Document:

Exhibit 4.2

 

HUNTSMAN INTERNATIONAL LLC

 

$175,000,000 73⁄8% Senior Subordinated Notes due 2015

€135,000,000 71⁄2% Senior Subordinated Notes due 2015

 

unconditionally guaranteed as to the

payment of principal, premium,

if any, and interest by

 

Eurofuels LLC

Eurostar Industries LLC

Huntsman EA Holdings LLC

Huntsman Ethyleneamines Ltd.

Huntsman International Financial LLC

Huntsman International Fuels, L.P.

Huntsman Propylene Oxide Holdings LLC

Huntsman Propylene Oxide Ltd.

Huntsman Texas Holdings LLC

Tioxide Americas Inc.

Tioxide Group

 

Exchange and Registration Rights Agreement

 

 

December 17, 2004

 

Deutsche Bank
Securities Inc.

Deutsche Bank
AG London

Credit Suisse
First Boston LLC

Credit Suisse
First Boston (Europe) Limited

c/o Deutsche
Bank Securities Inc.

60 Wall Street

New York, NY 10005

 

Ladies and
Gentlemen:

 

Huntsman
International LLC, a Delaware limited liability company (the “Company”),
proposes to issue and sell to the Purchasers (as defined herein) upon the terms
set forth in the Purchase Agreement (as defined herein) $175,000,000 aggregate
principal amount of its dollar-denominated 73⁄8% Senior Subordinated Notes
due 2015 (the “Dollar Notes”) and €135,000,000 aggregate principal
amount of its euro-denominated 71⁄2% Senior Subordinated Notes due 2015 (the “Euro
Notes”and, together with the Dollar Notes, the “Notes”), which are
unconditionally guaranteed by each of the guarantors listed on Schedule I
hereto.

 

Pursuant to
the Purchase Agreement and in satisfaction of a condition to the obligations of
the Purchasers thereunder, the Company and the Guarantors agree with the
Purchasers for the benefit of holders (as defined herein) from time to time of
the Registrable Securities (as defined herein) as follows:

 

1.                                       Certain Definitions. For purposes of this
Exchange and Registration Rights Agreement, the following terms shall have the
following respective meanings:

 

“Base
Interest” shall mean the interest that would otherwise accrue on the
Securities under the terms thereof and the Indenture, without giving effect to
the provisions of this Exchange and Registration Rights Agreement.

 

“broker-dealer”
shall mean any broker or dealer registered with the Commission under the
Exchange Act.

 

“Closing
Date” shall mean the date on which the Securities are initially issued.

 

“Commission”
shall mean the United States Securities and Exchange Commission, or any other
federal agency at the time administering the Exchange Act or the Securities
Act, whichever is the relevant statute for the particular purpose.

 

“Company”
shall have the meaning assigned thereto in the introductory paragraph.

 

2

 

“Dollar
Notes” shall have the meaning assigned thereto in the introductory
paragraph.

 

“Effective
Time” in the case of (i) an Exchange Registration, shall mean the time and
date as of which the Commission declares the Exchange Registration Statement
effective or as of which the Exchange Registration Statement otherwise becomes
effective and (ii) a Shelf Registration, shall mean the time and date as of
which the Commission declares the Shelf Registration Statement effective or as
of which the Shelf Registration Statement otherwise becomes effective.

 

“Electing
Holder” shall mean any holder of Registrable Securities that has returned a
completed and signed Notice and Questionnaire to the Company in accordance with
Section 3(d)(ii) or 3(d)(iii) hereof.

 

“Euro Notes”
shall have the meaning assigned thereto in the introductory paragraph.

 

“Exchange
Act” shall mean the Securities Exchange Act of 1934, or any successor
thereto, as the same shall be amended from time to time.

 

“Exchange Offer”
shall have the meaning assigned thereto in Section 2(a) hereof.

 

“Exchange
Registration” shall have the meaning assigned thereto in Section 3(c)
hereof.

 

“Exchange
Registration Statement” shall have the meaning assigned thereto in Section
2(a) hereof.

 

“Exchange
Securities” shall have the meaning assigned thereto in Section 2(a) hereof.

 

“Guarantee”
shall have the meaning assigned thereto in the Indenture.

 

“Guarantor”
shall have the meaning assigned thereto in the Indenture.

 

“holder”
shall mean each of the Purchasers and other persons who acquire Registrable
Securities from time to time (including any successors or assigns), in each
case for so long as such person owns any Registrable Securities.

 

“Indenture”
shall mean the Indenture, dated as of December 17, 2004, between the Company,
the Guarantors and Wells Fargo Bank, National Association, as Trustee, as the
same shall be amended from time to time relating to the Securities.

 

“Notes”
shall have the meaning assigned thereto in the introductory paragraph.

 

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“Notice and
Questionnaire” means a Notice of Registration Statement and Selling
Securityholder Questionnaire substantially in the form of Exhibit A hereto.

 

“person”
shall mean a corporation, association, partnership, limited liability company,
organization, business, individual, government or political subdivision thereof
or governmental agency.

 

“Purchase
Agreement” shall mean the Purchase Agreement, dated as of December 3, 2004,
among the Purchasers, the Guarantors and the Company relating to the
Securities.

 

“Purchasers”
shall mean the Purchasers named in Schedule I to the Purchase Agreement.

 

“Registrable
Securities” shall mean the Securities; provided,
however, that a Security shall cease to be a Registrable Security
when (i) in the circumstances contemplated by Section 2(a) hereof, the Security
has been exchanged for an Exchange Security in an Exchange Offer as
contemplated in Section 2(a) hereof (provided
that any Exchange Security that, pursuant to the last two sentences of Section
2(a), is included in a prospectus for use in connection with resales by
broker-dealers shall be deemed to be a Registrable Security with respect to
Sections 5, 6 and 9 until resale of such Security has been effected within the
120-day period referred to in Section 2(a)); (ii) in the circumstances
contemplated by Section 2(b) hereof, a Shelf Registration Statement registering
such Security under the Securities Act has been declared or becomes effective
and such Security has been sold or otherwise transferred by the holder thereof
pursuant to and in a manner contemplated by such effective Shelf Registration
Statement; (iii) such Security is sold pursuant to Rule 144 under circumstances
in which any legend borne by such Security relating to restrictions on
transferability thereof, under the Securities Act or otherwise, is removed by
the Company or pursuant to the Indenture; (iv) such Security is eligible to be
sold pursuant to paragraph (k) of Rule 144; or (v) such Security shall cease to
be outstanding.

 

“Registration
Default” shall have the meaning assigned thereto in Section 2(c) hereof.

 

“Registration
Default Period” shall have the meaning assigned thereto in Section 2(c)
hereof.

 

“Registration
Expenses” shall have the meaning assigned thereto in Section 4 hereof.

 

“Resale
Period” shall have the meaning assigned thereto in Section 2(a) hereof.

 

“Restricted
Holder” shall mean (i) a holder that is an affiliate of the Company within
the meaning of Rule 405, (ii) a holder who acquires Exchange Securities outside
the ordinary course of such holder’s business, (iii) a holder who has
arrangements or understandings with any person to participate in the Exchange
Offer for the purpose of

 

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distributing
Exchange Securities and (iv) a holder that is a broker-dealer, but only with
respect to Exchange Securities received by such broker-dealer pursuant to an
Exchange Offer in exchange for Registrable Securities acquired by the broker-dealer
directly from the Company.

 

“Rule 144,”
“Rule 405” and “Rule 415” shall mean, in each case, such rule promulgated
under the Securities Act (or any successor provision), as the same shall be
amended from time to time.

 

“Securities”
shall mean the Dollar Notes and the Euro Notes of the Company to be issued and
sold to the Purchasers pursuant to the Purchase Agreement, and securities
issued in exchange therefor or in lieu thereof pursuant to the Indenture (other
than Exchange Securities). Each Security is entitled to the benefit of the
Guarantee provided for in the Indenture and, unless the context otherwise
requires, any reference herein to a “Security,” an “Exchange Security” or a “Registrable
Security” shall include a reference to the related Guarantee.

 

“Securities
Act” shall mean the Securities Act of 1933, or any successor thereto, as
the same shall be amended from time to time.

 

“Shelf
Registration” shall have the meaning assigned thereto in Section 2(b)
hereof.

 

“Shelf
Registration Statement” shall have the meaning assigned thereto in Section
2(b) hereof.

 

“Special
Interest” shall have the meaning assigned thereto in Section 2(c) hereof.

 

“Trustee”
shall have the meaning assigned thereto in the Indenture.

 

“Trust
Indenture Act” shall mean the Trust Indenture Act of 1939, or any successor
thereto, and the rules, regulations and forms promulgated thereunder, all as
the same shall be amended from time to time.

 

Unless the
context otherwise requires, any reference herein to a “Section” or “clause”
refers to a Section or clause, as the case may be, of this Exchange and
Registration Rights Agreement, and the words “herein,” “hereof” and “hereunder”
and other words of similar import refer to this Exchange and Registration
Rights Agreement as a whole and not to any particular Section or other
subdivision.

 

2.                                       Registration Under the Securities Act.

 

(a)                                  Except as set forth in Section 2(b)
below, the Company agrees to use its reasonable best efforts to file under the
Securities Act no later than 180 days after December 17, 2004, a registration
statement relating to offers to exchange (such registration statement, the “Exchange
Registration Statement,” and such offers, collectively, the “Exchange
Offer”) any and all of the Registrable Securities of each

 

5

 

series of Securities for a like aggregate
principal amount of debt securities issued by the Company and guaranteed by the
Guarantors, which debt securities and guarantee are substantially identical to
the applicable series of Securities and the related Guarantees, respectively
(and are entitled to the benefits of a trust indenture which is substantially
identical to the applicable Indenture or is such Indenture and which has been
qualified under the Trust Indenture Act), except that they have been registered
pursuant to an effective registration statement under the Securities Act and do
not contain provisions for registration rights or the Special Interest
contemplated in Section 2(c) below (such new debt securities and guarantee
hereinafter called “Exchange Securities”). The Company agrees to use its
reasonable best efforts to cause the Exchange Registration Statement to become
effective under the Securities Act no later than 240 days following December
17, 2004. The Exchange Offer will be registered under the Securities Act on the
appropriate form and will comply with all applicable tender offer rules and
regulations under the Exchange Act. The Company further agrees to use its
reasonable best efforts to commence and complete the Exchange Offer promptly,
hold the Exchange Offer open for at least 20 days and exchange Exchange
Securities for all Registrable Securities that have been properly tendered and
not withdrawn on or prior to the expiration of the Exchange Offer. The Exchange
Offer will be deemed to have been “completed” only if the debt securities and
related guarantee received by holders other than Restricted Holders in the
Exchange Offer for Registrable Securities are, upon receipt, transferable by
each such holder without restriction under the Securities Act and without
material restrictions under the blue sky or securities laws of a substantial
majority of the States of the United States of America, it being understood
that broker-dealers receiving Exchange Notes will be subject to certain
prospectus delivery requirements with respect to resale of the Exchange Notes.
The Exchange Offer shall be deemed to have been completed upon the earlier to
occur of (i) the Company having exchanged the Exchange Securities for all
outstanding Registrable Securities pursuant to the Exchange Offer and (ii) the
Company having exchanged, pursuant to the Exchange Offer, Exchange Securities
for all Registrable Securities that have been properly tendered and not
withdrawn before the expiration of the Exchange Offer, which shall be on a date
that is at least 20 days following the commencement of the Exchange Offer. The
Company agrees (x) to include in the Exchange Registration Statement a
prospectus for use in any resales by any holder of Exchange Securities that is
a broker-dealer and (y) to keep such Exchange Registration Statement effective
for a period (the “Resale Period”) beginning when Exchange Securities
are first issued in the Exchange Offer and ending upon the earlier of the expiration
of the 120th day after the Exchange Offer has been completed or such
time as such broker-dealers no longer own any Registrable Securities. With
respect to such Exchange Registration Statement, such holders shall have the
benefit of the rights of indemnification and contribution set forth in Sections
6(a), (c), (d) and (e) hereof.

 

Each holder
that participates in the Exchange Offer will be required, as a condition to its
participation in the Exchange Offer, to represent to the Company in writing (which
may be contained in the applicable letter of transmittal) (i) that any Exchange
Securities to be received by it will be acquired in the ordinary course of its
business, (ii) that at the time of the commencement of the Exchange Offer, such
holder will have no arrangement or understanding with any Person to participate
in the distribution (within the meaning of the Securities Act) of the Exchange
Securities in

 

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violation of
the provisions of the Securities Act, (iii) that such holder is not an
affiliate of the Company within the meaning of the Securities Act and (iv) that
such holder is not acting on behalf of a Person who could not make the
foregoing representations. In addition, each broker-dealer that will receive
Exchange Securities for its own account in exchange for Securities that were
acquired as a result of market-making or other trading activities (an “Exchanging
Dealer”) will be required to represent that the Securities being tendered
by such broker-dealer were acquired in ordinary trading or market-making
activities. A broker-dealer that is not able to make the foregoing
representation will not be permitted to participate in the Exchange Offer.

 

(b)                                 If on or prior to the time the
Exchange Offer is completed, any law or the existing Commission interpretations
are changed such that (i) the debt securities or the related guarantee received
by holders other than Restricted Holders in the Exchange Offer for Registrable
Securities are not or would not be, upon receipt, transferable by each such
holder without restriction under the Securities Act, (ii) the Exchange Offer
has not been completed within 285 days following December 17, 2004 or (iii) the
Exchange Offer is not available to any holder of the Securities by reason of
U.S. law or Commission policy (other than due solely to the status of such
holder as an affiliate of the Company within the meaning of the Securities Act
or as an Exchanging Dealer), the Company shall, in lieu of (or, in the case of
clause (iii), in addition to) conducting the Exchange Offer contemplated by
Section 2(a), file under the Securities Act as soon as practicable, but no
later than the later of 75 days after the time such obligation to file arises,
a “shelf” registration statement providing for the registration of, and the
sale on a continuous or delayed basis by the holders of, all of the Registrable
Securities, pursuant to Rule 415 or any similar rule that may be adopted by the
Commission (such filing, the “Shelf Registration” and such registration
statement, the “Shelf Registration Statement”). The Company agrees to
use its reasonable best efforts (x) to cause the Shelf Registration Statement
to become or be declared effective no later than 210 days after such Shelf
Registration Statement is filed and to keep such Shelf Registration Statement
continuously effective for a period ending on the earlier of the second
anniversary of the Effective Time or such time as there are no longer any
Registrable Securities outstanding; provided,
however, that (I) no holder shall be entitled to be named as a
selling securityholder in the Shelf Registration Statement or to use the
prospectus forming a part thereof for resales of Registrable Securities unless
such holder is an Electing Holder and (II) the Company shall be permitted to
take any action that would suspend the effectiveness of a Shelf Registration
Statement or result in holders covered by a Shelf Registration Statement not
being able to offer and sell such Securities if (i) such action is required by
law or (ii) such action is taken by the Company in good faith and for valid
business reasons involving a material undisclosed event, and (y) after the
Effective Time of the Shelf Registration Statement, within 30 days following
the request of any holder of Registrable Securities that is not then an
Electing Holder, to take any action reasonably necessary to enable such holder
to use the prospectus forming a part thereof for resales of Registrable
Securities, including, without limitation, any action necessary to identify
such holder as a selling securityholder in the Shelf Registration Statement; provided, however, that nothing in this
clause (y) shall relieve any such holder of the obligation to return a
completed and signed Notice and Questionnaire to the Company in accordance with
Section 3(d)(iii) hereof. The Company further agrees to supplement or make
amendments

 

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to the Shelf Registration Statement, as and
when required by the rules, regulations or instructions applicable to the
registration form used by the Company for such Shelf Registration Statement or
by the Securities Act or rules and regulations thereunder for shelf
registration, and the Company agrees to furnish to each Electing Holder copies
of any such supplement or amendment prior to its being used or promptly
following its filing with the Commission.

 

(c)                                  In the event that (i) the Company
has not filed the Exchange Registration Statement or Shelf Registration
Statement on or before the date on which such registration statement is
required to be filed pursuant to Section 2(a) or 2(b), respectively, or (ii)
such Exchange Registration Statement or Shelf Registration Statement has not
become effective or been declared effective by the Commission on or before the
date on which such registration statement is required to become or be declared
effective pursuant to Section 2(a) or 2(b), respectively, or (iii) the Exchange
Offer has not been completed within 45 days after the initial effective date of
the Exchange Registration Statement relating to the Exchange Offer (if the
Exchange Offer is then required to be made) or (iv) any Exchange Registration
Statement or Shelf Registration Statement required by Section 2(a) or 2(b)
hereof is filed and declared effective but shall thereafter either be withdrawn
by the Company or shall become subject to an effective stop order issued
pursuant to Section 8(d) of the Securities Act suspending the effectiveness of
such registration statement (except as specifically permitted herein) without
being succeeded immediately by an additional registration statement filed and
declared effective (each such event referred to in clauses (i) through (iv), a “Registration
Default” and each period during which a Registration Default has occurred
and is continuing, a “Registration Default Period”), then, as liquidated
damages for such Registration Default, subject to the provisions of Section
9(b), special interest (“Special Interest”), in addition to the Base
Interest, shall accrue at a per annum rate of 0.25% for the first 90 days of
the Registration Default Period, at a per annum rate of 0.50% for the second 90
days of the Registration Default Period, at a per annum rate of 0.75% for the
third 90 days of the Registration Default Period and at a per annum rate of
1.0% thereafter for the remaining portion of the Registration Default Period,
in each case calculated on the same basis on which Base Interest is calculated
under the Indenture; provided, however,
that Special Interest shall not accrue if the failure of the Company to comply
with its obligations hereunder is a result of the failure of any of the
holders, underwriters, Purchasers or placement or sales agents to fulfill their
respective obligations hereunder; and provided,
further, Special Interest shall only accrue until, but excluding,
the earlier of (1) the date on which such Registration Default has been cured
or (2) the date on which the Securities accruing such Special Interest cease to
be Registrable Securities. Special Interest accrued for any period shall be
payable at the relevant interest payment date for such period under the terms
of the applicable series of Securities.

 

(d)                                 Notwithstanding the foregoing:  (1) the amount of Special Interest that accrues
will not increase because more than one Registration Default has occurred and
is pending; (2) a holder of Registrable Securities or Exchange Securities who
is not entitled to the benefits of the Shelf Registration Statement (including,
but not limited to any such holder who has not returned a completed and signed
Notice and Questionnaire

 

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to the Company in accordance with Section
3(d)(iii) hereof) will not be entitled to Special Interest with respect to a
Registration Default that pertains to the Shelf Registration Statement; and (3)
a holder of Registrable Securities constituting an unsold allotment from the
original sale of the notes or who otherwise is not entitled to participate in
the Exchange Offer will not be entitled to the accrual of Special Interest by
reason of a Registration Default that pertains to the Exchange Offer.

 

(e)                                  The Company shall take, and shall
cause the Guarantors to take, all actions necessary or advisable to be taken by
it to ensure that the transactions contemplated herein are effected as so
contemplated, including all actions necessary or desirable to register the
Guarantees under the registration statement contemplated in Section 2(a) or
2(b) hereof, as applicable.

 

(f)                                    Any reference herein to a
registration statement as of any time shall be deemed to include any document
incorporated, or deemed to be incorporated, therein by reference as of such
time and any reference herein to any post-effective amendment to a registration
statement as of any time shall be deemed to include any document incorporated,
or deemed to be incorporated, therein by reference as of such time.

 

3.                                       Registration Procedures.

 

If the Company
files a registration statement pursuant to Section 2(a) or Section 2(b), the
following provisions shall apply:

 

(a)                                  At or before the Effective Time of
the Exchange Offer or the Shelf Registration, as the case may be, the Company
shall qualify the Indenture under the Trust Indenture Act.

 

(b)                                 In the event that such qualification
would require the appointment of a new trustee under the Indenture, the Company
shall appoint a new trustee thereunder pursuant to the applicable provisions of
the Indenture.

 

(c)                                  In connection with the Company’s
obligations with respect to the registration of Exchange Securities as
contemplated by Section 2(a) (the “Exchange Registration”), if
applicable, the Company shall, as soon as reasonably practicable (or as
otherwise specified):

 

(i)                                     use its reasonable best efforts to
prepare and file with the Commission, as soon as practicable but no later than
180 days after December 17, 2004, an Exchange Registration Statement on any
form which may be utilized by the Company and which shall permit the Exchange
Offer and resales of Exchange Securities by broker-dealers during the Resale
Period to be effected as contemplated by Section 2(a), and use its best
reasonable efforts to cause such Exchange Registration Statement to become
effective as soon as practicable thereafter, but no later than 240 days following
December 17, 2004;

 

9

 

(ii)                                  after the Effective Time of the
Exchange Registration Statement, except as permitted hereunder, as soon as
practicable prepare and file with the Commission such amendments and
supplements to such Exchange Registration Statement and the prospectus included
therein as may be necessary to effect and maintain the effectiveness of such
Exchange Registration Statement for the periods and purposes contemplated in
Section 2(a) hereof and as may be required by the applicable rules and
regulations of the Commission and the instructions applicable to the form of
such Exchange Registration Statement, and promptly provide each broker-dealer
holding Exchange Securities with such number of copies of the prospectus
included therein (as then amended or supplemented), in conformity in all
material respects with the requirements of the Securities Act and the Trust
Indenture Act and the rules and regulations of the Commission thereunder, as
such broker-dealer may reasonably request prior to the expiration of the Resale
Period, for use in connection with resales of Exchange Securities;

 

(iii)                               after the Effective Time of the
Exchange Registration Statement and during the Resale Period promptly notify each
broker-dealer that has requested copies of the prospectus included in such
registration statement, and confirm such advice in writing, (A) with respect to
such Exchange Registration Statement or any post-effective amendment, when the
same has become effective, (B) of the issuance by the Commission of any stop
order suspending the effectiveness of such Exchange Registration Statement or
the initiation or threatening of any proceedings for that purpose, (C) of the
receipt by the Company of any notification with respect to the suspension of
the qualification of the Exchange Securities for sale in any jurisdiction or
the initiation or threatening of any proceeding for such purpose, or (D) at any
time during the Resale Period when a prospectus is required to be delivered
under the Securities Act, that such Exchange Registration Statement,
prospectus, prospectus amendment or supplement or post-effective amendment does
not conform in all material respects to the applicable requirements of the
Securities Act and the Trust Indenture Act and the rules and regulations of the
Commission thereunder or contains an untrue statement of a material fact or
omits to state any material fact required to be stated therein or necessary to
make the statements therein not misleading in light of the circumstances then
existing, which such notice, in the case of clauses (B), (C) and (D) shall
require any broker-dealer to suspend the use of such prospectus until further
notice;

 

(iv)                              in the event that the Company would
be required, pursuant to Section 3(c)(iii)(D) above, to notify any
broker-dealers holding Exchange Securities, prepare and furnish to each such
holder a reasonable number of copies of a prospectus supplemented or amended so
that, as thereafter delivered to purchasers of such Exchange Securities during
the Resale Period, such prospectus shall conform in all material respects to
the

 

10

 

applicable
requirements of the Securities Act and the Trust Indenture Act and the rules and
regulations of the Commission thereunder and shall not contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in
light of the circumstances then existing; provided,
however, the Company shall not be required to amend or supplement
such prospectus if (i) not permitted by law or (ii) the Company in good faith
and for valid business reasons determines that to do so would involve
disclosing a material undisclosed event;

 

(v)                                 use its reasonable best efforts to
obtain the withdrawal of any order suspending the effectiveness of such
Exchange Registration Statement or any post-effective amendment thereto at the
earliest practicable date unless the Company in good faith and for valid
business reasons determines that to do so would involve disclosing a material
undisclosed event;

 

(vi)                              use its reasonable best efforts to
(A) register or qualify the Exchange Securities under the securities laws or
blue sky laws of such jurisdictions as are contemplated by Section 2(a) no
later than the commencement of the Exchange Offer, (B) keep such registrations
or qualifications in effect and comply with such laws so as to permit the
continuance of offers, sales and dealings therein in such jurisdictions until
the expiration of the Resale Period and (C) take any and all other actions as
may be reasonably necessary or advisable to enable each broker-dealer holding
Exchange Securities to consummate the disposition thereof in such
jurisdictions; provided, however,
that neither the Company nor the Guarantors shall be required for any such
purpose to (1) qualify as a foreign corporation in any jurisdiction wherein it
would not otherwise be required to qualify but for the requirements of this
Section 3(c)(vi), (2) consent to general service of process or taxation in any
such jurisdiction or (3) make any changes to its incorporating documents or
limited liability agreement or any other agreement between it and its
stockholders or members;

 

(vii)                           provide an ISIN and a CUSIP number
for all Exchange Securities, not later than the applicable Effective Time; and
(viii) comply with all applicable rules and regulations of the Commission, and
make generally available to its security holders as soon as practicable but no
later than 18 months after the effective date of such Exchange Registration
Statement, an earning statement of the Company and its subsidiaries complying
with Section 11(a) of the Securities Act (including, at the option of the
Company, Rule 158 thereunder).

 

(d)                                 In connection with the Company’s
obligations with respect to the Shelf Registration, if applicable, the Company
shall, as soon as reasonably practicable (or as otherwise specified):

 

11

 

(i)                                     prepare and file with the
Commission, as soon as reasonably practicable but in any case within the time
periods specified in Section 2(b), a Shelf Registration Statement on any form
which may be utilized by the Company and which shall register all of the
Registrable Securities for resale by the holders thereof in accordance with
such method or methods of disposition as may be specified by such of the
holders as, from time to time, may be Electing Holders and use its reasonable
best efforts to cause such Shelf Registration Statement to become effective as
soon as reasonably practicable but in any case within the time periods
specified in Section 2(b);

 

(ii)                                  prior to the Effective Time of the
Shelf Registration Statement, mail the Notice and Questionnaire to the holders
of Registrable Securities; no holder shall be entitled to be named as a selling
securityholder in the Shelf Registration Statement as of the Effective Time,
and no holder shall be entitled to use the prospectus forming a part thereof
for resales of Registrable Securities at any time, unless such holder has
returned a completed and signed Notice and Questionnaire to the Company by the
deadline for response set forth therein; provided,
however, holders of Registrable Securities shall have at least 28
calendar days from the date on which the Notice and Questionnaire is first
mailed to such holders to return a completed and signed Notice and
Questionnaire to the Company;

 

(iii)                               after the Effective Time of the
Shelf Registration Statement, upon the request of any holder of Registrable
Securities that is not then an Electing Holder, promptly send a Notice and
Questionnaire to such holder; provided
that the Company shall not be required to take any action to name such holder
as a selling securityholder in the Shelf Registration Statement or to enable
such holder to use the prospectus forming a part thereof for resales of
Registrable Securities until such holder has returned a completed and signed
Notice and Questionnaire to the Company;

 

(iv)                              after the Effective Time of the
Shelf Registration Statement, except as permitted hereunder, as soon as
reasonably practicable prepare and file with the Commission such amendments and
supplements to such Shelf Registration Statement and the prospectus included
therein as may be necessary to effect and maintain the effectiveness of such
Shelf Registration Statement for the period specified in Section 2(b) hereof
and as may be required by the applicable rules and regulations of the
Commission and the instructions applicable to the form of such Shelf
Registration Statement, and furnish to the Electing Holders copies of any such
supplement or amendment simultaneously with or prior to its being used or filed
with the Commission;

 

(v)                                 comply with the provisions of the
Securities Act with respect to the disposition of all of the Registrable
Securities covered by

 

12

 

such
Shelf Registration Statement in accordance with the intended methods of
disposition by the Electing Holders provided for in such Shelf Registration
Statement;

 

(vi)                              provide (A) the Electing Holders,
(B) the underwriters (which term, for purposes of this Exchange and
Registration Rights Agreement, shall include a person deemed to be an underwriter
within the meaning of Section 2(a)(11) of the Securities Act), if any, thereof,
(C) any sales or placement agent, if any, therefor, (D) counsel for any such
underwriter or agent and (E) not more than one counsel for all the Electing
Holders a copy of such Shelf Registration Statement, each prospectus included
therein or filed with the Commission and each amendment or supplement thereto;

 

(vii)                           for a reasonable period prior to the
filing of such Shelf Registration Statement, and throughout the period specified
in Section 2(b), make available at reasonable times at the Company’s principal
place of business or such other reasonable place for inspection by the persons
referred to in Section 3(d)(vi) above who shall certify to the Company that
they have a current intention to sell the Registrable Securities pursuant to
the Shelf Registration such financial and other information and books and
records of the Company, and cause the officers, employees, counsel and
independent certified public accountants of the Company to respond to such
inquiries, as shall be reasonably necessary, in the reasonable judgment of the
respective counsel referred to in such Section, to conduct a reasonable
investigation within the meaning of Section 11 of the Securities Act; provided, however, that each such party
shall be required to maintain in confidence and not to disclose to any other
person any information or records reasonably designated by the Company as being
confidential, until such time as (A) such information becomes a matter of
public record (whether by virtue of its inclusion in such registration
statement or otherwise), or (B) such person shall be required so to disclose
such information pursuant to a subpoena or order of any court or other
governmental agency or body having jurisdiction over the matter (subject to the
requirements of such order, and only after such person shall have given the
Company prompt prior written notice of such requirement), or (C) such
information is set forth in such Shelf Registration Statement or the prospectus
included therein or in an amendment to such Shelf Registration Statement or an
amendment or supplement to such prospectus in order that such Shelf
Registration Statement, prospectus, amendment or supplement, as the case may
be, complies with applicable requirements of the federal securities laws and
the rules and regulations of the Commission and does not contain an untrue
statement of a material fact or omit to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading
in light of the circumstances then existing;

 

13

 

(viii)                        promptly notify each of the Electing
Holders, any sales or placement agent therefor and any underwriter thereof
(which notification may be made through any managing underwriter that is a
representative of such underwriter for such purpose) and confirm such advice in
writing, (A) with respect to such Shelf Registration Statement or any
post-effective amendment, when the same has become effective, (B) of the
issuance by the Commission of any stop order suspending the effectiveness of
such Shelf Registration Statement or the initiation or threatening of any
proceedings for that purpose, (C) of the receipt by the Company of any
notification with respect to the suspension of the qualification of the
Registrable Securities for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose, or (D) if at any time when a
prospectus is required to be delivered under the Securities Act, that such
Shelf Registration Statement, prospectus, prospectus amendment or supplement or
post-effective amendment does not conform in all material respects to the
applicable requirements of the Securities Act and the Trust Indenture Act and
the rules and regulations of the Commission thereunder or contains an untrue
statement of a material fact or omits to state any material fact required to be
stated therein or necessary to make the statements therein not misleading in
light of the circumstances then existing, which such notice, in the case of
clauses (B), (C) and (D) shall require the suspension of the use of such
prospectus until further notice;

 

(ix)                                use its reasonable best efforts to
obtain the withdrawal of any order suspending the effectiveness of such
registration statement or any post-effective amendment thereto at the earliest
practicable date unless the Company in good faith and for valid business
reasons determines that to do so would involve disclosing a material
undisclosed event;

 

(x)                                   if reasonably requested by any
managing underwriter or underwriters, any placement or sales agent or any
Electing Holder, promptly incorporate in a prospectus supplement or
post-effective amendment such information as is required by the applicable
rules and regulations of the Commission and as such managing underwriter or
underwriters, such agent or such Electing Holder specifies should be included
therein relating to the terms of the sale of such Registrable Securities, including
information with respect to the principal amount of Registrable Securities
being sold by such Electing Holder or agent or to any underwriters, the name
and description of such Electing Holder, agent or underwriter, the offering
price of such Registrable Securities and any discount, commission or other
compensation payable in respect thereof, the purchase price being paid therefor
by such underwriters and with respect to any other terms of the offering of the
Registrable Securities to be sold by such Electing Holder or agent or to such
underwriters; and make all required filings of such prospectus supplement or
post-effective

 

14

 

amendment
promptly after notification of the matters to be incorporated in such
prospectus supplement or post-effective amendment;

 

(xi)                                furnish to each Electing Holder,
each placement or sales agent, if any, therefor, each underwriter, if any,
thereof and the respective counsel referred to in Section 3(d)(vi) above a
conformed copy of such Shelf Registration Statement, each such amendment and
supplement thereto (in each case including, upon request, all exhibits thereto
and documents incorporated by reference therein) and such number of copies of
the prospectus included in such Shelf Registration Statement (including each
preliminary prospectus and any summary prospectus), in conformity in all
material respects with the applicable requirements of the Securities Act and
the Trust Indenture Act and the rules and regulations of the Commission
thereunder, and such other documents, as such Electing Holder, agent, if any,
and underwriter, if any, may reasonably request that may be required in
connection with the offering and disposition of the Registrable Securities
owned by such Electing Holder, offered or sold by such agent or underwritten by
such underwriter and to permit such Electing Holder, agent and underwriter to
satisfy the prospectus delivery requirements of the Securities Act; and the
Company hereby consents to the use of the prospectus contained in the Shelf
Registration Statement at the Effective Time thereof and any amendment or
supplement thereto by each such Electing Holder and by any such agent and
underwriter, in each case in the form most recently provided to such person by
the Company, in connection with the offering and sale of the Registrable
Securities covered by such prospectus or any such supplement or amendment
thereto;

 

(xii)                             use reasonable best efforts to (A)
register or qualify the Registrable Securities to be included in such Shelf
Registration Statement under such securities laws or blue sky laws of such
jurisdictions as any Electing Holder and each placement or sales agent, if any,
therefor and underwriter, if any, thereof shall reasonably request, (B) keep such
registrations or qualifications in effect and comply with such laws so as to
permit the continuance of offers, sales and dealings therein in such
jurisdictions during the period the Shelf Registration is required to remain
effective under Section 2(b) above and for so long as may be necessary to
enable any such Electing Holder, agent or underwriter to complete its
distribution of Securities pursuant to such Shelf Registration Statement and
(C) take any and all other actions as may be reasonably necessary or advisable
to enable each such Electing Holder, agent, if any, and underwriter, if any, to
consummate the disposition in such jurisdictions of such Registrable
Securities; provided, however,
that neither the Company nor the Guarantors shall be required for any such
purpose to (1) qualify as a foreign corporation in any jurisdiction wherein it
would not otherwise be required to qualify but for the requirements of this
Section 3(d)(xii), (2) consent to general service of process or taxation in any
such jurisdiction or (3) make any changes to its incorporating documents or
limited liability

 

15

 

agreement
or any other agreement between it and its stockholders or members;

 

(xiii)                          unless any Registrable Securities
shall be in book-entry only form, cooperate with the Electing Holders and the
managing underwriters, if any, to facilitate the timely preparation and
delivery of certificates representing Registrable Securities to be sold, which
certificates, if so required by any securities exchange upon which any
Registrable Securities are listed, shall be penned, lithographed or engraved,
or produced by any combination of such methods, on steel engraved borders, and
which certificates shall not bear any restrictive legends; and, in the case of
an underwritten offering, enable such Registrable Securities to be in such
denominations and registered in such names as the managing underwriters may
request at least two business days prior to any sale of the Registrable Securities;

 

(xiv)                         enter into one or more underwriting
agreements, engagement letters, agency agreements, “best efforts” underwriting
agreements or similar agreements, as appropriate, including customary
provisions relating to indemnification and contribution (such indemnification
and contribution obligations of the Company to be no more extensive than those
contained in the Purchase Agreement), and take such other actions in connection
therewith as any Electing Holders aggregating at least 20% in aggregate principal
amount of the Registrable Securities at the time outstanding shall reasonably
request in order to expedite or facilitate the disposition of such Registrable
Securities;

 

(xv)                            whether or not an agreement of the
type referred to in Section 3(d)(xiv) hereof is entered into and whether or not
any portion of the offering contemplated by the Shelf Registration is an
underwritten offering or is made through a placement or sales agent or any
other entity, (A) make such representations and warranties to the Electing
Holders and the placement or sales agent, if any, therefor and the
underwriters, if any, thereof in form, substance and scope as are customarily
made in connection with an offering of debt securities pursuant to any
appropriate agreement or to a registration statement filed on the form
applicable to the Shelf Registration; (B) obtain an opinion of counsel to the
Company in customary form and covering such matters, of the type customarily
covered by such an opinion, as the managing underwriters, if any, or as any
Electing Holders of at least 20% in aggregate principal amount of the
Registrable Securities at the time outstanding may reasonably request,
addressed to such Electing Holder or Electing Holders and the placement or
sales agent, if any, therefor and the underwriters, if any, thereof and dated
the effective date of such Shelf Registration Statement (or if such Shelf
Registration Statement contemplates an underwritten offering of a part or all
of the Registrable Securities, dated the date of the closing under the
underwriting agreement relating thereto) (it being agreed that the

 

16

 

matters
to be covered by such opinion shall include the due incorporation, organization
or formation and good standing of the Company and the Guarantors; the
qualification of the Company and the Guarantors to transact business as foreign
corporations; the due authorization, execution and delivery of the relevant
agreement, if any, of the type referred to in Section 3(d)(xiv) hereof; the due
authorization, execution, authentication and issuance, and the validity and
enforceability, of the Securities; the absence of governmental approvals
required to be obtained in connection with the Shelf Registration, the offering
and sale of the Registrable Securities, this Exchange and Registration Rights
Agreement or any agreement of the type referred to in Section 3(d)(xiv) hereof,
except such approvals as may have been obtained or may be required under state
securities or blue sky laws; the material compliance as to form of such Shelf
Registration Statement and any documents incorporated by reference therein and
of the Indenture with the requirements of the Securities Act and the Trust
Indenture Act and the rules and regulations of the Commission thereunder,
respectively; and, if addressed to any underwriters, as of the date of the
opinion and of the Shelf Registration Statement or most recent post-effective
amendment thereto, as the case may be, the absence from such Shelf Registration
Statement and the prospectus included therein, as then amended or supplemented,
and from the documents incorporated by reference therein (in each case other
than the financial statements and other financial or accounting information
contained therein) of an untrue statement of a material fact or the omission to
state therein a material fact necessary to make the statements therein not
misleading (in the case of such documents, in the light of the circumstances
existing at the time that such documents were filed with the Commission under
the Exchange Act)); (C) obtain a “cold comfort” letter or letters from the
independent certified public accountants of the Company addressed to the
selling Electing Holders, the placement or sales agent, if any, therefor or the
underwriters, if any, thereof, dated (i) the effective date of such Shelf
Registration Statement and (ii) the effective date of any prospectus supplement
to the prospectus included in such Shelf Registration Statement or
post-effective amendment to such Shelf Registration Statement which includes
unaudited or audited financial statements as of a date or for a period
subsequent to that of the latest such statements included in such prospectus
(and, if such Shelf Registration Statement contemplates an underwritten
offering pursuant to any prospectus supplement to the prospectus included in
such Shelf Registration Statement or post-effective amendment to such Shelf
Registration Statement which includes unaudited or audited financial statements
as of a date or for a period subsequent to that of the latest such statements
included in such prospectus, dated the date of the closing under the
underwriting agreement relating thereto), such letter or letters to be in
customary form and covering such matters of the type customarily covered by
letters of such type; and (D) deliver such documents and certificates,

 

17

 

including
officers’ certificates, as may be reasonably requested by any Electing Holders
of at least 20% in aggregate principal amount of the Registrable Securities at
the time outstanding or the placement or sales agent, if any, therefor and the
managing underwriters, if any, thereof to evidence the accuracy of the
representations and warranties made pursuant to clause (A) above or those
contained in Section 5(a) hereof and the compliance with or satisfaction of any
agreements or conditions contained in the underwriting agreement or other
agreement entered into by the Company or the Guarantors;

 

(xvi)                         notify in writing each holder of
Registrable Securities of any proposal by the Company to amend or waive any
provision of this Exchange and Registration Rights Agreement in any material
respect pursuant to Section 9(h) hereof and of any such amendment or waiver effected
pursuant thereto, each of which notices shall contain the text of the amendment
or waiver proposed or effected, as the case may be;

 

(xvii)                      in the event that any broker-dealer
registered under the Exchange Act shall underwrite any Registrable Securities
or participate as a member of an underwriting syndicate or selling group or “assist
in the distribution” (within the meaning of the Conduct Rules (the “Conduct
Rules”) of the National Association of Securities Dealers, Inc. (“NASD”)
or any successor thereto, as amended from time to time) thereof, whether as a
holder of such Registrable Securities or as an underwriter, a placement or
sales agent or a broker or dealer in respect thereof, or otherwise, cooperate
with such broker-dealer in connection with any filings required to be made by
the NASD;

 

(xviii)                   comply with all applicable rules and
regulations of the Commission, and make generally available to its
securityholders as soon as practicable but in any event not later than 18
months after the effective date of such Shelf Registration Statement, an
earning statement of the Company and its subsidiaries complying with Section 

11(a) of the Securities Act (including, at the option of the Company, Rule 158
thereunder).

 

(e)                                  In the event that the Company would
be required, pursuant to Section 3(d)(viii)(D) above, to notify the Electing
Holders, the placement or sales agent, if any, therefor and the managing
underwriters, if any, thereof, the Company shall as soon as reasonably
practicable prepare and furnish to each of the Electing Holders, to each
placement or sales agent, if any, and to each such underwriter, if any, a
reasonable number of copies of a prospectus supplemented or amended so that, as
thereafter delivered to purchasers of Registrable Securities, such prospectus
shall conform in all material respects to the applicable requirements of the
Securities Act and the Trust Indenture Act and the rules and regulations of the
Commission thereunder and shall not contain an untrue statement of a material fact
or omit to state a material fact required to be stated

 

18

 

therein
or necessary to make the statements therein not misleading in light of the
circumstances then existing; provided,
however, the Company shall not be required to amend or supplement
such prospectus if (i) not permitted by law or (ii) the Company in good faith
and for valid business reasons determines that to do so would involve
disclosing a material undisclosed event. Each Electing Holder agrees that upon
receipt of any notice from the Company pursuant to Section 3(d)(viii)(D)
hereof, such Electing Holder shall forthwith discontinue the disposition of
Registrable Securities pursuant to the Shelf Registration Statement applicable
to such Registrable Securities until such Electing Holder shall have received
copies of such amended or supplemented prospectus, and if so directed by the
Company, such Electing Holder shall deliver to the Company (at the Company’s
expense) all copies, other than permanent file copies, then in such Electing
Holder’s possession of the prospectus covering such Registrable Securities at
the time of receipt of such notice.

 

(f)                                    In the event of a Shelf
Registration, in addition to the information required to be provided by each
Electing Holder in its Notice and Questionnaire, the Company may require such
Electing Holder to furnish to the Company such additional information regarding
such Electing Holder and such Electing Holder’s intended method of distribution
of Registrable Securities as may be required in order to comply with the
Securities Act. Each such Electing Holder agrees to (i) notify the Company as
promptly as practicable of (A) any inaccuracy or change in information
previously furnished by such Electing Holder to the Company or (B) of the
occurrence of any event in either case as a result of which any prospectus
relating to such Shelf Registration contains or would contain an untrue
statement of a material fact regarding such Electing Holder or such Electing
Holder’s intended method of disposition of such Registrable Securities or omits
to state any material fact regarding such Electing Holder or such Electing
Holder’s intended method of disposition of such Registrable Securities required
to be stated therein or necessary to make the statements therein not misleading
in light of the circumstances then existing, and (ii) promptly to furnish to
the Company any additional information required to correct and update any
previously furnished required information or so that such prospectus shall not
contain, with respect to such Electing Holder or the disposition of such
Registrable Securities, an untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances then existing.

 

(g)                                 Until the expiration of two years
after the Closing Date, the Company will not, and will not permit any of its “affiliates”
(as defined in Rule 144) to, resell any of the Securities that have been
reacquired by any of them except pursuant to an effective registration
statement under the Securities Act.

 

4.                                       Registration Expenses.

 

The Company
agrees to bear and to pay or cause to be paid promptly all expenses incident to
the Company’s performance of or compliance with this Exchange

 

19

 

and
Registration Rights Agreement, including (a) all Commission and any NASD
registration, filing and review fees and expenses, (b) all fees and expenses in
connection with the qualification of the Securities for offering and sale under
the State securities and blue sky laws referred to in Section 3(d)(xii) hereof
under the laws of such jurisdictions as any managing underwriters or the
Electing Holders may designate, including any fees and disbursements of one
counsel for the Electing Holders or underwriters in connection with such
qualification, (c) all expenses relating to the preparation, printing,
production, distribution and reproduction of each registration statement
required to be filed hereunder, each prospectus included therein or prepared
for distribution pursuant hereto, each amendment or supplement to the
foregoing, and the expenses of preparing the Securities for delivery, (d)
messenger, telephone and delivery expenses relating to the preparation of
documents referred in clause (c) above, (e) fees and expenses of the Trustee
under the Indenture, (f) internal expenses (including all salaries and expenses
of the Company’s officers and employees performing legal or accounting duties),
(g) fees, disbursements and expenses of counsel and independent certified
public accountants of the Company (including the expenses of any opinions or “cold
comfort” letters required by or incident to such performance and compliance),
(h) reasonable fees, disbursements and expenses of one counsel for the Electing
Holders retained in connection with a Shelf Registration, as selected by the
Electing Holders of at least a majority in aggregate principal amount of the Registrable
Securities held by Electing Holders (which counsel shall be reasonably
satisfactory to the Company), (j) any fees charged by securities rating
services for rating the Securities, and (k) fees, expenses and disbursements of
any other persons, including special experts, retained by the Company in
connection with such registration (collectively, the “Registration Expenses”).
To the extent that any Registration Expenses are incurred, assumed or paid by
any holder of Registrable Securities or any placement or sales agent therefor
or underwriter thereof, the Company shall reimburse such person for the full
amount of the reasonable Registration Expenses so incurred, assumed or paid
promptly after receipt of a request therefor. Notwithstanding the foregoing,
the holders of the Registrable Securities being registered shall pay all agency
fees and commissions and underwriting discounts and commissions attributable to
the sale of such Registrable Securities and the fees and disbursements of any
counsel or other advisors or experts retained by such holders (severally or
jointly), other than the counsel and experts specifically referred to above.

 

5.                                       Representations and Warranties.

 

The Company
and the Guarantors represent and warrant to, and agree with, each Purchaser and
each of the holders from time to time of Registrable Securities that:

 

(a)                                  Each registration statement covering
Registrable Securities and each prospectus (including any preliminary or
summary prospectus) contained therein or furnished pursuant to Section 3(d) or
Section 3(c) hereof and any further amendments or supplements to any such
registration statement or prospectus, when it becomes effective or is filed
with the Commission, as the case may be, will conform in all material respects
to the requirements of the Securities Act and the Trust Indenture Act and the
rules and regulations of the Commission thereunder and will not contain an
untrue statement of a material fact or omit to

 

20

 

state
a material fact required to be stated therein or necessary to make the
statements therein not misleading; and at all times subsequent to the Effective
Time when a prospectus would be required to be delivered under the Securities
Act, other than from (i) such time as a notice has been given to holders of
Registrable Securities pursuant to Section 3(d)(viii)(D) or Section
3(c)(iii)(D) hereof until (ii) such time as the Company furnishes an amended or
supplemented prospectus pursuant to Section 3(e) or Section 3(c)(iv) hereof,
each such registration statement, and each prospectus (including any summary
prospectus) contained therein or furnished pursuant to Section 3(d) or Section
3(c) hereof, as then amended or supplemented, will not contain an untrue statement
of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein not misleading in the light
of the circumstances then existing; provided,
however, that this representation and warranty shall not apply to
any statements or omissions made in reliance upon and in conformity with
information furnished in writing to the Company by a holder of Registrable
Securities, a placement or sales agent or an underwriter expressly for use
therein.

 

(b)                                 Any documents incorporated by
reference in any prospectus referred to in Section 5(a) hereof, when they
become or became effective or are or were filed with the Commission, as the
case may be, will conform or conformed in all material respects to the requirements
of the Securities Act or the Exchange Act, as applicable, and, as of such
effective or filing date, none of such documents will contain or contained an
untrue statement of a material fact or will omit or omitted to state a material
fact required to be stated therein or necessary to make the statements therein
not misleading; provided, however,
that this representation and warranty shall not apply to any statements or
omissions made in reliance upon and in conformity with information furnished in
writing to the Company by a holder of Registrable Securities, a placement or
sales agent or an underwriter expressly for use therein.

 

(c)                                  The compliance by the Company with
all of the provisions of this Exchange and Registration Rights Agreement and
the consummation of the transactions herein contemplated will not conflict with
or result in a breach of any of the terms or provisions of, or constitute a
default under, any indenture, mortgage, deed of trust, loan agreement or other
agreement or instrument to which the Company or any subsidiary of the Company
is a party or by which the Company or any subsidiary of the Company is bound or
to which any of the property or assets of the Company or any subsidiary of the
Company is subject, except for such conflict, breach or default which (x) would
not have a material adverse effect on the business, condition (financial or
otherwise) or results of operations of the Company and its subsidiaries, taken
as a whole (any such event, a “Material Adverse Effect”) or (y) have been
waived nor will such action result in any violation of the provisions of the
organizational documents of the Company or the Guarantors or violate any
statute or any order, rule or regulation of any court or governmental agency or
body having jurisdiction over the Company or any subsidiary of the Company or
any of their properties except for such violation which would not have a
Material Adverse Effect; and no consent,

 

21

 

approval,
authorization, order, registration or qualification of or with any such court
or governmental agency or body is required for the consummation by the Company
and the Guarantors of the transactions contemplated by this Exchange and
Registration Rights Agreement, except the registration under the Securities Act
of the Securities, qualification of the Indenture under the Trust Indenture Act
and such consents, approvals, authorizations, registrations or qualifications
as may be required under state securities or blue sky laws in connection with
the offering and distribution of the Securities.

 

(d)                                 This Exchange and Registration
Rights Agreement has been duly authorized, executed and delivered by the
Company.

 

6.                                       Indemnification.

 

(a)                                  Indemnification by
the Company and the Guarantors.  The Company
and the Guarantors, jointly and severally, will indemnify and hold harmless
each broker dealer selling Exchange Securities during the Resale Period, and
each of the Electing Holders of Registrable Securities included in a Shelf
Registration Statement against any losses, claims, damages or liabilities,
joint or several, to which such holder may become subject under the Securities
Act or otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon an untrue statement
or alleged untrue statement of a material fact contained in any Exchange
Registration Statement or Shelf Registration Statement, as the case may be,
under which such Registrable Securities were registered under the Securities
Act, or any preliminary, final or summary prospectus contained therein or
furnished by the Company to any such holder, or any amendment or supplement
thereto, or arise out of or are based upon the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, and will reimburse such holder for
any out-of-pocket legal or other expenses reasonably incurred by them in
connection with investigating or defending any such action or claim as such
expenses are incurred; provided, however, that (i) neither the Company nor any
Guarantor shall be liable to any such person in any such case to the extent
that any such loss, claim, damage or liability arises out of or is based upon
an untrue statement or alleged untrue statement or omission or alleged omission
made in such registration statement, or preliminary, final or summary
prospectus, or amendment or supplement thereto, in reliance upon and in
conformity with written information furnished to the Company by any holder,
placement or sales agent or underwriter expressly for use therein and (ii) such
indemnity with respect to any preliminary prospectus shall not inure to the
benefit of any holder, placement agent or underwriter (or any person
controlling such person) to the extent that any loss, claim, damage or
liability of such person results from the fact that such person sold Securities
to a person as to whom it shall be established that there was not sent or
given, a copy of the final prospectus (or the final prospectus as amended or
supplemented) at or prior to the confirmation of the sale of such Securities to
such person if (x) the Company has previously furnished copies thereof in
sufficient quantity to such indemnified person and the loss, claim, damage or
liability of such indemnified person results from an untrue statement or
omission of a material fact contained in such preliminary prospectus which was
corrected in the final prospectus (or the final 

 

22

 

prospectus as amended or supplemented) and
(y) such loss, liability, claim, damage or expense would have been eliminated
by the delivery of such corrected final prospectus or the final prospectus as
then amended or supplemented.

 

(b)                                 Indemnification by
the Holders and Any Agents and Underwriters.  As a
condition to including any Registrable Securities in any registration statement
filed pursuant to Section 2(b) hereof or to entering into any underwriting
agreement with respect thereto, each Electing Holder of such Registrable
Securities and each underwriter named in any such underwriting agreement,
severally and not jointly, will (i) indemnify and hold harmless the Company,
the Guarantors, and all other holders of Registrable Securities, against any
losses, claims, damages or liabilities to which the Company, the Guarantors or
such other holders of Registrable Securities may become subject, under the
Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon an
untrue statement or alleged untrue statement of a material fact contained in
such registration statement, or any preliminary, final or summary prospectus
contained therein or furnished by the Company to any such Electing Holder,
agent or underwriter, or any amendment or supplement thereto, or arise out of
or are based upon the omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein
not misleading, in each case to the extent, but only to the extent, that such
untrue statement or alleged untrue statement or omission or alleged omission
was made in reliance upon and in conformity with written information furnished
to the Company by such Electing Holder or underwriter expressly for use
therein, and (ii) reimburse the Company and the Guarantors for any legal or
other expenses reasonably incurred by the Company and the Guarantors in
connection with investigating or defending any such action or claim as such
expenses are incurred; provided, however,
that no such Electing Holder shall be required to undertake liability to any
person under this Section 6(b) for any amounts in excess of the proceeds to be
received by such Electing Holder from the sale of such Electing Holder’s
Registrable Securities pursuant to such registration.

 

(c)                                  Notices of Claims,
Etc.  Promptly after receipt by an indemnified
party under Section 6(a) or Section 6(b) above of written notice of the
commencement of any action, such indemnified party shall, if a claim in respect
thereof is to be made against an indemnifying party pursuant to the
indemnification provisions of or contemplated by this Section 6, notify such
indemnifying party in writing of the commencement of such action; but the
omission so to notify the indemnifying party shall not relieve it from any
liability which it may have to any indemnified party otherwise than under the
indemnification provisions of or contemplated by Section 6(a) or 6(b) above. In
case any such action shall be brought against any indemnified party and it
shall notify an indemnifying party of the commencement thereof, such
indemnifying party shall be entitled to participate therein and, to the extent
that it shall wish, jointly with any other indemnifying party similarly
notified, to assume the defense thereof, with counsel reasonably satisfactory
to such indemnified party (who shall not, except with the consent of the
indemnified party, be counsel to the indemnifying party), and, after notice
from the indemnifying party to such indemnified party of its election so to
assume the defense thereof, such indemnifying party shall not be liable to such
indemnified party for any legal expenses of other counsel or any other
expenses, in each case subsequently incurred

 

23

 

by such indemnified party, in connection with
the defense thereof other than reasonable costs of investigation. In no event
shall the indemnifying parties be liable for fees and expenses of more than one
counsel (in addition to any local counsel) separate from their own counsel for
all indemnified parties in connection with any one action or separate but
similar or related actions in the same jurisdiction arising out of the same
general allegations or circumstances. No indemnifying party shall, without the
written consent of the indemnified party, effect the settlement or compromise
of, or consent to the entry of any judgment with respect to, any pending or
threatened action or claim in respect of which indemnification or contribution
may be sought hereunder (whether or not the indemnified party is an actual or
potential party to such action or claim) unless such settlement, compromise or
judgment (i) includes an unconditional release of the indemnified party from
all liability arising out of such action or claim and (ii) does not include a
statement as to or an admission of fault, culpability or a failure to act by or
on behalf of any indemnified party. No indemnifying party shall be liable under
this Section 6(c) for any settlement of any claim or action effected without
its consent, which consent shall not be unreasonably withheld.

 

(d)                                 Contribution. 
If for any reason the indemnification provisions contemplated by Section
6(a) or Section 6(b) above are unavailable to or insufficient to hold harmless
an indemnified party in respect of any losses, claims, damages or liabilities
(or actions in respect thereof) referred to therein, then each indemnifying party
shall contribute to the amount paid or payable by such indemnified party as a
result of such losses, claims, damages or liabilities (or actions in respect
thereof) in such proportion as is appropriate to reflect the relative fault of
the indemnifying party and the indemnified party in connection with the
statements or omissions which resulted in such losses, claims, damages or
liabilities (or actions in respect thereof), as well as any other relevant
equitable considerations. The relative fault of such indemnifying party and
indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or omission
or alleged omission to state a material fact relates to information supplied by
such indemnifying party or by such indemnified party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. The parties hereto agree that it would not be just
and equitable if contributions pursuant to this Section 6(d) were determined by
pro rata allocation (even if the holders or any agents or underwriters or all
of them were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred
to in this Section 6(d). The amount paid or payable by an indemnified party as
a result of the losses, claims, damages, or liabilities (or actions in respect
thereof) referred to above shall be deemed to include any legal or other fees
or expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the
provisions of this Section 6(d), no holder shall be required to contribute any
amount in excess of the amount by which the proceeds received by such holder
from the sale of any Registrable Securities (after deducting any fees,
discounts and commissions applicable thereto) exceeds the amount of any damages
which such holder has otherwise been required to pay by reason of such untrue
or alleged untrue statement or omission or alleged omission, and no underwriter
shall be required to contribute any amount in excess of the amount by which the
total price at which the Registrable Securities underwritten by

 

24

 

it and distributed to the public were offered
to the public exceeds the amount of any damages which such underwriter has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. The holders’ and any underwriters’ obligations in
this Section 6(d) to contribute shall be several in proportion to the principal
amount of Registrable Securities registered or underwritten, as the case may
be, by them and not joint.

 

(e)                                  The obligations of the Company and
the Guarantors under this Section 6 shall be in addition to any liability which
the Company or the Guarantors may otherwise have and shall extend, upon the
same terms and conditions, to each officer, director and partner of each holder,
agent and underwriter and each person, if any, who controls any holder, agent
or underwriter within the meaning of the Securities Act; and the obligations of
the holders and any agents or underwriters contemplated by this Section 6 shall
be in addition to any liability which the respective holder, agent or
underwriter may otherwise have and shall extend, upon the same terms and
conditions, to each officer and director of the Company or the Guarantors and
to each person, if any, who controls the Company or a Guarantor within the
meaning of the Securities Act.

 

7.                                       Underwritten Offerings.

 

(a)                                  Selection of
Underwriters.  If any of the Registrable Securities covered
by the Shelf Registration are to be sold pursuant to an underwritten offering,
the managing underwriter or underwriters thereof shall be designated by
Electing Holders holding at least a majority in aggregate principal amount of
the Registrable Securities to be included in such offering, provided that such
designated managing underwriter or underwriters is or are reasonably acceptable
to the Company.

 

(b)                                 Participation by
Holders.  Each holder of Registrable Securities hereby
agrees with each other such holder that no such holder may participate in any
underwritten offering hereunder unless such holder (i) agrees to sell such
holder’s Registrable Securities on the basis provided in any underwriting
arrangements approved by the persons entitled hereunder to approve such
arrangements and (ii) completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements and other documents reasonably required
under the terms of such underwriting arrangements.

 

8.                                       Rule 144.

 

The Company
covenants to the holders of Registrable Securities that to the extent it shall
be required to do so under the Exchange Act, the Company shall timely file the
reports required to be filed by it under the Exchange Act or the Securities Act
(including the reports under Section 13 and 15(d) of the Exchange Act referred
to in subparagraph (c)(1) of Rule 144 adopted by the Commission under the
Securities Act) and the rules and regulations adopted by the Commission
thereunder, and shall take such further action as any holder of Registrable
Securities may reasonably request, all to the

 

25

 

extent
required from time to time to enable such holder to sell Registrable Securities
without registration under the Securities Act within the limitations of the
exemption provided by Rule 144 under the Securities Act, as such Rule may be
amended from time to time, or any similar or successor rule or regulation
hereafter adopted by the Commission. Upon the request of any holder of
Registrable Securities in connection with that holder’s sale pursuant to Rule
144, the Company shall deliver to such holder a written statement as to whether
it has complied with such requirements.

 

9.                                       Miscellaneous.

 

(a)                                  No Inconsistent
Agreements.  The Company represents, warrants, covenants
and agrees that it has not granted, and shall not grant, registration rights
with respect to Registrable Securities or any other securities which would be
inconsistent with the terms contained in this Exchange and Registration Rights
Agreement.

 

(b)                                 Remedy. 
Special interest is the sole remedy available to holders of Registrable
Securities in the event the Company does not comply with any of its
registration and other obligations set forth in Section 2 herein. In addition,
the parties hereto acknowledge that there would be no adequate remedy at law if
the Company fails to perform any of its other obligations under Sections 4, 6,
or 8 hereunder and that the Purchasers and the holders from time to time of the
Registrable Securities may be irreparably harmed by any such failure, and
accordingly agree that the Purchasers and such holders, in addition to any
other remedy to which they may be entitled at law or in equity, shall be
entitled to compel specific performance of such obligations in accordance with
the terms and conditions of this Exchange and Registration Rights Agreement, in
any court of the United States or any State thereof having jurisdiction.

 

(c)                                  Notices. 
All notices, requests, claims, demands, waivers and other communications
hereunder shall be in writing and shall be deemed to have been duly given when
delivered by hand, if delivered personally or by courier, or three days after
being deposited in the mail (registered or certified mail, postage prepaid,
return receipt requested) as follows: If to the Company, to it at 500 Huntsman
Way, Salt Lake City, Utah 84108, Attention: General Counsel, and if to a
holder, to the address of such holder set forth in the security register or
other records of the Company, or to such other address as the Company or any
such holder may have furnished to the other in writing in accordance herewith,
except that notices of change of address shall be effective only upon receipt.

 

(d)                                 Parties in
Interest.  All the terms and provisions of this Exchange
and Registration Rights Agreement shall be binding upon, shall inure to the
benefit of and shall be enforceable by the parties hereto and the holders from
time to time of the Registrable Securities and the respective successors and
assigns of the parties hereto and such holders. In the event that any
transferee of any holder of Registrable Securities shall acquire Registrable
Securities, in any manner, whether by gift, bequest, purchase, operation of law
or otherwise, such transferee shall, without any further writing or action of
any kind, be deemed a beneficiary hereof for all purposes and such Registrable
Securities shall be held subject to all of the terms of this Exchange and
Registration

 

26

 

Rights Agreement, and by taking and holding
such Registrable Securities such transferee shall be entitled to receive the
benefits of, and be conclusively deemed to have agreed to be bound by all of
the applicable terms and provisions of this Exchange and Registration Rights
Agreement. If the Company shall so request, any such successor, assign or
transferee shall agree in writing to acquire and hold the Registrable
Securities subject to all of the applicable terms hereof.

 

(e)                                  Survival. 
The respective indemnities, agreements, representations, warranties and
each other provision set forth in this Exchange and Registration Rights
Agreement or made pursuant hereto shall remain in full force and effect
regardless of any investigation (or statement as to the results thereof) made
by or on behalf of any holder of Registrable Securities, any director, officer
or partner of such holder, any agent or underwriter or any director, officer or
partner thereof, or any controlling person of any of the foregoing, and shall
survive delivery of and payment for the Registrable Securities pursuant to the
Purchase Agreement and the transfer and registration of Registrable Securities
by such holder and the consummation of an Exchange Offer.

 

(f)                                    Governing
Law.  This Exchange and
Registration Rights Agreement shall be governed by and construed in accordance
with the laws of the State of New York, without reference to the conflict of
law rules thereof.

 

(g)                                 Headings. 
The descriptive headings of the several Sections and paragraphs of this
Exchange and Registration Rights Agreement are inserted for convenience only,
do not constitute a part of this Exchange and Registration Rights Agreement and
shall not affect in any way the meaning or interpretation of this Exchange and
Registration Rights Agreement.

 

(h)                                 Entire Agreement;
Amendments.  This Exchange and Registration Rights
Agreement and the other writings referred to herein (including the Indenture
and the form of Securities) or delivered pursuant hereto which form a part
hereof contain the entire understanding of the parties with respect to its
subject matter. This Exchange and Registration Rights Agreement supersedes all
prior agreements and understandings between the parties with respect to its
subject matter. This Exchange and Registration Rights Agreement may be amended
and the observance of any term of this Exchange and Registration Rights
Agreement may be waived (either generally or in a particular instance and
either retroactively or prospectively) only by a written instrument duly
executed by the Company and the holders of at least a majority in aggregate
principal amount of the Registrable Securities at the time outstanding. Each
holder of any of the Registrable Securities at the time or thereafter
outstanding shall be bound by any amendment or waiver effected pursuant to this
Section 9(h), whether or not any notice, writing or marking indicating such
amendment or waiver appears on such Registrable Securities or is delivered to
such holder.

 

(i)                                     Inspection. 
For so long as this Exchange and Registration Rights Agreement shall be
in effect, this Exchange and Registration Rights Agreement and a complete list
of the names and addresses of all the holders of Registrable Securities shall
be made available for inspection and copying on any business day by any holder
of

 

27

 

Registrable Securities for proper purposes
only (which shall include any purpose related to the rights of the holders of
Registrable Securities under the Securities, the Indenture and this Exchange
and Registration Rights Agreement) at the offices of the Trustee under the
Indenture.

 

(j)                                     Counterparts. 
This Exchange and Registration Rights Agreement may be executed by the
parties in counterparts, each of which shall be deemed to be an original, but
all such respective counterparts shall together constitute one and the same
instrument.

 

28

 

If the
foregoing is in accordance with your understanding, please sign and return to
us five counterparts hereof, and upon the acceptance hereof by you, on behalf
of each of the Purchasers, this letter and such acceptance hereof shall
constitute a binding agreement between each of the Purchasers, the Guarantors
and the Company. It is understood that your acceptance of this letter on behalf
of each of the Purchasers is pursuant to the authority set forth in a form of
Agreement among Purchasers, the form of which shall be submitted to the Company
for examination upon request, but without warranty on your part as to the
authority of the signers thereof.

 

Very truly
yours,

 

Huntsman
International LLC

 

 

	
  By:

  	
  /s/ J. Kimo
  Esplin

  	
   

  
	
   

  	
  Name: J.
  Kimo Esplin

  
	
   

  	
  Title:
  Executive Vice President and

  Chief Financial Officer

  

 

S-1

 

GUARANTORS

 

Eurofuels LLC

Eurostar Industries LLC

Huntsman EA Holdings LLC

Huntsman Ethyleneamines Ltd.

Huntsman International Financial LLC

Huntsman International Fuels, L.P.

Huntsman Propylene Oxide Holdings LLC

Huntsman Propylene Oxide Ltd.

Huntsman Texas Holdings LLC

 

 

	
  By:

  	
  /s/ Sean
  Douglas

  	
   

  
	
   

  	
  Name: Sean
  Douglas

  
	
   

  	
  Title: Vice
  President

  
	
   

  
	
   

  
	
  Tioxide Americas Inc.

  
	
   

  
	
   

  
	
  By:

  	
  /s/ J. Kimo Esplin

  	
   

  
	
   

  	
  Name: J. Kimo Esplin

  
	
   

  	
  Title: Director

  
	
   

  
	
   

  
	
  Tioxide Group

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Kevin C. Hardman

  	
   

  
	
   

  	
  Name: Kevin C. Hardman

  
	
   

  	
  Title: Vice President, Tax

  

 

S-2

 

Accepted as of the date hereof:

 

 

Deutsche Bank Securities Inc.

Deutsche Bank AG London

Credit Suisse First Boston LLC

Credit Suisse First Boston (Europe) Limited

 

	
  By: Deutsche
  Bank Securities Inc.

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Thomas
  Cole

  	
   

  
	
   

  	
  Name:
  Thomas Cole

  
	
   

  	
  Title:
  Managing Director

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Kevin
  Sullivan

  	
   

  
	
   

  	
  Name: Kevin
  Sullivan

  
	
   

  	
  Title:
  Managing Director

  

 

S-3

 

SCHEDULE I

 

	
  GUARANTORS

  	
   

  	
  JURISDICTION

  OF

  ORGANIZATION

  	
   

  
	
  Eurofuels LLC

  	
   

  	
  Delaware

  	
   

  
	
  Eurostar Industries LLC

  	
   

  	
  Delaware

  	
   

  
	
  Huntsman EA Holdings LLC

  	
   

  	
  Delaware

  	
   

  
	
  Huntsman Ethyleneamines Ltd.

  	
   

  	
  Texas

  	
   

  
	
  Huntsman International Financial LLC

  	
   

  	
  Delaware

  	
   

  
	
  Huntsman International Fuels L.P.

  	
   

  	
  Texas

  	
   

  
	
  Huntsman Propylene Oxide Holdings LLC

  	
   

  	
  Delaware

  	
   

  
	
  Huntsman Propylene Oxide Ltd.

  	
   

  	
  Texas

  	
   

  
	
  Huntsman Texas Holdings LLC

  	
   

  	
  Delaware

  	
   

  
	
  Tioxide Americas Inc.

  	
   

  	
  Cayman Islands

  	
   

  
	
  Tioxide Group

  	
   

  	
  United Kingdom

  	
   

  

 

 

Exhibit A

 

Huntsman International LLC

 

INSTRUCTION TO
DTC PARTICIPANTS

 

(Date of Mailing)

 

URGENT - IMMEDIATE ATTENTION REQUESTED

 

DEADLINE FOR RESPONSE: [DATE]*

 

The Depository
Trust Company (“DTC”) or Euroclear Bank, S.A. (“Euroclear”) and Clearstream
Banking, S.A.(“Clearstream”) have identified you as a DTC participant or
Euroclear and Clearstream participant through which beneficial interests in the
Huntsman International LLC (the “Company”)  dollar-denominated 7 3/8% Senior Subordinated
Notes due 2015 (the “Dollar Notes”) or euro-denominated 71⁄2% Senior Subordinated
Notes due 2015 (the “Euro Notes” and, together with the Dollar Notes, the “Notes”)
are held.

 

The Company is
in the process of registering the Notes under the Securities Act of 1933 for
resale by the beneficial owners thereof. In order to have their Notes included
in the registration statement, beneficial owners must complete and return the
enclosed Notice of Registration Statement and Selling Securityholder
Questionnaire.

 

It is
important that beneficial owners of the Notes receive a copy of the enclosed
materials as soon as possible as their rights to have
the Notes included in the registration statement depend upon their returning
the Notice and Questionnaire by [Deadline For
Response]. Please forward a copy of the enclosed documents to each
beneficial owner that holds interests in the Notes through you. If you require
more copies of the enclosed materials or have any questions pertaining to this
matter, please contact Huntsman International LLC, 500 Huntsman Way, Salt Lake
City, Utah 84108, (801) 584-5700.

 

*  Not less than 28 calendar days from date of
mailing.

 

 

Huntsman
International LLC

 

Notice of
Registration Statement

and

Selling Securityholder Questionnaire

 

(Date)

 

Reference is
hereby made to the Exchange and Registration Rights Agreement (the “Exchange
and Registration Rights Agreement”) among Huntsman International LLC (the “Company”),
the Guarantors named therein and the Purchasers named therein. Pursuant to the
Exchange and Registration Rights Agreement, the Company has filed with the
United States Securities and Exchange Commission (the “Commission”) a
registration statement on Form [          ]
(the “Shelf Registration Statement”) for the registration and resale
under Rule 415 of the Securities Act of 1933, as amended (the “Securities
Act”), of the Company’s dollar-denominated 7 3/8% Senior Subordinated Notes
due 2015 (the “Dollar Notes”) and the Company’s euro-denominated 71⁄2%
Senior Subordinated Notes due 2015 (the “Euro Notes,” and together with
the Dollar Notes, the “Notes”). A copy of the Exchange and Registration
Rights Agreement has been filed as an exhibit to the Shelf Registration
Statement. All capitalized terms not otherwise defined herein shall have the
meanings ascribed thereto in the Exchange and Registration Rights Agreement.

 

Each
beneficial owner of Registrable Securities (as defined below) is entitled to
have the Registrable Securities beneficially owned by it included in the Shelf
Registration Statement. In order to have Registrable Securities included in the
Shelf Registration Statement, this Notice of Registration Statement and Selling
Securityholder Questionnaire (“Notice and Questionnaire”) must be
completed, executed and delivered to the Company’s counsel at the address set
forth herein for receipt ON OR BEFORE [Deadline
for Response]. Beneficial owners of Registrable Securities who do
not complete, execute and return this Notice and Questionnaire by such date (i)
will not be named as selling securityholders in the Shelf Registration
Statement and (ii) may not use the prospectus forming a part thereof for resales
of Registrable Securities.

 

Certain legal
consequences arise from being named as a selling securityholder in the Shelf
Registration Statement and related Prospectus. Accordingly, holders and
beneficial owners of Registrable Securities are advised to consult their own
securities law counsel regarding the consequences of being named or not being
named as a selling securityholder in the Shelf Registration Statement and
related prospectus.

 

The term “Registrable
Securities” is defined in the Exchange and Registration Rights Agreement.

 

2

 

ELECTION

 

The
undersigned holder (the “Selling Securityholder”) of Registrable
Securities hereby elects to include in the Shelf Registration Statement the
Registrable Securities beneficially owned by it and listed below in Item (3).
The undersigned, by signing and returning this Notice and Questionnaire, agrees
to be bound with respect to such Registrable Securities by the terms and
conditions of this Notice and Questionnaire and the Exchange and Registration
Rights Agreement, including, without limitation, Section 6 of the Exchange and
Registration Rights Agreement, as if the undersigned Selling Securityholder
were an original party thereto.

 

Upon any sale
of Registrable Securities pursuant to the Shelf Registration Statement, the
Selling Securityholder will be required to deliver to the Company and the
Trustee for the Notes the Notice of Transfer set forth in Appendix A to the
Prospectus and as Exhibit B to the Exchange and Registration Rights Agreement.

 

The Selling
Securityholder hereby provides the following information to the Company and
represents and warrants that such information is accurate and complete:

 

3

 

QUESTIONNAIRE

 

(1)                                  (a)                                  Full Legal Name of Selling
Securityholder:

 

(b)                                 Full
Legal Name of Registered Holder (if not the same as in (a) above) of
Registrable Securities Listed in Item (3) below:

 

(c)                                  Full
Legal Name of DTC, Euroclear or Clearstream Participant (if applicable and if
not the same as (b) above) Through Which Registrable Securities Listed in Item
(3) below are Held:

 

(2)                                  Address for Notices to Selling
Securityholder:

 

	
   

  
	
   

  
	
  Telephone:

  
	
  Fax:

  
	
  Contact Person:

  

 

(3)                                  Beneficial Ownership of Notes:

 

Except as set forth below in this Item (3),
the undersigned does not beneficially own any Securities.

 

(a)                                  Principal
amount of Registrable Securities beneficially owned:                       

 

CUSIP/ISIN No(s). of such Registrable
Securities:                                            

 

(b)                                 Principal
amount of Notes other than Registrable Securities beneficially owned:

 

 

 

CUSIP/ISIN No(s). of such other Notes:                                      

 

(c)                                  Principal
amount of Registrable Securities which the undersigned wishes to be included in
the Shelf Registration Statement:                             

 

CUSIP/ISIN No(s). of such Registrable Securities to be included in the
Shelf Registration Statement:                                      

 

(4)                                  Beneficial Ownership of Other
Securities of the Company:

 

Except as set forth below in this Item (4),
the undersigned Selling Securityholder is not the beneficial or registered
owner of any other securities of the Company, other than the Notes listed above
in Item (3).

 

4

 

State any exceptions here:                                                                        

 

(5)                                  Relationships with the Company:

 

Except as set forth below, neither the
Selling Securityholder nor any of its affiliates, officers, directors or
principal equity holders (5% or more) has held any position or office or has
had any other material relationship with the Company (or its predecessors or
affiliates) during the past three years.

 

State any exceptions here:

 

(6)                                  Plan of Distribution:

 

Except as set forth below, the undersigned
Selling Securityholder intends to distribute the Registrable Securities listed
above in Item (3) only as follows (if at all): Such Registrable Securities may
be sold from time to time directly by the undersigned Selling Securityholder
or, alternatively, through underwriters, broker-dealers or agents. Such
Registrable Securities may be sold in one or more transactions at fixed prices,
at prevailing market prices at the time of sale, at varying prices determined
at the time of sale, or at negotiated prices. Such sales may be effected in
transactions (which may involve crosses or block transactions) (i) on any
national securities exchange or quotation service on which the Registered Securities
may be listed or quoted at the time of sale, (ii) in the over-the-counter
market, (iii) in transactions otherwise than on such exchanges or services or
in the over-the-counter market, or (iv) through the writing of options. In
connection with sales of the Registrable Securities or otherwise, the Selling
Securityholder may enter into hedging transactions with broker-dealers, which
may in turn engage in short sales of the Registrable Securities in the course
of hedging the positions they assume. The Selling Securityholder may also sell
Registrable Securities short and deliver Registrable Securities to close out
such short positions, or loan or pledge Registrable Securities to
broker-dealers that in turn may sell such securities.

 

State any exceptions here:

 

By signing
below, the Selling Securityholder acknowledges that it understands its
obligation to comply, and agrees that it will comply, with the provisions of
the Exchange Act and the rules and regulations thereunder, particularly
Regulation M.

 

In the event
that the Selling Securityholder transfers all or any portion of the Registrable
Securities listed in Item (3) above after the date on which such information is
provided to the Company, the Selling Securityholder agrees to notify the
transferee(s) at the time of the transfer of its rights and obligations under
this Notice and Questionnaire and the Exchange and Registration Rights
Agreement.

 

By signing
below, the Selling Securityholder consents to the disclosure of the information
contained herein in its answers to Items (1) through (6) above and the

 

5

 

inclusion of
such information in the Shelf Registration Statement and related Prospectus.
The Selling Securityholder understands that such information will be relied
upon by the Company in connection with the preparation of the Shelf
Registration Statement and related Prospectus.

 

In accordance
with the Selling Securityholder’s obligation under Section 3(d) of the Exchange
and Registration Rights Agreement to provide such information as may be
required by law for inclusion in the Shelf Registration Statement, the Selling
Securityholder agrees to promptly notify the Company of any inaccuracies or
changes in the information provided herein which may occur subsequent to the
date hereof at any time while the Shelf Registration Statement remains in
effect. All notices hereunder and pursuant to the Exchange and Registration
Rights Agreement shall be made in writing, by hand-delivery, first-class mail,
or air courier guaranteeing overnight delivery as follows:

 

(i)  To
the Company:

 

Huntsman International LLC

500 Huntsman Way

Salt Lake City, Utah 84108

Attention: General Counsel

 

(ii) With a copy to:

 

Vinson & Elkins L.L.P.

2300 First City Tower

1001 Fannin

Houston, TX 77002

Attention: Jeffery B. Floyd

 

Once this
Notice and Questionnaire is executed by the Selling Securityholder and received
by the Company’s counsel, the terms of this Notice and Questionnaire, and the
representations and warranties contained herein, shall be binding on, shall
inure to the benefit of and shall be enforceable by the respective successors,
heirs, personal representatives, and assigns of the Company and the Selling
Securityholder (with respect to the Registrable Securities beneficially owned
by such Selling Securityholder and listed in Item (3) above). This Agreement
shall be governed in all respects by the laws of the State of New York.

 

6

 

IN WITNESS
WHEREOF, the undersigned, by authority duly given, has caused this Notice and
Questionnaire to be executed and delivered either in person or by its duly
authorized agent.

 

	
  Dated:

  	
   

  	
   

  
	
   

  
	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Selling Securityholder

  
	
   

  	
  (Print/type full legal name of beneficial owner of Registrable
  Securities)

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
						

 

PLEASE RETURN
THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE FOR RECEIPT ON OR BEFORE [DEADLINE FOR RESPONSE] TO THE COMPANY’S
COUNSEL AT:

 

Huntsman International LLC

500 Huntsman Way

Salt Lake City, Utah 84108

 

7

 

Exhibit B

 

NOTICE OF
TRANSFER PURSUANT TO REGISTRATION STATEMENT

 

Wells Fargo
Bank, National Association

Huntsman International LLC

c/o Wells Fargo Bank, National Association

Corporate Trust

Sixth Street
and Marquette Avenue

MAC N9303-120

Minneapolis,
Minnesota 55479

Attention:

 

Attention:

 

Re:                               Huntsman
International LLC (the “Company”)

[Dollar-denominated 7 3/8% Senior Subordinated Notes due 2015]

[Euro-denominated 71⁄2% Senior Subordinated Notes due 2015]

 

Dear Sirs:

 

Please be
advised that has transferred [$                             ]
[€                     ]
aggregate principal amount of the above referenced Notes pursuant to an
effective Registration Statement on Form [      ] (File No.
333-           ) filed
by the Company.

 

We hereby
certify that the prospectus delivery requirements, if any, of the Securities
Act of 1933, as amended, have been satisfied and that the above-named
beneficial owner of the Notes is named as a “Selling Holder” in the Prospectus
dated [date] or in supplements
thereto, and that the aggregate principal amount of the Notes transferred are
the Notes listed in such Prospectus opposite such owner’s name.

 

Dated:

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Name)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  (Authorized Signature)Exhibit 10.1

 

FIRST
AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

 

This FIRST AMENDMENT TO
AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”), dated as of
December 21, 2004, is entered into by and among Huntsman International LLC, a
Delaware limited liability company (the “Borrower”), Huntsman
International Holdings LLC, a Delaware limited liability company (“Holdings”),
the undersigned financial institutions, including Deutsche Bank Trust Company
Americas, in their capacities as lenders hereunder (collectively, the “Lenders,”
and each individually, a “Lender”), Deutsche Bank Trust Company
Americas, as Administrative Agent (“Administrative Agent”) for the
Lenders, Deutsche Bank Securities Inc., as Co-Lead Arranger and Joint Book
Runner, Citigroup Global Markets Inc., as Co-Lead Arranger, Co-Syndication
Agent and Joint Book Runner, JP Morgan Securities Inc., as Co-Documentation
Agent, UBS Securities LLC, as Co-Syndication Agent, Credit Suisse First Boston,
as Co-Documentation Agent, Merrill Lynch, Pierce Fenner & Smith Inc., as
Co-Documentation Agent (collectively, the “Agents” and each
individually, an “Agent”).  Terms
used herein and not otherwise defined herein shall have the same meanings as
specified in the Credit Agreement (as defined below).

 

RECITALS:

 

A.            The Borrower, Holdings, the Lenders, the Agents and the
Administrative Agent have heretofore entered into that certain Amended and
Restated Credit Agreement dated as of July 13, 2004 (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”).

 

B.            The
Borrower and Holdings have requested that the Credit Agreement be amended so as
to provide for a new class of Term B Dollar Loans to be referred to as the New
Term B-1 Dollar Loans (as hereinafter defined) having substantially identical
terms with and in the same aggregate principal amount as the outstanding Term B
Dollar Loans (as defined in the Credit Agreement prior to giving effect to this
Amendment) (the “Existing Term B Dollar Loans”), except as such terms
are amended hereby.

 

C.            As
of the Repricing Effective Time (as hereinafter defined), the outstanding
Existing Term B Dollar Loans will be converted into, or, in the case of Exiting
Term B Dollar Lenders (as hereinafter defined), repaid in full with the
proceeds of, the New Term B-1 Dollar Loans.

 

D.            Each
Lender having a New Term B-1 Dollar Commitment (as hereinafter defined) in
excess of its outstanding principal amount of Existing Term B Dollar Loans as
of the Repricing Effective Time (each such Lender an “Increasing Term B
Dollar Lender”) shall make New Term B-1 Dollar Loans in the amount of the
excess of such Lender’s New Term B-1 Dollar Commitment over such Increasing
Term B Dollar Lender’s outstanding principal amount of Existing Term B Dollar
Loans the proceeds of which shall be used by the Borrower to repay the

 

 

outstanding principal amount of Existing Term B Dollar Loans of
existing Lenders that are not signatories to this Amendment (each such Lender,
an “Exiting Term B Dollar Lender”).

 

E.             Each
Lender having Existing Term B Dollar Loans outstanding as of the Repricing
Effective Time who is signatory to this Amendment (each such Lender a “Continuing
Term B Dollar Lender”) shall be deemed, as of the Repricing Effective Time
in accordance with the provisions hereof, to have converted its Existing Term B
Dollar Loans into New Term B-1 Dollar Loans in the same aggregate principal
amount as such Lender’s New Term B-1 Dollar Commitment (less, in the case of
any Increasing Lender, the amount of New Term B-1 Dollar Loans used to repay
Exiting Lenders’ Existing Term B Dollar Loans).

 

F.             Borrower
shall pay to each Lender having Existing Term B Dollar Loans outstanding as of
the Repricing Effective Time all accrued and unpaid interest on such Existing
Term B Dollar Loans as of the Repricing Effective Time.

 

G.           
The Borrower and Holdings have further requested that immediately following the
effectiveness of the repricing amendments set forth in Section 1 hereof,
each Lender with New Term B Dollar Loans and each other Lender signatory hereto
further amend the Credit Agreement to reflect certain other changes thereto as
more fully described in Section 2 hereof.

 

H.            The
Administrative Agent, the Lenders and the Agents signatory hereto, together
with the Borrower and Holdings, are willing to amend the Credit Agreement
subject to the terms and conditions of this Amendment.

 

I.              This
Agreement constitutes a Loan Document and these Recitals shall be construed as
part of this Amendment.

 

NOW, THEREFORE, in
consideration of the recitals herein contained and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows:

 

SECTION 1.     Repricing
Amendments.

 

Subject to the conditions
set forth in Section 3 hereof, the Credit Agreement is hereby amended as
of the Repricing Effective Time (as defined in Section 3(a) hereof) as
follows:

 

(a)  Section 1.1 of the Credit Agreement is
amended by inserting the following new definitions in alphabetical order therein:

 

“Additional
Amendments Effective Time” has the meaning set forth in the First
Amendment.

 

“Continuing
Term B Dollar Lender” is defined in the Recitals to the First Amendment.

 

“Converted Term
B Dollar Loans” is defined in Section 2.1(a)(i).

 

2

 

“Existing Term B
Dollar Loans” is defined in the Recitals to the First Amendment.

 

“Exiting Term B Dollar
Lender” is defined in the Recitals to the First Amendment.

 

 “First Amendment” means the First Amendment
to Amended and Restated Credit Agreement dated as of December 21, 2004 by and
among the Borrower, Holdings, the Lenders signatory thereto and the
Administrative Agent.

 

“First Amendment
Effective Date” means the date on which each of the Repricing Effective
Time and Additional Amendments Effective Time have occurred.

 

“Increasing Term B
Dollar Lender” is defined in the Recitals to the First Amendment.

 

“New Term B-1 Dollar
Commitment” means the commitment of a Lender to make (and/or convert from
Existing Term B Dollar Loans) as of the Repricing Effective Time New Term B-1
Dollar Loans pursuant to subsection 2.1(a)(i) and “New Term B-1
Commitments” means such commitment of all Lenders in the aggregate.

 

“New Term B-1 Dollar
Loans” is defined in Section 2.1(a)(i).

 

“Repricing Effective
Time” has the meaning set forth in the First Amendment.

 

“Term B Dollar
Conversion” is defined in Section 2.1(a)(i).

 

(b)           Section
1.1 of the Credit Agreement is further amended by deleting the table in the
definition of “Applicable Base Rate Margin” and replacing it with the following
new tables: 

 

	
  Most Recent

  Leverage Ratio

  	
   

  	
  Applicable
  Base Rate Margin for

  Domestic Revolving Loans and

  Multicurrency Revolving Loans

  	
   

  
	
  Less than or
  equal to 2.5 to 1

  	
   

  	
  1.00

  	
  %

  	
   

  
	
  Greater than 2.5
  to 1 but less than or equal to 3.0 to 1

  	
   

  	
  1.25

  	
  %

  	
   

  
	
  Greater than 3.0
  to 1 but less than or equal to 3.5 to 1

  	
   

  	
  1.50

  	
  %

  	
   

  
	
  Greater than 3.5
  to 1 but less than or equal to 4.5 to 1

  	
   

  	
  1.75

  	
  %

  	
   

  
	
  Greater than 4.5
  to 1

  	
   

  	
  2.00

  	
  %

  	
   

  

 

3

 

 

	
  Most Recent

  Leverage Ratio

  	
   

  	
  Applicable

  Base Rate

  Margin for

  Term B Dollar Loans

  	
   

  
	
  Less than or equal to
  4.25 to 1

  	
   

  	
  1.00

  	
  %

  	
   

  
	
  Greater than 4.25 to 1 

  	
   

  	
  1.25

  	
  %

  	
   

  

 

(c)           Section 1.1 of the Credit
Agreement is further amended by deleting the table in the definition of
“Applicable Eurocurrency Margin” therein in its entirety and replacing it with
the following new tables: 

 

	
  Most Recent

  Leverage Ratio

  	
   

  	
  Applicable

  Eurocurrency

  Margin for Domestic

  Revolving Loans and

  Multicurrency

  Revolving Loans

  	
   

  	
  Applicable

  Eurocurrency Margin

  for 

  Term B Euro Facility

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less than or equal to 2.5 to 1

  	
   

  	
  2.25

  	
  %

  	
  3.00

  	
  %

  
	
  Greater than 2.5
  to 1 but less than or equal to 3.0 to 1

  	
   

  	
  2.50

  	
  %

  	
  3.00

  	
  %

  
	
  Greater than 3.0
  to 1 but less than or equal to 3.5 to 1

  	
   

  	
  2.75

  	
  %

  	
  3.00

  	
  %

  
	
  Greater than 3.5
  to 1 but less than or equal to 4.5 to 1

  	
   

  	
  3.00

  	
  %

  	
  3.00

  	
  %

  
	
  Greater than 4.5
  to 1

  	
   

  	
  3.25

  	
  %

  	
  3.25

  	
  %

  

 

	
  Most Recent

  Leverage Ratio

  	
   

  	
  Applicable

  Eurocurrency Margin

  for

  Term B Dollar Facility

  	
   

  
	
  Less than or
  equal to 4.25 to 1

  	
   

  	
  2.25

  	
  %

  
	
  Greater than
  4.25 to 1

  	
   

  	
  2.50

  	
  %

  

 

4

 

(d)           Section 1.1 of the Credit
Agreement is further amended by amending and restating the definition of
“Lenders” to read as follows:

 

“Lender” and “Lenders”
have the respective meanings assigned to those terms in the introduction to
this Agreement and shall include any Person that becomes a “Lender” pursuant to
Section 12.8 and any Person that becomes a Lender by issuance of
Additional Term Loans pursuant to Section 2.1(a)(ii) or a Lender by issuance
or conversion of Replacement Term Loans pursuant to Section 12.8(c).

 

(e)           Section 1.1 of the Credit
Agreement is further amended by amending and restating the definition of
“Scheduled Term B Dollar Repayments” to read as follows:

 

“Scheduled Term B Dollar
Repayments” means, with respect to the principal payments on the Term B
Dollar Loans for each date set forth below, that principal amount of Term B
Dollar Loans set forth opposite thereto:

 

Scheduled Term B
Dollar Loan

 

	
  Date

  	
   

  	
  Principal Payment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  June 30, 2005

  	
   

  	
  $

  	
  13,050,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  June 30, 2006

  	
   

  	
  $

  	
  13,050,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  June 30, 2007

  	
   

  	
  $

  	
  13,050,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  June 30, 2008

  	
   

  	
  $

  	
  13,050,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  June 30, 2009

  	
   

  	
  $

  	
  13,050,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Term B Loan
  Maturity Date

  	
   

  	
  $

  	
  1,239,750,000 

  	
   

  
	
   

  	
   

  	
  or the aggregate principal amount of Term B Dollar
  Loans then outstanding.

  	
   

  

 

(f)            Section 1.1 of the Credit
Agreement is further amended by amending and restating the definition of “Term
B Dollar Facility” to read as follows:

 

“Term B Dollar
Facility” means the credit facility under this Agreement evidenced by the
New Term B-1 Dollar Commitments and the Term B Dollar Loans (including, for
purposes of clarification, the Converted Term B Dollar Loans).

 

(g)           Section 1.1 of the Credit
Agreement is further amended by amending and restating the definition of “Term
B Dollar Lender” to read as follows:

 

“Term B Dollar Lender”
means any Lender which has a New Term B-1 Dollar Commitment or is owed a Term B
Dollar Loan (or a portion thereof).

 

5

 

(h)           Section 2.1(a)(i) of the
Credit Agreement is hereby deleted in its entirety and replaced with the
following:

 

“Subject to the
terms and conditions hereof and Section 3 of the First Amendment, (A)
each Continuing Term B Dollar Lender agrees to convert (each such conversion an
“Term B Dollar Conversion”) its Existing Term B Dollar Loans into new
term loans under this Agreement in an amount equal to the outstanding principal
amount of such Lender’s Existing Term B Dollar Loans (in each case, the “Converted
Term B Dollar Loans”) immediately prior to the Repricing Effective Time;
and (B) each Increasing Term B Dollar Lender agrees to convert its Existing
Term B Dollar Loans pursuant to the Term B Dollar Conversion and also agrees to
make a new loan in Dollars (each such loan, together with all Converted Term B
Dollar Loans, the “New Term B-1 Dollar Loans” and, after giving effect
to the refinancing or conversion of all outstanding Existing Term B Dollar
Loans as of the Repricing Effective Time, the “Term B Dollar Loans”) to
the Borrower as of the Repricing Effective Time in the aggregate principal
amount of such Lender’s New Term B-1 Dollar Commitment.  The Borrower, Holdings, Administrative Agent
and Lenders party hereto further acknowledge and agree that (x) on the
Amendment and Restatement Effective Date, the Term B Euro Lenders made loans to
the Borrower in Euros (the “Term B Euro Loans” and, together with the
Term B Dollar Loans, the “Term B Loans”) which Term B Euro Loans remain
outstanding on the First Amendment Effective Date in the principal amount of
€50,000,000; and (y) on the First Amendment Effective Date, after giving effect
to the conversion and/or issuance of New Term B-1 Dollar Loans, the aggregate
principal amount of Term B Dollar Loans outstanding is equal to
$1,305,000,000.   No amount of a Term B
Loan which is repaid or prepaid by Borrower may be reborrowed hereunder.  The New Term B-1 Dollar Loans issued by Increasing
Term B Dollar Lenders (i) shall, be incurred by the Borrower pursuant to a
single drawing, which shall be as of the Repricing Effective Time, (ii) shall
be denominated in Dollars, (iii) shall be Loans maintained as the same Type as
the Existing Term B Dollar Loans which they replace or convert, provided,
that all Term B Dollar Loans made by the Term B Dollar Lenders pursuant to the
same Borrowing shall, unless otherwise specifically provided herein, consist
entirely of Term B Dollar Loans of the same Type and shall, in the case of
Eurocurrency Loans, have the same Interest Period as the Interest Periods
applicable to the Existing Term B Dollar Loans on the First Amendment Effective
Date.”

 

(i)            The Credit Agreement is further
amended by adding a new Section 4.8 thereto to read as follows:

 

“4.8         Prepayment Premium.  Notwithstanding anything else in this
Agreement to the contrary, any voluntary prepayment of all or substantially all
of the Term B Dollar Loans effected after the First Amendment Effective Date
but on or prior to the first anniversary of the First Amendment Effective Date
with the proceeds of a substantially concurrent issuance or incurrence of new
senior secured loans which (x) are incurred for the primary purpose of
refinancing the Term B Dollar Loans and decreasing the Applicable Base Rate
Margin or Applicable Eurodollar Margin with respect thereto, (y) otherwise have
terms and conditions (and are in an aggregate principal amount) substantially
the same as those of the Term B Dollar Loans as in effect prior to the
prepayment thereof and (z) are not otherwise in connection with a transaction
and any transactions related thereto which would be prohibited by this
Agreement (as

 

6

 

determined prior to giving effect to any amendment or waiver of this
Agreement being adopted in connection with such transaction and related
transactions) shall be accompanied by a prepayment fee equal to 1.00% of the
aggregate principal amount of such prepayment.”

 

(j)            The Credit Agreement is further
amended by adding a new Section 4.2(e) thereto:

 

“(e)         Termination of New Term B-1 Dollar
Commitments.  The New Term B-1 Dollar
Commitments shall terminate on the expiration of the Repricing Effective Time
after giving effect to the Borrowing (or conversion, as the case may be) of the
New Term B-1 Dollar Loans on such date.”

 

(k)           Section 6.8(a) of the Credit
Agreement is hereby amended by adding the following new sentence immediately at
the end thereof:

 

“The Existing Term B
Dollar Loans of all Exiting Term B Dollar Lenders shall be paid in full with
the gross proceeds of any New Term B-1 Dollar Loans issued by Increasing Term B
Dollar Lenders as of the Repricing Effective Time.”

 

SECTION 2.     Other Amendments to Credit Agreement.

 

Subject to the conditions
set forth in Section 3 of this Amendment, as of the Additional
Amendments Effective Time, each Term B Dollar Lender holding New Term B-1
Dollar Loans and each other Lender party to this Amendment agrees to further
amend the Credit Agreement effective as of December 1, 2004 as follows:

 

(a)  Section 1.1 of the Credit Agreement is
further amended by inserting the following new definitions in alphabetical
order therein:

 

“Available Liquidity”
means, at any date, the sum of (i) the Total Available Revolving Commitments on
such date plus (ii) unrestricted cash, Cash Equivalents and the Dollar
Equivalent of Foreign Cash Equivalents held by the Borrower and its
Subsidiaries.

 

“Total Available
Revolving Commitments” means an amount equal to the sum of the Dollar
Equivalent of the aggregate Available Multicurrency Revolving Commitments of
all Lenders plus the aggregate Available Domestic Revolving Commitments of all
Lenders.

 

(b)           Section 1.1 of the Credit
Agreement is further amended by amending the last sentence of the definition of
“Change of Control “ therein in its entirety and replacing it with the
following sentence:

 

“Change of Control shall also mean any “Change of
Control” as defined in the Senior Subordinated Note Documents or Senior Note
Documents; provided that any such “Change of Control” occurring as a result of
an Initial Public Offering shall not constitute a Change of Control hereunder
unless concurrently with or within ninety (90) days of such “Change of Control”
any holder or holders of Senior Subordinated Notes or Senior Notes, as
applicable, exercises their option to put or tender such Senior Subordinated
Notes or such Senior

 

7

 

Notes, as
applicable, in aggregate principal amount for all such Senior Subordinated
Notes or Senior Notes so put or tendered in excess of $15,000,000.”

 

(c)           Section
1.1 of the Credit Agreement is further amended by amending and restating
the definition of “Initial Public Offering” therein in its entirety and
replacing it with the following new definition:

 

“Initial Public Offering” means an initial
public offering of Huntsman LLC, any Parent Company, or Holdings.”

 

(d)           Section 1.1 of the Credit
Agreement is further amended by amending the definition of “Consolidated
EBITDA” by deleting the “and” immediately preceding clause (v) therein
and replacing it with a “;” and by adding the following new clause (vi)
to such definition immediately following clause (v):

 

“ and (vi) any call
premiums paid in connection with any repayment or refinancing of Indebtedness
permitted hereunder and each write-off of deferred financing costs due to any
early extinguishment of Indebtedness permitted hereunder and in each case
occurring on or after December 1, 2004.”

 

(e)           Section 1.1 of the Credit
Agreement is further amended by amending the definition of “Permitted
Refinancing Indebtedness” by adding the following new language immediately at
the end of clause (iii) of such definition “plus any call premiums and
other expenses paid in connection with such refinancing”.

 

(f)            Section 1.1 of the Credit Agreement
is further amended by amending the definition of “Permitted Restructuring
Charges” by (i) deleting the figures $300,0000,000 and $150,000,000 therein and
replacing such figures with $350,000,000 and $170,000,000. respectively; and
(ii) deleting the language “as described on Schedule 1.1(c) hereto”
which appears at the end of such definition.

 

(g)           Section 8.2(r) of the Credit
Agreement is hereby amended by adding the following new sentence immediately at
the end thereof:

 

“provided, however, in addition to the
foregoing (and not to be counted against the baskets set forth in this Section
8.2(r)), Borrower may incur Indebtedness consisting of unsecured Guarantee
Obligations not exceeding the Dollar Equivalent of $15,000,000 in respect of
obligations incurred in connection with the construction of the New LDPE
Facility;”

 

(h)           Section 8.4 of the Credit
Agreement is hereby amended by deleting the “and” immediately before clause
(y) in the first parenthetical thereof and by adding the following new
language immediately at the end of such clause (y):

 

“and (z) dividends and
distributions made by Borrower to Holdings, after or concurrently with the
closing of an Initial Public Offering, in an aggregate amount not to exceed the
lesser of $50 million or that amount permitted by the Senior Notes Documents or
Senior 

 

8

 

Subordinated Notes Documents, provided, that:  (i) the proceeds of such dividends and
distributions shall be applied to prepay those certain 13.375% Senior
Discounted Notes due 2009 issued by Holdings and (ii) there shall be at least
$250 million in Available Liquidity after giving effect to such dividend or
distribution.”

 

SECTION 3.     Conditions to Effectiveness of the Amendment.  The provisions of this Amendment (other than
those contained in Section 2) shall become effective upon the date of
the satisfaction of all of the conditions set forth in this Section 3
(the “Refinancing Effective Time”) and the provisions of Section 2
of this Amendment shall become effective immediately after the occurrence of
the Refinancing Effective Time (the “Additional Amendments Effective Time”):

 

3.1           Proper Execution and
Delivery of Amendment. 
Borrower, Holdings, the Administrative Agent and the Lenders required by
Section 12.1 of the Credit Agreement shall have duly executed and
delivered to Administrative Agent this Amendment.

 

3.2           Delivery of Credit Party
Documents.  On or before
the date hereof, Borrower shall deliver or cause to be delivered to
Administrative Agent the following with respect to each of Borrower, each
Credit Party and Holdings, each, unless otherwise noted, dated the First
Amendment Effective Date:

 

(a)           Certified copies of its Certificate
of Formation, together with a good standing certificate from the Secretary of
State of the jurisdiction of its incorporation and each other state in which it
is qualified as a foreign corporation to do business and where failure to be so
qualified would have a Material Adverse Effect and, to the extent generally
available, a certificate or other evidence of good standing as to payment of
any applicable franchise or similar taxes from the appropriate taxing authority
of each of such states, each dated a recent date prior to the First Amendment
Effective Date or, in the event that any such document has been previously
delivered by the Borrower to the Administrative Agent, a certificate executed
by a Responsible Officer of the Borrower indicating that no change has occurred
with respect to such document;

 

(b)           Copies of its operating agreement or
limited liability company agreement, certified by its corporate secretary or an
assistant secretary or a certificate of the lack of any change thereto since
the Initial Borrowing Date or, in the event that any such document has been previously
delivered by the Borrower to the Administrative Agent, a certificate executed
by a Responsible Officer of the Borrower indicating that no change has occurred
with respect to such document;

 

(c)           Resolutions of its members, manager
or board of managers  (i) approving and
authorizing the execution, delivery and performance of this Amendment, and (ii)
approving and authorizing the execution, delivery and performance of the other
Loan Documents to which it is a party and all transactions related thereto, in
each case certified as of the First Amendment Effective Date by its corporate
secretary or an assistant secretary as being in full force and effect without
modification or amendments;

 

9

 

(d)           Signature and incumbency certificates
of its officers executing this Amendment;

 

(e)           a reaffirmation of each Security
Document to which such Person is a party;

 

(f)            an opinion of Vinson & Elkins
LLP, special counsel to the Credit Parties, addressed to Administrative Agent
and each of the Lenders and dated the First Amendment Effective Date, which
shall be in form and substance reasonably satisfactory to the Administrative
Agent and shall cover such matters incident to the transactions contemplated
herein and in the other Loan Documents as the Administrative Agent may
reasonably request;

 

(g)           evidence, satisfactory to the
Administrative Agent, that the Borrower has used the proceeds of the New Term
B-1 Dollar Loans to refinance the Existing Term B Dollar Loans; and

 

(h)           Such other instruments and documents
in respect of such matters as Administrative Agent shall reasonably request.

 

3.3           Representations and
Warranties; Default; Officer’s Certificate.  After giving effect to this Amendment, the
representations and warranties set forth in Article VI of the
Credit Agreement shall be true and correct, except to the extent such
representations and warranties are expressly made as of a specified date in
which event such representations and warranties shall be true and correct as of
such specified date, and no Event of Default or Unmatured Event of Default
shall have occurred or be continuing and Administrative Agent shall have
received a certificate executed by a Responsible Officer on behalf of Borrower,
dated the First Amendment Effective Date stating that, after giving effect to
this Amendment, the representations and warranties set forth in Article VI
of the Credit Agreement are true and correct as of the date of the certificate,
except to the extent such representations and warranties are expressly made as
of a specified date in which event such representations and warranties shall be
true and correct as of such specified date, that no Event of Default or
Unmatured Event of Default has occurred and is continuing, and that the
conditions of this Section 3 hereof have been fully satisfied or waived.

 

3.4           Fees.  Borrower shall have paid to Administrative
Agent all costs, fees and expenses (including, without limitation, reasonable
legal fees and expenses) payable to Administrative Agent to the extent then
due, including, without limitation, pursuant to Section 6 of this
Amendment and any fee letter executed by the Borrower in favor of the
Administrative Agent in connection with this Amendment.

 

3.5           Corporate Proceedings.  All corporate and legal proceedings and all
instruments and agreements in connection with the execution and delivery of
this Amendment shall be satisfactory in form and substance to Administrative
Agent and Administrative Agent and all Lenders shall have received all
information and copies of all documents and papers, including records of
corporate proceedings, governmental approvals, good standing certificates and
bring-down telegrams or certificates, if any, which Administrative Agent or
such Lender 

 

10

 

reasonably may have
requested in connection therewith, such documents and papers where appropriate
to be certified by proper corporate or Governmental Authorities.

 

Each Lender and the
Administrative Agent hereby agrees that by its execution and delivery of its
signature page hereto, such Person approves of and consents to each of the
matters set forth herein which must be approved by, or which must be
satisfactory to, the Required Lenders or such Person, as the case may be; provided
that, in the case of any agreement or document which must be approved by, or
which must be satisfactory to, the Required Lenders, Administrative Agent or
Borrower shall have delivered a copy of such agreement or document to such
Person if so requested on or prior to the First Amendment Effective Date.

 

3.6           Payment
of Unpaid Interest. The Borrower shall have paid to all Lenders
with Existing Term B Dollar Loans simultaneously with the making (or conversion
into) of New Term B-1 Dollar Loans hereunder, all accrued and unpaid interest
on such Lenders’ Existing Term B Dollar Loans outstanding on the First
Amendment Effective Date.  In addition,
notwithstanding anything else in the Credit Agreement to the contrary, at the
end of any Interest Period which existed as of the First Amendment Effective
Date, the Borrower will pay to Lenders holding New Term B-1 Dollar Loans the
balance of the interest due and accruing for such Interest Period on such New
Term B-1 Dollar Loans from the period of the First Amendment Effective Date
through the end of such Interest Period.

 

SECTION
4.         Representations
and Warranties.  To induce the other parties hereto to enter
into this Amendment, each of Holdings and the Borrower represent and warrant to
each of the Lenders and the Administrative Agent that, as of the First
Amendment Effective Date:

 

(a)           This Amendment has been duly
authorized, executed and delivered by the Borrower and Holdings and this
Amendment and the Credit Agreement, as amended hereby, constitutes each of the
Borrower’s and Holdings’ legal, valid and binding obligation, enforceable
against it in accordance with its terms, except to the extent that the
enforceability thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws generally affecting creditors’
rights and by equitable principles (regardless of whether enforcement is sought
in equity or at law);

 

(b)           The representations and warranties
set forth in the Credit Agreement are, after giving effect to this Amendment,
true and correct in all material respects on and as of the First Amendment
Effective Date, except to the extent such representations and warranties are
expressly made as of a specified date (in which event they were true and
correct in all material respects as of such specified date); and

 

(c)           No Default or Event of Default has
occurred and is continuing.

 

SECTION
5.         References to and Effect on the
Credit Agreement.  On and after the date hereof each reference
in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein,”
or words of like import, and each reference to the Credit Agreement, as the
case may be, in the Loan Documents and all other documents (the “Ancillary
Documents”)

 

11

 

delivered in
connection with the Credit Agreement shall mean and be a reference to the
Credit Agreement as amended hereby.

 

Except as specifically
amended above, the Credit Agreement, and the other Loan Documents and all other
Ancillary Documents shall remain in full force and effect and are hereby
ratified and confirmed.

 

On and after the First
Amendment Effective Date, each reference in the Credit Agreement to “Term B
Dollar Loans” shall be deemed to be a reference to the Term B Dollar Loans as
refinanced (or converted) by or into the New Term B-1 Dollar Loans.

 

The execution, delivery
and effectiveness of this Amendment shall not, except as expressly provided
herein, operate as a waiver of any right, power or remedy of the Lenders or
Administrative Agent under the Credit Agreement, the Loan Documents or the
Ancillary Documents.

 

SECTION 6.  
Fees, Costs and Expenses.  Borrower
agrees to pay all reasonable costs and expenses of the Administrative Agent in
connection with the negotiation, preparation, printing, typing, reproduction,
execution and delivery of this Amendment and all other documents furnished
pursuant hereto or in connection herewith, including without limitation, the
reasonable fees and out-of-pocket expenses of Winston & Strawn, special counsel
to Administrative Agent and any local counsel retained by Administrative Agent
relative thereto or the reasonable allocated costs of staff counsel as well as
the fees and out-of-pocket expenses of counsel, independent public accountants
and other outside experts retained by Administrative Agent in connection with
the administration of this Amendment.

 

SECTION 7.   Miscellaneous.

 

7.1           Execution in Counterparts.  This Amendment may be executed in one or more
counterparts, each of which, when executed and delivered, shall be deemed to be
an original and all of which counterparts, taken together, shall constitute but
one and the same document with the same force and effect as if the signatures
of all of the parties were on a single counterpart, and it shall not be
necessary in making proof of this Amendment to produce more than one (1) such
counterpart.  Delivery of an executed
signature page to this Amendment by telecopy shall be deemed to constitute
delivery of an originally executed signature page hereto.

 

7.2           Governing Law.  THIS AMENDMENT SHALL BE DEEMED TO BE A
CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES
SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS AND DECISIONS OF SAID
STATE WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.

 

7.3           Headings.  Headings used
in this Amendment are for convenience of reference only and shall not affect
the construction of this Amendment.

 

12

 

7.4           Integration.  This
Amendment, the other agreements and documents executed and delivered pursuant
to this Amendment and the Credit Agreement constitute the entire agreement
among the parties hereto with respect to the subject matter hereof.

 

7.5           Binding Effect.  This Amendment shall
be binding upon and inure to the benefit of and be enforceable by the Borrower,
the Administrative Agent and the Lenders and their respective successors and
assigns.  Except as expressly set forth
to the contrary herein, this Agreement shall not be construed so as to confer
any right or benefit upon any Person other than the Borrower, the
Administrative Agent and the Lenders and their respective successors and
permitted assigns.

 

[signature page follows]

 

13

 

IN WITNESS WHEREOF, the
parties hereto have caused this Amendment to be duly executed and delivered by
their duly authorized officers as of the day and year first above written.

 

	
  DEUTSCHE BANK TRUST COMPANY

  
	
  AMERICAS,

  
	
  Individually as a Lender and as

  
	
  Administrative Agent

  
	
   

  
	
  By: 

  	
  /s/ Susan L. LeFevre

  
	
  Name: 

  	
  Susan L. LeFevre

  
	
  Director: 

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

 

 

 

 

	
  HUNTSMAN INTERNATIONAL

  
	
  HOLDINGS LLC

  
	
   

  
	
  By: 

  	
  /s/ Sean Douglas

  
	
  Name: 

  	
  Sean Douglas

  
	
  Director: 

  	
  Vice President

  

 

 

	
   

  	
   

  
	
   

  	
   

  
	
  HUNTSMAN INTERNATIONAL LLC

  
	
   

  	
   

  
	
  By: 

  	
  /s/ Sean Douglas

  
	
  Name: 

  	
  Sean Douglas

  
	
  Director: 

  	
  Vice President

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