereof and of the applicable Transfer Agreement, to the extent that
such Seller could not be compensated by the Buyer for the transfer of such
Receivable Assets in cash or advances under the Subordinated Note payable to
such Seller pursuant to the provisions of Sections 2.02(a) and
2.02(d).

     

    SECTION
2.03.   General Settlement
Procedures.

     

    (a) If, on
any day, the Outstanding Balance of a Seller Receivable is either (i) reduced as
a result of any defective, rejected or returned goods or services, any discount,
or any adjustment by any Seller or (ii) reduced or canceled as a result of a
setoff in respect of any claim by the Obligor thereof against such Seller or any
Affiliate or Subsidiary thereof other than the Buyer (whether such claim arises
out of the same or a related transaction or an unrelated transaction), such
Seller shall be deemed to have received on such day a Collection of such Seller
Receivable in the amount of such reduction or cancellation and shall make the
payment required to be made by it in connection with such Collection on the day
required by, and otherwise pursuant to, Section 4.01(i).  If, on any
day, (x) any of the representations or warranties in Section 3.01(g) is no
longer true with respect to any Seller Receivable or (y) it is discovered that
any Seller Receivable that was included in the Net Receivables Pool Balance as
an Eligible Receivable was not an Eligible Receivable at the time of such
inclusion, the Seller to which such Seller Receivable shall have been originally
owed shall be deemed to have received on such day a Collection in full of such
Seller Receivable and shall make the payment required to be made by it in
connection with such Collection on the day required by, and otherwise pursuant
to, Section 4.01(i).  Except as stated in the preceding sentences of
this Section 2.03 or as otherwise required by law or the underlying Contract,
all Collections received from an Obligor of any Seller Receivable shall be
applied to Seller Receivables then outstanding of such Obligor in the order of
the age of such Seller Receivables, starting with the oldest such Seller
Receivable, except if payment is designated by such Obligor for application to
specific Seller Receivables.

     

    (b) If
requested by the Buyer or the Agent at least ten Business Days before any Yield
Payment Date, the Buyer’s Servicer shall, at least two Business Days before such
Yield Payment Date, prepare and forward to the Buyer and the Agent a Receivables
Activity Report of the Buyer’s Servicer, as of the close of business of the
Buyer’s Servicer on the last day of the immediately preceding Yield Period,
setting forth the calculation of the actual Purchase Price for each Receivable
Asset sold, transferred and assigned during such Yield Period, and the
reconciliation of how the Purchase Price has been paid reflecting the cash
advanced from the Buyer to each Seller during such Yield Period, the adjustments
to and current balance, if any, due from the Buyer to each Seller under its
Subordinated Note and the amount of any capital contribution pursuant to Section
2.02(d), and the amount of additional cash, if any, to be paid by the Buyer to
each Seller on such Yield Payment Date.

     

    SECTION
2.04.   Payments and Computations,
Etc.

     

    (a) All
amounts to be paid or deposited by each Seller or the Buyer’s Servicer hereunder
shall be paid or deposited in accordance with the terms hereof no later than
12:30 p.m. (New York City time) on the day when due in U.S. Dollars in same day
funds to the Buyer as directed by the Buyer to such Seller in
writing.  Each Seller shall, to the extent permitted by law, pay to
the Buyer interest on all amounts not paid or deposited by such Seller when due
hereunder at 2.00% per annum above the Alternate Base Rate in effect from time
to time, payable on demand; provided, however, that such
interest rate shall not at any time exceed the maximum rate permitted by
applicable law.

     

    (b) All
computations of interest and fees hereunder shall be made on the basis of a year
of 360 days for the actual number of days (including the first but excluding the
last day) elapsed.

     

    (c) Each
Seller hereby irrevocably and unconditionally waives and relinquishes to the
fullest extent it may legally do so (i) any express or implied vendor’s lien,
and any other Lien (which would otherwise be imposed on or affect any Seller
Receivable or any other Receivable Asset), on account of any unpaid amount of
such Seller’s Purchase Price therefor or on account of any other unpaid amounts
otherwise payable by the Buyer under or in connection with this Agreement or the
Subordinated Note payable to the order of such Seller or otherwise and (ii) with
respect to the obligations of such Seller to make payments or deposits under
this Agreement (including, without limitation, payments under Sections 2.03 and
6.01), any setoff, counterclaim, recoupment, defense and other right or claim
which such Seller may have against the Buyer as a result of or arising out of
the failure of the Buyer to pay any amount on account of such Seller’s Purchase
Price under Sections 2.01 and 2.02 or any other amount payable by the Buyer to
such Seller under this Agreement or the Subordinated Note payable to the order
of such Seller or otherwise.

     

    SECTION
2.05.   Buyer’s Servicer
Fee.

     

    The Buyer
shall pay to the Buyer’s Servicer a fee (the “Buyer’s Servicer
Fee”) from the date hereof until the Termination Date, payable on each
Yield Payment Date, in an amount equal to the amount payable to the Servicer
under the Receivables Purchase Agreement or such other amount calculated on an
arm’s-length basis for services performed as a subcontractor on terms common to
collection agency arrangements in comparable asset sale transactions; provided, however, that the
Buyer shall be given a credit against the Buyer’s Servicer Fee payable under
this Agreement equal to the full amount of the Servicer Fee paid under the
Receivables Purchase Agreement.

     

                            
ARTICLE
III                                

     

     

    REPRESENTATIONS
AND WARRANTIES

     

    SECTION
3.01.   Representations and
Warranties of Each Seller.

     

    Each
Seller represents and warrants, as of the date hereof and the date of each
transfer of Receivable Assets hereunder, as follows (except that only Lyondell
will make the representation and warranty set forth in Section
3.01(n)):

     

    (a) Existence, Qualification and
Power; Compliance with Laws.  Subject
to the Legal Reservations, such Seller (a) is a Person duly organized or formed,
validly existing and in good standing, in each case where such concept exists,
under the laws of the jurisdiction of its incorporation or organization, (b) has
all requisite constitutional, corporate or other similar power and authority to
(i) own or lease its material assets and carry on its business substantially as
currently conducted and (ii) execute, deliver and perform its obligations under
the Transaction Documents to which it is a party, (c) is duly qualified and in
good standing, in each case where such concept exists, under the laws of each
jurisdiction where its ownership, lease or operation of properties or the
conduct of its business requires such qualification, (d) is in compliance with
all laws, orders, writs and injunctions and (e) has all requisite governmental
licenses, authorizations, consents and approvals to operate its business as
currently conducted; except in each case referred to in clause (c), (d) or (e),
to the extent that failure to do so could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

     

    (b) Authorization; No
Contravention.  The execution, delivery and performance by such
Seller of each Transaction Document to which such Person is a party, and the
consummation of the transactions contemplated thereby, are within such Person’s
corporate or other powers, have been duly authorized by all necessary corporate
or other organizational action, and do not (a) contravene the terms of any of
such Person’s Organization Documents; (b) in any material way, conflict with or
result in any breach or contravention of, or the creation of any Lien under
(other than as permitted by Section 4.01 of the Undertaking), or require any
payment to be made under (i) except payments as set forth in the funds flow
memorandum dated the Closing Date and delivered to the Agent, any contractual
obligation to which such Person is a party or affecting such Person or the
properties of such Person or any of its subsidiaries or (ii) any order in any
material way, injunction, writ or decree of any Governmental Authority or any
arbitral award to which such Person or its property is subject; or (c) violate
any material law in any material way; except with respect to any conflict,
breach or contravention or payment (but not creation of Liens) referred to in
clause (b)(i), to the extent that such conflict, breach, contravention or
payment could not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect.

     

    (c) Binding
Effect.  This Agreement and each other Transaction Document
constitutes a legal, valid and binding obligation of such Seller, enforceable
against each such Seller that is a party hereto and thereto in accordance with
its terms, except as such enforceability may be limited by (i) Debtor Relief
Laws and by general principles of equity, and (ii) the need for filings and
registrations necessary to perfect any Liens created by the Transaction
Documents

     

    (d) Governmental Authorization;
Other Consents.  Subject to the Legal Reservations, no material
approval, consent, exemption, authorization, or other action by, or notice to,
or filing with, any Governmental Authority or any other Person is necessary or
required of a Seller in connection with the execution, delivery or performance
by, or enforcement against, such Seller of this Agreement or any other
Transaction Document to which it is a party, or for the consummation of any
transaction contemplated hereby or thereby, except for (i) the UCC filings
contemplated by the Transaction Documents, (ii) the approvals, consents,
exemptions, authorizations, actions, notices and filings which have been duly
obtained, taken, given or made and are in full force and effect (or, with
respect to consummation of the transactions contemplated by the Transaction
Documents, will be duly obtained, taken, given or made and will be in full force
and effect, in each case within the time period required to be so obtained,
taken, given or made) and (iii) those approvals, consents, exemptions,
authorizations or other actions, notices or filings, the failure of which to
obtain or make could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

     

    (e) Material Adverse
Effect.  There has been no event or circumstance since December
31, 2006, that either individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.

     

    (f) Litigation.  There are no
actions, suits, proceedings, claims or disputes pending or, to the knowledge of
such Seller, threatened in writing or contemplated, at law, in equity, in
arbitration or before any Governmental Authority, by or against such Seller or
any of its Subsidiaries or against any of their properties or revenues that
could, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.

     

    (g) Transfer.

     

    (i) Immediately
prior to each sale, transfer and/or assignment by such Seller of any Receivable
Assets hereunder (and, in the case of Sellers, if any, other than Lyondell, a
Transfer Agreement), such Seller is the legal and beneficial owner of such
Receivable Assets, free and clear of any Lien (other than Permitted Liens and
Liens, if any, created pursuant to the ABF Collateral Documents; provided such Liens
are released upon the sale, transfer and/or assignment of such Receivable
Assets).

     

    (ii) Upon each
sale, transfer and/or assignment by such Seller of each Receivable Asset to the
Buyer hereunder, such Seller shall transfer to the Buyer making such acquisition
(and such Buyer shall acquire), a valid interest in such Receivable Asset, free
and clear of any Lien (other than Permitted Liens), which interest shall be a
perfected first priority interest upon the filing of the financing statements
referred to in Article III of the Receivables Purchase Agreement.

     

    (iii) The
Purchase Price payable to such Seller on the date of each purchase of Receivable
Assets hereunder constitutes fair consideration and approximates fair market
value for such Receivable Asset, and the terms and conditions (including the
Purchase Price therefor, and the terms of the applicable Subordinated Note, if
applicable) of the sale, transfer and assignment of such Receivable Assets
pursuant to Sections 2.01 and 2.02 (other than any capital contribution of any
such Receivable Assets) reasonably approximate an arm’s-length transaction
between unaffiliated parties.  No such sale, transfer or assignment
has been made for or on account of an antecedent debt owed by such Seller to the
Buyer and no such sale, transfer or assignment is or may be voidable or subject
to avoidance under any section of the U.S. Bankruptcy Code.

     

    (h) Use of Proceeds.
 No proceeds of any
sale, transfer and/or assignment by such Seller of any Seller Receivable
hereunder will be used to acquire any Security in any transaction which is
subject to Sections 13 and 14 of the Securities Exchange Act of 1934 (unless
such transaction shall have been approved by the board of directors (or
comparable governing body) of the issuer of such Security) or used, whether
directly or indirectly, and whether immediately, incidentally or ultimately, for
any purpose which entails a violation of the provisions of the Regulations of
the Board, including Regulation U or X thereof.

     

    (i) Disclosure.  As
of the Closing Date, to the best of such Seller’s knowledge, no report,
financial statement, certificate or other written information furnished by or on
behalf of such Seller or any of its Subsidiaries to the Agent or
Buyer  in connection with the transactions contemplated hereby and the
negotiation of this Agreement or delivered hereunder or pursuant to any other
Transaction Document (as modified or supplemented by other information so
furnished) when taken as a whole contains any material misstatement of fact or,
as at the Closing Date only, omits to state any material fact necessary to make
the statements therein, in the light of the circumstances under which they were
made, not materially misleading; provided that no
representation or warranty with respect to (x) the financial projections
described the Receivables Purchase Agreement, (y) any information, including
financial projections, delivered pursuant to the Undertaking, or (z) any
financial statements delivered pursuant to Section 4.02(a) hereof, shall be made
pursuant to this Section 3.01(i).

     

    (j) Records. The jurisdiction of
incorporation and organizational identification number (if any) of such Seller
are as set forth in Schedule III hereto.

     

    (k) Lock-Box Banks and Accounts.
 The names
and addresses of all the Lock-Box Banks, together with the lock-box numbers
related to, and the account numbers and owners of, the Lock-Box Accounts of such
Seller at such Lock-Box Banks, are specified in Schedule I hereto (or such other
Lock-Box Banks and/or such other Lock-Box Accounts as have been notified to the
Buyer and the Agent in accordance with Section 4.03(c).  Except
pursuant to the Lock-Box Agreements, such Seller has not granted any Person
dominion or control of any Lock-Box Account, or the right to take dominion or
control over any Lock-Box Account at a future time or upon the occurrence of a
future event.

     

    (l) Receivables
Assets.  No effective financing statement or other instrument
similarly in effect covering any Contract or any Seller Receivable or Related
Security or Collections with respect thereto is on file in any recording office,
except those set forth on Schedule IV hereto and those filed in favor of the
Agent and the Buyer  relating to this Agreement, in favor of the Agent
relating to the Receivables Purchase Agreement or in favor of the agent under
the ABF Agreement.

     

    (m) Taxes.  Except
as could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect, (a) each of such Seller and each of its Subsidiaries
has (i) timely filed all tax returns required to be filed and all such tax
returns are true and correct, (ii) timely paid all taxes levied or imposed upon
it or its properties (whether or not shown on a tax return), and (iii) satisfied
all of its Tax withholding obligations; (b) there are no current, pending or
threatened audits, examinations or claims with respect to Taxes of any
Transaction Party or any of their respective Subsidiaries and (c) such Seller
has never “participated” in a “listed transaction” within the meaning of
Treasury Regulation Section 1.6011-4.

     

    (n) Financial
Statements.

     

    (i) On the
closing date, the audited consolidated financial statements of Lyondell and its
consolidated subsidiaries as of December 31, 2006 which have been furnished to
the Agent prior to the Closing Date, present in all material respects the
financial condition of Lyondell and its Subsidiaries as of the dates thereof and
their results of operations for the period covered thereby in accordance with
GAAP consistently applied throughout the periods covered thereby, except as
otherwise expressly noted therein.  During the period from December
31, 2006 to and including the Closing Date, there has been (i) no sale, transfer
or other disposition by Lyondell or any of its Subsidiaries of any material part
of the business or property of Lyondell or any of its Subsidiaries, taken as a
whole (other than the sale of Lyondell’s worldwide inorganic chemicals business
in May, 2007), and (ii) no purchase or other acquisition by Lyondell or any of
its Subsidiaries of any business or property (including any Equity Interests of
any other Person) material in relation to the consolidated financial condition
of Lyondell and its Subsidiaries, in each case, which is not reflected in the
foregoing financial statements or in the notes thereto or has not otherwise been
disclosed in writing to the Purchasers prior to the Closing Date.

     

    (ii) The
unaudited pro forma consolidated balance sheet of the Servicer and its
Subsidiaries as of September 30, 2007 (including the notes thereto) and the
related pro forma consolidated statement of income of the Servicer and its
Subsidiaries for the twelve months ended September 30, 2007, a copy of each of
which has been furnished to the Agent for distribution to the Purchasers, have
been prepared in good faith, based on assumptions believed by the Servicer to be
reasonable as of the date of delivery thereof, and present fairly in all
material respects on a pro forma basis the estimated financial position of the
Servicer and its Subsidiaries as of September 30, 2007 and their estimated
results of operations for the period covered thereby, assuming that the
Acquisition had actually occurred on or at such date or at the beginning of the
period covered thereby.

     

    (iii) The
forecasts of consolidated balance sheets, income statements and cash flow
statements of Lyondell and its Subsidiaries which have been furnished to the
Agent prior to the Closing Date have been prepared in good faith on the basis of
the assumptions stated therein, which assumptions were believed to be reasonable
at the time of preparation of such forecasts, it being understood that actual
results may vary from such forecasts and that such variations may be
material.

     

    (o) ERISA
Compliance. (a) Except as could not,
individually or in the aggregate, reasonably be expected to result in a Material
Adverse Effect,
each Plan is in compliance with the applicable provisions of ERISA, the Code and
other Federal or state Laws.

     

    (b)  No
ERISA Event has occurred or is reasonably expected to occur and (ii) neither
such Seller nor any of its Subsidiaries nor any ERISA Affiliate has engaged in a
transaction that could be subject to Section 4069 or 4212(c) of ERISA, except,
with respect to each of the foregoing clauses of this Section 3.01(o), as could
not, individually or in the aggregate, reasonably be expected to result in a
Material Adverse Effect.

     

    (c)
Except where noncompliance could not, individually or in the aggregate,
reasonably be expected to result in a Material Adverse Effect, (i) each Foreign
Plan has been maintained in compliance with its terms and with the requirements
of any and all applicable laws, statutes, rules, regulations and orders and has
been maintained, where required, in good standing with applicable regulatory
authorities, and (ii)neither any Transaction Party nor any Subsidiary has
incurred any obligation in connection with the termination of or withdrawal from
any Foreign Plan.

     

    (p) Credit and Collection
Policy.  Such Seller has complied with the Credit and
Collection Policy in all material respects and since the date of this Agreement
there has been no change in the Credit and Collection Policy except as permitted
hereunder.  Such Seller has not extended or modified the terms of any
Seller Receivable or the Contract under which any such Seller Receivable arose,
except in accordance with the Credit and Collection Policy and in accordance
with Section 6.2(b) of the Receivables Purchase Agreement.

     

    (q) [Reserved]

     

    (r) Margin Regulations;
Investment Company Act.  Such Seller and each of its
Subsidiaries is not engaged nor will it engage, principally or as one of its
important activities, in the business of purchasing or carrying margin stock
(within the meaning of Regulation U issued by the FRB), or extending credit for
the purpose of purchasing or carrying margin stock.  None of such
Seller or any of its Affiliates is or is required to be registered as an
“investment company” under the Investment Company Act of 1940.

     

                             
ARTICLE
IV                                

     

    GENERAL
COVENANTS OF EACH SELLER

     

    SECTION
4.01.   Affirmative Covenants of
Each Seller.

     

    Until the
later of (i) the Termination Date and (ii) the date upon which no Capital shall
be outstanding and no Obligations(other than contingent indemnification
obligations) remain unpaid under this Agreement and the Receivables Purchase
Agreement, each Seller shall:

     

    (a) Existence.  Do
or cause to be done all things necessary to preserve, renew and keep in full
force and effect its legal existence.

     

    (b) Compliance with Laws,
Etc. Comply
with all applicable laws, rules, and regulations and all orders of any
Governmental Authority applicable to it and all Receivable Assets with respect
thereto to the extent noncompliance could reasonably be expected to result in a
Material Adverse Effect.

     

    (c) Business and
Properties.  Except to the extent the failure to do so,
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect, at all times (a) do or cause to be done all things
reasonably necessary to preserve, renew and keep in full force and effect the
rights, licenses, permits, franchises, patents, copyrights, trademarks and trade
names material to the conduct of its business; and (b) maintain, preserve and
protect all property material to the conduct of such business.

     

    (d) Payment of
Taxes.  Pay and discharge all material taxes, assessments and
governmental charges or levies imposed upon it or upon its income or profits or
in respect of its property before the same shall become delinquent or in
default, as well as all lawful material claims for labor, materials and supplies
or otherwise, which, if unpaid, might give rise to liens or charges upon such
properties or any part thereof, unless and to the extent that any such tax,
assessment, charge, levy or claim is being contested in good faith by
appropriate proceedings and adequate reserves are being maintained on its books
with respect thereto to the extent required by GAAP.

     

            
(e) Books of
Accounts.

     

    (i) To the
extent Records are (A) in written form, segregate such Records in file cabinets
or storage containers and appropriately label such file cabinets or storage
containers to reflect that the Receivable Assets have been conveyed to the
Buyer, or (B) constitute computer programs and other non-written Records,
appropriately legend such Records to reflect that the Receivable Assets have
been conveyed to the Buyer.

     

    (ii) Maintain
and implement administrative and operating procedures (including, without
limitation, an ability to recreate, in all material respects, records evidencing
Seller Receivables in the event of the destruction of the originals thereof),
and keep and maintain all documents, books, records and other information
reasonably necessary or advisable for the collection of all Seller Receivables
(including, without limitation, records adequate to permit the daily
identification of each Seller Receivable, the Outstanding Balance of each Seller
Receivable and the dates which payments are due thereon and all Collections of
and adjustments to each existing Seller Receivable).  Such books and
records shall be marked in accordance with Section 5.04(a) to indicate the
transfers of all Receivable Assets hereunder.

     

    (f) Performance and Compliance
with Contracts and Credit and Collection Policy.  At its
expense, (i) perform, or cause to be performed, and comply in all material
respects with, or cause to be complied with in all material respects, all
provisions, covenants and other promises required to be observed by it under the
Contracts related to the Seller Receivables, and timely and fully comply in all
material respects with the Credit and Collection Policy in regard to the Seller
Receivables and the related Contracts and (ii) as beneficiary of any Related
Security, enforce such Related Security as reasonably requested by the
Agent.

     

    (g) Examination of Records;
Audits.

     

    (i) From time
to time upon ten (10) Business Days’ prior notice (except that during the
continuance of a Potential Event of Termination or Event of Termination, no such
notice shall be required) and during regular business hours as requested by the
Buyer or the Agent and at the expense of the Agent, if a Potential Event of
Termination or Event of Termination does not exist, and otherwise at the expense
of such Seller, permit the Buyer or the Agent, or their respective agents or
representatives, (A) to examine and make copies of and abstracts from all
Records in the possession or under the control of such Seller, its Affiliates or
Subsidiaries or the agents of such Seller or its Affiliates or Subsidiaries,
relating to Seller Receivables and the other Receivable Assets, including,
without limitation, the related Contracts, and (B) to visit the offices and
properties of such Seller, its Affiliates or Subsidiaries or the agents of such
Seller or its Affiliates or Subsidiaries, for the purpose of examining such
materials described in clause (A) above, and to discuss matters relating to
Seller Receivables and the other Receivable Assets or such Seller’s performance
hereunder or under the Contracts with any of the officers or employees of such
Seller having knowledge of such matters and designated by such Seller to discuss
such matters with the Buyer or the Agent or their agents or representatives.
Unless a Potential Event of Termination or Event of Termination is continuing,
the Buyer and the Agent agree to combine any request for any such examinations
and visits with any request being made under Sections 5.1(f) and 5.4(f) of the
Receivables Purchase Agreement 

     

    (ii) The Buyer
or the Agent may (at its own election or at the request of the Required
Purchasers), at such Seller’s sole cost and expense  make test
verifications and other evaluations of the Seller Receivables in any manner and
through any medium that the Buyer or the Agent considers advisable, and such
Seller shall furnish all such assistance and information as the Buyer (or the
Agent) may require in connection therewith; provided that, unless
a Potential Event of Termination or Event of Termination has occurred and is
continuing, the Buyer or the Agent shall conduct no more than four such
evaluations pursuant to this subsection during any calendar year; provided further
that, unless Total Excess Availability is less than $200,000,000 on each
Business Day during any period of five consecutive Business Days within any
twelve-month period, the Buyer or the Agent shall conduct no more than two such
evaluations pursuant to this Section during such twelve-month
period.  Such Seller shall pay the documented fees and expenses of
employees or other representatives of the Buyer and the Agent in connection with
such evaluations.  In-house examination charges shall be limited to an
amount up to $1,000 per day per examiner (employee or representative) plus such
examiner’s reasonable out-of-pocket expenses, including travel expenses,
incurred in connection with such evaluation.  The Buyer or the Agent
shall furnish to each Purchaser a copy of the final written report prepared in
connection with any such evaluation and shall provide such Seller with a summary
of the analysis of the Seller Receivables contained in any such final written
report not less than two Business Days prior to delivery thereof to the
Purchasers; provided
that the obligations of the Buyer and the Agent to so furnish such report or
summary hereunder shall be satisfied by delivery of such report or summary under
Section 5.4(f)(ii) of the Receivables Purchase Agreement.

     

    (iii) Such
Seller shall furnish to the Buyer and the Agent any information that the Buyer
and the Agent may reasonably request regarding the determination and calculation
of the Net Receivables Pool Balance including correct and complete copies of any
invoices, underlying agreements, instruments or other documents and the identity
of all Obligors in respect of Seller Receivables referred to
therein.

     

    (h) Transaction
Documents.  At its expense,
maintain each of the Transaction Documents to which it is a party in full force
and effect, enforce in accordance with its terms, take all such action to such
end as may be from time to time reasonably requested by the Buyer or the Agent,
and make to any party to each of such Transaction Documents such demands and
requests for information and reports or for action as it is entitled to make
thereunder and as may be from time to time reasonably requested by the Buyer or
the Agent.

     

    (i) Deposits to Lock-Box
Accounts.  Instruct all Obligors to make payments in respect of
Seller Receivables to a Lock-Box Account and, if such Seller shall otherwise
receive any Collections (including, without limitation, any Collections deemed
to have been received by such Seller pursuant to Section 2.03(a)), segregate and
hold in trust such Collections and deposit such Collections, or cause such
Collections to be deposited, to a Lock-Box Account within two (2) Business Days
following such receipt.

     

    (j) Subsidiaries.  In
the case of Lyondell, maintain the status of  the Buyer as a wholly
owned subsidiary of Lyondell.

     

    SECTION
4.02.   Reporting Requirements of
Each Seller.

     

    Until the
later of (i) the Termination Date and (ii) the date upon which no Capital
Investment shall be outstanding and no Obligations (other than contingent
indemnification obligations) remain unpaid under this Agreement and the
Receivables Purchase Agreement, Lyondell and, with respect to Sections 4.02(f)
and 4.02(g), each other Seller shall furnish to the Buyer and the Agent for
distribution to the Purchasers (unless such information has been delivered
pursuant to the Receivables Purchase Agreement):

     

    (a) Monthly
Reports.  During the existence of a Triggering Event, within 30
days after the end of each of the first two fiscal months in each fiscal quarter
of Lyondell, unaudited consolidated financial statements (which shall include a
balance sheet and income statement, as well as statements of stockholder’s
equity and cash flow) showing the financial condition and results of operation
of Lyondell and its Consolidated Subsidiaries as of the end of and for such
fiscal month and that portion of the current Fiscal Year ending as of the close
of such month, in each case certified by a Principal Financial Officer of
Lyondell as being the same monthly financial statements generated in accordance
with Lyondell’s normal procedures and submitted to management of
Lyondell.  The Buyer, the Agent and the Purchasers acknowledge that
any monthly unaudited consolidated financial statements furnished pursuant to
this Section will not be accompanied by the footnotes and other disclosures that
would be necessary for fair presentation in accordance with GAAP.

     

    (b) Quarterly Reports.
Subject to the last two unlettered paragraphs of this Section, as soon as
available, but in any event within forty-five (45) days (sixty (60) days in the
case of the first three fiscal quarters of 2008) (or such earlier date on which
the Company is required to make any public filing of such information), after
the end of each of the first three (3) fiscal quarters of each fiscal year of
the Company, (1) a consolidated balance sheet of the Company and its
Subsidiaries as at the end of such fiscal quarter, and the related consolidated
statements of income and cash flows, each for such fiscal quarter and the
portion of the fiscal year then ended, setting forth in each case in comparative
form the figures for the corresponding fiscal quarter of the previous fiscal
year and the corresponding portion of the previous fiscal year, all certified
(subject to normal year-end adjustments) as to fairness of presentation and
consistency by a Responsible Officer (excepting any Responsible Officer who is a
Responsible Officer solely by virtue of a power of attorney) of the Company as
fairly presenting in all material respects the financial condition, results of
operations and cash flows of the Company and its Subsidiaries in accordance with
GAAP, subject only to normal year-end audit adjustments and the absence of
footnotes and (2) promptly, any other information, documents and other reports
which the Company or any Subsidiary is (when registered) required to file with
the SEC pursuant to Section 13(a) or 15(d) of the Exchange Act.

     

    (c) Annual
Reports.  Subject to the last two unlettered paragraphs of this
Section, as soon as available, but in any event within ninety (90) days
(one-hundred and twenty (120) days in the case of the fiscal year ending
December 31, 2007) (or such earlier date on which the Company is required to
make any public filing of such information) after the end of each fiscal year of
the Company beginning with the 2007 fiscal year, a consolidated balance sheet of
the Company and its Subsidiaries as at the end of such fiscal year, and the
related consolidated statements of income and retained earnings and of cash
flows for such fiscal year, setting forth in each case in comparative form the
figures for the previous fiscal year, all reported on without material
qualification (including any “going concern” or like qualification) by an
independent registered public accounting firm of nationally recognized
standing..

     

    (d) Principal Financial
Officer’s Certification.  Concurrently with (b) and (c) above,
a certificate of a Principal Financial Officer of such Seller

     

    (i)        certifying
that to the best knowledge of such Principal Financial Officer no Potential
Event of Termination or Event of Termination has occurred and is continuing or,
if a Potential Event of Termination or Event of Termination has occurred and is
continuing, specifying the nature and extent thereof and any corrective action
taken or proposed to be taken with respect thereto; and

     

    (ii)                  solely
in the case of (c) above, certifying that except as previously notified to the
Buyer or the Agent pursuant to Section 4.03(e) there has been no change in any
Seller’s name, form of organization, jurisdiction of organization and
organizational number or Federal Taxpayer Identification Number.

     

    (e) Litigation,
etc.  Give the Buyer and the Agent prompt written notice (which
the Agent shall promptly deliver to the Purchasers) after any Responsible
Officer learns of the following:

     

    (i) the
issuance by any Governmental Authority of any injunction, order, decision or
other restraint prohibiting, or having the effect of prohibiting, the
transactions contemplated by the Transaction Documents, including the sale,
transfer or assignment of Seller Receivables, or having the effect of
invalidating any provision of this Agreement or any other Transaction Document
or the initiation of any litigation or similar proceeding seeking any such
injunction, order, decision or other restraint;

     

    (ii) the
filing or commencement of any action, suit or proceeding against any Transaction
Party or any Subsidiary, whether at law or in equity or by or before any
Governmental Authority or any arbitrator, as to which action, suit or proceeding
there is a reasonable likelihood of an adverse determination and which, if
determined adversely to such Transaction Party or any Subsidiary, could
reasonably be expected to result in a Material Adverse Effect;

     

    (iii) except as
would not reasonably be expected to result in a Material Adverse Effect, any
member of the ERISA Group (A) giving or being required to give notice to the
PBGC of any “reportable event” (as defined in Section 4043 of ERISA) with
respect to any Plan which might constitute grounds for a termination of such
Plan under Title IV of ERISA, or such ERISA Group Member knowing that the plan
administrator of any Plan has given or is required to give notice of any such
reportable event, and such notice to the Agent shall attach a copy of the notice
of such reportable event given or required to be given to the PBGC; (B)
receiving notice of complete or partial withdrawal liability under Title IV of
ERISA or notice that any Multiemployer Plan is in reorganization, is insolvent
or has been terminated, and such notice to the Agent shall attach a copy of such
notice; (C) receiving notice from the PBGC under Title IV of ERISA of an intent
to terminate, impose liability (other than for premiums under Section 4007 of
ERISA) in respect of, or appoint a trustee to administer any Plan, and such
notice to the Agent shall attach a copy of such notice; (D) applying for a
waiver of the minimum funding standard under Section 412 of the Internal Revenue
Code, and such notice to the Agent shall attach a copy of such application; (E)
giving notice of intent to terminate any Plan under Section 4041(c) of ERISA,
and such notice to the Agent shall attach a copy of such notice and other
information filed with the PBGC; (F) giving notice of withdrawal from any Plan
pursuant to Section 4063 of ERISA, and such notice to the Agent shall attach a
copy of such notice; or (G) failing to make any payment or contribution to any
Plan or Multiemployer Plan or making any amendment to any Plan which has
resulted or could result in the imposition of a Lien or the posting of a bond or
other security, and such notice to the Agent shall attach a certificate of
Lyondell’s chief financial officer or chief accounting officer setting forth
details as to such occurrence and the action, if any, which Lyondell or
applicable member of the ERISA Group is required or proposes to
take;

     

    (iv) the
existence of (i) any Triggering Event or (ii) any Potential Event of Termination
or Event of Termination, specifying the nature and extent thereof and the action
(if any) which is proposed to be taken with respect thereto.

     

    (f) Information Regarding Such
Seller.  Give the Buyer and the Agent written notice at least
10 days prior to (in the case of (i) and (ii)) and within 20 days after (in any
other case) any change in such Seller’s (i) name, (ii) form of organization,
(iii) jurisdiction of organization, (iv) organizational number or (v) Federal
Taxpayer Identification Number.

     

    (g) Other. Promptly, from
time to time, such other information, documents, records or reports respecting
this Agreement or the other Transaction Documents, the Seller Receivables or any
other Receivable Assets or the condition or operations, financial or otherwise,
of such Seller as the Buyer or the Agent may from time to time reasonably
request.

     

    Notwithstanding
the foregoing, the obligations to deliver financial statements pursuant to
clauses (c) and (b) of this Section will be satisfied with respect to financial
information of the Company by furnishing (A) the applicable financial statements
of the Company or (B) the Company’s Form 10-K or 10-Q, as applicable, filed with
the SEC; provided that, with
respect to each of clauses (A) and (B), to the extent such information is in
lieu of information required to be provided under (b), such materials are
accompanied by a report and opinion of an independent registered public
accounting firm of nationally recognized standing, which report and opinion
shall be prepared in accordance with generally accepted auditing standards and
shall not be subject to any “going concern” or like qualification or material
exception or any qualification or exception as to the scope of such
audit.

     

    Documents
required to be delivered pursuant to clauses (c) and (b) of this Section may be
delivered electronically and if so delivered, shall be deemed to have been
delivered on the date (i) on which the Company (or any direct or indirect parent
of the Company) posts such documents, or provides a link thereto on the website
on the Internet at the website address listed on Schedule 4.02; or (ii) on which
such documents are posted on the Company’s behalf on IntraLinks/IntraAgency or
another website identified in the notice provided pursuant to paragraph (z)
immediately below, if any, to which each Purchaser and the Agent have access
(whether a commercial, third-party website or whether sponsored by the Agent);
provided that: (y) upon written request by the Agent or any Purchaser, such
Seller shall deliver paper copies of the information referred to in clauses (c)
and (b) of this Section as requested by the Agent or Purchaser (as applicable)
and (z) such Seller shall notify (which may be by facsimile or electronic mail)
the Agent of the posting of any such documents.

     

    SECTION
4.03.   Negative Covenants of Each
Seller.

     

    Until the
later of (i) the Termination Date and (ii) the date upon which no Capital shall
be outstanding and no Obligations (other than contingent indemnification
obligations) remain unpaid under this Agreement and the Receivables Purchase
Agreement, each Seller shall not:

     

    (a) Extension or Amendment of
Receivables.  Extend, amend or otherwise modify the terms or
Outstanding Balance of any Seller Receivable, or extend, amend, modify or waive
any term or condition of any Contract related thereto.

     

    (b) Change in Business Lines or
Credit and Collection Policy.  Make any change in the character
of its business or in the Credit and Collection Policy that would, in either
case, be reasonably likely to impair the collectibility of the Seller
Receivables.

     

    (c) Change in Payment
Instructions to Obligors.  Add or terminate any bank as a
Lock-Box Bank or any Deposit Account as a Lock-Box Account from those listed in
Schedule I, or make any change in the instructions to Obligors regarding
payments to be made to any Lock-Box Account, unless the Agent shall have
received at least 20 days’ prior written notice of such addition, termination or
change and shall have received, with respect to each new Lock-Box Account, a
Lock-Box Agreement executed by the Lock-Box Bank that maintains such Lock-Box
Account and such Seller.

     

    (d) Deposits to Lock-Box
Accounts.  Deposit or otherwise credit, or cause or grant
permission to be so deposited or credited, to any Lock-Box Account cash or cash
proceeds other than Collections of Seller Receivables.

     

    (e) Organizational Documents;
Change of Name, Etc.

     

    (i) Change,
or cause any other Transaction Party to change, its name, form of organization
or jurisdiction of organization, unless, prior to the effective date of any such
change, such change adversely affects the rights of the Agent under then
existing Lock-Box Agreements or other control agreements with such Transaction
Party to take control of the Lock-Box Accounts and other Restricted Accounts
pursuant to Section 6.3(a) of the Receivables Purchase Agreement, such Seller
delivers to the Buyer and the Agent new Lock-Box Agreements and other control
agreements executed by such Transaction Party and the relevant banks, to the
extent necessary to reflect such changes and to continue to enable the Agent to
exercise such rights.

     

    (ii) Cause or
permit the Buyer’s Organization Documents to be amended, supplemented or
otherwise modified without the consent of the Agent (not to be unreasonably
withheld or delayed).

     

    (f) Accounting.  Prepare
any financial statements which shall account for the transactions contemplated
hereby in any manner other than the sale of the Receivable Assets by such Seller
to the Buyer or in any other respect account for (other than for tax purposes)
or otherwise treat the transactions contemplated by this Agreement in any manner
other than as sales of Receivable Assets by such Seller to the
Buyer.

     

    (g) Voluntary
Petitions.  Cause the Buyer to file a voluntary petition under
the Bankruptcy Code or any other bankruptcy or insolvency laws so long as the
Buyer is not “insolvent” within the meaning of the Bankruptcy Code, and unless,
and only unless, such filing has been authorized in accordance with the Buyer’s
Organization Documents.

     

    (h) Maintenance of Buyer’s
Separate Existence.  Take any action, or omit to take any
action, if the effect is to cause the Buyer to fail to perform or observe in any
material respect the covenants contained in  Section 5.1(d) and
Section 5.1(j) of the Receivables Purchase Agreement or to otherwise cause the
Buyer not to be considered as a legal entity separate and distinct from such
Seller.

     

    ARTICLE
V                                

     

    

     

    ADMINISTRATION
AND COLLECTION

     

    SECTION
5.01.   Designation of Buyer’s
Servicer.

     

    The
Seller Receivables shall be serviced, administered and collected by the Person
(the “Buyer’s
Servicer”) designated from time to time to perform the duties of the
Servicer under the Receivables Purchase Agreement in accordance with Section 6.1
of the Receivables Purchase Agreement, and shall be serviced, administered and
collected by the Buyer’s Servicer in the manner set forth in Section 6.2 of the
Receivables Purchase Agreement (including by subcontracting to any other Seller
in accordance with Section 6.1(b) of the Receivables Purchase
Agreement.  Until the Agent designates a new Servicer in accordance
with Section 6.1 of the Receivables Purchase Agreement, Lyondell is hereby
designated to act as, and Lyondell hereby agrees to perform the duties and
obligations of, the Buyer’s Servicer hereunder.

     

    SECTION
5.02.   Rights of the Buyer and the
Agent.

     

    (a) Each
Seller hereby acknowledges the transfer by the Buyer to the Agent of the
exclusive ownership, dominion and control of the Lock-Box Accounts to which the
Obligors of Seller Receivables shall make payments, and the other Restricted
Accounts, and shall take any further action that the Agent may reasonably
request to effect such transfer.

     

    (b) At any
time during the continuance of an Event of Termination:

     

    (i) Each of
the Buyer and the Agent acting together or alone may notify the Obligors of
Seller Receivables, at each Seller’s expense, of the Buyer’s interest in the
Seller Receivables and the ownership of Receivable Interests by the
Purchasers.

     

    (ii) Each of
the Buyer and the Agent acting together or alone may, at the expense of the
respective Sellers to which the respective Seller Receivables shall have been
originally owed, direct the Obligors of such Seller Receivables, or any of them,
to make payment of all amounts due or to become due to any Seller under Seller
Receivables directly to the Agent or its designee.

     

    (iii) Each
Seller shall, at the Buyer’s or the Agent’s request and at such Seller’s
expense, give notice of such ownership to such Obligors and direct them to make
such payments directly to the Agent or its designee.

     

    (iv) Each
Seller shall, at the Buyer’s or the Agent’s request and at such Seller’s
expense, (A) assemble, and make available to the Buyer and the Agent at a place
reasonably selected by the Agent or its designee, all of the Records that
evidence or relate to the Receivable Assets, or which are otherwise necessary or
desirable to collect the Seller Receivables, provided that in the
case of Records consisting of computer programs, data processing software and
any other intellectual property under license from third parties, such Seller
will make available such Records only to the extent that the license for such
property so permits, and provided, further, that during
the continuance of a Potential Event of Termination, such Seller shall, at the
request of the Buyer or the Agent, commence the process of assembling such
Records, and (B) segregate all cash, checks and other instruments received
by it from time to time constituting collections of Seller Receivables in a
manner reasonably acceptable to the Agent and, promptly upon receipt, remit all
such cash, checks and instruments, duly endorsed or with duly executed
instruments of transfer, to the Agent or its designee.

     

    (v) The Agent
may take any and all commercially reasonable steps in the name of any Seller and
on behalf of such Seller, the Buyer and the Purchasers that are necessary or
appropriate, in the reasonable determination of the Agent, to collect amounts
due under the Seller Receivables, including, without limitation, endorsing such
Seller’s name on checks and other instruments representing Collections of Seller
Receivables and enforcing the Seller Receivables and the Related Security and
related contracts, and adjusting, settling or compromising the amount or payment
thereof, in the same manner and to the same extent as such Seller might have
done in the absence of Section 4.03(a).

     

    (c) At any
time during the continuance of a Triggering Event, the Agent may, upon the
instructions of the Required Purchasers and at such Seller’s expense, request
any of the Obligors of the Seller Receivables to confirm the Outstanding Balance
of such Obligor’s Seller Receivables.

     

    SECTION
5.03.   Responsibilities of the
Sellers.

     

    Anything
herein to the contrary notwithstanding:

     

    (a) Each
Seller shall perform its obligations under the Contracts related to the Seller
Receivables to the same extent as if the Receivable Assets had not been sold and
the exercise by the Buyer or the Agent of its rights hereunder or under the
Receivables Purchase Agreement shall not release the Buyer’s Servicer or such
Seller from any of its duties or obligations with respect to any Seller
Receivables or under the related Contracts; and

     

    (b) Neither
the Buyer nor the Agent nor the Purchasers nor any other Indemnified Party shall
have any obligation or liability with respect to any Seller Receivables or
related Contracts, nor shall any of them be obligated to perform any of the
obligations of any Seller thereunder.

     

    SECTION
5.04.   Further Actions Evidencing
Purchases.

     

    (a) Each
Seller agrees that from time to time, at its expense, it will promptly execute
and deliver all further instruments and documents, and take all further action,
that may be necessary, or that the Buyer or the Agent may reasonably request, to
perfect, protect or more fully evidence or maintain the validity and
effectiveness of the sale, transfer and assignment of Receivable Assets by such
Seller to the Buyer hereunder and the Receivable Interests purchased by the
Purchasers under the Receivables Purchase Agreement, to carry out more
effectively the purposes of the Transaction Documents and  to enable
any of them or the Agent to exercise and enforce their respective rights and
remedies hereunder or under the other Transaction Documents. Without limiting
the foregoing, each Seller will, upon the request of the Buyer or the Agent, in
order to perfect, protect or evidence such sales, transfers and assignments and
such Receivable Interests: (i) execute, authenticate and/or file such financing
or continuation statements or amendments thereto, and such other instruments and
documents, that may be necessary, or that the Buyer or the Agent may reasonably
request; (ii) from and after April 1, 2008, mark conspicuously each invoice
evidencing each Seller Receivable with a legend stating that such Seller
Receivables have been sold, transferred and assigned to the Buyer in accordance
with this Agreement; and (iii) mark its master data processing records
evidencing such Seller Receivables and related Contracts with such
legend.

     

    (b) Each
Seller hereby authorizes each of the Buyer and the Agent acting together or
alone (upon prior written notice to the Seller) to file one or more financing or
continuation statements and amendments thereto relating to all or any of the
Receivable Assets without the signature of such Seller where permitted by
law.  A photocopy or other reproduction of this Agreement shall be
sufficient as a financing statement where permitted by law.

     

    (c) If
Lyondell in its capacity as Buyer’s Servicer fails to perform any of its
obligations hereunder, the Buyer or the Agent may, upon prior written notice to
Lyondell, itself perform, or cause performance of, such obligation, and the
reasonable costs and expenses of the Agent or the Buyer incurred in connection
therewith shall be payable by the Seller under Section 6.01 or 8.04, as
applicable.

     

                              
ARTICLE
VI                                

     

     

    INDEMNIFICATION

     

    SECTION
6.01.   Indemnities by the
Sellers.

     

    Without
limiting any other rights that any Indemnified Party may have hereunder or under
applicable law, and whether or not any of the transactions contemplated hereby
are consummated, each Seller hereby agrees to indemnify each Indemnified Party
from and against, and hold each thereof harmless from, any and all claims,
losses, liabilities, costs and expenses of any kind whatsoever (including,
without limitation, reasonable attorneys’ fees and expenses) (all of the
foregoing being collectively referred to as “Indemnified Amounts”)
arising out of, or resulting from, in whole or in part, the Transaction
Documents or the activities of such Seller in connection herewith or with any
other Transaction Document or the use of proceeds of sales, transfers and
assignments of Receivable Assets hereunder; excluding, however, Indemnified
Amounts (a) to the extent resulting solely and directly from (x) the gross
negligence or willful misconduct on the part of such Indemnified Party or (y)
the failure to collect amounts in respect of a Seller Receivable to the extent
such failure results from a discharge of the Obligor with respect thereto in a
proceeding in respect of such Obligor under applicable bankruptcy laws or
otherwise results from the Obligor’s financial inability to pay such amounts or
(b) that are subject to the exclusions from reimbursement or payment therefor
under Section 2.14 of the Receivables Purchase Agreement.  Without
limiting or being limited by the foregoing and whether or not any of the
transactions contemplated hereby are consummated, each Seller shall pay on
demand to each Indemnified Party any and all amounts necessary to indemnify such
Indemnified Party from and against any and all Indemnified Amounts which relate
to or result from, or which would not have occurred but for, one or more of the
following:

     

    (i) any
Receivable originally owed to such Seller becoming a Seller Receivable which is
not at the date of its sale, transfer and assignment hereunder an Eligible
Receivable;

     

    (ii) any
representation or warranty or statement made or deemed made by such Seller (or
any of its officers) under or in connection with this Agreement or any other
Transaction Document or any Receivables Activity Report, Seller Report or other
document delivered or to be delivered by such Seller in connection herewith or
with any other Transaction Document being incorrect in any material respect when
made or deemed made or delivered;

     

    (iii) the
failure by such Seller to comply with any applicable law, rule or regulation
with respect to any Seller Receivable originally owed to such Seller or the
related Contract or any Related Security with respect thereto; or the failure,
as a result of any action or omission of such Seller, of any Seller Receivable
or the related Contract or any Related Security with respect thereto to conform
to any such applicable law, rule or regulation;

     

    (iv) the
failure by any action or inaction of such Seller to vest in the Buyer a first
priority perfected 100% ownership interest in each Seller Receivable originally
owed to such Seller and the Related Security and Collections in respect thereof,
free and clear of any Lien (except for Liens created by the Transaction
Documents and Permitted Liens);

     

    (v) the
failure of such Seller to have filed, or any delay by such Seller in filing,
financing statements or other similar instruments or documents under the UCC of
any applicable jurisdiction or other applicable laws with respect to any Seller
Receivable originally owed to such Seller and the Related Security and
Collections in respect thereof, whether at the time of the initial sale,
transfer and assignment hereunder or at any subsequent time;

     

    (vi) any
dispute, claim, offset or defense (other than discharge in bankruptcy of the
Obligor) of any Obligor with or against such Seller to the payment of any Seller
Receivable originally owed to such Seller (including, without limitation, any
defense based on the fact or allegation that such Receivable or the related
Contract is not a legal, valid and binding obligation of such Obligor
enforceable against it in accordance with its terms), or any other claim
resulting from the sale by such Seller of the goods or services related to such
Receivable or such Seller’s furnishing or failure to furnish such goods or
services;

     

    (vii) any
failure of such Seller (and, in the case of Lyondell, any failure of Lyondell,
as Buyer’s Servicer, Servicer, or otherwise) to perform its duties, obligations
or covenants under and in accordance with this Agreement or any other
Transaction Document or to perform its duties or obligations under any
Contract;

     

    (viii) any
product liability, personal injury, copyright infringement, theft of services,
property damage, or other breach of contract, antitrust, unfair trade practices
or tortious claim arising out of or in connection with any action or omission of
such Seller and the subject matter of any Contract or out of or in connection
with any transaction contemplated by this Agreement, any other Transaction
Document or any other instrument or document furnished pursuant hereto or such
Contract;

     

    (ix) the
commingling by such Seller of Collections of Seller Receivables originally owed
to such Seller at any time with other funds;

     

    (x) any
action or omission by such Seller, whether as Buyer’s Servicer, Servicer or
otherwise, reducing or impairing the rights of the Buyer hereunder or of any
Purchaser of a Receivable Interest under the Receivables Purchase Agreement, any
other Transaction Document or any other instrument or document furnished
pursuant hereto or thereto or with respect to any Seller
Receivable;

     

    (xi) any
cancellation or modification of a Seller Receivable originally owed to such
Seller, the related Contract or any other Related Security, whether by written
agreement, verbal agreement, acquiescence or otherwise, unless such cancellation
or modification was made by or with the express consent of the Agent or a
Servicer that is not Lyondell or an Affiliate or Subsidiary of Lyondell; provided that in no event
shall Indemnified Amounts include any unpaid portion of a Seller Receivable
effected by any such cancellation or modification;

     

    (xii) (A) any
investigation, litigation or proceeding related to or arising from this
Agreement, any other Transaction Document or any other instrument or document
furnished pursuant thereto, or any transaction contemplated by this Agreement or
any Contract, or the ownership of, or other interest in, any Seller Receivable
originally owed to such Seller, the related Contract or Related Security, excluding, however, Indemnified
Amounts to the extent resulting from a claim of any Indemnified Party that does
not arise out of or result from any action or omission of such Seller or (B) the
use by such Seller of proceeds of any sale, transfer and assignment of any
Receivable Asset hereunder;

     

    (xiii) the
existence of any Lien against or with respect to any Seller Receivable
originally owed to such Seller, the related Contract, Related Security or
Collections and resulting from any act or omission of such Seller;

     

    (xiv) any
failure by such Seller to pay when due any taxes, including without limitation
sales, excise or personal property taxes, payable by such Seller in connection
with any Seller Receivable originally owed to such Seller or the related
Contract or any Related Security with respect thereto;

     

    (xv) any claim
brought by any Person other than an Indemnified Party arising from any activity,
action or omission of by such Seller or any Affiliate or Subsidiary of such
Seller (other than the Buyer) in servicing, administering or collecting any
Seller Receivable originally owed to such Seller; or

     

    (xvi) any
failure by any Lock-Box Bank or other depositary bank at which a Restricted
Account is maintained in the name of such Seller to comply with the terms of the
Lock-Box Agreement or other control agreement relating to such Restricted
Account to which it is a party.

     

    ARTICLE
VII

     

     

    ADDITION
AND TERMINATION OF SELLERS

     

    SECTION
7.01.   Addition of
Sellers.

     

    Subject
to Section 7.02, from time to time, one or more Subsidiaries which are 100%
owned, directly or indirectly, by Lyondell, or any Affiliate of Lyondell, which
own or originate Receivables may become Sellers hereunder and parties
hereto.  If any such Subsidiary or Affiliate wishes to become an
additional Seller or if Lyondell or any Seller desires to acquire any Person as
a new wholly-owned Subsidiary and cause such Subsidiary to be a Seller at the
time such acquisition is consummated, it shall submit a request to such effect
in writing to the Buyer and the Agent.  If the Buyer and the Agent,
acting at the request or with the consent of the Required Purchasers, shall have
agreed to any such request, such Subsidiary or Affiliate shall become an
additional Seller hereunder and a party hereto and also to the Intercreditor
Agreement on the related Seller Addition Date upon the satisfaction of the
conditions set forth in Section 7.02.  The Buyer and the Agent on
behalf of itself and each Purchaser hereby agree and consent to Basell USA Inc.
becoming a Seller hereunder upon satisfaction of the conditions in Section
7.02.

     

    SECTION
7.02.   Conditions Precedent to the
Addition of a Seller.

     

    No
Subsidiary or Affiliate of Lyondell approved by the Buyer as an additional
Seller pursuant to Section 7.01 shall be added as a Seller hereunder unless the
conditions set forth below shall have been satisfied on or before the date
designated for the addition of such Seller (the “Seller Addition
Date”):

     

    (a) the Buyer
and the Agent shall have received copies of duly adopted resolutions of the
Board of Directors, partners or managers (as applicable) of such proposed
additional Seller, as in effect on the related Seller Addition Date, authorizing
this Agreement and the execution of a supplement to this Agreement,
substantially in the form of Exhibit B hereto (“Seller Supplement”),
making such proposed additional Seller a “Seller” hereunder and under any other
Transaction Document, the documents to be delivered by such proposed additional
Seller hereunder and under any other Transaction Document and the transaction
contemplated hereby and thereby, certified by the Secretary or Assistant
Secretary (or similar officer) of such proposed additional Seller;

     

    (b) such
proposed additional Seller shall have executed with Lyondell a transfer
agreement in form and substance reasonably satisfactory to the Buyer and the
Agent (a “Transfer
Agreement”), pursuant to which (i) to the extent that the Buyer would not
be permitted under Section 2.02(f) hereof to purchase Receivable Assets from
such Seller for cash or advances under a Subordinated Note payable to the order
of such Seller (herein, the “Excess Receivable
Assets”), such Seller shall agree to distribute to Lyondell all such
Excess Receivable Assets that such Seller would otherwise sell to the Buyer
under the provisions hereof, and (ii) Lyondell, as a Seller will sell or
contribute (as provided herein) such Excess Receivable Assets to the Buyer as
provided herein;

     

    (c) the Buyer
and the Agent shall have received duly executed certificates of the Secretary or
an Assistant Secretary (or similar officer) of such proposed additional Seller,
dated the related Seller Addition Date, certifying the names and true signatures
of the officers authorized on behalf of such proposed additional Seller to sign
any instruments or documents in connection with the addition of such proposed
additional Seller as a “Seller” under this Agreement or for purposes of any
other Transaction Document;

     

    (d) a
Lock-Box Account with respect to the Seller Receivables to be sold by such
proposed additional Seller shall have been established and approval of the Agent
shall have been obtained, and a Lock-Box Agreement with respect to such Lock-Box
Account shall be in effect;

     

    (e) the Buyer
and the Agent shall have received copies of  proper financing
statements (Form UCC-1), in such form as the Agent, on the Buyer’s behalf, may
reasonably request, naming such proposed additional Seller as the debtor and
seller of Seller Receivables, the Related Security and Collections related
thereto and proceeds to be sold by such proposed additional Seller, the Buyer as
the secured party and purchaser thereof and the Agent, as assignee, or other,
similar instruments or documents, as may be necessary or, in the opinion of the
Agent, on the Buyer’s behalf, desirable under the UCC or any comparable law of
all appropriate jurisdictions to perfect and protect the sale by such Seller to
the Buyer of Seller Receivables, the Related Security and Collections related
thereto and proceeds to be sold by such proposed additional Seller;

     

    (f) the Buyer
and the Agent, on the Buyer’s behalf, shall have received search reports (i)
listing all effective financing statements that name such proposed additional
Seller as debtor and that are filed in the jurisdictions in which filings were
made pursuant to subsection (e) above and in such other jurisdictions that the
Agent shall reasonably request, together with copies of such financing
statements (none of which (other than any of the financing statements described
in subsection (e) above or that relate to the transaction contemplated by the
Transaction Documents or that relate to Liens, if any, created pursuant to the
ABF Agreement; provided such Liens
are released upon the sale, transfer and/or assignment of the Receivables Assets
that they cover) shall cover any Seller Receivables or any Related Security or
Collections related thereto or proceeds unless appropriate releases and/or
termination statements with respect thereto are executed and delivered to the
Buyer and the Agent), and (ii) listing all tax liens and judgment liens (if any)
filed against any debtor referred to in clause  (i) above in the
jurisdictions described therein and showing no such Liens;

     

    (g) such
proposed additional Seller shall have delivered or transmitted to the Buyer,
with respect to the Seller Receivables, a computer tape, diskette or data
transmission reasonably acceptable to the Buyer showing, as of a date no later
than five Business Days preceding the related Seller Addition Date, the
information required to be contained in a Receivables Report as to all Seller
Receivables to be transferred by such proposed additional Seller to Buyer on the
related Seller Addition Date;

     

    (h) the Buyer
and the Agent shall have received such customary certificates, organizational
documents, good standing certificates, agreements, instruments, direction
letters, consents, waivers, amendments, legal opinions or documents as
reasonably requested by the Buyer or the Agent; and

     

    (i) the Buyer
and the Agent shall have received duly executed copies of a Supplement to this
Agreement, substantially in the form of Exhibit B, making such proposed
additional Seller a “Seller” hereunder and thereunder, which Supplement shall
have been duly executed and consented to by the Buyer and the Agent (in the case
of Agent, in its Discretion).

     

    SECTION
7.03.   Termination of a
Seller.

     

    (a) Any
Seller (other than Lyondell) shall be terminated as a Seller hereunder by the
Buyer and with prior written notice to the Agent, on behalf of the Purchasers,
(i) on the occurrence of any event set forth in Section 7.1(f) of the
Receivables Purchase Agreement as to such Seller, (ii) if the Company ceases to
own, directly or indirectly, 100% of the Equity Interests of such Seller, or
(iii) on five Business Days’ notice to such effect by the Agent (with the
consent or at the request of the Required Purchasers) to the Buyer following the
occurrence of any Event of Termination as to such Seller (each a “Mandatory Seller Termination
Date”).  From and after any Mandatory Seller Termination Date,
the Buyer shall cease buying Receivable Assets from the related
Seller.  Each such Seller being terminated shall be released as a
Seller party hereto for all purposes and shall cease to be a party hereto on the
91st
day after the date on which there are no amounts payable hereunder by such
Seller and no amounts outstanding with respect to Seller Receivables previously
sold by such Seller to the Buyer, whether such amounts have been collected or
written off in accordance with the Credit and Collection Policy of such
Seller.  Prior to such day, such Seller shall be obligated to perform
its obligations hereunder and under the Transaction Documents to which it is a
party with respect to Receivable Assets previously sold by such Seller to the
Buyer, including, without limitation, its obligation to direct the deposit of
Collections into the appropriate Lock-Box Account.

     

    (b) From time
to time, the Sellers may request in writing (with a copy to the Agent) that the
Buyer designate one or more Sellers as Sellers that cease to be parties to this
Agreement (a “Permissive Seller
Termination”); provided that no Event of Termination or Potential Event
of Termination has occurred or will occur as a result
thereof.  Promptly after receipt of any such designation by the Agent
and each other Seller, such Seller shall select a date, which date shall not be
earlier than 15 Business Days after the date of receipt by the Agent of written
notice of such designation, as such Seller’s “Permissive Seller
Termination Date”; provided that such Permissive Seller Termination may
not occur with respect to a Seller without the written consent of the Agent, on
behalf of the Purchasers, if the aggregate Outstanding Balance of the Seller
Receivables of such Original Seller exceeds 10% of the aggregate Outstanding
Balance of all Seller Receivables of all Sellers as of the date of the
Receivables Report received immediately prior to the date of such notice to the
Agent.  From and after any Permissive Seller Termination Date, the
Buyer shall cease buying Receivables Assets from the related
Seller.  Each such Seller shall be released as a Seller party hereto
for all purposes and shall cease to be a party hereto on the 91st day
after the date on which there are no amounts payable hereunder by such Seller
and no amounts outstanding with respect to Seller Receivables previously sold by
such Seller to the Buyer, whether such amounts have been collected or written
off in accordance with the Credit and Collection Policy of such
Seller.  Prior to such day, such Seller shall be obligated to perform
its obligations hereunder and under the Transaction Documents to which it is a
party with respect to Seller Receivables previously sold by such Seller to
Buyer, including, without limitation, its obligation to direct the deposit of
Collections into the appropriate Lock-Box Account.

     

    (c) A
terminated Seller shall have no obligation to repurchase any Seller Receivables
previously sold by it to Buyer, but will have continuing obligations with
respect to such Receivables to the extent such obligations arise hereunder or
under any Transaction Document to which such Seller is a party, and shall be
entitled to receive any settlement of any Purchase Price payment pursuant to the
provisions of Article II hereof.

     

                                          
ARTICLE
VIII                                           

     

     

    MISCELLANEOUS

     

    SECTION
8.01.   Amendments,
Etc.

     

    No
amendment or waiver of any provision of this Agreement or any Transfer Agreement
or any Subordinated Note or consent to any departure by any Seller or the Buyer
therefrom shall be effective unless in a writing and signed by the Agent
pursuant to the terms of the Receivables Purchase Agreement and, in the case of
any such waiver or consent, the party against which the waiver or consent is to
be enforced or, in the case of any such amendment, the Buyer and each Seller,
and then such waiver or consent shall be effective only in the specific instance
and for the specific purpose for which given.  No failure on the part
of the Buyer, any Purchaser or the Agent to exercise, and no delay in
exercising, any right hereunder shall operate as a waiver thereof; nor shall any
single or partial exercise of any right hereunder preclude any other or further
exercise thereof or the exercise of any other right.

     

    SECTION
8.02.   Notices,
Etc.

     

    (a) All
notices and other communications hereunder shall, unless otherwise stated
herein, be in writing (including telegraphic, telecopy or telex communication)
and mailed, telegraphed, telecopied, telexed or delivered, to each party hereto,
at its address set forth under its name on the signature pages hereof or at such
other address as shall be designated by such party in a written notice to the
other parties hereto.  All such notices and communications shall, when
mailed, telegraphed, telecopied or telexed, be effective when received by the
Buyer, any Seller or the Agent, as applicable.

     

    (b) All
notices and other communications given to any party hereto in accordance with
the provisions of this Agreement shall be deemed to have been given on the date
of receipt if delivered by hand or overnight courier service or sent by telecopy
equipment of the sender, or on the date five Business Days after dispatch by
certified or registered mail if mailed, in each case delivered, sent or mailed
(properly addressed) to such party as provided in Section 8.02(a) or in
accordance with the latest unrevoked direction from such party given in
accordance with Section 8.02(a).

     

    (c) Notices
and other communications to the Agent hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the
Agent.  The Agent, the Buyer or any Seller may, in its discretion,
agree to accept notices and other communications to it hereunder by electronic
communications pursuant to procedures approved by it; provided that approval of
such procedures may be limited to particular notices or
communications.

     

    SECTION
8.03.   Binding Effect;
Assignability.

     

    This
Agreement shall become effective when it shall have been executed by each
Seller, Lyondell, as the Buyer’s Servicer, and Buyer and acknowledged by the
Agent, and thereafter shall be binding upon and inure to the benefit of such
Seller, the Buyer, the Agent, and each other Indemnified Party and their
respective successors and assigns, except that no Seller shall have the right to
assign its rights or obligations hereunder or any interest herein without the
prior written consent of the Buyer and the Agent and each Purchaser, and the
Buyer shall not have the right to assign its rights or obligations hereunder or
any interest herein except pursuant to the Consent and
Agreement.  This Agreement shall create and constitute the continuing
obligation of the parties hereto in accordance with its terms, and shall remain
in full force and effect until the Termination Date; provided, however, that rights
and remedies with respect to the provisions of Article VI and Sections 2.03,
8.04, 8.05, 8.06 and 8.13 shall be continuing and shall survive any termination
of this Agreement.

     

    SECTION
8.04.   Costs, Expenses and
Taxes.

     

    (a) In
addition to the rights of indemnification granted under this Agreement, each
Seller shall pay all reasonable out-of-pocket costs and expenses in connection
with the preparation, execution, delivery and administration (including periodic
auditing of Seller Receivables) of, and searches and filings in respect of, this
Agreement, the other Transaction Documents and the other documents and
agreements to be delivered hereunder or thereunder, and costs and expenses, if
any, incurred by the Buyer under Section 11.5 of the Receivables Purchase
Agreement, including, without limitation, in each case, the reasonable fees,
charges and disbursements of Davis Polk & Wardwell, special counsel for the
Agent, and counsel for the Purchasers with respect thereto and advising the
Agent as to its rights and remedies hereunder.  Each Seller further
agrees to pay all out-of-pocket expenses incurred by the Buyer or the Agent or
any Purchaser, including the fees, charges and disbursements of any counsel for
the Agent or any Purchasers, in connection with the enforcement (whether through
negotiations, legal proceedings or otherwise) of this Agreement, the other
Transaction Documents and the other instruments and documents to be delivered in
connection herewith or therewith.

     

    (b) In
addition, each Seller agrees to pay any present or future stamp or documentary
taxes or any other excise or property taxes, charges or similar levies that
arise from any payment made hereunder or from the execution, delivery or
registration of, or otherwise with respect to, this Agreement, any other
Transaction Document, or any other document or instrument delivered in
connection herewith or therewith (but excluding income taxes, such non-excluded
taxes being hereinafter referred to as “Other
Taxes”).  Each Seller shall indemnify each Indemnified Party
for and hold it harmless against the full amount of Other Taxes (including,
without limitation, any taxes imposed by any jurisdiction on amounts payable
under this Section 8.04(b)) imposed on or paid by such Indemnified Party and any
liability (including penalties, additions to tax, interest and expenses) arising
therefrom or with respect thereto whether or not such Other Taxes were correctly
or legally asserted.  This indemnification shall be made within 30
days from the date such Indemnified Party makes written demand therefor (with a
copy to the Agent).

     

    SECTION
8.05.   Non-Business
Days.

     

    In any
case where any payment or action is due under this Agreement on a day which is
not a Business Day, such payment or action may be made on the next succeeding
Business Day, but such extension of time shall in such case be included in the
computation of payment of interest or fees, as the case may be.

     

    SECTION
8.06.   Confidentiality.

     

    Each of
the Sellers and the Buyer agrees to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed (a) to
its and its Affiliates’ directors, officers, employees and agents, including
accountants, legal counsel and other advisors (it being understood that the
Persons to whom such disclosure is made will be informed of the confidential
nature of such Information and instructed to keep such Information
confidential), (b) to the extent required or requested by any regulatory
authority, (c) to the extent required by applicable laws or regulations or by
any subpoena or similar legal process, (d) to any other party to this Agreement,
(e) in connection with the exercise of any remedies under any Transaction
Document or any suit, action or proceeding relating to any Transaction Document
or the enforcement of rights thereunder, (f) subject to obtaining a written
agreement containing provisions substantially the same as those of this Section
from the intended recipient of such Information, to any assignee of or
participant in, or any prospective assignee of or participant in, any of the
rights or obligations of the Agent or any Purchaser under the Receivables
Purchase Agreement (including any SPC (as defined in the Receivables Purchase
Agreement)), (g) with the consent of a Seller, (h) for purposes of Section
9.1(e) of the Receivables Purchase Agreement only, to any rating agency (it
being understood that, prior to any such disclosure, such rating agency shall
undertake to preserve the confidentiality of any Information relating to the
Transaction Parties and their Subsidiaries received by it from such Purchaser),
(i) to the extent such Information (x) becomes publicly available other than as
a result of a breach of this Section or (y) becomes available on a
nonconfidential basis from a source other than the Transaction Parties or (j) to
any direct or indirect contractual counterparty in any swap, hedge or similar
agreement (or to such contractual counterparty’s professional advisor) so long
as the recipient of such Information agrees to be bound by the provisions of
this Section.  For the purposes of this Section, “Information” means
all information received from the Transaction Parties relating to the
Transaction Parties and their Affiliates or their respective businesses, other
than any such information that is available on a nonconfidential basis prior to
disclosure by any Transaction Party.  Any Person required to maintain
the confidentiality of Information as provided in this Section shall be
considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential
information.

     

    Notwithstanding
any other provision herein, each Seller and the Buyer (and each employee,
representative or other agent of such party) may disclose to any and all
Persons, without limitation of any kind, any information with respect to the
“tax treatment” and “tax structure” (in each case, within the meaning of
Treasury Regulation Section 1.6011-4) of the transactions contemplated by the
Transaction Documents and all materials of any kind (including opinions or other
tax analyses) that are provided to such Seller or the Buyer relating to such tax
treatment and tax structure.

     

    SECTION
8.07.   Governing
Law.

     

    This
Agreement shall be governed by, and construed in accordance with, the laws of
the State of New York.

     

    SECTION
8.08.   Consent to
Jurisdiction.

     

    (a) Any legal
action or proceeding with respect to this Agreement or any other Transaction
Document may be brought in the courts of the State of New York sitting in the
Borough of Manhattan, the City of New York, or of the United States of America
for the Southern District of New York, and, by execution and delivery of this
Agreement, each of the Sellers and the Buyer hereby accepts for itself and in
respect of its property, generally and unconditionally, the jurisdiction of the
aforesaid courts.  The parties hereto hereby irrevocably waive any
objection, including any objection to the laying of venue or based on the
grounds of forum non conveniens, that any of them may now or hereafter have to
the bringing of any such action or proceeding in such respective
jurisdictions.

     

    (b) Each of
the Sellers and the Buyer hereby irrevocably consents to the service of any and
all legal process, summons, notices and documents in any suit, action or
proceeding brought in the United States of America arising out of or in
connection with this Agreement or any other Transaction Document by the mailing
(by registered or certified mail, postage prepaid) or delivering of a copy of
such process to such Seller or the Buyer, as the case may be, at its address
specified in Section 8.02.  Each of the Sellers and Buyer agrees that
a final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.

     

    (c) Nothing
contained in this Section 8.08 shall affect the right of any party to serve
process in any other manner permitted by law or commence legal proceedings or
otherwise proceed against any other party in any other
jurisdiction.

     

    SECTION
8.09.   Execution in
Counterparts.

     

    This
Agreement may be executed in any number of counterparts, each of which when so
executed shall be deemed to be an original and all of which when taken together
shall constitute one and the same agreement.  Delivery by telecopier
of an executed counterpart of a signature page to this Agreement shall be
effective as delivery of an original executed counterpart of this
Agreement.

     

    SECTION
8.10.   Entire
Agreement.

     

    This
Agreement and the other Transaction Documents to which the parties hereto are
party contain a final and complete integration of all prior expressions by the
parties hereto with respect to the subject matter hereof and shall constitute
the entire agreement and understanding among the parties hereto with respect to
the subject matter hereof and supersede all prior agreements and understandings,
written or oral, relating to the subject matter hereof.

     

    SECTION
8.11.   Severability of
Provisions.

     

    Any
provision of this Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof or affecting the validity or enforceability of such provision
in any other jurisdiction.

     

    SECTION
8.12.   Waiver of Jury
Trial.

     

    Each of
the parties hereto irrevocably waives all right to trial by jury in any action,
proceeding or counterclaim (whether based on contract, tort or otherwise)
arising out of or relating to this Agreement or any of the other Transaction
Documents or the actions of the Agent or any Indemnified Party in the
negotiation, administration, performance or enforcement hereof or
thereof.

     

    SECTION
8.13.   No
Proceedings.

     

    (a) Each of
the Sellers hereby agrees that it will not institute against the Buyer any
proceeding of the type referred to in Section 7.1(f) of the Receivables Purchase
Agreement so long as there shall not have elapsed one year plus one day since
the later of the (i) the Termination Date and (ii) the date upon which no
Capital Investment for any Receivable Interest shall be existing and no amounts
payable under this Agreement and the Receivables Purchase Agreement remain
unpaid.

     

    (b) No claim
may be made by any party to this Agreement or any other Person against any other
party hereto or any Indemnified Party or their respective Affiliates, directors,
officers, employees, attorneys or agents for any special, indirect,
consequential or punitive damages in respect of any claim for breach of contract
or any other theory of liability arising out of or related to the transactions
contemplated by this Agreement and the other Transaction Documents, or any act,
omission or event occurring in connection therewith; and each party to this
Agreement hereby waives, releases, and agrees not to sue upon any claim for any
such damages, whether or not accrued and whether or not known or suspected to
exist in its favor.

     

    

     

    [Remainder
of page intentionally left blank.]

     

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

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

     

     

    
      	
               
      

            	
              LYONDELL
      CHEMICAL COMPANY,

                  as
      a Seller and as Buyer's Servicer

            

    

     

     

    By:  /s/
Karen A.
Twitchell                      

    Name: 
Karen A. Twitchell

    Title:   
Authorized Representative

     

    Address:    1221
McKinney, sUITE 700

             Houston,
TX  77010

     

    Attention:     
Assistant Treasurer

     

    Telephone
No.:   713/652-7200

    Telecopier
No.:   713/652-4598

     

    

     

    
      
        
          [Receivables
Sale Agreement]

           

        

         

      

      
         

        
          

        

      

      
         

      

    

     

    
       

      
        	
                 
      

              	
                EQUISTAR
      CHEMICALS, LP,

                    as
      a Seller

              

      

       

       

      By:  /s/
Karen A.
Twitchell                      

      Name: 
Karen A. Twitchell

      Title:   
Authorized Representative

       

      Address:    1221
McKinney, Suite 700

               Houston,
TX  77010

       

      Attention:     
Assistant Treasurer

       

      Telephone
No.:   713/652-7200

      Telecopier
No.:   713/652-4598

       

    
      
        
          [Receivables
Sale Agreement]

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    
       

      
         

        
          	
                   
      

                	
                  HOUSTON
      REFINING LP,

                      as
      a Seller

                

        

         

         

        By:  /s/
Karen A.
Twitchell                      

        Name: 
Karen A. Twitchell

        Title:   
Authorized Representative

         

        Address:    1221
McKinney, Suite 700

                 Houston,
TX  77010

         

        Attention:     
Assistant Treasurer

         

        Telephone
No.:   713/652-7200

        Telecopier
No.:   713/652-4598

         

    

    
      
        
          [Receivables
Sale Agreement]

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    
       

      
         

        
          	
                   
      

                	
                  LYONDELLBASELL
      RECEIVABLES I, LLC,

                      as
      Buyer

                

        

         

         

        By:  /s/
Karen A.
Twitchell                      

        Name: 
Karen A. Twitchell

        Title:   
Vice President and Treasurer

         

        Address:    1221
McKinney, Suite 700

                 Houston,
TX  77010

         

        Attention:     
Assistant Treasurer

         

        Telephone
No.:   713/652-7200

        Telecopier
No.:   713/652-4598

         

    

    
      
        
          [Receivables
Sale Agreement]

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    Acknowledged
as of the date first above written:

     

    
      	
               
      

            	
              CITIBANK,
      N.A.,

            

    

    
      	
               
      

            	
                as
      Agent

            

    

    

    

    By:   /s/
Matthew
Paquin                                                                      

    Name:   Matthew Paquin  

    Title:     Vice
President

    

    Address:        388
Greenwich Street

    19th Floor

    New York, New
York  10013

    

    Attention:      David
Jaffe

    

    Telephone
No.:      (212) 816-2329

    Telecopier
No.:      (212) 816-2613

    

    

    
      
        
          Receivables
Sale Agreement

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A

    [FORM
OF SUBORDINATED NOTE]

    

    December
20, 2007

    

    1. Note.  FOR
VALUE RECEIVED, the undersigned, LYONDELLBASELL RECEIVABLES I, LLC, a Delaware
limited liability company (“SPV”), hereby
unconditionally promises to pay to Equistar Chemicals, LP, a Delaware limited
partnership or its registered assigns (“Originator”), in
lawful money of the United States of America and in immediately available funds,
on the date following the date which is one year and one day after the date on
which (i) the Outstanding Balance of all Receivables sold under the “Sale
Agreement” referred to below has been reduced to zero and (ii) Originator has
paid to SPV all indemnities, adjustments and other amounts which may be
outstanding thereunder in connection with the sales and transfer of the
“Receivable Assets” (as defined in the Sale Agreement) (the “Collection Date”),
the aggregate unpaid principal sum provided for in Section 3 hereof in
accordance with the terms of that certain Receivables Sale Agreement dated as of
December 20, 2007 among Lyondell Chemical Company, as Buyer’s Servicer and as
Seller, the other Sellers, party thereto and SPV, as Buyer (as amended,
restated, supplemented or otherwise modified from time to time, the “Sale
Agreement”).  Reference to Section 2.02(d) of
the Sale Agreement is hereby made for a statement of the terms and conditions
under which the loans evidenced hereby have been and will be
made.  All terms which are capitalized and used herein and which are
not otherwise specifically defined herein shall have the meanings ascribed to
such terms in the Sale Agreement.

     

    2. Interest.  SPV
further promises to pay interest on the outstanding unpaid principal amount
hereof from the date hereof until payment in full hereof at a rate equal to the
Alternate Base Rate; provided, however, that if SPV
shall default in the payment of any principal hereof, SPV promises to pay, on
demand, interest at the rate of the Alternate Base Rate plus 2.00% per annum on
any such unpaid amounts, from the date such payment is due to the date of actual
payment; provided that in no
event shall such rate exceed the maximum rate permitted by applicable
law.  Interest shall be payable on the first Business Day of each
month in arrears; provided, however, that SPV may
elect on the date any interest payment is due hereunder to defer such payment
and upon such election the amount of interest due but unpaid on such date shall
constitute principal under this Subordinated Note.  The outstanding
principal of any loan made under this Subordinated Note shall be due and payable
on the Collection Date and may be repaid or prepaid at any time without premium
or penalty.

     

    3. Principal
Payments.  The aggregate outstanding principal amount of this
Subordinated Note at any time shall be equal to the excess of (x) the aggregate
principal amount of advances to SPV and increases to such principal amount made
pursuant to Section 2.02(d) of the Sale Agreement as of such time, over (y) the
aggregate amount of all payments made in respect of the principal of this
Subordinated Note; provided, however, that no
increases to the principal amount of this Subordinated Note shall be made to the
extent that, as a result of such increase and after giving effect thereto, SPV’s
net worth would be less than 6.0% of the aggregate Outstanding Balance of the
Receivables at such time.  Originator is authorized and directed by
SPV to enter on the grid attached hereto, or, at its option, in its books and
records, the date and amount of each loan made by it which is evidenced by this
Subordinated Note and the amount of each payment of principal made by SPV, and
absent manifest error, such entries shall constitute prima facie evidence of the
accuracy of the information so entered; provided that neither
the failure of Originator to make any such entry or any error therein shall
expand, limit or affect the obligations of SPV hereunder.

     

    4. Subordination.  The
indebtedness evidenced by this Subordinated Note is subordinated to the prior
payment in full of all of SPV’s recourse obligations under that certain
Receivables Purchase Agreement dated as of December 20, 2007, by and among SPV,
Lyondell Chemical Company, as Servicer, various “Purchasers” and “Agents” from
time to time party thereto, Cibank, N.A., as the “Administrative Agent” and as
the “Asset Agent” (as amended, restated, supplemented or otherwise modified from
time to time, the “Purchase
Agreement”).  The subordination provisions contained herein are
for the direct benefit of, and may be enforced by, the Agent and the Purchasers
and/or any of their respective assignees (collectively, the “Senior Claimants”)
under the Purchase Agreement.  Until the date on which all “Capital
Investments” outstanding under the Purchase Agreement has been repaid in full
and all other obligations of SPV and/or the Servicer thereunder (all such
obligations, collectively, the “Senior Claim”) have
been indefeasibly paid and satisfied in full, Originator shall not demand,
accelerate, sue for, take, receive or accept from SPV, directly or indirectly,
in cash or other property or by set-off or any other manner (including, without
limitation, from or by way of collateral) any payment or security of all or any
of the indebtedness under this Subordinated Note or exercise any remedies or
take any action or proceeding to enforce the same; provided, however, that (i)
Originator hereby agrees that it will not institute against SPV any proceeding
of the type described in Section 7.1(f) of the
Purchase Agreement unless and until the Collection Date has occurred and (ii)
nothing in this paragraph shall restrict SPV from paying, or Originator from
requesting, any payments under this Subordinated Note so long as SPV is not
required under the Purchase Agreement to set aside for the benefit of, or
otherwise pay over to, the funds used for such payments to any of the Senior
Claimants and further provided that the making of such payment would not
otherwise violate the terms and provisions of the Purchase
Agreement.  Should any payment, distribution or security or proceeds
thereof be received by Originator in violation of the immediately preceding
sentence, Originator agrees that such payment shall be segregated, received and
held in trust for the benefit of, and deemed to be the property of, and shall be
immediately paid over and delivered to the Administrative Agent for the benefit
of the Senior Claimants.

     

    5. Bankruptcy;
Insolvency.  Upon the occurrence of any proceeding of the type
described in Section
7.1(f) of the Purchase Agreement involving SPV as debtor, then and in any
such event the Senior Claimants shall receive payment in full of all amounts due
or to become due on or in respect of Capital Investments and the Senior
Claim  (including “Yield” as defined and as accruing under the
Purchase Agreement after the commencement of any such proceeding, whether or not
any or all of such Yield is an allowable claim in any such proceeding) before
Originator is entitled to receive payment on account of this Subordinated Note,
and to that end, any payment or distribution of assets of SPV of any kind or
character, whether in cash, securities or other property, in any applicable
insolvency proceeding, which would otherwise be payable to or deliverable upon
or with respect to any or all indebtedness under this Subordinated Note, is
hereby assigned to and shall be paid or delivered by the Person making such
payment or delivery (whether a trustee in bankruptcy, a receiver, custodian or
liquidating trustee or otherwise) directly to the Agent for application to, or
as collateral for the payment of, the Senior Claim until such Senior Claim shall
have been paid in full and satisfied.

     

    6. GOVERNING
LAW.  THIS SUBORDINATED NOTE SHALL BE GOVERNED AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK, INCLUDING, WITHOUT
LIMITATION, SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF NEW YORK BUT
OTHERWISE WITHOUT REGARD TO THE LAW OF CONFLICTS.  WHEREVER POSSIBLE
EACH PROVISION OF THIS SUBORDINATED NOTE SHALL BE INTERPRETED IN SUCH MANNER AS
TO BE EFFECTIVE AND VALID UNDER APPLICABLE LAW, BUT IF ANY PROVISION OF THIS
SUBORDINATED NOTE SHALL BE PROHIBITED BY OR INVALID UNDER APPLICABLE LAW, SUCH
PROVISION SHALL BE INEFFECTIVE TO THE EXTENT OF SUCH PROHIBITION OR INVALIDITY,
WITHOUT INVALIDATING THE REMAINDER OF SUCH PROVISION OR THE REMAINING PROVISIONS
OF THIS SUBORDINATED NOTE.

     

    7. Waivers.  All
parties hereto, whether as makers, endorsers, or otherwise, severally waive
presentment for payment, demand, protest and notice of
dishonor.  Originator additionally expressly waives all notice of the
acceptance by any Senior Claimant of the subordination and other provisions of
this Subordinated Note and expressly waives reliance by any Senior Claimant upon
the subordination and other provisions herein provided.

     

    8. Assignment.  This
Subordinated Note may not be assigned, pledged or otherwise transferred to any
party without the prior written consent of the Agent, and any such attempted
transfer shall be void.

     

    9. Notices.  Any
notices to be given pursuant to this Subordinated Note shall be given as
provided in the Sale Agreement.

     

    10. Amendments.  This
Subordinated Note shall not be amended or modified (including any amendment or
modification that has the effect of terminating this Subordinated Note) except
in accordance with Section 8.01 of the Sale Agreement.

     

    

     

    [signature
page follows]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    LYONDELLBASELL
RECEIVABLES I, LLC

     

    
      	
               
      

            	
              By:

            

    

     

    
      	
               
      

            	
              Name:

            

    

     

    
      	
               
      

            	
              Title:

            

    

     

    

     

    
      
        
          [Subordinated Note – Equistar
Chemicals, LP]

        

         

      

      
         

        
          

        

      

      
         

      

    

    Schedule

     

    to

     

    SUBORDINATED
NOTE

     

    

     

    

     

    SUBORDINATED
LOANS AND PAYMENTS OF PRINCIPAL

     

    
      	
              Date

            	 
      	
              Amount
      of

              Subordinated

              Loan

            	 
      	
              Amount
      of

              Principal

              Paid

            	 
      	
              Unpaid

              Principal

              Balance

            	 
      	
              Notation
      made

              by

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

    

    

    

    

    
      
        
          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
B

     

    FORM
OF ADDITIONAL SELLER SUPPLEMENT

     

    SUPPLEMENT
dated as of ___________ by ________ (the “Company”) to the Receivables Sale
Agreement dated as of December 20, 2007 (as amended, supplemented or otherwise
modified from time to time in accordance with its terms, the “Receivables Sale
Agreement”) between Lyondell Chemical Company, a Delaware corporation
(“Lyondell”), Equistar Chemicals, LP, a Delaware limited partnership
(“Equistar”), Houston Refining LP, a Delaware limited partnership (“HRLP”) and
the other Sellers named therein, LyondellBasell Receivables I, LLC, a Delaware
limited liability company Buyer (“Buyer”), and Lyondell, as the Buyer’s
Servicer.  Capitalized terms used herein and not otherwise defined
herein shall have the meanings set forth in the Receivables Sale
Agreement.

     

    W I T N E
S S E T H:

     

    WHEREAS,
the Receivables Sale Agreement provides that any wholly-owned, direct or
indirect Subsidiary, or any affiliate of Lyondell, although not originally a
Seller thereunder, may become an additional Seller under the Receivables Sale
Agreement upon the satisfaction of each of the conditions precedent set forth in
Section 7.02 of the Receivables Sale Agreement and any applicable provisions of
any Supplement; and

     

    WHEREAS,
the Company is [a wholly-owned Subsidiary][an affiliate] of Lyondell and was not
a Seller under the Receivables Agreement but now desires to become a Seller
thereunder;

     

    NOW,
THEREFORE, the undersigned hereby agrees as follows:

     

    1.           Receivables Sale
Agreement.  By executing and delivering this Supplement, the
Company hereby agrees to become a party to the Receivables Sale Agreement as a
“Seller” thereunder.  In connection therewith, (i) the Company hereby
represents and warrants that all of the representations and warranties contained
in the Receivables Sale Agreement with respect to the Company are true and
complete as of the date of the Company’s initial sale or transfer of Receivable
Assets pursuant hereto or to the Transfer Agreement referred to below and (ii)
the Company hereby expressly assumes all of the obligations and liabilities of,
and agrees to be bound by all of the terms, covenants and conditions with
respect to, a “Seller” under the Receivables Sale Agreement and the Transfer
Agreement referred to below.

     

    2.           Effectiveness.  This
Supplement shall become effective, and the Company shall become a “Seller” under
the Receivables Sale Agreement, upon the Company’s execution and delivery hereof
to the Buyer and the Agent, the Buyer’s acknowledgment and the Agent’s consent
hereto, the execution and delivery by the Company and Lyondell of a Transfer
Agreement conforming to the requirements of Section 7.02(b) of the Receivables
Sale Agreement and the satisfaction of all of the then applicable conditions
precedent set forth in Section 7.02 of the Receivables Sale Agreement, without
any further action by any of the other parties to the Receivables Sale
Agreement.  Upon such effectiveness, in accordance with the terms of
Section 7.01 of the Receivables Sale Agreement, the exhibits and schedules to
the Receivables Sale Agreement shall be deemed amended as set forth in the
Annexes attached hereto and made a part hereof.

     

    3.           GOVERNING
LAW.  THIS
SUPPLEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS AND
DECISIONS OF THE STATE OF NEW YORK (INCLUDING, WITHOUT LIMITATION, SECTION
5-1401 OF THE GENERAL OBLIGATIONS LAW OF NEW YORK BUT OTHERWISE WITHOUT REGARD
TO CONFLICTS OF LAWS PRINCIPLES).

     

    4.           Counterparts.  This
Supplement may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed shall be
deemed to be an original and all of which when taken together shall constitute
one and the same agreement.

     

    
      
        
          

           

        

         

      

      
         

        
          

        

      

      
         

      

    

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

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    [NEW
SELLER]

     

    By:                                                                

    Name:

    Title:

    

    Address:

    

    

    

    Acknowledged
this

    __ day of
_________, 200_

    

    LYONDELLBASELL
RECEIVABLES I, LLC

    

    

    By:__________________________

    Name:

    Title:

    

    

    Consented
to this

    __ day of
_________, 200_

    

    CITIBANK,
N.A., as Agent

    

    

    By:__________________________

    Name:

    Title:

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ANNEXES

    TO

    SUPPLEMENT

    

    Amendments to the following
Exhibits and Schedules of the Receivables Sale Agreement

    

    

    [Set
forth the changes to each of the following Exhibits and Schedules, to the extent
applicable, in a separate annex hereto; annexes containing the same information
may be combined so long as they clearly state the Exhibits and Schedules to
which such information relates]mch10k-022808ex108.htm

    EXHIBIT
10.8

    
 

    INDEMNITY

     

    THIS INDEMNITY (this “Indemnity”) by
Millennium Petrochemicals Inc.
a Virginia corporation (“Millennium Indemnitor”), is in favor of EQUISTAR
CHEMICALS, LP, a Delaware limited partnership (the “Partnership”).

     

    RECITALS:

     

               A.           The
indemnity provided in this Indemnity reasonably may be expected to benefit,
directly or indirectly, Millennium Indemnitor.  Further, it is in the
best interests of Millennium Indemnitor to provide the indemnity set forth
hereunder, and such indemnity is necessary or convenient to the conduct,
promotion or attainment of the business of Millennium Indemnitor.

     

    B.           This
Indemnity is issued pursuant to Section 8.6(b) of the Amended and Restated
Limited Partnership Agreement of the Partnership, dated as of December 19, 2007,
among Lyondell Petrochemical LP4, Inc., Lyondell Petrochemical L.P. Inc.,
Millennium Petrochemicals GP LLC, Millennium Petrochemicals Partners, LP
(“Millennium LP1”), Lyondell (Pelican) Petrochemical L.P.1, Inc. and Lyondell
LP3 Partners, LP, as amended as of the date of this Indemnity (the “Partnership
Agreement”).

     

    AGREEMENTS:

     

               NOW,
THEREFORE, Millennium Indemnitor hereby agrees as follows:

     

    1.           Notwithstanding
any other provision of this Indemnity but subject to paragraph 6 below,
Millennium Indemnitor shall be obligated to contribute to the Partnership (the
“Contribution Obligation”) on behalf of Millennium LP1 the lesser amount of $300
million or the aggregate principal amount of the Referenced Obligations then
outstanding, but only after the holders of the Referenced Obligations shall have
pursued their remedies to compel payment of the Referenced Obligations by the
Partnership, and if, after exhaustion of all available remedies, including,
without limitation, the liquidation of assets, payment cannot be obtained from
the Partnership.  For purposes of this Indemnity, Referenced
Obligations are:

     

    (1)           the
Partnership’s Debentures due 2026 in the principal amount of $150
million;

     

    (2)           up
to $150 million of any bank borrowings of the Partnership secured by its
inventory, and

     

    (3)           to
the extent $150 million exceeds any bank borrowings secured by inventory, trade
accounts payable by the Partnership to unrelated parties up to the amount equal
to $150 million less the bank borrowings secured by inventory.

     

    2.           The
obligations of Millennium Indemnitor hereunder to the Partnership shall not be
subject to any reduction, limitation, impairment or termination for any reason,
and shall not be subject to any defense or setoff, counterclaim, recoupment or
termination whatsoever, by reason of the invalidity, illegality or
unenforceability of the Referenced Obligation, any impossibility in the
performance of the Referenced Obligation or otherwise, subject to
paragraph 6 below.  Without limiting the generality of the
foregoing, except as aforesaid, the obligations of Millennium Indemnitor
hereunder shall not be discharged or impaired or otherwise affected by any
waiver or modification of any of the Referenced Obligation, by any default,
failure or delay, willful or otherwise, in the performance of the Referenced
Obligation, or by any other act or omission which may or might in any manner or
to any extent vary the risk of Millennium Indemnitor or otherwise operate as a
discharge of Millennium Indemnitor as a matter of law or equity.

     

    3.           Millennium
Indemnitor further agrees that its obligations hereunder shall continue to be
effective or be reinstated, as the case may be, if at any time payment, or any
part thereof, of any of the Referenced Obligation is rescinded or must otherwise
be restored by the Partnership upon the bankruptcy or reorganization of an
Issuer or otherwise, unless those obligations of Millennium Indemnitor have
otherwise been terminated in accordance with the terms of this
Indemnity.

     

    4.           The
Partnership agrees that it shall not assign any of its right, title and interest
in and to this Indemnity.  This Indemnity shall not be construed to
create any right in the holders of the Referenced Obligations or any other
person (other than Millennium Indemnitor, the Partnership, Lyondell LP4 Inc.,
Lyondell Petrochemical L.P. Inc., Lyondell (Pelican) Petrochemical L.P.1, Inc.
and Lyondell LP3 Partners, LP, and, in each case, their respective successors
and permitted assigns), or to be a contract in whole or in part for the benefit
of the holders of the Debt, or any other person except the
Partnership.  Accordingly, the holders of the Debt shall not, by
reason of this Indemnity, have a greater or superior claim compared to other
obligees of the Partnership, to or as a result of any amounts contributed by
Millennium Indemnitor to the Partnership pursuant to this Indemnity.

     

    5.           Notwithstanding
any other provision of this Indemnity, this Indemnity shall terminate on December 15,
2017.

     

    6.           This
Indemnity shall be construed and interpreted in accordance with and governed by
the laws of the State of Texas.

     

    7.           This
Indemnity may be executed in one or more counterparts, each of which shall
constitute an original and all of which when taken together shall constitute one
and the same original document.

     

    8.           The
existence of this Indemnity shall not prohibit the Partnership from refinancing
or repaying any Debt at any time, subject to the other provisions of the
Partnership Agreement.

     

    9.           Nothing
in this Indemnity shall be construed or interpreted to amend the Partnership
Agreement in any respect.

     

    10.           All
notices, requests and other communications that are required or may be given
under this Indemnity shall be in writing and shall be deemed to have been duly
given if and when (i) transmitted by facsimile with proof of confirmation from
the transmitting machine or (ii) delivered by commercial courier or other hand
delivery as follows:

     

    

    
      	
              If
      to the Partnership:

            	
              Equistar
      Chemicals, LP

            

    

    
      	
               
      

            	
              1221
      McKinney Street

            

    

    
      	
               
      

            	
              Houston,
      Texas 77252-2583

            

    

    
      	 	 
	
               
      

            	
              Attention:  General
      Counsel

            

    

    
      	
               
      

            	
              Facsimile
      Number:  (713) 309-4718

            

    

     

     

     

    
      	
              If
      to Indemnitor:

            	
              Millennium
      Petrochemicals Inc.

            
	 	1221
      McKinney Street 
	 	Houston,
      Texas 77252-2583 

    

     

    
      	
               
      

            	
              Attention:  General
      Counsel

            

    

    
      	
               
      

            	
              Facsimile
      Number:  (713) 309-4718

            

    

     

    

     

    
      	
               
      

            	
              [Remainder
      of Page Intentionally Left Blank]

            

    

     

    Dated As
Of:  December 19, 2007

     

    Millennium
Petrochemicals Inc.

    

    

    By:           /s/ Edward J.
Dineen

                                                                                            Edward J.
Dineen

    Vice President

     

    

     

    ACCEPTED
AND AGREED

     

    EQUISTAR
CHEMICALS, LP

     

    

    By:     
/s/ Allen C.
Holmes                                             

               
Allen C. Holmes

    Vice President

     

    

     

    [Signature
Page for Indemnity]

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